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Devro

LSE:DVO
Snowflake Description

Average dividend payer with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DVO
LSE
£342M
Market Cap
  1. Home
  2. GB
  3. Food, Beverage & Tobacco
Company description

Devro plc, together with its subsidiaries, manufactures and supplies collagen casings in the Americas, Europe, and the Asia-Pacific. The last earnings update was 122 days ago. More info.


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DVO Share Price and Events
7 Day Returns
0.5%
LSE:DVO
0.3%
GB Food
-0%
GB Market
1 Year Returns
3.7%
LSE:DVO
-4.4%
GB Food
-1.7%
GB Market
DVO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Devro (DVO) 0.5% -2.8% 9.3% 3.7% -25.9% -15.6%
GB Food 0.3% -2.1% -4.3% -4.4% -8.5% -11%
GB Market -0% 1.4% -0.4% -1.7% 11.3% 6.7%
1 Year Return vs Industry and Market
  • DVO outperformed the Food industry which returned -4.4% over the past year.
  • DVO outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.7% over the past year.
Price Volatility
DVO
Industry
5yr Volatility vs Market

Value

 Is Devro undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Devro to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Devro.

LSE:DVO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:DVO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Food Unlevered Beta Simply Wall St/ S&P Global 0.56
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.564 (1 + (1- 19%) (44.28%))
0.844
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.844 * 6.65%)
6.84%

Discounted Cash Flow Calculation for LSE:DVO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Devro is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:DVO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.84%)
2020 38.75 Analyst x2 36.27
2021 42.00 Analyst x2 36.80
2022 44.52 Est @ 6.01% 36.51
2023 46.56 Est @ 4.57% 35.73
2024 48.22 Est @ 3.57% 34.64
2025 49.60 Est @ 2.87% 33.35
2026 50.78 Est @ 2.37% 31.96
2027 51.81 Est @ 2.03% 30.52
2028 52.74 Est @ 1.79% 29.08
2029 53.59 Est @ 1.62% 27.66
Present value of next 10 years cash flows £332.52
LSE:DVO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £53.59 × (1 + 1.23%) ÷ (6.84% – 1.23%)
£966.76
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £966.76 ÷ (1 + 6.84%)10
£498.93
LSE:DVO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £332.52 + £498.93
£831.45
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £831.45 / 166.89
£4.98
LSE:DVO Discount to Share Price
Calculation Result
Value per share (GBP) From above. £4.98
Current discount Discount to share price of £2.05
= -1 x (£2.05 - £4.98) / £4.98
58.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Devro is available for.
Intrinsic value
>50%
Share price is £2.05 vs Future cash flow value of £4.98
Current Discount Checks
For Devro to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Devro's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Devro's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Devro's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Devro's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:DVO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.07
LSE:DVO Share Price ** LSE (2019-07-23) in GBP £2.05
United Kingdom of Great Britain and Northern Ireland Food Industry PE Ratio Median Figure of 19 Publicly-Listed Food Companies 18.46x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 792 Publicly-Listed Companies 16.27x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Devro.

LSE:DVO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:DVO Share Price ÷ EPS (both in GBP)

= 2.05 ÷ 0.07

27.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Devro is overvalued based on earnings compared to the GB Food industry average.
  • Devro is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Devro's expected growth come at a high price?
Raw Data
LSE:DVO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
23.5%per year
United Kingdom of Great Britain and Northern Ireland Food Industry PEG Ratio Median Figure of 16 Publicly-Listed Food Companies 1.73x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 571 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:DVO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.38x ÷ 23.5%

1.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Devro is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Devro's assets?
Raw Data
LSE:DVO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.88
LSE:DVO Share Price * LSE (2019-07-23) in GBP £2.05
United Kingdom of Great Britain and Northern Ireland Food Industry PB Ratio Median Figure of 30 Publicly-Listed Food Companies 1.15x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.51x
LSE:DVO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:DVO Share Price ÷ Book Value per Share (both in GBP)

