DB:CI2

Stock Analysis Report

Executive Summary

Cantel Medical Corp. provides infection prevention and control products and services for the healthcare market.


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Cantel Medical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CI2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.6%

CI2

-1.1%

DE Medical Equipment

4.3%

DE Market


1 Year Return

-50.9%

CI2

8.8%

DE Medical Equipment

-14.2%

DE Market

Return vs Industry: CI2 underperformed the German Medical Equipment industry which returned 8.8% over the past year.

Return vs Market: CI2 underperformed the German Market which returned -14.2% over the past year.


Shareholder returns

CI2IndustryMarket
7 Day-2.6%-1.1%4.3%
30 Day-34.5%3.6%-9.0%
90 Day-49.8%-10.9%-21.6%
1 Year-50.7%-50.9%10.3%8.8%-11.7%-14.2%
3 Year-56.3%-56.6%101.8%97.0%-12.3%-19.6%
5 Year-34.0%-34.7%216.9%203.2%-14.0%-25.6%

Price Volatility Vs. Market

How volatile is Cantel Medical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Cantel Medical undervalued compared to its fair value and its price relative to the market?

69.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CI2 (€29.6) is trading above our estimate of fair value (€11.43)

Significantly Below Fair Value: CI2 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CI2 is poor value based on its PE Ratio (69.1x) compared to the Medical Equipment industry average (47.2x).

PE vs Market: CI2 is poor value based on its PE Ratio (69.1x) compared to the German market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: CI2 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: CI2 is good value based on its PB Ratio (2x) compared to the DE Medical Equipment industry average (4.8x).


Next Steps

Future Growth

How is Cantel Medical forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

63.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CI2's forecast earnings growth (63.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: CI2's earnings (63.9% per year) are forecast to grow faster than the German market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CI2's revenue (7.1% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: CI2's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CI2's Return on Equity is forecast to be low in 3 years time (14.9%).


Next Steps

Past Performance

How has Cantel Medical performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CI2 has a large one-off loss of $82.7M impacting its January 31 2020 financial results.

Growing Profit Margin: CI2's current net profit margins (2%) are lower than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: CI2's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: CI2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CI2 had negative earnings growth (-72.1%) over the past year, making it difficult to compare to the Medical Equipment industry average (17%).


Return on Equity

High ROE: CI2's Return on Equity (2.8%) is considered low.


Next Steps

Financial Health

How is Cantel Medical's financial position?


Financial Position Analysis

Short Term Liabilities: CI2's short term assets ($437.7M) exceed its short term liabilities ($204.0M).

Long Term Liabilities: CI2's short term assets ($437.7M) do not cover its long term liabilities ($963.6M).


Debt to Equity History and Analysis

Debt Level: CI2's debt to equity ratio (126.5%) is considered high.

Reducing Debt: CI2's debt to equity ratio has increased from 25.3% to 126.5% over the past 5 years.

Debt Coverage: CI2's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: CI2's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Cantel Medical's current dividend yield, its reliability and sustainability?

0.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CI2's dividend (0.62%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.63%).

High Dividend: CI2's dividend (0.62%) is low compared to the top 25% of dividend payers in the German market (4.61%).


Stability and Growth of Payments

Stable Dividend: CI2 is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: CI2 is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CI2 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CI2's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

George Fotiades (65yo)

1.08s

Tenure

US$2,855,047

Compensation

Mr. George L. Fotiades has been President and Chief Executive Officer at Cantel Medical Corp. since March 5, 2019 and serves as its Member of Office of the Chairman. He is an Operating Partner at FAPI focu ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD2.86M) is above average for companies of similar size in the German market ($USD1.55M).

