1Semana·

Ottobock SE

Dear community, with my first post, I would like to introduce you to a company that most people have never had any contact with.

Ottobock is often referred to as a prosthesis manufacturer (which is also correct in a roundabout way). However, Ottobock is actually a manufacturer of prosthetic fittings.

This means that orthopaedic technology workshops buy, for example, a knee joint, prosthetic foot or adapter from Ottobock.

As these parts cost a lot to develop, the prices charged are high. These have to be paid for by the health insurance companies. This means that there is and will always be a liquid market in the domestic market.

Ottobock is the main partner of the Paralympics and is also active in developing countries.

The main customers mostly come from accidents (only in Germany approx. 60,000 new amputees per year).

Ottobock regularly sets new standards in orthopaedic technology and thus remains the market leader not only in Germany.

Ottobock has been able to greatly expand its product range in recent years through regular takeovers of smaller companies.

09.10

OTT

OTTOBOCK SE C SHS

Comprado a 69,92 €

5 Comentarios

Patrick Schäfer@Hotte1909

1Semana

I still think they are valued far too highly. The figures aren't that great either. In addition, the family has a huge mountain of debt, although 700 million has now been repaid through the IPO, but just over 1 billion is still outstanding. The Näder family wants to raise the money by selling shares. So another 14 million shares currently held by the family will come onto the market.

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ytkhunter@ytkhunter

1Semana

@Hotte1909
The products are constantly becoming more expensive due to further developments, which should soon balance out the valuation again. Like every company on the stock market, they will certainly try to satisfy investors. They also benefit significantly from wars. In which they can help on the ground almost simultaneously with the Red Cross through special programs. As prosthesis wearers are very brand loyal, it is almost impossible for the technicians to switch to other brands.

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Patrick Schäfer@Hotte1909

1Semana

@ytkhunter I'm not talking about the margin here... the war in Ukraine has been going on for a few years now. There was also a slight increase in sales. But that should already be priced into the price or the valuation.
Just to be clear, I don't think Ottobock is a bad company. I just think it is valued too high. I think it's fairly valued at around €48-50 and we're currently a long way off that. Then there's the matter of the debt. What will happen to the share price if the Näder family throws another 14 million shares onto the open market to pay off their private debts?

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Dividendenopi👴@Dividendenopi

1Semana

I know the products from my professional experience. There's not much to complain about. Expensive, but good. The "have to" with the health insurance companies can change quickly, it wouldn't be the first cut in the reimbursement rates for medical aids. I don't like the low free float, which will soon change when Mr. Näder cashes in 😇 and the KGaA isn't my thing either. Be that as it may, as @Hotte1909 has already noted, the valuation is clearly too high. They have to deliver first and as there isn't much money left for takeovers or other innovations, I don't see much potential for growth. We'll talk again in 6 months when the paper has come down to earth.

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Max@Divident_e

1Semana

Christian Röhl already reported on this some time ago

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