AIM:CREO

Stock Analysis Report

Executive Summary

Creo Medical Limited engages in the research and development of electrosurgical medical devices relating to the field of surgical endoscopy primarily in the United Kingdom.


Snowflake Analysis

Mediocre balance sheet with limited growth.

Share Price & News

How has Creo Medical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CREO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.8%

CREO

13.7%

GB Medical Equipment

10.0%

GB Market


1 Year Return

-38.7%

CREO

-1.1%

GB Medical Equipment

-23.0%

GB Market

Return vs Industry: CREO underperformed the UK Medical Equipment industry which returned -1.1% over the past year.

Return vs Market: CREO underperformed the UK Market which returned -23% over the past year.


Shareholder returns

CREOIndustryMarket
7 Day4.8%13.7%10.0%
30 Day-27.8%-15.3%-17.6%
90 Day-34.0%-18.5%-27.3%
1 Year-38.7%-38.7%0.7%-1.1%-18.9%-23.0%
3 Year44.8%44.8%5.7%0.9%-12.9%-24.2%
5 Yearn/a37.3%25.7%1.6%-21.8%

Price Volatility Vs. Market

How volatile is Creo Medical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

3.58x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CREO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CREO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CREO is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: CREO 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 CREO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CREO is overvalued based on its PB Ratio (3.6x) compared to the GB Medical Equipment industry average (2.9x).


Next Steps

Future Growth

How is Creo Medical forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

119.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CREO's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if CREO's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CREO's revenue (119.3% per year) is forecast to grow faster than the UK market (2.3% per year).

High Growth Revenue: CREO's revenue (119.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CREO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Creo Medical performed over the past 5 years?

-31.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CREO is currently unprofitable.

Growing Profit Margin: CREO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CREO is unprofitable, and losses have increased over the past 5 years at a rate of -31.8% per year.

Accelerating Growth: Unable to compare CREO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CREO is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (-7.4%).


Return on Equity

High ROE: CREO has a negative Return on Equity (-33.07%), as it is currently unprofitable.


Next Steps

Financial Health

How is Creo Medical's financial position?


Financial Position Analysis

Short Term Liabilities: CREO's short term assets (£44.2M) exceed its short term liabilities (£4.6M).

Long Term Liabilities: CREO's short term assets (£44.2M) exceed its long term liabilities (£534.8K).


Debt to Equity History and Analysis

Debt Level: CREO's debt to equity ratio (1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CREO's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: CREO has a low level of unsold assets or inventory.

Debt Coverage by Assets: CREO's debt is covered by short term assets (assets are 113.9x 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: Insufficient data to determine if CREO has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CREO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CREO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CREO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CREO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CREO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CREO's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

8.2yrs

Average management tenure


CEO

Craig Gulliford (48yo)

8.17s

Tenure

UK£1,243,762

Compensation

Mr. Craig Jonathan Gulliford serves as the Chief Executive Officer of Creo Medical Limited since 2012. Mr. Gulliford served as Operations Director of Vix ACIS Limited (formerly ACIS Holdings Ltd). Mr. Gull ...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD1.54M) is above average for companies of similar size in the UK market ($USD752.09K).

Compensation vs Earnings: Insufficient data to compare Craig's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Craig Gulliford
CEO & Director8.17yrsUK£1.24m0.39% £728.8k
Christopher Hancock
Founder3.42yrsUK£963.18k2.79% £5.3m
Richard Rees
CFO, Company Secretary & Director3.67yrsUK£927.20kno data
Phil Hales
Sales & Marketing Directorno datano datano data

8.2yrs

Average Tenure

48yo

Average Age

Experienced Management: CREO's management team is seasoned and experienced (8.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Craig Gulliford
CEO & Director8.17yrsUK£1.24m0.39% £728.8k
Christopher Hancock
Founder3.42yrsUK£963.18k2.79% £5.3m
Richard Rees
CFO, Company Secretary & Director3.67yrsUK£927.20kno data
John Bradshaw
Senior Independent Non-Executive Directorno dataUK£71.50kno data
Ivonne Maria Cantu
Independent Non-Executive Directorno datano datano data
Charles Alexander Spicer
Independent Chairman of the Board3.25yrsUK£126.00k0.060% £112.1k
David Woods
Non-Executive Director3.25yrsno data0.016% £29.9k

3.4yrs

Average Tenure

51yo

Average Age

Experienced Board: CREO's board of directors are considered experienced (3.4 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 29.1%.


Top Shareholders

Company Information

Creo Medical Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Creo Medical Limited
  • Ticker: CREO
  • Exchange: AIM
  • Founded: 2003
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: UK£188.236m
  • Shares outstanding: 157.52m
  • Website: https://creomedical.com

Number of Employees


Location

  • Creo Medical Limited
  • Unit 2, Creo House
  • Beaufort Park
  • Chepstow
  • NP16 5UH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CREOAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2016
1RCBST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 2016

Biography

Creo Medical Limited engages in the research and development of electrosurgical medical devices relating to the field of surgical endoscopy primarily in the United Kingdom. It is developing Speedboat RS2, a medical instrument through a combination of bipolar radiofrequency and microwave energy in a single platform for tissue dissection, resection, ablation, and coagulation. Creo Medical Limited was formerly known as MicroOncology Ltd. The company was founded in 2003 and is based in Chepstow, the United Kingdom. Creo Medical Limited is a subsidiary of Creo Medical Group plc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:40
End of Day Share Price2020/03/30 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.