ASX 200 stock Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) flew under the radar and snuck its way to a new 52-week high of $30.36 yesterday.
Shares in the New Zealand respiratory care business closed the session on Wednesday at $30.11 apiece, having soared over 38% in the past 12 months. At the time of writing, they have just slipped into the green, trading at $30.13 apiece.
This year, the spotlight has largely been on competing respiratory care player ResMed Inc (ASX: RMD), so Fisher Paykel shares haven't received the same attention.
But with such a strong rally and high expectations, investors might wonder if now is still a good time to buy this ASX 200 stock? Let's see what the experts think.
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ASX 200 stock at yearly highs
Fisher & Paykel Healthcare's shares nudged to their yearly highs yesterday after climbing more than 57% from $19.14 on 30 October.
The company has been fairly quiet lately, but its FY24 earnings report in May caught the market's attention. That's when Fisher & Paykel advised it achieved revenues of NZ$1.74 billion, up 10% from the previous year.
Net profits also saw a 6% rise, reaching NZ$264.4 million. CEO Lewis Gradon said the company had "returned to a trajectory of growth" following the update.
Broker Wilsons believes the respiratory care business is breathing easy and rated Fisher Paykel a buy in May.
According to my colleague Bron, the firm increased its price target on the stock by 28% to $30 — a target the company met this week.
Will Wilsons revise its view? Does it see Fisher Paykel as fairly valued now? Even overvalued?
After all, the stock is trading at a price-to-earnings ratio (P/E) of more than 140 times at the time of publication.
The consensus of analyst estimates rates the stock a hold with three buys, seven holds and six sell ratings making up this recommendation. Based on this spread, it appears the ratings are biased to the downside.
What about dividends?
Fisher & Paykel announced a dividend of 23.5 cents per share bringing the full-year dividend to 41.5 cents per share, up 2% from the previous year.
The ASX 200 stock has grown dividends from 9.5 cents per share in 2011 to this payment for FY24, equating to a 13% compounding growth rate.
This is well ahead of the inflation rate over that time. Talk about passive income.
Looking ahead, the company expects revenues for FY25 to be between NZ$1.9 billion and NZ$2 billion, with net profit of NZ$360 million at the upper end of guidance.
It would appear it can continue paying dividends from these chunky profits.
Foolish takeaway
Fisher & Paykel is one ASX 200 stock that's flown under the radar to smash its 52-week highs.
While the company's strong fundamentals and optimistic future guidance are notable, broker opinions are mixed. There isn't really any conviction on where the stock might head next.
Whether the stock is a buy or not depends on many factors — not just the recent price movement. As always, conduct your own due diligence before making any investment decisions.
