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No. of Recommendations: 0
According to my calculations from the most recent 10Q, they pass all the numerical CK criteria, other than near misses on the flow ratio.

Gross Margin -- 69.3%
Net Margin -- 17.5%
Leveraged Flow -- 1.56
Unleveraged Flow -- 1.75
Cash/Debt -- 2.69

Of all the medical companies out there, this one has the highest consumer mindshare. The margins on products like band aids and Tylenol may not be the best, but they certainly ensure that the company will make money year in and year out. They also have a healthy annual investment in R&D.

The stock's performance over the years certainly speaks for itself.

Personally, I like the direction as well. EPS has grown by more than 14% over the last 5 years and is expected to grow just over 13% over the next 5.

Biggest shortcomings of this one is that they need to do some work on their flow ratio.


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