Coloplast (CPSE:COLO B) Valuation After AGM Board Changes and Newly Approved Year-End Dividend

Coloplast (CPSE:COLO B) packed a lot into its December AGM, with a refreshed boardroom lineup and an approved year end dividend of DKK 18 per share, both giving investors fresh angles to reassess the stock.

See our latest analysis for Coloplast.

Those boardroom changes and the confirmed dividend land against a weaker backdrop, with a 1 year total shareholder return of roughly negative 31 percent and year to date share price return of about negative 28 percent, suggesting momentum has been fading despite solid underlying earnings growth.

If Coloplast’s latest moves have you rethinking the healthcare space, this could be a good moment to explore other healthcare stocks that might offer a different balance of growth and resilience.

With earnings still growing, the share down roughly a third over 12 months, and the price sitting more than 20 percent below analyst targets, is Coloplast now a mispriced compounder, or is the market already discounting future growth?

Most Popular Narrative: 18.4% Undervalued

Coloplast’s most followed narrative puts fair value well above the last close of DKK 561.8, framing today’s price as a sizable markdown on projected fundamentals.

The analysts have a consensus price target of DKK716.111 for Coloplast based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of DKK962.0, and the most bearish reporting a price target of just DKK585.0.

Read the complete narrative.

Curious how steady mid single digit revenue gains, rising margins, and a lower future earnings multiple can still justify upside from here? The narrative’s valuation hinges on a detailed earnings glide path and a disciplined discount rate that many would usually reserve for lower risk names. Want to see the exact profit trajectory and assumptions that have consensus calling Coloplast undervalued at these levels?

Result: Fair Value of $688.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upside case could falter if US pricing pressure from competitive bidding or renewed China related regulatory setbacks squeeze margins harder than expected.

Find out about the key risks to this Coloplast narrative.

Another Lens on Valuation

Multiples tell a different story. Coloplast trades on a P E of 34.8 times, versus 32.1 times for peers and 25.3 times for the wider European medical equipment group, and even above its own fair ratio of 32.9 times. Is this premium a quality badge, or is it downside risk waiting to bite?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Coloplast Narrative

If you see the story differently or want to dig into the numbers yourself, you can shape a custom Coloplast view in under three minutes: Do it your way.

A great starting point for your Coloplast research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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