Stock (Symbol) |
C. R. Bard (BCR) |
Stock Price |
$187 |
Sector |
| Healthcare |
Data is as of |
| December 21, 2015 |
Expected to Report |
| Jan 27 – Feb 1 |
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 |
 Medical device maker C.R. Bard (BCR) 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.
BCR is a safe stock with a high degree of certainty. It gets a top safety rating of 1 from Value Line and has increased its dividend in each of the last 43 years. Since 1999 it’s only had one down year in profits (2013). With an expected profit growth rate of slightly less than 11% a year in addition to a dividend of a little less than 1%, the stock could produce a 11% total annual return. But at 19 times 2016 earnings, BCR fairly valued, especially considering 1/3 of its sales are International and the strong dollar is hampering profits. |
One Year Chart |
BCR br oke out earlier this year after it beat the street estimate of $2.18 by 9 cents. But overall profit growth was just 10%, and revenue rose just 4%, so the stock settled down. Last qtr BCR had 6% profit growth on 4% sales growth and of course this was negatively affected by the strong dollar, which also looks to hamper profit growth going forward. Profit growth the next 3 qtrs is expected to average just 7%, but BCR has beaten the street the last 4 qtrs. |
Fair Value |
 This stock had a P/E of around 21-22 around ten years ago, then the P/E fell into the high teens after the 2008 market crash. Now the stock sells for 21x earnings which is rich considering the strong dollar is hampering profit growth. My 20016 Fair Value is $188 which is around where the stock is now. |
Bottom Line |
 The ten-year shows profits rose in every year but one, and in that year (2013) the company had many charges which affected EPS even though net income was still higher than 2012’s. In 2012 the company outlined a multi-year investment plan to invigorate growth in emerging markets. Today, a third of C.R. Bard sales come from abroad.
C.R. Bard has a top rating for safety, has increased its dividend for 43 consecutive years, and management bought back around 8% of shares in 2014. The company is growing well, but has to fight the strong dollar. Also, at 19x earnings the stock’s not on sale. Still, BCR should continue to climb in 2016 and is a solid stock for conservative accounts. |
Power Rankings |
Growth Stock Portfolio
N/AAggressive Growth Portfolio N/AConservative Stock Portfolio 29 of 32 |
