AIM:DEMG

Stock Analysis Report

Executive Summary

Deltex Medical Group plc manufactures and sells oesophageal doppler monitoring (ODM) systems in the United Kingdom, the United States, Spain, Canada, and internationally.

Snowflake

Fundamentals

Mediocre balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

DEMG

-0.3%

GB Medical Equipment

-0.4%

GB Market


1 Year Return

2.2%

DEMG

15.3%

GB Medical Equipment

4.4%

GB Market

Return vs Industry: DEMG underperformed the UK Medical Equipment industry which returned 15.3% over the past year.

Return vs Market: DEMG underperformed the UK Market which returned 4.4% over the past year.


Shareholder returns

DEMGIndustryMarket
7 Day0%-0.3%-0.4%
30 Day4.5%-6.9%1.5%
90 Day-27.0%-8.9%4.7%
1 Year2.2%2.2%17.4%15.3%9.9%4.4%
3 Year-71.3%-71.3%31.5%24.5%22.4%6.9%
5 Year-82.6%-82.6%62.6%48.8%33.0%2.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.22x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: DEMG is good value based on its PB Ratio (2.2x) compared to the GB Medical Equipment industry average (3x).


Next Steps

Future Growth

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

4.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if DEMG's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if DEMG'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: DEMG's revenue (4.7% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: DEMG's revenue (4.7% 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 DEMG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Deltex Medical Group performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DEMG has high quality earnings.

Growing Profit Margin: DEMG's current net profit margins (-7.3%) are higher than last year (-39.5%).


Past Earnings Growth Analysis

Earnings Trend: DEMG is unprofitable, but has reduced losses over the past 5 years at a rate of 19.9% per year.

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

Earnings vs Industry: DEMG is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (-4.9%).


Return on Equity

High ROE: DEMG has a negative Return on Equity (-13.76%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Deltex Medical Group's financial position?


Financial Position Analysis

Short Term Liabilities: DEMG's short term assets (£3.0M) exceeds its short term liabilities (£2.3M)

Long Term Liabilities: DEMG's short term assets (3.0M) exceeds its long term liabilities (1.5M)


Debt to Equity History and Analysis

Debt Level: DEMG's debt to equity ratio (53.6%) is considered high

Reducing Debt: DEMG's debt to equity ratio has increased from 27.9% to 53.6% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: DEMG's debt is covered by short term assets (assets are 2.3x 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: DEMG has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: DEMG has less than a year of cash runway if free cash flow continues to grow at historical rates of 32.7% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.3%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate DEMG'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 DEMG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DEMG'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 DEMG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Andy Mears (49yo)

1.4yrs

Tenure

UK£147,186

Compensation

Mr. Andrew Jonathan Mears, also known as Andy, has been Chief Executive Officer and Director of Deltex Medical Group plc since June 13, 2018. Mr. Mears was Managing Director of Deltex Medical Group plc sin ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD189.84K) is below average for companies of similar size in the UK market ($USD319.95K).

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


Management Age and Tenure

1.4yrs

Average Tenure

Experienced Management: DEMG's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

8.5yrs

Average Tenure

71yo

Average Age

Experienced Board: DEMG's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£97,82805 Feb 19
Nigel Keen
EntityIndividual
Role
Chairman of the Board
Chairman
Shares8,695,652
Max PriceUK£0.011

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 30.8%.


Management Team

  • Andy Mears (49yo)

    CEO & Director

    • Tenure: 1.4yrs
    • Compensation: UK£147.19k
  • Marion Lee

    Human Resources Director

    • Tenure: 4.6yrs
  • David Moorhouse

    Interim Finance Director & Group Company Secretary

    • Tenure: 0.08yrs

Board Members

  • Nigel Keen

    Chairman

    • Tenure: 23.8yrs
    • Compensation: UK£33.33k
  • Duncan Nichol (78yo)

    Non Executive Director

    • Tenure: 15.3yrs
    • Compensation: UK£24.00k
  • Chris Jones

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: UK£21.00k
  • Mark Wippell

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: UK£24.00k
  • Charles Cazalet (71yo)

    Non Executive Director

    • Tenure: 11.6yrs
    • Compensation: UK£24.00k
  • Andy Mears (49yo)

    CEO & Director

    • Tenure: 1.4yrs
    • Compensation: UK£147.19k

Company Information

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


Key Information

  • Name: Deltex Medical Group plc
  • Ticker: DEMG
  • Exchange: AIM
  • Founded: 2000
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: UK£5.964m
  • Shares outstanding: 518.62m
  • Website: https://www.deltexmedical.com

Number of Employees


Location

  • Deltex Medical Group plc
  • Terminus Road
  • Chichester
  • West Sussex
  • PO19 8TX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DTXM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2000
DEMGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2000

Biography

Deltex Medical Group plc manufactures and sells oesophageal doppler monitoring (ODM) systems in the United Kingdom, the United States, Spain, Canada, and internationally. It develops, designs, manufactures ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 20:47
End of Day Share Price2019/11/15 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.