Market Cap
UK£265.7m
Last Updated
2020/03/31 20:44 UTC
Data Sources
Company Financials +
Executive Summary
Devro plc, together with its subsidiaries, manufactures and supplies collagen casings in the Americas, Europe, and the Asia-Pacific.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential average dividend payer.
Similar Companies
Share Price & News
How has Devro's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DVO has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
21.5%
DVO
11.7%
GB Food
3.9%
GB Market
1 Year Return
-18.3%
DVO
-20.7%
GB Food
-22.4%
GB Market
Return vs Industry: DVO exceeded the UK Food industry which returned -23.5% over the past year.
Return vs Market: DVO exceeded the UK Market which returned -23% over the past year.
Shareholder returns
| DVO | Industry | Market | |
|---|---|---|---|
| 7 Day | 21.5% | 11.7% | 3.9% |
| 30 Day | 6.1% | -15.3% | -16.1% |
| 90 Day | -10.8% | -25.6% | -26.1% |
| 1 Year | -13.0%-18.3% | -18.9%-20.7% | -18.2%-22.4% |
| 3 Year | 3.8%-10.7% | -19.1%-24.3% | -11.7%-23.1% |
| 5 Year | -30.9%-44.8% | -21.2%-29.2% | 1.9%-21.5% |
Price Volatility Vs. Market
How volatile is Devro's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Do These 3 Checks Before Buying Devro plc (LON:DVO) For Its Upcoming Dividend1 month ago | Simply Wall St
Does Devro (LON:DVO) Have A Healthy Balance Sheet?2 months ago | Simply Wall St
Are Devro plc’s (LON:DVO) Returns On Investment Worth Your While?Valuation
Is Devro undervalued compared to its fair value and its price relative to the market?
44.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DVO (£1.59) is trading below our estimate of fair value (£2.87)
Significantly Below Fair Value: DVO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DVO is unprofitable, so we can't compare its PE Ratio to the Food industry average.
PE vs Market: DVO is unprofitable, so we can't compare its PE Ratio to the UK market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate DVO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: DVO is overvalued based on its PB Ratio (3.5x) compared to the GB Food industry average (0.8x).
Next Steps
Future Growth
How is Devro forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
59.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DVO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).
Earnings vs Market: DVO is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: DVO's is expected to become profitable in the next 3 years.
Revenue vs Market: DVO's revenue (2% per year) is forecast to grow slower than the UK market (2.3% per year).
High Growth Revenue: DVO's revenue (2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DVO's Return on Equity is forecast to be high in 3 years time (30.2%)
Next Steps
Past Performance
How has Devro performed over the past 5 years?
-20.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DVO is currently unprofitable.
Growing Profit Margin: DVO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: DVO is unprofitable, and losses have increased over the past 5 years at a rate of -20% per year.
Accelerating Growth: Unable to compare DVO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: DVO is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (5.4%).
Return on Equity
High ROE: DVO has a negative Return on Equity (-55.27%), as it is currently unprofitable.
Next Steps
Financial Health
How is Devro's financial position?
Financial Position Analysis
Short Term Liabilities: DVO's short term assets (£93.1M) exceed its short term liabilities (£38.4M).
Long Term Liabilities: DVO's short term assets (£93.1M) do not cover its long term liabilities (£233.5M).
Debt to Equity History and Analysis
Debt Level: DVO's debt to equity ratio (198.3%) is considered high.
Reducing Debt: DVO's debt to equity ratio has increased from 60.7% to 198.3% over the past 5 years.
Balance Sheet
Inventory Level: DVO has a high level of physical assets or inventory.
Debt Coverage by Assets: DVO's debt is not covered by short term assets (assets are 0.6x debt).
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: DVO has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: DVO has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is Devro's current dividend yield, its reliability and sustainability?
5.65%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DVO's dividend (5.65%) is higher than the bottom 25% of dividend payers in the UK market (2.69%).
High Dividend: DVO's dividend (5.65%) is low compared to the top 25% of dividend payers in the UK market (7.48%).
Stability and Growth of Payments
Stable Dividend: DVO's dividends per share have been stable in the past 10 years.
Growing Dividend: DVO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: DVO is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: DVO's dividends in 3 years are forecast to be covered by earnings (53.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average management tenure
CEO
Rutger Helbing
2s
Tenure
UK£504,000
Compensation
Mr. Rutger A. Helbing has been the Chief Executive Officer of Devro plc since February 28, 2018 and as its Executive Director since April 4, 2016. Mr. Helbing served as Group Finance Director of Devro plc ...
CEO Compensation Analysis
Compensation vs Market: Rutger's total compensation ($USD625.24K) is below average for companies of similar size in the UK market ($USD1.03M).
Compensation vs Earnings: Rutger's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 2yrs | UK£504.00k | 0.036% £95.5k | |
| CFO & Director | 1.83yrs | UK£352.50k | 0.027% £71.6k | |
| Group Company Secretary & Group General Counsel | no data | no data | no data | |
| Group Human Resources Director | 5.25yrs | no data | no data | |
| Global Business Development Director | 4yrs | no data | no data | |
| Group Business Excellence Director | no data | no data | no data | |
| Group Supply Chain Director | 3.42yrs | no data | no data | |
| External & Regulatory Affairs Director | no data | no data | no data | |
| Global Commercial Director | 1.25yrs | no data | no data |
2.7yrs
Average Tenure
Experienced Management: DVO's management team is considered experienced (2.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 2yrs | UK£504.00k | 0.036% £95.5k | |
| CFO & Director | 1.83yrs | UK£352.50k | 0.027% £71.6k | |
| Non-Executive Director | 2.83yrs | UK£53.00k | 0.010% £26.4k | |
| Senior Independent Director | 2.83yrs | UK£50.00k | 0.084% £222.9k | |
| Non-Executive Chairman | 0.67yr | no data | no data | |
| Independent Non-Executive Director | 8yrs | UK£50.00k | 0.023% £60.4k |
2.8yrs
Average Tenure
60.5yo
Average Age
Experienced Board: DVO's board of directors are not considered experienced ( 2.8 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: DVO 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
Devro plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Devro plc
- Ticker: DVO
- Exchange: LSE
- Founded: 1991
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: UK£265.695m
- Shares outstanding: 166.89m
- Website: https://www.devro.com
Number of Employees
Location
- Devro plc
- Moodiesburn
- Chryston
- Lanarkshire
- G69 0JE
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DEIT.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 1993 |
| DVO | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jun 1993 |
| DVOL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jun 1993 |
| DEVO.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Jun 2013 |
Biography
Devro plc, together with its subsidiaries, manufactures and supplies collagen casings in the Americas, Europe, and the Asia-Pacific. It offers edible and non-edible collagen casings, tubular films, and plastic casings for use in the production of a range of sausages and other meat products. The company sells its products to food manufacturers through agents and distributors. Devro plc was incorporated in 1991 and is based in Chryston, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 20:44 |
| End of Day Share Price | 2020/03/31 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.