LSE:DVO

Stock Analysis Report

Executive Summary

Devro plc, together with its subsidiaries, manufactures and supplies collagen casings in the Americas, Europe, and the Asia-Pacific.


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

DVOIndustryMarket
7 Day21.5%11.7%3.9%
30 Day6.1%-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 Year3.8%-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

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

NamePositionTenureCompensationOwnership
Rutger Helbing
CEO & Executive Director2yrsUK£504.00k0.036% £95.5k
Jacqueline Callaway
CFO & Director1.83yrsUK£352.50k0.027% £71.6k
Andrew Money
Group Company Secretary & Group General Counselno datano datano data
Sarah Voaden
Group Human Resources Director5.25yrsno datano data
Michael Lauesgaard
Global Business Development Director4yrsno datano data
Beverley Munro
Group Business Excellence Directorno datano datano data
Kevin Shoemaker
Group Supply Chain Director3.42yrsno datano data
G. Stephenson
External & Regulatory Affairs Directorno datano datano data
Peter Whitmore
Global Commercial Director1.25yrsno datano data

2.7yrs

Average Tenure

Experienced Management: DVO's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rutger Helbing
CEO & Executive Director2yrsUK£504.00k0.036% £95.5k
Jacqueline Callaway
CFO & Director1.83yrsUK£352.50k0.027% £71.6k
Malcolm Swift
Non-Executive Director2.83yrsUK£53.00k0.010% £26.4k
Paul Withers
Senior Independent Director2.83yrsUK£50.00k0.084% £222.9k
Steve Good
Non-Executive Chairman0.67yrno datano data
Jane Lodge
Independent Non-Executive Director8yrsUK£50.00k0.023% £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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DEIT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1993
DVOLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1993
DVOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1993
DEVO.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 20:44
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.