Disclaimer: All the information provided here is not financial advice. The information presented is my opinion and may be completely inaccurate.
Blackmores produces vitamins and supplements. You may have seen their range of products in your local Woolies.
Key financial ratios:
- Return on equity (2010): greater than 30%
- Debt to equity (2010): less than 70%
- Payout ratio: approximately 76%
Qualities that attract me:
- Great marketing
- Constantly and rapidly evolving product line
- Organically investing for long term growth E.g. Warriewood facilities.
- Expanding (successfully) into Asia
- A long history of solid financial metrics. In 2010, debt was reduced.
Things that concern me:
- Lack of a competitive moat (apart from a strong brand)
- Scope to continue adding new products has limits
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