Compensation vs Earnings: George's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Diker
Chairman & Member of Office of the Chairman34yrsUS$700.41k9.07% $118.0m
George Fotiades
President1.08yrsUS$2.86m0.29% $3.7m
Shaun Blakeman
Senior VP0.92yrUS$405.10kno data
Peter Clifford
Executive VP0.92yrUS$2.60m0.028% $362.3k
Seth Yellin
Executive VP & Chief Growth Officer0.17yrUS$1.56m0.049% $640.3k
Brian Capone
Senior VP3yrsno data0.013% $168.5k
Matthew Micowski
Vice President of Corporate FP&A and Investor Relationsno datano datano data
Jeffrey Mann
Senior VP0.67yrno data0.017% $222.3k
Milicent Brooks
Head of Corporate Communicationsno datano datano data
Jean Casner
Senior VP & Chief Human Resources Officer1.08yrsno data0.0044% $56.9k

0.9yrs

Average Tenure

48yo

Average Age

Experienced Management: CI2's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Charles Diker
Chairman & Member of Office of the Chairman34yrsUS$700.41k9.07% $118.0m
George Fotiades
President1.08yrsUS$2.86m0.29% $3.7m
Mark Diker
Director12.5yrsUS$115.03k1.14% $14.8m
Anthony Evnin
Independent Director3.25yrsUS$118.03k0.023% $295.6k
Alan Batkin
Lead Independent Director15.33yrsUS$159.53k0.13% $1.7m
Peter Pronovost
Independent Director2.42yrsUS$117.03k0.049% $633.4k
Ann Berman
Independent Director9.08yrsUS$155.53k0.017% $218.5k
Laura Forese
Independent Director5.08yrsUS$123.53k0.012% $153.4k
Karen Prange
Independent Director0.50yrno datano data
Ronnie Myers
Independent Director3.83yrsUS$122.53k0.0030% $38.7k

7.1yrs

Average Tenure

66yo

Average Age

Experienced Board: CI2's board of directors are considered experienced (7.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CI2 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cantel Medical Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cantel Medical Corp.
  • Ticker: CI2
  • Exchange: DB
  • Founded: 1963
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$1.406b
  • Listing Market Cap: US$1.300b
  • Shares outstanding: 41.71m
  • Website: https://www.cantelmedical.com

Number of Employees


Location

  • Cantel Medical Corp.
  • 150 Clove Road
  • 9th Floor
  • Little Falls
  • New Jersey
  • 7424
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMDNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1976
CI2DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1976

Biography

Cantel Medical Corp. provides infection prevention and control products and services for the healthcare market. The company’s Medical segment offers automated endoscope reprocessing systems; disinfectants and sterilants; detergents; leak testing and manual cleaning products; storage cabinets and transport systems; manual cleaning products; endoscope process tracking products; other consumables, accessories, and supplies for use in disinfect rigid endoscopes, flexible endoscopes, and other instrumentation; and technical maintenance services. Its Life Sciences segment provides dialysis water purification and bicarbonate mixing systems; hollow fiber filters, and other filtration and separation products; liquid disinfectants and cold sterilization products; dry fog products; room temperature sterilization equipment and services; and clean-room certification and decontamination services for the dialysis and other healthcare, research laboratories, food and beverage, and commercial industrial customers. The company’s Dental segment offers biological indicators, chemical integrators, sterilization pouches, towels, bibs, tray liners, sponges, nitrous oxide/oxygen sedation equipment and related single-use disposable nasal masks, face masks, and shields. It also provides hand sanitizers, germicidal wipes, disinfectants, surface disinfectants, waterline treatment products, amalgam separators, saliva ejectors, evacuator tips, plastic cups, prophy angles, and prophy paste. The company’s Dialysis segment provides hemodialysis concentrates and other ancillary supplies; medical device reprocessing systems; and sterilants and disinfectants. The company sells its products through its direct distribution network in the United States; and directly or under various third-party distribution agreements internationally. Cantel Medical Corp. was founded in 1963 and is headquartered in Little Falls, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 02:59
End of Day Share Price2020/04/07 00:00
Earnings2020/01/31
Annual Earnings2019/07/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.