LSE:DVO

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Executive Summary

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


Snowflake Analysis

Established dividend payer with reasonable growth potential.


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

-1.7%

DVO

-0.6%

GB Food

-0.7%

GB Market


1 Year Return

-7.2%

DVO

-16.5%

GB Food

-16.4%

GB Market

Return vs Industry: DVO exceeded the UK Food industry which returned -15.5% over the past year.

Return vs Market: DVO exceeded the UK Market which returned -15.4% over the past year.


Shareholder returns

DVOIndustryMarket
7 Day-1.7%-0.6%-0.7%
30 Day-13.4%-4.3%0.7%
90 Day8.2%-4.0%-3.2%
1 Year-3.9%-7.2%-14.9%-16.5%-13.2%-16.4%
3 Year-28.2%-36.7%-32.6%-36.6%-9.3%-20.5%
5 Year-34.0%-46.1%-29.3%-36.0%15.2%-10.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DVO (£1.55) is trading below our estimate of fair value (£3.27)

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 GB 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 (3.3x) 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?

61.9%

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 (1.2%).

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 (2.5% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: DVO's revenue (2.5% 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 (29.5%)


Next Steps

Past Performance

How has Devro performed over the past 5 years?

-47.3%

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 47.3% 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 (17.2%).


Return on Equity

High ROE: DVO has a negative Return on Equity (-52.96%), 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 (£112.4M) exceed its short term liabilities (£58.5M).

Long Term Liabilities: DVO's short term assets (£112.4M) do not cover its long term liabilities (£238.1M).


Debt to Equity History and Analysis

Debt Level: DVO's debt to equity ratio (200.5%) is considered high.

Reducing Debt: DVO's debt to equity ratio has increased from 95.6% to 200.5% over the past 5 years.

Debt Coverage: DVO's debt is well covered by operating cash flow (31%).

Interest Coverage: DVO is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

5.81%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: DVO's dividend (5.81%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: DVO's dividend (5.81%) is in the top 25% of dividend payers in the UK market (5.24%)


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 (56% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Rutger Helbing

2.67yrs

Tenure

UK£527,000

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 ($USD685.97K) is about average for companies of similar size in the UK market ($USD891.10K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rutger Helbing
CEO & Executive Director2.67yrsUK£527.00k0.042%
£ 108.5k
Jacqueline Callaway
CFO & Director2.42yrsUK£371.00k0.027%
£ 69.8k
Andrew Money
Group Company Secretary & Group General Counselno datano datano data
Anton Zawada
Group Human Resources Director0.50yrno datano data
Michael Lauesgaard
Group Business Development Director4.67yrsno datano data
Beverley Munro
Group Business Excellence Directorno datano datano data
Kevin Shoemaker
Group Supply Chain Director4.08yrsno datano data
G. Stephenson
External & Regulatory Affairs Directorno datano datano data
Peter Whitmore
Global Commercial Director1.92yrsno datano data

2.5yrs

Average Tenure

Experienced Management: DVO's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rutger Helbing
CEO & Executive Director2.67yrsUK£527.00k0.042%
£ 108.5k
Jacqueline Callaway
CFO & Director2.42yrsUK£371.00k0.027%
£ 69.8k
Malcolm Swift
Independent Non-Executive Director3.5yrsUK£51.00k0.016%
£ 42.6k
Paul Withers
Senior Independent Director3.5yrsUK£50.00k0.084%
£ 217.0k
Steve Good
Independent Non-Executive Chairman1.33yrsUK£84.00k0.030%
£ 77.5k
Jane Lodge
Independent Non-Executive Director8.58yrsUK£53.00k0%
£ 0
Lesley Jackson
Independent Non-Executive Director0.42yrno datano data
Jeremy Burks
Non-Executive Director0.42yrno datano data

3.0yrs

Average Tenure

60yo

Average Age

Experienced Board: DVO's board of directors are not considered experienced ( 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 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£258.739m
  • Shares outstanding: 166.93m
  • 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
5H8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1993
DEVO.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJun 2013

Biography

Devro plc, together with its subsidiaries, manufactures and supplies collagen casings in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. It offers edible and non-edible collagen casing ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 22:27
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
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.