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DVO

DevroLSE:DVO Stock Report

Market Cap

UK£353.1m

7D

-1.6%

1Y

35.6%

Updated

26 Nov, 2021

Data

Company Financials +
DVO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends6/6

DVO Stock Overview

Devro plc, together with its subsidiaries, manufactures and supplies collagen casings primarily in the United Kingdom.

Devro Competitors

Associated British Foods

LSE:ABF

UK£14.9b

Tate & Lyle

LSE:TATE

UK£3.0b

Cranswick

LSE:CWK

UK£1.9b

Hilton Food Group

LSE:HFG

UK£938.6m

Price History & Performance

Summary of all time highs, changes and price drops for Devro
Historical stock prices
Current Share PriceUK£2.12
52 Week HighUK£2.30
52 Week LowUK£1.45
Beta0.68
1 Month Change-0.70%
3 Month Change-5.79%
1 Year Change35.58%
3 Year Change17.50%
5 Year Change45.86%
Change since IPO9.59%

Recent News & Updates

Apr 24
Shareholders Will Probably Hold Off On Increasing Devro plc's (LON:DVO) CEO Compensation For The Time Being

Shareholders Will Probably Hold Off On Increasing Devro plc's (LON:DVO) CEO Compensation For The Time Being

Under the guidance of CEO Rutger Helbing, Devro plc ( LON:DVO ) has performed reasonably well recently. This is...

Mar 06
Devro plc Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Devro plc Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Investors in Devro plc ( LON:DVO ) had a good week, as its shares rose 7.8% to close at UK£1.88 following the release...

Shareholder Returns

DVOGB FoodGB Market
7D-1.6%-1.8%-3.0%
1Y35.6%-1.2%11.7%

Return vs Industry: DVO exceeded the UK Food industry which returned 0.8% over the past year.

Return vs Market: DVO exceeded the UK Market which returned 17.9% over the past year.

Price Volatility

Is DVO's price volatile compared to industry and market?
DVO volatility
DVO Average Weekly Movement2.8%
Food Industry Average Movement4.0%
Market Average Movement4.8%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: DVO is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DVO's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19911,922Rutger Helbinghttps://www.devro.com

Devro plc, together with its subsidiaries, manufactures and supplies collagen casings primarily in the United Kingdom. It offers edible and non-edible collagen casings, 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 distributors and agents.

Devro Fundamentals Summary

How do Devro's earnings and revenue compare to its market cap?
DVO fundamental statistics
Market CapUK£353.08m
Earnings (TTM)UK£27.50m
Revenue (TTM)UK£248.50m

12.8x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DVO income statement (TTM)
RevenueUK£248.50m
Cost of RevenueUK£154.10m
Gross ProfitUK£94.40m
ExpensesUK£66.90m
EarningsUK£27.50m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.16
Gross Margin37.99%
Net Profit Margin11.07%
Debt/Equity Ratio109.1%

How did DVO perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

55%

Payout Ratio

Does DVO pay a reliable dividends?

See DVO dividend history and benchmarks
When do you need to buy DVO by to receive an upcoming dividend?
Devro dividend dates
Ex Dividend DateDec 02 2021
Dividend Pay DateJan 14 2022
Days until Ex dividend5 days
Days until Dividend pay date48 days

Does DVO pay a reliable dividends?

See DVO dividend history and benchmarks

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DVO (£2.12) is trading below our estimate of fair value (£4.62)

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


Price To Earnings Ratio

PE vs Industry: DVO is good value based on its PE Ratio (12.8x) compared to the UK Food industry average (13.8x).

PE vs Market: DVO is good value based on its PE Ratio (12.8x) compared to the UK market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: DVO is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: DVO is overvalued based on its PB Ratio (3.3x) compared to the GB Food industry average (1.4x).


Future Growth

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

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DVO's forecast earnings growth (4.3% per year) is above the savings rate (0.9%).

Earnings vs Market: DVO's earnings (4.3% per year) are forecast to grow slower than the UK market (11.5% per year).

High Growth Earnings: DVO's earnings are forecast to grow, but not significantly.

Revenue vs Market: DVO's revenue (2.7% per year) is forecast to grow slower than the UK market (5.7% per year).

High Growth Revenue: DVO's revenue (2.7% 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 (23.1%)


Past Performance

How has Devro performed over the past 5 years?

-13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DVO has high quality earnings.

Growing Profit Margin: DVO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DVO's earnings have declined by 13.4% per year over the past 5 years.

Accelerating Growth: DVO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DVO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (12.2%).


Return on Equity

High ROE: Whilst DVO's Return on Equity (25.56%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Devro's financial position?


Financial Position Analysis

Short Term Liabilities: DVO's short term assets (£88.2M) exceed its short term liabilities (£42.6M).

Long Term Liabilities: DVO's short term assets (£88.2M) do not cover its long term liabilities (£179.3M).


Debt to Equity History and Analysis

Debt Level: DVO's net debt to equity ratio (95.8%) is considered high.

Reducing Debt: DVO's debt to equity ratio has reduced from 139.4% to 109.1% over the past 5 years.

Debt Coverage: DVO's debt is well covered by operating cash flow (32.5%).

Interest Coverage: DVO's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet


Dividend

What is Devro current dividend yield, its reliability and sustainability?

4.30%

Current Dividend Yield


Upcoming Dividend Payment

TodayNov 27 2021Ex Dividend DateDec 02 2021Dividend Pay DateJan 14 202243 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: DVO's dividend (4.3%) is higher than the bottom 25% of dividend payers in the UK market (1.35%).

High Dividend: DVO's dividend (4.3%) is in the top 25% of dividend payers in the UK market (4.03%)


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: With its reasonable payout ratio (55.2%), DVO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DVO's dividends in 3 years are forecast to be well covered by earnings (48.7% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Rutger Helbing

3.75yrs

Tenure

UK£734,000

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. He joined Devro in April 2016. Mr. Helbing served as Group...


CEO Compensation Analysis

Compensation vs Market: Rutger's total compensation ($USD977.49K) is about average for companies of similar size in the UK market ($USD777.89K).

Compensation vs Earnings: Rutger's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DVO's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: DVO's board of directors are not considered experienced ( 1.5 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Devro plc's 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£353.082m
  • Shares outstanding: 166.94m
  • Website: https://www.devro.com

Number of Employees


Location

  • Devro plc
  • Moodiesburn
  • Chryston
  • Lanarkshire
  • G69 0JE
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 21:09
End of Day Share Price2021/11/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.