DB:T98

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Wright Medical Group

Executive Summary

Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells upper and lower extremities, and biologics products in the United States, Europe, the Middle East, Africa, Canada, Asia, Australia, and Latin America.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: T98 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

T98

-1.8%

DE Medical Equipment

2.6%

DE Market


1 Year Return

31.9%

T98

23.4%

DE Medical Equipment

8.1%

DE Market

Return vs Industry: T98 exceeded the German Medical Equipment industry which returned 23.4% over the past year.

Return vs Market: T98 exceeded the German Market which returned 8.1% over the past year.


Shareholder returns

T98IndustryMarket
7 Day0.5%-1.8%2.6%
30 Day-3.0%1.5%0.7%
90 Day-7.2%0.8%11.5%
1 Year31.9%31.9%25.1%23.4%10.5%8.1%
3 Year10.2%10.2%147.7%141.9%6.4%-2.1%
5 Year19.2%19.2%249.6%235.4%15.2%-0.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

46.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: T98 (€25.46) is trading below our estimate of fair value (€47.46)

Significantly Below Fair Value: T98 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: T98 is unprofitable, so we can't compare its PE Ratio to the DE Medical Equipment industry average.

PE vs Market: T98 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate T98's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: T98 is good value based on its PB Ratio (4.6x) compared to the DE Medical Equipment industry average (4.9x).


Next Steps

Future Growth

How is Wright Medical Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

90.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: T98 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: T98 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: T98's is expected to become profitable in the next 3 years.

Revenue vs Market: T98's revenue (13.1% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: T98's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: T98's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Wright Medical Group performed over the past 5 years?

21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: T98 is currently unprofitable.

Growing Profit Margin: T98 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: T98 is unprofitable, but has reduced losses over the past 5 years at a rate of 21.1% per year.

Accelerating Growth: Unable to compare T98's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: T98 is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (-1.6%).


Return on Equity

High ROE: T98 has a negative Return on Equity (-12.79%), as it is currently unprofitable.


Next Steps

Financial Health

How is Wright Medical Group's financial position?


Financial Position Analysis

Short Term Liabilities: T98's short term assets ($707.1M) do not cover its short term liabilities ($861.2M).

Long Term Liabilities: T98's short term assets ($707.1M) do not cover its long term liabilities ($861.4M).


Debt to Equity History and Analysis

Debt Level: T98's debt to equity ratio (139.7%) is considered high.

Reducing Debt: T98's debt to equity ratio has reduced from 259.2% to 139.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: T98 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if T98 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Wright Medical Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate T98's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate T98's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if T98's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if T98's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of T98'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?

7.0yrs

Average management tenure


CEO

Bob Palmisano (75 yo)

8.92yrs

Tenure

US$7,309,175

Compensation

Mr. Robert J. Palmisano, also known as Bob, served as Chairman of the Board of Directors at Avedro Inc. since May 14, 2014 until November 21, 2019. He has been the Chief Executive Officer, President and Ex ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD7.31M) is above average for companies of similar size in the German market ($USD2.53M).

Compensation vs Earnings: Bob's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Palmisano
President & CEO8.92yrsUS$7.31m0.64%
$ 21.1m
Lance Berry
Executive VP & Chief Financial and Operations Officer10.67yrsUS$2.39m0.086%
$ 2.8m
James Lightman
Senior VP8.67yrsUS$1.57m0.040%
$ 1.3m
Kevin Cordell
Executive VP & Chief Global Commercial Officer1.58yrsUS$2.11m0.047%
$ 1.5m
Barry Regan
Senior Vice President of Operations2.08yrsUS$1.33m0.0063%
$ 208.3k
Jonathan Porter
Senior VP & Chief Compliance Officer5.83yrsno data0.019%
$ 619.2k
Julie Dewey
Senior VP & Chief Communications Officer8.83yrsno data0.016%
$ 521.2k
Andrew Morton
Senior VP & Chief Human Resources Officer2.42yrsUS$1.89m0.0053%
$ 176.5k
Jennifer Walker
Senior Vice President of Process Improvement8.67yrsno data0.023%
$ 746.0k
Julie Andrews
Senior Vice President of Global Finance8.25yrsno data0.023%
$ 768.2k
Jason Asper
Senior VP & Chief Digital Officer1.25yrsUS$1.50m0.0041%
$ 135.8k
Kevin Smith
Senior Vice President of Quality & Regulatory2.42yrsno data0.0060%
$ 198.0k

7.0yrs

Average Tenure

53yo

Average Age

Experienced Management: T98's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Spencer Stiles
Executive Director0.33yrno datano data
Dean Bergy
Non-Executive Director0.33yrno datano data
David Stevens
Independent Chairman of the Board11.58yrsUS$365.22k0.074%
$ 2.5m
Gary Blackford
Independent Non-Executive Director12.58yrsUS$296.47k0.056%
$ 1.8m
Jeanne Blondia
Non-Executive Director0.33yrno datano data
David Furgason
Non-Executive Director0.33yrno datano data
William Berry
Non-Executive Director0.33yrno datano data

0.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: T98's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

Wright Medical Group N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wright Medical Group N.V.
  • Ticker: T98
  • Exchange: DB
  • Founded: 1999
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$3.903b
  • Listing Market Cap: US$3.311b
  • Shares outstanding: 129.27m
  • Website: https://www.wright.com

Number of Employees


Location

  • Wright Medical Group N.V.
  • Prins Bernhardplein 200
  • Amsterdam
  • Noord-Holland
  • 1097 JB
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WMGINasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDFeb 2011
T98DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2011
WMGI NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNFeb 2011

Biography

Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells upper and lower extremities, and biologics products in the United States, Europe, the Middle East, Africa, Can ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 21:58
End of Day Share Price2020/08/07 00:00
Earnings2020/06/28
Annual Earnings2019/12/29


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.