1. Covid affect on numbers needs to be considered. 2. I have compared with Resmed who make breathing machines for sleep apnea. But CS more of a PPE manufacturer so caution warranted on comparison. 3. In short, CS makes an EBITA margin to sales of 38% versus Resmed at 31%. Very similar. CS gross profit to sales is 75% versus Resmed at 60%. As CS grows then reckon a lot will fall to bottom line as they get economies of scale with expenses. 4. Return on Assets is for CS at 40 % and compares with Resmed at 41%. Very similar. ( Have excluded goodwill from Resmed balance sheet for this calculation ) PRICING In my view CS has been priced very cheaply relative to Resmed. If CS lists at a Resmed type price then CS should trade at around $7. Very unlikely though. CONCLUSION CS is an excellent business being sold at a cheap price relative to Resmed. Given size differences between two businesses reckon CS worth around $5 to $6 .A premium of about 15 to 40% on IPO price of $4.41.
