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CMD - Embedded Expectations Analysis - 2021 04 14

Cantel Medical Corp. (CMD:USA) currently trades below recent averages relative to UAFRS-based (Uniform) earnings, with a 22.0x Uniform P/E. At these levels, markets are pricing in bearish expectations for the firm, and management may have concerns about the pace of elective procedure recovery, Dental segment margins, and EPS and operating profit growth

Specifically, management may lack confidence in their ability to sustain EPS growth, generate operating profit growth, and maintain wallet share gains with the complete circle of protection portfolio. In addition, they may have concerns about the pace of recovery of elective procedures as well as their ability to maintain market outperformance in recurring revenue categories. Moreover, management may be exaggerating their cost discipline and pent-up demand for colonoscopies. Finally, they may lack confidence in their ability to sustain Dental segment organic growth and mitigate declines in Dental segment operating margins
Cantel Medical Corp.

Cantel Medical is a provider of infection prevention products and services in the healthcare market. The company has four segments: Medical, which designs, develops, manufactures, sells and installs products and services comprising a circle of infection prevention solutions; Life Sciences, which designs, develops, manufactures, sells, and installs water purification systems; Dental, which designs, manufactures, sells, supplies and distributes infection prevention healthcare products; and Dialysis, which designs, develops, manufactures, sells and services reprocessing systems and sterilants for dialyzers, as well as dialysate concentrates and supplies utilized for renal dialysis

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