Stock (Symbol) |
C. R. Bard (BCR) |
Stock Price |
$222 |
Sector |
| Healthcare |
Data is as of |
| June 7, 2016 |
Expected to Report |
| Jul 21 – Jul 25 |
Company Description |
 C. R. Bard, Inc. (Bard) and its subsidiaries are engaged in the design, manufacture, packaging, distribution and sale of medical, surgical, diagnostic and patient care devices. . The Company reports its sales in four major product group categories: vascular, urology, oncology and surgical specialty. The Company’s vascular products cover a range of minimally invasive devices for the treatment of peripheral vascular disease and heart arrhythmias. Its urology products include basic urology drainage products, fecal and urinary continence products, urological specialty products and Targeted Temperature Management products. Its oncology products cover a range of devices used in the treatment and management of various cancers and other diseases and disorders. Its surgical specialty products include implanted patches and fixation devices for hernia and other soft tissue repairs, in addition to hemostats and surgical sealants. Source: Thomson Financial |
Sharek’s Take |
 Last qtr I said medical device maker C.R. Bard (BCR) “looks to return to double-digit profit growth in 2016”. Well here we are one qtr into the year and BCR is already back to double-digit growth. Last qtr the company delivered 11% profit growth on a 7% increase in sales, which were up 9% on a constant currency basis. Investors loved the results and pushed the stock well into new-high territory. C.R. Bard was founded in 1907 and its first product relieved urinary discomfort, which lead to the development of the first balloon catheter. In 1961 the company was focused on urology and then began to move into the cardiology, radiology and anesthesiology markets. Bard makes it a habit of acquiring little companies with product ideas, then bringing them in and doing line extensions. In the 2000s the company became a big player in advanced stents, as drug coated stents took the market by storm. Today Bard is still focused on advancing catheters, as well as stents. This is one of the safest stocks around with a high degree of certainty, and when it delivers double-digit profit growth investors take notice. Management has increased the dividend in since 1972 and buys back stock. Since 1999 the company has only had one down year in profits (2013). In 2012 C.R. Bard outlined a multi-year investment plan to invigorate growth in emerging markets and now a third of C.R. Bard sales come from abroad. This stock is very timely, with 11% profit growth expected the next 4 qtrs (avg), but is no longer undervalued as investors have taken notice. |
One Year Chart |
 This stock has done incredibly well since the January/February stock market selloff, and even surpassed its old high set back in the Summer of 2015. Not many stocks have accomplished that feat in this market. Last qtr the company posted a profit of $2.34 and beat the street by 17 cents. Analysts had expected 3% profit growth and got 11% instead — surprise! Profit estimates increased after last qtr’s solid results, and now 9%, 15%, 12% and 9% profit growth is expected the next 4 qtrs. |
Fair Value |
 My Fair Value on BCR is 21x earnings, which is almost double its long-term growth rate. The stock is currently fairly valued, but estimates could continue to rise some as the U.S. dollar has stabilized recently and that could equate to multinationals delivering profits above expectations later this year. |
Bottom Line |
 C.R. Bard has been making medical devices for more than 100 years, gets a top safety rating and is back to delivering double-digit profit growth. BCR’s dividend has increased for more than 40 years and management also buys back stock. The only negatives are the stock’s not undervalued and the yield is just 0.5%. Last qtr my calculations showed 20% upside to my 2017 Fair Value and now that’s dwindled to 7%. BCR ranks 24th of 37 stocks in the Conservative Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
N/AAggressive Growth Portfolio N/AConservative Stock Portfolio 24 of 37 |
