The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is up 30% over the course of 2017, compared to a 0.5% return for the S&P/ASX 200 (Index: ^AJXO) (ASX: XJO).
Below is a summary of the New zealand-based sleep treatment and respiratory disease medical device company's market-crushing performance so far this year.
Powering Fisher & Paykel's growth has been investors' willingness to award it a higher earnings multiple as its growth remains solid due to growing medical awareness globally of sleep apnea as a medical condition. For the 12 months March June 31 2017 FPH posted a profit of NZ$169.2 million on revenues of NZ$894.4 million, which were up 18% and 10% respectively.
The group's gross margins also grew 2.05% over the financial year as both its product sales mix and manufacturing costs headed in the right direction, with many analysts expecting the margin growth trend to remain positive.
It's the potential for margin and top-line growth over the years ahead that is helping to propel the share price higher. Today it closed for $10.63 as the wider healthcare sector fell due to an appreciating Australian dollar. If FPH shares fall around 10% further they could start to look attractive to growth-oriented investors.