= 2.05 ÷ 0.88

2.34x

* Primary Listing of Devro.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Devro is overvalued based on assets compared to the GB Food industry average.
X
Value checks
We assess Devro's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Devro has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Devro expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Devro expected to grow at an attractive rate?
  • Devro's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Devro's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Devro's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:DVO Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:DVO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 23.5%
LSE:DVO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 2.8%
United Kingdom of Great Britain and Northern Ireland Food Industry Earnings Growth Rate Market Cap Weighted Average 13.3%
United Kingdom of Great Britain and Northern Ireland Food Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:DVO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:DVO Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 275 63 29 5
2020-12-31 269 61 27 6
2019-12-31 260 54 24 5
LSE:DVO Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 253 26 13
2018-09-30 253 29 13
2018-06-30 252 32 14
2018-03-31 254 35 15
2017-12-31 257 38 16
2017-09-30 255 35 14
2017-06-30 253 31 13
2017-03-31 247 28 7
2016-12-31 241 26 2
2016-09-30 236 26 4
2016-06-30 230 27 6
2016-03-31 230 27 10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Devro's earnings are expected to grow significantly at over 20% yearly.
  • Devro's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:DVO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Devro Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:DVO Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.17 0.18 0.16 2.00
2020-12-31 0.16 0.17 0.15 2.00
2019-12-31 0.14 0.15 0.14 2.00
LSE:DVO Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.07
2018-09-30 0.08
2018-06-30 0.09
2018-03-31 0.09
2017-12-31 0.09
2017-09-30 0.08
2017-06-30 0.08
2017-03-31 0.04
2016-12-31 0.01
2016-09-30 0.02
2016-06-30 0.04
2016-03-31 0.06

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Devro is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Devro's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Devro has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Devro performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Devro's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Devro's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Devro's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Devro's 1-year earnings growth is negative, it can't be compared to the GB Food industry average.
Earnings and Revenue History
Devro's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Devro Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:DVO Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 253.40 12.50 44.30 6.40
2018-09-30 252.65 13.35 45.05 6.85
2018-06-30 251.90 14.20 45.80 7.30
2018-03-31 254.40 14.90 45.90 7.30
2017-12-31 256.90 15.60 46.00 7.30
2017-09-30 255.15 14.15 43.60 7.25
2017-06-30 253.40 12.70 41.20 7.20
2017-03-31 247.25 7.45 41.05 7.20
2016-12-31 241.10 2.20 40.90 7.20
2016-09-30 235.75 4.15 39.25 6.25
2016-06-30 230.40 6.10 37.60 5.30
2016-03-31 230.30 10.35 37.60 5.30
2015-12-31 230.20 14.60 37.60 5.30
2015-09-30 232.75 12.00 36.05 5.65
2015-06-30 235.30 9.40 34.50 6.00
2015-03-31 233.80 6.90 34.45 6.00
2014-12-31 232.30 4.40 34.40 6.00
2014-09-30 232.90 13.35 36.80 6.30
2014-06-30 233.50 22.30 39.20 6.60
2014-03-31 238.10 27.95 39.25 6.60
2013-12-31 242.70 33.60 39.30 6.60
2013-09-30 243.65 31.98 37.68 6.90
2013-06-30 244.60 30.36 36.06 7.20
2013-03-31 242.85 31.18 36.03 7.20
2012-12-31 241.10 32.00 36.00 7.20
2012-09-30 238.56 32.92 34.70 7.43

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Devro has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Devro used its assets less efficiently than the GB Food industry average last year based on Return on Assets.
  • Devro has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Devro's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Devro has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Devro's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Devro's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Devro is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Devro's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Devro's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Devro Company Filings, last reported 6 months ago.

