The Female Health Company

While looking at stocks with high ROIC on google finance, this company came to my attention for its name. I started reading their reports and the company produces female condoms and is the only one with FDA approved in the world. I found the company interesting as it is small (igh ROIC, high margin, consistent growth, no debt and decent dividend yield. And it’s main customers are non-profit organizations that provide female condoms in third world countries where men don’t really carry condoms.

I thought the company could be a good investment as either 1) easily be bought by Church & Dwight at a premium or 2) can penentrate into retail market in developed world. But I asked my girlfriends on their thoughts on female condom, and their responses are pretty harsh/bad, so I guess #2 is out.

Have you guys looked into it? I don’t think not many analytst are following the company.

hey in case you’re interested in discussing specific stocks regularly, you should come on over to Corner of Berkshire and Fairfax. There is a small discussion on FHCO

You know, when I taught investments to undergrads, I often used a hypothetical condom company to explain how macro and ideosyncratic risks hit the income statement and the balance sheet and financial ratios. It was always a good choice, because inevitably something comes up that sounds really funny and keeps their attention on otherwise dry material.

So now FHCO can be a real-world choice for any up-and-coming examples.

Does anyone actually use female condoms?

Palantir - thanks. I found the discussion very useful and learned more about the company.

Ohai - I asked a few friends and they told me they will never use it…