Ansell Limited

Company Overview: Ansell Limited (ASX: ANN) manufactures protective industrial and medical gloves. The company has two operating business segments, namely (1) Industrial Global Business Unit (GBU) and (2) Healthcare Global Business Unit. It is a safety protection solutions company which develops, manufactures, sources, and distributes gloves and other personal protective equipment. ANN operates in North America, Latin America, EMEA and the Asia Pacific.

This report is the updated version of the report uploaded on 22 June 2022 at 3:35 PM GMT.

ANN Details

Snapshot of ANN’ 1HFY22 Results:

Historical Financial Trend: ANN illustrated sustainable historical growth, due to decent surgical performance and solid performance from Life Science. The segmental revenues have been growing since FY16. Industrial and Healthcare GBUs revenues grew at ~3.8% and 12.1% CAGR (FY16 – FY21), respectively.

Key Metrics: In 1HFY22, the company's cash cycle days stood at 112.5 days, lower than the industry median of 125.6 days, depicting decent financial condition to pay down outstanding debt.

Top 10 Shareholders: The top 10 shareholders together form around 37.47% of the total shareholdings, while the top 4 constitutes the maximum holding. Allan Gray Australia Pty Ltd and The Vanguard Group, Inc. are holding a maximum stake in the company at 10.04% and 5.6%, respectively, as also highlighted in the chart below: 

Risk Analysis:  

Outlook: ANN is focused on new product development to bolster its manufacturing capabilities. It is looking forward to strengthening its international footprint, boosting capacity and improving organic growth.  

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative) 

Stock Recommendation:

Markets are currently trading in a highly volatile zone due to specific macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

ANN Daily Technical Chart, Data Source: REFINITIV 

Technical Indicators Defined:-

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Disclaimer

Kalkine New Zealand Limited is authorised to provide general advice only. The information on this website does not take into account any of your investment objectives, financial situation or needs. Before you make a decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement from the product issuer. You should consider the appropriateness of advice taking into account your own objectives, financial situation and needs and seek independent financial advice before making any financial decisions.