Aspen (APN) is a global pharmaceutical company that operates in 150 countries, offering a wide range of specialty and branded products designed to address various acute and chronic medical conditions. The company has 25 manufacturing facilities across 15 sites, with its primary product categories including thrombosis, anesthetics, cytotoxics, and nutritionals. Pharmaceuticals, as a sector, are generally considered defensive because they tend to perform well even during economic downturns, as people need to continue purchasing medications for chronic conditions.
For Aspen, the strength of the South African rand is a significant factor, given the company's international operations. In the long term, Aspen anticipates that its business interests in China could surpass those in South Africa. Currently, the company’s operations are heavily focused on emerging markets, which are expected to drive future growth.
In its results for the year ended 30th June 2024, Aspen reported a 10% increase in revenue, though headline earnings per share (HEPS) were down by 3%. The company highlighted its achievement of the highest-ever 6-month normalized EBITDA in the second half of 2024, which grew by 17% over the first half. This performance marks a significant milestone in Aspen’s pursuit of sustainable growth. The company also noted robust cash generation from earnings, evidenced by a cash conversion ratio exceeding 100%, supported by a sustainably lower working capital investment.
Aspen’s price-to-earnings (P:E) ratio of 15.19 is not considered high for a solid, international, blue-chip, rand-hedge stock like this. Additionally, the company's CEO, Stephen Saad, and his deputy, Gus Attridge, have demonstrated confidence in Aspen's future by purchasing about R110 million worth of shares at lower levels, suggesting they believe the shares were undervalued.
Aspen's share price broke above its long-term downward trendline on 1st September 2022, at around R156 per share. After moving sideways, the share price has since increased to R206, indicating a positive trend. Given these factors, Aspen appears to be a good investment at current levels.
For Aspen, the strength of the South African rand is a significant factor, given the company's international operations. In the long term, Aspen anticipates that its business interests in China could surpass those in South Africa. Currently, the company’s operations are heavily focused on emerging markets, which are expected to drive future growth.
In its results for the year ended 30th June 2024, Aspen reported a 10% increase in revenue, though headline earnings per share (HEPS) were down by 3%. The company highlighted its achievement of the highest-ever 6-month normalized EBITDA in the second half of 2024, which grew by 17% over the first half. This performance marks a significant milestone in Aspen’s pursuit of sustainable growth. The company also noted robust cash generation from earnings, evidenced by a cash conversion ratio exceeding 100%, supported by a sustainably lower working capital investment.
Aspen’s price-to-earnings (P:E) ratio of 15.19 is not considered high for a solid, international, blue-chip, rand-hedge stock like this. Additionally, the company's CEO, Stephen Saad, and his deputy, Gus Attridge, have demonstrated confidence in Aspen's future by purchasing about R110 million worth of shares at lower levels, suggesting they believe the shares were undervalued.
Aspen's share price broke above its long-term downward trendline on 1st September 2022, at around R156 per share. After moving sideways, the share price has since increased to R206, indicating a positive trend. Given these factors, Aspen appears to be a good investment at current levels.
Feragatname
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Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.