AIM:CREO

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

UK£295.5m

Last Updated

2021/07/27 23:04 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CREO's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

CREO

1.6%

GB Medical Equipment

2.0%

GB Market


1 Year Return

-5.6%

CREO

4.9%

GB Medical Equipment

18.4%

GB Market

Return vs Industry: CREO underperformed the UK Medical Equipment industry which returned 6.4% over the past year.

Return vs Market: CREO underperformed the UK Market which returned 19.1% over the past year.


Shareholder returns

CREOIndustryMarket
7 Day0.5%1.6%2.0%
30 Day-7.0%-0.3%-1.1%
90 Day-9.2%6.8%1.1%
1 Year-5.6%-5.6%6.8%4.9%23.7%18.4%
3 Year18.7%18.7%24.5%17.5%11.1%-1.6%
5 Yearn/a34.1%23.1%41.7%14.4%

Long-Term 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?

4.7x

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 UK 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 (4.7x) compared to the GB Medical Equipment industry average (3.6x).


Future Growth

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

18.8%

Forecasted Healthcare industry annual growth in earnings


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 (0.9%).

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: Insufficient data to determine if CREO's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if CREO's revenue 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


Past Performance

How has Creo Medical performed over the past 5 years?

-28.2%

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 28.2% 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 (13.8%).


Return on Equity

High ROE: CREO has a negative Return on Equity (-32.35%), as it is currently unprofitable.


Financial Health

How is Creo Medical's financial position?


Financial Position Analysis

Short Term Liabilities: CREO's short term assets (£60.5M) exceed its short term liabilities (£21.8M).

Long Term Liabilities: CREO's short term assets (£60.5M) exceed its long term liabilities (£8.9M).


Debt to Equity History and Analysis

Debt Level: CREO's debt to equity ratio (16.5%) is considered satisfactory.

Reducing Debt: CREO's debt to equity ratio has increased from 0.9% to 16.5% over the past 5 years.


Balance Sheet


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: CREO has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: CREO has sufficient cash runway for 1.9 years if free cash flow continues to reduce at historical rates of 24.6% each year.


Dividend

What is Creo Medical 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 recent payouts.

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

7.3yrs

Average management tenure


CEO

Craig Gulliford (50 yo)

9.5yrs

Tenure

UK£949,253

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 ($USD1.32M) is above average for companies of similar size in the UK market ($USD720.93K).

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


Leadership Team

Experienced Management: CREO's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: CREO's board of directors are considered experienced (4.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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£295.464m
  • Shares outstanding: 158.00m
  • Website: https://creomedical.com

Number of Employees


Location

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

Listings


Biography

Creo Medical Limited engages in the research and development of electrosurgical medical devices relating to the field of surgical endoscopy in the United Kingdom. It is developing Croma, an energy platform...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 23:04
End of Day Share Price2021/07/27 00:00
Earnings2020/12/31
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.