Our Haven
22 May 2018
Profit Fall Cannot understand how the asset was valued previous to the write down. Without the write down everything looks dandy but then again do they have any other assets that need to be written down?
Our Haven
01 Feb 2018
Buy ratings Many buy ratings on the back of the good numbers, onwards and upwards!
oldjoe1
13 Dec 2017
UDG Healthcare On A Rising Trend...... UDG UDG Healthcare breaking through the long term resistance line going back to mid June this year. Nice little uptrend breaking out. 34.5% increase in EPS pencilled in for 2018 puts it on a P/E of just over 26 BUT a PEG of just 0.78. Looking for last top here first at 965p. 😀😎[link]
Our Haven
28 Nov 2017
Re: Year End Results Looks like market wants more but they look to be in a good way going forward, oh well.
Our Haven
28 Nov 2017
Year End Results Good growth in revenues and profits. Dividend increase welcome. All the acquired businesses seem to be performing well adding to the diversity and revenues growth. Hope the market is pleased and surely not expecting much more.
Our Haven
25 May 2017
Re: Results Did when they issued but normal service now restored
Yertiz
25 May 2017
Re: Results Well that didn't work, did it? 😎
Our Haven
25 May 2017
Re: Results Of course the next broker Jeffries downgraded the stock to hold to depress the gains.
Our Haven
23 May 2017
Results Some excellent numbers here. All time high today with potential for more upside? Broker certainly thinks so.
Our Haven
03 Jan 2017
Re: TGISVP - UDG Healthcare I see your logic Wexboy but this is pretty much the same logic you employed back in 2014, excluding currency movements and who is to say what the Trump effect will bring on that score. Best of luck for 2017.
Wexboy
03 Jan 2017
TGISVP - UDG Healthcare 2016 – The Great Irish Share Valuation Project (Part IV):Company: UDG Healthcare (UDG:LN)Last TGISVP Post: HereMarket Cap: GBP 1,653 MPrice: GBP 668pUgh, well that looks like a disastrous call!? ‘Course, there’s plenty of water under the bridge since (& fair value estimates obviously change), but I anticipated a substantial UDG price decline back in 2014…in reality, the shares almost doubled in the last few years! So, time to stick or twist? Trouble is, UDG Healthcare’s one of those suspect Irish stocks (which shall remain nameless here) which consistently report a significant gap between IFRS & adjusted earnings, and (perhaps more importantly) between adjusted operating profit & underlying Op FCF…so which figures exactly should one focus on when attempting a valuation?! Not to mention UDG’s colossal P/E multiple – 27.7 times continuing adjusted diluted EPS, no less – which doesn’t remotely reflect the pedestrian underlying earnings growth we’ve actually seen in recent years. But let’s back up here…And go back to 2015, which marked a decisive turning-point for UDG Healthcare – in Q3, the company announced the €0.4 billion sale of its supply chain services division, the original core business of United Drug (inc. its Irish pharmaceutical wholesaling business). [The CEO Liam Fitzgerald marked the occasion by also pre-announcing his own early retirement, after leading the company for 15 years, to be replaced by COO Brendan McAtamney]. Thereby unveiling a higher margin & (supposedly) faster growth company, focusing on: i) sales, marketing & healthcare communications services, and ii) pharmaceutical contract packaging & clinical trials materials – all intended to exploit the ongoing trend for healthcare companies to outsource non-core & specialist activities on an international basis.Which has delivered a (totally transformed) 11.1% adjusted operating margin on continuing ops. revenue of €934 million – unfortunately, we continue to see the same cash flow issue each year, on average a 20%+ shortfall in Op FCF (vs. adjusted operating profit) over 2015-16, implying an adjusted 8.6% margin is more appropriate in determining a suitable 0.875 Price/Sales multiple. [There will be a meaningful currency hit next year from a stronger dollar (UDG will report in dollars from now on), but I expect this to be broadly offset by underlying revenue growth & recent acquisitions]. Interest coverage remains within a reasonable range, based on €275 million of debt left outstanding…but we can treat the effective sale proceeds, i.e. €384 million of surplus cash, as incremental value. As for earnings, UDG’s two main divisions boast underlying 25%+ operating profit growth over the 2010-2015 period, but in reality their 2016 growth rate isn’t much better than the sub-9% growth in underlying adjusted diluted EPS over the last 3 years – bearing in mind UDG may still be in transition, plus the usual stability of its earnings, we’ll basically split the difference in growth trajectories & assign what seems like a pretty balanced 15.0 Price/Earnings multiple
EUR 0.2861 Adj Dil EPS * 15.0 P/E + (943 M Rev * 0.875 P/S + 384 M Cash) / 247 M Shares) / 2 * 0.8438 EUR/GBP = GBP 387pThe numbers have changed, but I still reach the same conclusion – UDG’s as wildly over-valued as ever. It might be foolish setting this price target, because the outcome’s probably binary… Once they’re comfortable with an investment thesis, plus a valuation multiple/range, investors are loathe to change their minds…so if necessary, companies often have the time/space to grow into any valuation eventually. Of course, if things start going horribly wrong, everybody & their mother suddenly wakes up & notices all kinds of issues – the earnings gap, mediocre earnings growth (vs. the P/E), poor cash flow, a looming debt burden, etc. Of course, the latter doesn’t apply here (for once), as UDG’s in a comfortable net cash position (though doubtless it’s
wineberry
21 Dec 2015
Going strong UDG is one of Momentum Investor's major recommendations for this month with the opportunity for serious growth in its Ashfield Division. Its poorest performing sector -the old wholesale distribution business - is being sold off for E407.5m subject to regulatory approval - completion anticipated next June. This will put the company into a net cash position with a E500m borrowing facility and well able to make further acquisitions.Right sector, right time but DYOR as always.
