Carl Zeiss Meditec AG
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
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€39.00 | Qqpgl | Kslxvjxjj |
Carl Zeiss Posts Durable Growth Against Temporary Margin Contraction; Raising FVE to $76
Business Strategy and Outlook
Carl Zeiss Meditec, a subsidiary of optical conglomerate Zeiss Group, is a major supplier of surgical microscopes, diagnostic equipment, refractive lasers, and cataract equipment and lenses. The company has an especially strong position in microsurgery, where the market is effectively a duopoly between Zeiss and Danaher’s Leica Microsystems. Zeiss has an approximate 50% share of scopes for neurosurgery, spinal, plastic, and dental and a two thirds share in ophthalmic scopes for eye surgery. The company has been making a push to increase recurring revenue sales, which primarily include consumable treatment packs for laser vision correction and technical service on equipment.