Dechra Pharmaceuticals Share Discussion Threads

[spyder] 21/2/2022 07:49

Outstanding results this morning from Dechra, this is a quality play in a desirable sector.

[spyder] 17/2/2022 07:46

I have been following Dechra for years, but only just bought some shares.
FWIW, then look oversold to me, the pandemic increase in pet numbers (both in the UK and US) together with increased veterinary activity is not ‘over’, it will be sustained.
The only thing that IS over is the onetime jump in the growth rate, I expect now to see a resumption of more normal rates of growth, albeit from a higher base.
The share are effectively below pre-pandemic multiples and that makes no sense to me.

[roguetraderuk] 16/2/2022 16:26

done the work on this over the weekend and is on the radar. only reason i didnt trigger an initial stake is proximity to results. nowadays mkt seems to always find a reason to dislike results for the high multiple names even if buying ahead of results suggests nothing to fear. historically its back to favourable valuation levels even though of course it can go lower. think much of the covid boost is now out of the shares but need to hear what the management has to say about how that has affected the growth trajectory.

[andyadvfn1] 16/2/2022 16:12

Yeah, hope things improve soon, it's been miserable share price performance since promotion to the FTSE100.

[spyder] 16/2/2022 09:12

Anyone following this share? Results on Monday.

[lindowcross] 13/1/2022 10:34

I'm not a follower or believer in chart analysis but it's not hard to see from the graph that since 2018 there has been 6-7 "dips" in the share price. Despite this the overall trajectory remains upward. Best to buy on the dips with a successful company like this.

[essential] 10/1/2022 16:13

You would think healthcare shares would be defensive right now

[andyadvfn1] 10/1/2022 14:31

I Assume funds rotation out of growth and the rate rise expect ions?

[nerja] 10/1/2022 13:52

It’s dropping like a stone and the support at 4000 isn’t very much sadly

[martinsmithsheldon] 10/1/2022 13:36

Something going on here, anyone any idea?

[nerja] 06/1/2022 14:16

At this rare we will be at 4000 sometime next week!

[steeplejack] 25/11/2021 08:34

Come 1 Dec review,Dechra might well find itself in the FTSE 100.

[andyadvfn1] 11/11/2021 13:07

Nice move up today, any ideas as to the reason behind it?

[whatja] 26/10/2021 13:41

I suspect animal medicine as a high value perishable is shipped by air reducing the impact of the shipping issues.
My vet seems to have no supply issues.

[lindowcross] 22/10/2021 09:59

Dechra (credit Emma Powell in The Times)

Dechra can’t afford to show any signs of weakness. A boom in pet ownership and the amount that people are willing to fork out for their animals has supercharged revenue and profit growth for the pet pharmaceuticals specialist. That’s left the shares with an eye-watering forward price-earnings ratio of 44 — a valuation that’s near a record high.

It’s only natural, then, that investors applauded the company’s latest reassurance that market demand, particularly in the United States, had remained strong since the end of June.

In an animal health market dominated by large players focused on mass-market products such as flea and worming treatments, Dechra has carved out a niche, prescription-only drugs business primarily for dogs, cats and horses. It has three avenues for profit growth: new product development; bolt-on acquisitions; and expansion into markets where emerging wealth is willing to spend more on pets.


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Lockdown switched profit growth into a higher gear — “companion animal” products, which account for just under three quarters of group turnover, boosted revenue by about a quarter last year — but further growth faces a challenge: the (quite likely) chance that the attractions of pet ownership during lockdown subsides. Zoetis, the market leader in America, has already flagged a slowdown in the rate of demand during the second half of the year.

R&D spending is typically steady as a proportion of revenue at about 6.5 per cent. But selling and general operating expenses should return to 60 per cent to 70 per cent of pre-pandemic levels as sales reps get back on the road. Liberum forecasts about 80 basis points of margin erosion this year, against an underlying operating margin of 26.7 per cent last year. There’s also the threat of supply chain disruption. Products in short supply include antibiotics, primarily sourced from China and used in the manufacture of treatments. Dechra is holding more inventory in an attempt to stave off the threat of running out of stock.

However, manifold risks aren’t reflected in the shares, which remain priced for perfection.

ADVICE Avoid

WHY Shares exposed to a sell-off if there are any hints of weakness in earnings. Ends

(naturally, I don't agree! and am holding)

..............

[steeplejack] 21/10/2021 08:25

Trading in the first quarter of the financial year was strong, especially in the US as we continued to outperform the sector and benefit from strong growth in the Companion Animal market. Although trading is currently encouraging, it remains too early in the year to extrapolate this performance across the full year.No other new trading updates are to be made at the AGM today.Dechra will announce its interim results for the six month period to 31 December 2021 on 21 February 2022.21 Oct 2021

[deanroberthunt] 28/9/2021 07:35

The company on Monday said underlying operating profit increased by 29.2% to £162.2m on the back of revenue growth of 21.0% to £608.0m. The full-year dividend rose 18.1% to 40.50p a share.

On a pre-tax basis profit for the year through to June 30 almost doubled to £74m, up from £40.9m.

“We have benefited from above average market growth in the majority of our key companion animal product markets. The reasons for this market growth are not yet fully defined,” said chief executive Ian Page.

[lindowcross] 17/9/2021 07:34

There could be a dip, sure. But as it's a successful company working in a growing world-wide market, consolidating, innovating and generally doing the right stuff, it's likely to be up to £60 or more in 2-3 years' time notwithstanding any dip along the way. That's why I ain't selling.

[montyhedge] 13/9/2021 15:00

Also when a director sells, when a company has a crazy valuation, that's like a bell ringing moment to follow him.

[montyhedge] 13/9/2021 14:56

Midas from Sunday Newspaper said sell, must admit this valuation is crazy.

[davr0s] 07/9/2021 18:53

All this recent talk of going across to Hikma whichIs flat on 18 month horizon - just dead money still

[davr0s] 07/9/2021 18:42

Thought you had sold several months ago?

[montyhedge] 07/9/2021 09:54

Market giving Dechra benefit of the doubt with a p.e still around 44, can't afford any more slip ups on that rating.

[steeplejack] 06/9/2021 08:41

I don't think these figures are disappointing.Its an opportunity for the marketmakers to shake out some loose stock.They are well aware that a stock (that has had such a prolonged run) will be subject to top slicing since portfolio weightings have nudged higher due to the stocks outperformance.There's always a tendency to interpret the markets share price moves as justified and correct.This is patently wrong,certainly on the day of results.While noting a high forward multiple,i'm much more cognisant of the PEG ratio.As Warren Buffet said,he really wouldn't mind if they closed stockmarket quotes for a couple of years,he's in for the long term.An attitude that reflects his personal wealth perhaps but the message is instructive.

[lindowcross] 06/9/2021 07:51

Yep, there are plenty of dips on the 10 year graph, but the direction of travel is clear and I see no reason why normal service will not soon be resumed.