Convatec Group
Market Cap
UK£3.6b
Last Updated
2020/04/03 01:46 UTC
Data Sources
Company Financials +
Executive Summary
ConvaTec Group Plc develops, manufactures, and markets medical products and technologies worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with adequate balance sheet.
Similar Companies
Share Price & News
How has Convatec Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CTEC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.2%
CTEC
-3.0%
GB Medical Equipment
-5.4%
GB Market
1 Year Return
32.6%
CTEC
-3.9%
GB Medical Equipment
-25.2%
GB Market
Return vs Industry: CTEC exceeded the UK Medical Equipment industry which returned -1.5% over the past year.
Return vs Market: CTEC exceeded the UK Market which returned -25% over the past year.
Shareholder returns
| CTEC | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.2% | -3.0% | -5.4% |
| 30 Day | -3.3% | -19.8% | -20.6% |
| 90 Day | -10.2% | -22.9% | -29.1% |
| 1 Year | 36.0%32.6% | -2.1%-3.9% | -21.5%-25.2% |
| 3 Year | -30.6%-35.5% | 1.3%-4.6% | -15.3%-25.9% |
| 5 Year | n/a | 27.5%15.3% | -3.6%-25.1% |
Price Volatility Vs. Market
How volatile is Convatec Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
19 hours ago | Simply Wall St
Convatec Group Plc's (LON:CTEC) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?2 weeks ago | Simply Wall St
Is It Time To Consider Buying Convatec Group Plc (LON:CTEC)?1 month ago | Simply Wall St
Does Convatec Group (LON:CTEC) Have A Healthy Balance Sheet?Valuation
Is Convatec Group undervalued compared to its fair value and its price relative to the market?
30.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CTEC (£1.81) is trading below our estimate of fair value (£2.58)
Significantly Below Fair Value: CTEC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CTEC is poor value based on its PE Ratio (451x) compared to the Medical Equipment industry average (25.2x).
PE vs Market: CTEC is poor value based on its PE Ratio (451x) compared to the UK market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: CTEC is poor value based on its PEG Ratio (10.2x)
Price to Book Ratio
PB vs Industry: CTEC is good value based on its PB Ratio (2.8x) compared to the GB Medical Equipment industry average (2.9x).
Next Steps
Future Growth
How is Convatec Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
44.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CTEC's forecast earnings growth (44.4% per year) is above the savings rate (0.5%).
Earnings vs Market: CTEC's earnings (44.4% per year) are forecast to grow faster than the UK market (15.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CTEC's revenue (3.2% per year) is forecast to grow faster than the UK market (2.4% per year).
High Growth Revenue: CTEC's revenue (3.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CTEC's Return on Equity is forecast to be low in 3 years time (14.9%).
Next Steps
Past Performance
How has Convatec Group performed over the past 5 years?
62.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CTEC has a large one-off loss of $128.7M impacting its December 31 2019 financial results.
Growing Profit Margin: CTEC's current net profit margins (0.5%) are lower than last year (12.1%).
Past Earnings Growth Analysis
Earnings Trend: CTEC has become profitable over the past 5 years, growing earnings by 62.9% per year.
Accelerating Growth: CTEC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CTEC had negative earnings growth (-95.6%) over the past year, making it difficult to compare to the Medical Equipment industry average (-9.5%).
Return on Equity
High ROE: CTEC's Return on Equity (0.6%) is considered low.
Next Steps
Financial Health
How is Convatec Group's financial position?
Financial Position Analysis
Short Term Liabilities: CTEC's short term assets ($968.3M) exceed its short term liabilities ($397.3M).
Long Term Liabilities: CTEC's short term assets ($968.3M) do not cover its long term liabilities ($1.7B).
Debt to Equity History and Analysis
Debt Level: CTEC's debt to equity ratio (95.2%) is considered high.
Reducing Debt: CTEC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Balance Sheet
Inventory Level: CTEC has a low level of unsold assets or inventory.
Debt Coverage by Assets: CTEC's debt is not covered by short term assets (assets are 0.7x 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: CTEC is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: CTEC is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Convatec Group's current dividend yield, its reliability and sustainability?
2.54%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CTEC's dividend (2.54%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.67%).
High Dividend: CTEC's dividend (2.54%) is low compared to the top 25% of dividend payers in the UK market (7.36%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CTEC has been paying a dividend for less than 10 years.
Growing Dividend: CTEC's dividend payments have increased, but the company has only paid a dividend for 3 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (1146.4%), CTEC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CTEC's dividends in 3 years are forecast to be well covered by earnings (45.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.4yrs
Average management tenure
CEO
Karim Bitar (54yo)
0.58
Tenure
US$6,878,000
Compensation
Mr. Karim Bitar serves as Chief Executive Officer and Director at Convatec Group Plc since September 30, 2019. Mr. Bitar served as the Chief Executive Officer of Genus plc from September 30, 2011 to Septem ...
