Ansell: A quality business in challenging times

One of the stocks selected for our inaugural NAPS Australia and New Zealand portfolio was Ansell (ASX:ANN). Since the start of the year it has risen 1.7% which compares with 6.5% for the Samp;P/ASX 200 index.
To recap, Ansell is classified as a Health Care stock based on the fact that the majority (61%) of its revenue is derived from the sale of personal protective equipment (PPE) into the health care sector. The balance comes from the sale of safety equipment, gloves and other protective wear, into industrial applications.

Ansell’s revenue and profits surged in 2021 as demand for personal protective equipment (PPE) surged, but retracted in 2022 as the COVID emergency began to abate.
Ansell has long been considered a well run business that operates in a challenging environment. This is reflected in its Quality score of 93. The Health Trend, Bankruptcy Risk and Earnings Manipulation Risk are all key contributors to the Quality score, and as you can see they are all in the green.

The quality of the franchise is strong as demonstrated by the profitability ratios, margins and cash...