Current Analysis: Getinge

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Getinge AB, (GNGBY) headquartered in Gothenburg, Sweden, manufactures a wide range of products for use in acute care, surgical, and life sciences in the hospital, pharmaceutical, and research settings.

The company reports in three segments: acute care therapies (54% of revenue), surgical workflows (32%), and life sciences (14%). Products include ventilators, surgical stents, life support systems, sterilizers, surgical tables, and sterile transfer systems.

Getinge derives revenue from a broad geographic footprint, with the Americas accounting for 45% of sales (U.S. 33% of sales), Asia-Pacific 25%, and Europe, Middle East, and Africa the remaining 30%.

 It offers its products through a network of sales companies, as well as through agents and distributors in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Getinge AB (publ) was founded in 1904 and is headquartered in Gothenburg.

Three key data points gauge

Getinge AB or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

GNGBY Price

Over the past year, Getinge AB share price fell about 18.3% from $23.06 to $18.83 as of Wednesday’s market close.

If GNGBY trades in the range of $16.00 to $28.00 this next year, its recent $18.83 share price might rise to $20.30 by next year. Of course, GNGBYs price could drop about the same $1.47 estimated amount, or more.

My annual upside estimate of $1.47 however, about equal to the average annual price upside for GNGBY over the past five years.

GNGBY Dividend

Getinge has declared variable annual  dividends since February, 2011. GNGBY’s most recent A dividend of $0.42 was declared February 7th to shareholders of record April 23rd. The payout will be made May 14th.  There is still time to get this A dividend!

A forward looking $0.42 annual dividend yields 2.21% at Wednesday’s $18.83 share price.

GNGBY Returns

To put it all together, add Getinge’s estimated annual dividend of $0.42 to the estimated price upside of $1.47 to find a $1.89 gross gain.

At Wednesday’s $18.83 share price, a little under $1000 would buy 53 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.19 per share.

Subtracting that likely $0.19 brokerage cost from the $1.89 gross gain produces a net gain of $1.70 X 53 shares = $90.10 for a 9% estimated net gain.

You might choose to pounce on Getinge AB. It is a 120 year old dividend paying Gothenberg-based medical devices company.

Furthermore, the estimated $22.10 of annual dividend income from $1k invested is about 1.17 times greater than GNGBY’s’s recent $18.83 single share price.

The exact track of Getinge AB’s ongoing future price and dividend will be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


More By This Author:

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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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