oldjoe1
24 Mar 2015
UDG Broker Views............. <b>Analysts Set Udg Healthcare PLC PT at $408.00 (LON:UDG)March 21st, 2015 Updated Tues 25 March/2015 - Filed Under - by Samantha Reynolds</b>Shares of Udg Healthcare PLC (LON:UDG) have earned a consensus recommendation of “Buy” from the seven brokerages that are covering the company, American Banking & Market News reports. Three analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is GBX 408 ($6.02).Udg Healthcare PLC (LON:UDG) opened at 465.70 on Wednesday. Udg Healthcare PLC has a 52-week low of GBX 315.20 and a 52-week high of GBX 479.03. The stock’s 50-day moving average is GBX 445. and its 200-day moving average is GBX 378.. The company’s market cap is £1.13 billion.UDG has been the subject of a number of recent research reports. Analysts at N+1 Singer reiterated a “hold” rating on shares of Udg Healthcare PLC in a research note on Friday, March 6th. Analysts at Berenberg Bank raised their price target on shares of Udg Healthcare PLC from GBX 425 ($6.27) to GBX 455 ($6.71) and gave the company a “hold” rating in a research note on Thursday, February 12th. Analysts at Jefferies Group LLC reiterated a “buy” rating and set a GBX 400 ($5.90) price target on shares of Udg Healthcare PLC in a research note on Tuesday, February 3rd. Finally, analysts at Investec raised their price target on shares of Udg Healthcare PLC from GBX 340 ($5.02) to GBX 387 ($5.71) and gave the company a “hold” rating in a research note on Tuesday, February 3rd.UDG Healthcare plc is an international provider of services to healthcare manufacturers and pharmaceutical retailers. It is engaged in supply chain, packaging, medical, regulatory, and sales and marketing services. The Company provides outsourced services. Aquilant is a provider of healthcare and scientific products and services, providing outsource sales, marketing, distribution and engineering for the medical and scientific sectors.
oldjoe1
03 Feb 2015
Re: UDG ..New All Time High.... UPDATE 2 – UDG Healthcare expects 5 – 8 pct rise in full – year EPS03 Feb 2015 - 11:11Says reported EPS to be higher if current exchange rates persistTo take 10 mln euro restructuring charge this yearSees 2 pct benefit to EPS from restructuringShares rise 5 pct to record high(Adds details, analyst and CFO comments; updates share movement)Roshni MenonFeb 3 (Reuters) – UDG Healthcare Plc said it expected a 5-8 percent rise in adjusted full-year earnings per share on a constant-currency basis, and that reported EPS could be higher than this if exchange rates remained around current levels.Shares in the FTSE-250 company, which provides outsourced sales and marketing, drug distribution and packaging services to healthcare companies, rose more than 5 percent to a record high of 417.5 pence in morning trade on Tuesday.Dublin-based UDG, formerly known as United Drug, reports results in euros but makes about 70 percent of its profit in pounds and dollars. ...The euro has fallen about 10 percent against the dollar and about 3 percent against the pound since the start of the company's 2015 financial year on Oct. 1."UDG has left enough room for upgrades through FY15 if positive momentum continues," Jefferies analysts said in a note.The company reported adjusted earnings of 28.77 euro cents per share in the year ended Sept. 30. Average exchange rates were 82 pence and $1.36 to the euro, UDG said. ..."At current exchange rates, we would expect a further 5-6 percent benefit on the bottom line, meaning guidance implies adjusted EPS growth of 10-13 percent for the full year," Berenberg analysts said in a note.Chief Financial Officer Alan Ralph told Reuters the company would take a charge of about 10 million euros this year, related mainly to the restructuring of its healthcare communications business and for changes in its United Drug supply chain unit.The restructuring is expected boost earnings per share by 2 percent in the current financial year and by an additional 1 to 2 percent the following year, Ralph added.UDG shares were up 4.1 percent at 413 pence at 1035 GMT.Shares of the company, which has a market value of about 970 million pounds ($1.46 billion), have gained more than 20 percent since the company reported full-year results in November. ($1 = 0.6641 pounds)(Reporting by Roshni Menon in Bengaluru; Editing by Gopakumar Warrier and Ted Kerr) (([email protected]; within UK +44 20 7542 1810, outside UK +91 80 6749 1136; Reuters Messaging: [email protected]
Keywords: UDG HEALTH OUTLOOK/
oldjoe1
03 Feb 2015
UDG ..New All Time High.... UDG UDG Healthcare, gaps up to a new all time high on excellent update this morning. Presently + 5.10% on the day.[link]
