Industrials
Spin-off from Enovis (formerly Colfax) provides investors with a classic spin-off situation with realistic growth potential and good FCF generation. Overweight to emerging markets vs. other US-based industrial companies. The product mix is 70% consumables & 30% equipment. Currently trades at 7.6x EV/EBITDA and 10.7% FCF Yield (FY22 guidance). 400 bps margin improvements (to 20%+) are well within reach in 3-5 years no matter the sales. Long-term sales growth to $3-3.5bn, the lower end is achievable from organic activities. Successfully navigating an inflationary environment.
Edition: 146
- 14 October, 2022