LSE:DVO Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 146.50 151.50 9.90
2018-09-30 146.50 151.50 9.90
2018-06-30 143.60 161.60 14.30
2018-03-31 143.60 161.60 14.30
2017-12-31 127.20 145.70 10.80
2017-09-30 127.20 145.70 10.80
2017-06-30 119.80 163.80 11.90
2017-03-31 119.80 163.80 11.90
2016-12-31 109.00 163.50 9.90
2016-09-30 109.00 163.50 9.90
2016-06-30 118.00 164.40 17.40
2016-03-31 118.00 164.40 17.40
2015-12-31 131.10 135.10 12.60
2015-09-30 131.10 135.10 12.60
2015-06-30 131.20 125.20 20.50
2015-03-31 131.20 125.20 20.50
2014-12-31 133.20 80.30 11.50
2014-09-30 133.20 80.30 11.50
2014-06-30 141.90 74.70 20.70
2014-03-31 141.90 74.70 20.70
2013-12-31 158.00 41.80 6.00
2013-09-30 158.00 41.80 6.00
2013-06-30 157.22 45.76 4.89
2013-03-31 157.22 45.76 4.89
2012-12-31 146.90 31.70 5.60
2012-09-30 146.90 31.70 5.60
  • Devro's level of debt (103.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (26.7% vs 103.4% today).
  • Debt is not well covered by operating cash flow (17.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.4x coverage).
X
Financial health checks
We assess Devro's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Devro has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.39%
Current annual income from Devro dividends. Estimated to be 4.8% next year.
If you bought £2,000 of Devro shares you are expected to receive £88 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Devro's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Devro's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:DVO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Food Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.6%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:DVO Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.11 4.00
2020-12-31 0.10 6.00
2019-12-31 0.09 6.00
LSE:DVO Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-25 0.090 4.434
2019-02-26 0.090 4.756
2018-03-26 0.088 4.690
2018-02-27 0.088 4.385
2017-03-24 0.088 4.046
2017-03-06 0.088 4.566
2016-03-30 0.088 4.016
2016-03-01 0.088 2.899
2015-03-27 0.088 2.972
2015-03-03 0.088 3.084
2014-07-30 0.088 3.311
2014-03-04 0.088 3.616
2013-07-31 0.086 2.755
2013-02-26 0.085 2.610
2012-02-29 0.080 2.516
2012-02-21 0.080 2.603
2011-03-24 0.070 2.657
2011-02-21 0.070 2.561
2010-04-01 0.050 2.313
2010-02-16 0.050 2.991
2009-02-17 0.045 4.066
2008-08-28 0.045 5.641

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Devro's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Devro's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Devro afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Devro has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Devro's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rutger Helbing
COMPENSATION £504,000
TENURE AS CEO 1.4 years
CEO Bio

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 from April 4, 2016 to February 28, 2018. Previously, he was Group Chief Financial Officer of Element Six, the global leader in manufacturing synthetic diamond supermaterials. He held senior positions in finance and general management with ICI/Akzo Nobel and Unilever. He is a postgraduate degree in finance from the Free University, Amsterdam, and a degree in economics from Erasmus University.

CEO Compensation
  • Rutger's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Rutger's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Devro management team in years:

2.8
Average Tenure
  • The tenure for the Devro management team is about average.
Management Team

Rutger Helbing

TITLE
CEO & Executive Director
COMPENSATION
£504K
TENURE
1.4 yrs

Andrew Money

TITLE
Group Company Secretary & Group General Counsel

Sarah Voaden

TITLE
Group Human Resources Director
TENURE
4.6 yrs

Michael Lauesgaard

TITLE
Global Business Development Director
TENURE
3.4 yrs

Beverley Munro

TITLE
Group Business Excellence Director

Kevin Shoemaker

TITLE
Group Supply Chain Director
TENURE
2.8 yrs

G. Stephenson

TITLE
External & Regulatory Affairs Director

Peter Whitmore

TITLE
Global Commercial Director
TENURE
0.7 yrs
Board of Directors Tenure

Average tenure and age of the Devro board of directors in years:

2.3
Average Tenure
60.5
Average Age
  • The average tenure for the Devro board of directors is less than 3 years, this suggests a new board.
Board of Directors

