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Lifco Q4 22 Earnings recap
First off, if you liked this post, I also posted a recap of some other holdings of mine on my substack. These are less detailed recaps though than this Lifco post.
$LIFCO is a Swedish Serial Acquirer in the Dental, Demolition tools and System Solutions space and has been a part of my portfolio for around a year. The company just reported Q4 results.
Net Sales grew 21%%, with 9.5% organic growth (keep in mind all values are in Swedish Crowns), with EBITA growing significantly faster at 30.5%% at a 22% margin. Operating Cash flow accelerated by 50% and is higher than EBITA at a 25% margin. Lifco is one of the few companies that always reports and highlights their Return on Capital Employed, both with and without factoring in Goodwill. ROCE continues to be strong at 22.6% and 135% excluding goodwill.

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The music continues to play in the Demolition and System Solutions segments for Lifco with strong 20-40% growth in sales and EBITA across the board. The Dental segment has been struggling a bit for a while with lower growth and margins. It is still a good business at an 18% EBITA margin, but definitely lagging behind. Maybe we could see a $DHR situation, where the underperforming business is spun-off? I find it highly unlikely due to Lifcos focus on being a long-term owner. I'm not sure if spin-offs would break that rule?
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Lifco offers a strong combination of organic and inorganic growth, seeing EBITA CAGR of 12% from acquisitions and 8% organically. At a 1.5x net debt/EBITDA the company also has a good balance sheet and can lever up if they find good deals exceeding FCF.

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To conclude: I continue to be a happy Lifco shareholder and should probably buy some shares again sometime...sadly I didn't add in the last months when prices were cheap.
Seeking Alpha
Danaher Spin-Off: What To Do With The New EAS Shares? (NYSE:DHR)
On Wednesday, Danaher announced plans to spin-off its Environmental & Applied Solutions Segment to create an independent company. Read why DHR stock is a buy.

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