AIM:CVSG

Stock Analysis Report

Executive Summary

CVS Group plc engages in veterinary, online pharmacy, and retail businesses.


Snowflake Analysis

Solid track record with reasonable growth potential.

Share Price & News

How has CVS Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

3.7%

CVSG

-0.3%

GB Healthcare

10.0%

GB Market


1 Year Return

25.2%

CVSG

-32.6%

GB Healthcare

-23.0%

GB Market

Return vs Industry: CVSG exceeded the UK Healthcare industry which returned -27.8% over the past year.

Return vs Market: CVSG exceeded the UK Market which returned -22.7% over the past year.


Shareholder returns

CVSGIndustryMarket
7 Day3.7%-0.3%10.0%
30 Day-25.9%-17.8%-17.6%
90 Day-31.0%-36.3%-27.3%
1 Year25.9%25.2%-31.5%-32.6%-18.9%-23.0%
3 Year-31.0%-32.0%-46.7%-49.0%-12.9%-24.2%
5 Year57.3%53.7%-12.2%-16.8%1.6%-21.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

26.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVSG (£7.9) is trading below our estimate of fair value (£10.68)

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


Price To Earnings Ratio

PE vs Industry: CVSG is poor value based on its PE Ratio (45.3x) compared to the Healthcare industry average (17.4x).

PE vs Market: CVSG is poor value based on its PE Ratio (45.3x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: CVSG is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: CVSG is overvalued based on its PB Ratio (3.4x) compared to the GB Healthcare industry average (1.2x).


Next Steps

Future Growth

How is CVS Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

26.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVSG's forecast earnings growth (26% per year) is above the savings rate (0.5%).

Earnings vs Market: CVSG's earnings (26% per year) are forecast to grow faster than the UK market (15.4% per year).

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

Revenue vs Market: CVSG's revenue (4.5% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: CVSG's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has CVS Group performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVSG has high quality earnings.

Growing Profit Margin: CVSG's current net profit margins (2.8%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: CVSG's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: CVSG's earnings growth over the past year (86.4%) exceeds its 5-year average (8.8% per year).

Earnings vs Industry: CVSG earnings growth over the past year (86.4%) exceeded the Healthcare industry 19.8%.


Return on Equity

High ROE: CVSG's Return on Equity (7.4%) is considered low.


Next Steps

Financial Health

How is CVS Group's financial position?


Financial Position Analysis

Short Term Liabilities: CVSG's short term assets (£68.8M) do not cover its short term liabilities (£82.0M).

Long Term Liabilities: CVSG's short term assets (£68.8M) do not cover its long term liabilities (£226.1M).


Debt to Equity History and Analysis

Debt Level: CVSG's debt to equity ratio (62.8%) is considered high.

Reducing Debt: CVSG's debt to equity ratio has reduced from 92.3% to 62.8% over the past 5 years.

Debt Coverage: CVSG's debt is well covered by operating cash flow (54.6%).

Interest Coverage: CVSG's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: CVSG has a high level of physical assets or inventory.

Debt Coverage by Assets: CVSG's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

0.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CVSG's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: CVSG's dividend (0.7%) is low compared to the top 25% of dividend payers in the UK market (7.3%).


Stability and Growth of Payments

Stable Dividend: CVSG is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: CVSG is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CVSG is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CVSG'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?

0.9yrs

Average management tenure


CEO

Richard William Fairman (52yo)

0.33

Tenure

UK£290,112

Compensation

Mr. Richard Fairman serves as Chief Executive Officer of CVS Group plc since November 6, 2019. Mr. Fairmanhas had been Chief Financial Officer at CVS Group plc since 2019 until 2019 and served as its Group ...


CEO Compensation Analysis

Compensation vs Market: Richard William's total compensation ($USD360.10K) is below average for companies of similar size in the UK market ($USD1.28M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard William Fairman
CEO & Director0.33yrUK£290.11k0.016% £90.4k
Robin Alfonso
Finance Director & Director0.33yrno datano data
Benjamin Jacklin
COO & Director0.33yrno datano data
Gordon Palmer
Head of ITno datano datano data
David Harris
Group Company Secretary0.92yrno datano data
Zak Leavold
Commercial Director2.17yrsno datano data
John Innes
Referral Directorno datano datano data
Robert Dawson
Small Animal Director3.58yrsno datano data
Joe Williams
Small Animal Veterinary Director & Chair of Clinical Advisory Committee2.17yrsno datano data

0.9yrs

Average Tenure

46yo

Average Age

Experienced Management: CVSG's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Richard William Fairman
CEO & Director0.33yrUK£290.11k0.016% £90.4k
Robin Alfonso
Finance Director & Director0.33yrno datano data
Benjamin Jacklin
COO & Director0.33yrno datano data
Joe Williams
Small Animal Veterinary Director & Chair of Clinical Advisory Committee2.17yrsno datano data
Deborah Kemp
Non Executive Director2.17yrsUK£46.00k0.0093% £51.8k
Richard Connell
Non-Executive Chairmanno dataUK£113.00k0.20% £1.1m
Michael McCollum
Senior Independent Non-Executive Directorno dataUK£46.00k0.055% £305.5k

1.6yrs

Average Tenure

51.5yo

Average Age

Experienced Board: CVSG's board of directors are not considered experienced ( 1.6 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

CVS Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CVS Group plc
  • Ticker: CVSG
  • Exchange: AIM
  • Founded: 1999
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: UK£558.261m
  • Shares outstanding: 70.67m
  • Website: https://www.cvsukltd.co.uk

Number of Employees


Location

  • CVS Group plc
  • CVS House
  • Owen Road
  • Diss
  • Norfolk
  • IP22 4ER
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVSGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 2007
4C9DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2007
CVSG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2007
4C9BRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFOct 2007

Biography

CVS Group plc engages in veterinary, online pharmacy, and retail businesses. The company operates through four segments: Veterinary Practice, Laboratory, Crematoria, and Animed Direct. It operates animal veterinary practices and complementary veterinary diagnostic businesses. The company also provides pet cremation services for veterinary practices and directly for pet owners; and clinical waste collection services, as well as specialist veterinary recruitment services. In addition, it operates MiVetClub, which facilitates the veterinary business management; Animed Direct, an online pharmacy and retailer that sells prescription and non-prescription medicines, premium pet foods, and other animal-related products; and an online dispensary. Further, the company provides burial grounds; and veterinary instrumentation supply and referral services. It owns 491 surgeries in the United Kingdom; 22 sites in the Netherlands; and 3 in the Republic of Ireland, as well as 4 laboratories and 7 crematoria. CVS Group plc was founded in 1999 and is based in Diss, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 21:56
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.