EBO some 10% off recent highs so piqued my interest if worthwhile having another go
Updated the old chart of price v eps which is below/ Still looks a bit pricey at the mo.
Over many years PE has averaged about 15. At the current price about 20 times F16 earnings
Will keep watching - the blue line might get closer to red line. If there is a sustained ( Brexit) driven market down EBO wont be immune. A PE of 12 gives a shareprice of about $10.
Last edited by winner69; 28-06-2016 at 01:48 PM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
EBO some 10% off recent highs so piqued my interest if worthwhile having another go
Updated the old chart of price v eps which is below/ Still looks a bit pricey at the mo.
Over many years PE has averaged about 15. At the current price about 20 times F16 earnings
Will keep watching - the blue line might get closer to red line. If there is a sustained ( Brexit) driven market down EBO wont be immune. A PE of 12 gives a shareprice of about $10.
"This Australian wholesaler of a ground-breaking Hepatitis C cure will benefit from the Turnbull government's $1-billion commitment to eradicating the disease over five years.
Ebos Group (ASX: EBO) operates a conglomerate business in Australia and New Zealand, where it provides healthcare and animal care products and services.
Its core business is in the distribution and supply of medical and pharmaceutical products in Australia and the Asia-Pacific region.
While the business was founded in 1922, its expansion by acquisition only began in the 1990s, and Ebos only reached critical mass in 2007 when it acquired Auckland-based pharmaceutical wholesaler PRNZ.
This was followed in 2013 with the purchase of Symbion, a transaction that elevated Ebos to become the second-largest Australian pharmaceutical wholesaler. This acquisition also accounts for its narrow moat rating.
"The Australian pharmaceutical wholesaler market comprises essentially three players, and is characterised by a high degree of regulation and price-setting by the government through licensing requirements and Medicare," says Chris Kallos, senior equity analyst, Morningstar.
The current excitement around Ebos stems from its involvement in distributing four new Hepatitis C treatments--Harvoni, Sovaldi, Daklinza and Ibayvr--which were listed on the Pharmaceutical Benefits Scheme in May.
"They represent medical breakthroughs in this condition, with up to 95 per cent of treated patients cured of Hepatitis C," says Kallos.
The average cost of treatment is estimated at around $100,000, with the estimated number of people affected in Australia pegged at around 230,000.
While this is an amazing medical breakthrough and excellent news for those suffering with the condition, Morningstar also believes the buzz is artificially inflating the Ebos share price.
"We consider the shares overvalued and believe this is in part due to the market's overestimation of the impact of a new generation of Hepatitis C drugs on the earnings profile of Ebos," Kallos says.
"Despite a current run rate at an industry level of around $200 million per month since listing in May 2016, according to our industry sources, we expect demand to subside over the medium term as patients are cured and the condition eradicated."
Long time NZ shareholders, including me, take a somewhat more positive view of EBO.
They are not alone.
I can't remember if at any time during the past 25 years, Ebos's share price has ever been below any brokers target price.!!..lol.
The simple math on this "...average cost of treatment is estimated at around $100,000, with the estimated number of people affected in Australia pegged at around 230,000" alone... even if the treatment cost is cut by 3/4's... that's a deep, rich vein.
Anyway it's not like Ebos is selling on crazy high multiples either.
The simple math on this "...average cost of treatment is estimated at around $100,000, with the estimated number of people affected in Australia pegged at around 230,000" alone... even if the treatment cost is cut by 3/4's... that's a deep, rich vein.
Anyway it's not like Ebos is selling on crazy high multiples either.
Big numbers, certainly. But does anyone have any idea of what EBO's profit margin is going to be?
Hello ,hello hello.?????
Just when you thought it was all quiet on The Ebos Western Front,they do it again.!!
Contol of 500 Aussie pharmacies.!!
Fantastic.
Going to be another full filled agm this year.!!
Bring it on.!!
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Originally Posted by winner69
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