CEO Compensation Analysis
Compensation vs Market: Karim's total compensation ($USD8.53M) is above average for companies of similar size in the UK market ($USD2.48M).
Compensation vs Earnings: Insufficient data to compare Karim's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.58yr | US$6.88m | 0.050% $1.8m | |
| CFO & Director | 2.42yrs | US$979.00k | 0.0083% $298.2k | |
| Executive Vice President of Global Quality | 0.17yr | no data | no data | |
| Chief Technology Officer | 0.25yr | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| Chief Transformation Officer & General Counsel | 5.67yrs | no data | no data | |
| Executive Vice President of Human Resources | 2.25yrs | no data | no data | |
| President & COO of Global Infusion Care | 0.17yr | no data | no data | |
| Senior VP & GM - USA | no data | no data | no data | |
| President & COO of Global Continence Care | 2.25yrs | no data | no data |
1.4yrs
Average Tenure
57.5yo
Average Age
Experienced Management: CTEC's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.58yr | US$6.88m | 0.050% $1.8m | |
| CFO & Director | 2.42yrs | US$979.00k | 0.0083% $298.2k | |
| Independent Chairman | 0.58yr | US$81.00k | 0.0012% $41.8k | |
| Independent Non-Executive Director | 2.67yrs | US$94.00k | 0.00051% $18.2k | |
| Senior Independent Director | 1.08yrs | US$123.00k | 0.00051% $18.2k | |
| Non-Executive Director | 1.75yrs | US$60.00k | 0.0013% $45.1k | |
| Non-Executive Director | 0.083yr | no data | 0.0013% $45.1k | |
| Non-Executive Director | 3.5yrs | US$1.14m | 0.010% $374.7k | |
| Independent Non-Executive Director | 2.83yrs | US$109.00k | 0.00049% $17.5k |
1.8yrs
Average Tenure
62yo
Average Age
Experienced Board: CTEC's board of directors are not considered experienced ( 1.8 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: CTEC 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
Convatec Group Plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Convatec Group Plc
- Ticker: CTEC
- Exchange: LSE
- Founded: 2008
- Industry: Health Care Supplies
- Sector: Healthcare
- Market Cap: UK£3.575b
- Shares outstanding: 1.98b
- Website: https://www.convatecgroup.com
Number of Employees
Location
- Convatec Group Plc
- 3 Forbury Place
- 23 Forbury Road
- Reading
- Berkshire
- RG1 3JH
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CTEC | LSE (London Stock Exchange) | Yes | Common Stock | GB | GBP | Oct 2016 |
| CTECL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Stock | GB | GBP | Oct 2016 |
| CNVV.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Oct 2016 |
| 2CV | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 2016 |
| CNVV.Y | OTCPK (Pink Sheets LLC) | UNSP ADR EACH REP 4 ORD SHS | US | USD | Jan 2017 | |
| 2CVU | DB (Deutsche Boerse AG) | UNSP ADR EACH REP 4 ORD SHS | DE | EUR | Jan 2017 |
Biography
ConvaTec Group Plc develops, manufactures, and markets medical products and technologies worldwide. It offers advanced wound dressings and skin care products for the management of chronic wounds resulting from various conditions, such as diabetes, immobility, and venous disease, as well as for traumatic injury, burns, invasive surgery, and other causes. The company also provides devices, accessories, and services for people with an ostomy or stoma resulting from colorectal cancer, inflammatory bowel disease, bladder cancer, obesity, and other causes. In addition, it offers continence and critical care products, including intermittent urinary catheters; and products for people with urinary continence issues related to spinal cord injuries, multiple sclerosis, spina bifida, and urological disorders, as well as devices and products use in intensive care units and hospital settings. Further, the company provides advanced systems for managing acute fecal incontinence, as well as for monitoring urine production output and intra-abdominal pressure; and various disposable medical devices, such as wound drainage systems, urine collection bags and catheters, airway management and oxygen/aerosol therapy devices, suction handles and tubes, gastroenterology tubes, and securement devices. Additionally, it offers disposable infusion sets to the manufacturers of insulin pumps for diabetes, as well as similar pumps that are used in continuous infusion treatments for other conditions; and various products to hospitals and the home healthcare sector. The company sells its products to pharmacies, hospitals, and other acute and post-acute healthcare service providers directly or through distributors and wholesalers. It serves a range of customers, including healthcare providers, patients, and manufacturers. The company was founded in 2008 and is headquartered in Reading, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/03 01:46 |
| End of Day Share Price | 2020/04/02 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.