Steve Good

TITLE
Non-Executive Chairman
AGE
58
TENURE
0.1 yrs

Rutger Helbing

TITLE
CEO & Executive Director
COMPENSATION
£504K
TENURE
3.3 yrs

Paul Withers

TITLE
Senior Independent Director
COMPENSATION
£50K
AGE
62
TENURE
2.3 yrs

Jane Lodge

TITLE
Non-Executive Director
COMPENSATION
£50K
AGE
64
TENURE
7.3 yrs

Malcolm Swift

TITLE
Non-Executive Director
COMPENSATION
£53K
AGE
59
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Devro individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
02. May 19 Buy Malcolm Swift Individual 01. May 19 01. May 19 5,000 £1.99 £9,950
06. Mar 19 Buy Rutger Helbing Individual 06. Mar 19 06. Mar 19 7,500 £1.85 £13,875
06. Mar 19 Buy Jacqueline Callaway Individual 06. Mar 19 06. Mar 19 5,000 £1.85 £9,250
19. Nov 18 Buy Jacqueline Callaway Individual 19. Nov 18 19. Nov 18 5,000 £1.77 £8,830
19. Nov 18 Buy Rutger Helbing Individual 19. Nov 18 19. Nov 18 10,000 £1.77 £17,660
16. Nov 18 Buy Paul Withers Individual 16. Nov 18 16. Nov 18 30,000 £1.76 £52,887
09. Aug 18 Buy Rutger Helbing Individual 09. Aug 18 09. Aug 18 15,000 £1.98 £29,655
X
Management checks
We assess Devro's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Devro has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Despite Its High P/E Ratio, Is Devro plc (LON:DVO) Still Undervalued?

Devro has a price to earnings ratio of 28.31, based on the last twelve months. … Check out our latest analysis for Devro How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Devro: P/E of 28.31 = £2.12 ÷ £0.075 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Evaluating Devro plc’s (LON:DVO) Investments In Its Business

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Devro: 0.10 = UK£38m ÷ (UK£413m - UK£41m) (Based on the trailing twelve months to December 2018.) Therefore, Devro has an ROCE of 10%. … Devro's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Those Who Purchased Devro (LON:DVO) Shares Five Years Ago Have A 21% Loss To Show For It

During the five years over which the share price declined, Devro's earnings per share (EPS) dropped by 18% each year. … As well as measuring the share price return, investors should also consider the total shareholder return (TSR). … We note that for Devro the TSR over the last 5 years was -3.5%, which is better than the share price return mentioned above.

Simply Wall St -

Devro plc (LON:DVO): Will The Growth Last?

After Devro plc's (LON:DVO) earnings announcement in December 2018, analysts seem extremely confident, with earnings expected to grow by a high double-digit of 95% in the upcoming year, relative to the past 5-year average growth rate of -13%. … To understand the overall trajectory of DVO's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … LSE:DVO Past and Future Earnings, May 20th 2019 By 2022, DVO's earnings should reach UK£30m, from current levels of UK£13m, resulting in an annual growth rate of 26%.

Simply Wall St -

How Does Devro plc (LON:DVO) Fare As A Dividend Stock?

Could Devro plc (LON:DVO) be an attractive dividend share to own for the long haul? … LSE:DVO Historical Dividend Yield, May 10th 2019 Payout ratios Dividends are usually paid out of company earnings. … Devro paid out 107% of its free cash flow last year, suggesting the dividend is poorly covered by cash flow.

Simply Wall St -

Does Devro plc (LON:DVO) Have A Particularly Volatile Share Price?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Have Insiders Been Buying Devro plc (LON:DVO) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Devro plc (LON:DVO). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Devro Insider Transactions Over The Last Year.

Simply Wall St -

A Closer Look At Devro plc's (LON:DVO) Uninspiring ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every £1 worth of equity in the company, it was able to earn £0.085. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

At UK£2.00, Is Devro plc (LON:DVO) Worth Looking At Closely?

As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Devro’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

What Are Analysts Saying About The Future Of Devro plc's (LON:DVO)?

In December 2018, Devro plc (LON:DVO) announced its latest earnings update, whicha … indicated … company

Simply Wall St -

Company Info

Description

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.

Details
Name: Devro plc
DVO
Exchange: LSE
Founded: 1991
£342,132,384
166,893,846
Website: http://www.devro.com
Address: Devro plc
Moodiesburn,
Chryston,
Lanarkshire, G69 0JE,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE DVO Ordinary Shares London Stock Exchange GB GBP 30. Jun 1993
OTCPK DEIT.F Ordinary Shares Pink Sheets LLC US USD 30. Jun 1993
BATS-CHIXE DVOL Ordinary Shares BATS 'Chi-X Europe' GB GBP 30. Jun 1993
Number of employees
Current staff
Staff numbers
2,125
Devro employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/23 23:29
End of day share price update: 2019/07/23 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/03/23
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.