Munger Mode rating: 4 out of 5 — Buy. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have watched this company for two decades, and for two decades the answer to "is this a wonderful business?" has been yes while the answer to "is the price sensible?" has been no. Something interesting has happened in 2026: the business kept compounding — revenue up 19% in the June quarter, procedures up 16%, the installed base up 12% — while the stock fell roughly a third from its highs, closing near $350 against $520 territory late last year. The market, having paid 60-70 times forward earnings for years, now offers the same franchise at roughly 33-34 times forward earnings, the cheapest multiple in about a decade. The proximate causes of the derating — tariff costs of about one percentage point of revenue, softer elective-procedure demand tied to U.S.
Recent filings analysed: 8-K (2026-07-27), 10-Q (2026-07-21), 8-K (2026-07-16), 8-K (2026-05-28).
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