FPH

The below gives a good sense of how elevated FPH sales from core products, and hospital products has been, as a function of COVID.

Incredible demand for what are excellent products. But if Omicron requires less ventilation/intervention, sales have a clear possibility of mean reverting.

Margins have been accreting higher for years, however, we’d suggest they largely topped out in the low 30’s, and are over-earning since then.

So the stock could face revenue and margin headwinds, in addition to earnings multiple compression. We are very interested, but still, the negative momentum is well worth keeping abreast of.

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