Coloplast A/S engages in the development and sale of intimate healthcare products and services in Denmark, the United States, the United Kingdom, France, and internationally. The company operates through Chronic Care, Continence Care, Voice and Respiratory Care, Interventional Urology, and Advanced Wound Care segments. It provides ostomy care products, continence care products, catheters, and wound care products. Coloplast A/S was founded in 1954 and is headquartered in Humlebæk, Denmark. The company has a long history and track record, but does not have a lot of analyst coverage (it trades OTC). It is trading at a relatively low valuation vs historical, and reporting a bit of a messy set of numbers due to some changes in its product portfolio (divestiture and acquisitions).

But underneath the messiness, the growth and profitability seems solid. Organic growth across their business lines + sustained profit margins. I think this stock will go higher as the underlying organic growth show through. The only change that is negative is they took on a lot of debt to acquire a new generation of skin care technology while ditching their very old line that is being commoditized. Was it too much? Possibly. But their coverage ratios seem okay, their dividend seems safe (cross my fingers)and as an equity holder, I don't mind levering the balance sheet to juice ROE if its manageable.

Valuation seems high with a PE of 32 or so. But that is about as low as the PE has been in the last 5 years. I haven't mentally gotten clarity on why this feels okay to me. Usually a PE like that would seem too high. But its a solid business, with high single digit long term growth in front of it (7-8%), not exposed to volatility like many businesses, and capable of getting more margin out of the business than it does today. There is a CEO transition happening at the moment and so that creates some uncertainty and potential disruption to strategy. But I am betting once that gets settled, it creates only valuation upside.

I have started to accumulate this stock at <$9/share under the CLPBY ADR.