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[Idea note] - Coloplast: High-Quality Turnaround Opportunity at Attractive Valuation

Carnegie All Cap believes Coloplast presents a compelling turnaround opportunity.

Author

Kristoffer Lindström
June 24, 2025

Idea note

This is an Idea note; It’s a collection of early signals – companies mentioned in fund letters, blogs, or by sharp investors online. Not a full pitch, just a starting point for ideas that might be worth a more in-depth look.

Danish Medical Device Leader Trading at Multi-Year Low Despite Dominant Market Position and Structural Growth Tailwinds

Idea source: Carnegie All Cap

Price 610 DKK (2025-06-24)

Coloplast A/S is a Danish medical device company specializing in intimate healthcare products including ostomy care, continence care, wound care, and interventional urology, serving over 2 million patients globally with dominant market positions in niche chronic care segments.

Ticker: COLOB | Timeframe: 12-18 months | 🔁 Turnaround

Carnegie All Cap believes Coloplast presents a compelling turnaround opportunity after a challenging period marked by questioned acquisitions, product recall issues, and recent CEO departure. Carnegie All Cap observes that despite these temporary setbacks, the company maintains exceptional profitability with 27% operating margins and dominant positions in structurally growing markets driven by aging demographics. Carnegie All Cap expects that with proper leadership focus and execution, Coloplast will return to its historical strong performance, making the current 34% decline from peak an attractive entry point.

  • Setup: Market leader with 80%+ share in laryngotomy and strong positions across chronic care segments trading near 52-week lows due to execution issues

  • Latest Development: CEO Kristian Villumsen departed May 2025, replaced by experienced former CEO Lars Rasmussen as interim leader during strategic transition

  • Reason for Mispricing: Temporary quality issues, acquisition concerns, and leadership uncertainty overshadow strong fundamentals and market position.

  • Timing: New leadership provides a catalyst for a strategic reset while maintaining operational continuity.

  • Value Catalysts: Resolution of Interventional Urology issues, strategic clarity at September CMD, debt reduction, margin recovery.

  • Valuation: Trading at 21x EV/EBIT at historical lows, 34% below 52-week high despite maintaining industry-leading margins.

  • Risks: Continued execution challenges, reimbursement pressures, high debt levels from acquisitions limiting financial flexibility.

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