Declared Dividend • 2h
First half dividend of UK£0.016 announced Shareholders will receive a dividend of UK£0.016. Ex-date: 20th August 2026 Payment date: 30th September 2026 Dividend yield will be 2.5%, which is about the same as the industry average. Sustainability & Growth Dividend is not covered by earnings (119% earnings payout ratio) nor is it adequately covered by cash flows (98% cash payout ratio). The dividend has increased by an average of 11% per year over the past 9 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 33% to bring the payout ratio under control. EPS is expected to grow by 100% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • 20h
ConvaTec Group PLC Announces Interim Dividend for the Six Months Ended 30 June 2026, Payable on 30 September 2026 Convatec Group PLC announced that Board has decided to increase the interim dividend for the six months ended 30 June 2026 by 15.4% to 2.166 cents per share against 1.877 cents a year ago. The dividend will be payable on 30 September 2026 with Ex-dividend date of 20 August 2026 and Record date of 21 August 2026. Reported Earnings • 20h
First half 2026 earnings: EPS misses analyst expectations First half 2026 results: EPS: US$0.028 (down from US$0.051 in 1H 2025). Revenue: US$1.23b (up 4.4% from 1H 2025). Net income: US$54.0m (down 49% from 1H 2025). Profit margin: 4.4% (down from 8.9% in 1H 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 48%. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Medical Equipment industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. New Risk • Aug 04
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 117% Cash payout ratio: 98% Dividend yield: 2.3% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 117% Cash payout ratio: 98% Minor Risks High level of debt (107% net debt to equity). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.0% net profit margin). Announcement • Jul 07
Convatec Group PLC to Report Fiscal Year 2026 Results on Feb 23, 2027 Convatec Group PLC announced that they will report fiscal year 2026 results on Feb 23, 2027 Announcement • May 06
Convatec Showcases and Launches Advanced Wound Care Products and Technologies Convatec, a medical products and technology company focused on chronic condition management, took to the stage to showcase the breadth, depth and momentum behind its Advanced Wound Care innovation pipeline at the European Wound Management Association (EWMA) 2026 conference in Bremen, Germany, from 6–8 May 2026. Convatec’s Advanced Wound Care innovation is supported by compelling new data from randomised controlled trials (RCTs) and real-world studies, with 13 abstracts accepted for publication and presentation at EWMA evaluating outcomes in hard-to-heal wounds across foam, multimodal, nitric oxide-generating dressings, antimicrobial technology and Wound Hygiene. Convatec has launched or secured approvals for five new wound care products since 2022, including: ConvaFoam™: Best-in-class multi-layer foam dressing designed to be repositionable on application to avoid wasted dressing changes. ConvaFoam™ is the only foam dressing that combines three technologies – Aquacel® Hydrofiber®, superabsorber fibers and ConvaTac™ silicone – to deliver superior exudate management with skin friendly adhesion for longer lasting wear time. ConvaNiox™: A solution, shaping a new category in the management of hard-to-heal wounds by combining an advanced dressing technology with a powerful antimicrobial and antibiofilm agent, nitric oxide. ConvaNiox™’s multimodal technology, MultiFusion™, supports the healing of 60% more diabetic foot ulcers (DFUs), with 3x faster wound area reduction compared to standard-of-care dressings. Aquacel™ ConvaFiber™: Next-generation, soft, sterile and conformable primary dressing with advanced Hydrofiber® technology resulting in 45% more absorbency (vs Aquacel® Extra™), designed to manage a broad range of acute and chronic wounds. ConvaMatrix™: Recently approved innovative, single use wound matrix - a unique porcine placental-derived technology designed to support the body's natural healing response in DFUs and venous leg ulcers (VLUs). It combines the structural benefits of the placenta with the reproducibility and safety profile of a medical device. ConvaVAC™: First and only Negative Pressure Wound Therapy (NPWT) system partnered with Aquacel® Hydrofiber® technology utilising a bacterial sequestration and autolytic debridement wound contact layer to control the bioburden whilst delivering NPWT to promote wound healing. This year’s EWMA programme also marks 30 years of Hydrofiber® technology, Convatec’s proprietary wound care platform that underpins the next generation of wound care innovation to help manage the burden of wound care. Almost 1,500,000,000 Aquacel® dressings have been sold worldwide leveraging the technology over the last three decades. As part of the scientific programme at EWMA 2026, Convatec will host a series of symposia to explore emerging evidence from across its Advanced Wound Care portfolio and discuss what it means for real-world clinical practice, including: 6 May 2026 from 16:00 – 17:00: Introducing ConvaNiox™: multimodal, nitric oxide-generating dressing. The session, chaired by Professor José Luis Lázaro-Martínez, University of Madrid, will explore emerging laboratory and clinical evidence, highlighting ConvaNiox™’s multimodal approach to support healing in diabetic foot ulcers. 7 May 2026 from 16:16 – 17:15: A year of healing with ConvaFoam™: Advancing wound care with a next-generation foam dressing. The session will focus on the published clinical data exploring ConvaFoam™’s mode of action in pressure injury prevention, including insights on complex cases from guest speaker Dr Przemyslaw Lipinski, ARGO Medical Centre. Title Lead presenter Session information (CEST) Aquacel® Ag+ Extra™ Enhanced silver dressing versus dialkylcarbamoyl chloride-coated dressing in venous leg ulcers: a blinded re-assessment of randomized controlled trial findings Rebecca Rodger Wednesday 6 May 17:35 - 17:43 Room 4B Enhanced silver dressing improves slough and debridement in venous leg ulcers: post hoc analysis of a randomised controlled trial Rebecca Rodger Thursday 07 May 13:33 – 13:37 E-Poster Screen 4 ConvaNiox™ Assessing the speed of antimicrobial activity of a nitric oxide-generating dressing against antibiotic-resistant wound pathogens Tilly Coleborn Wednesday 6 May 12:17 - 12:21 E-Poster Screen 2 Assessing the sustained antimicrobial activity of a nitric oxide-generating dressing using antibiotic-resistant wound pathogens in a repeated inoculation model Tilly Coleborn Wednesday 6 May 12:21 - 12:25 E-Poster Screen 2 A multimodal dressing NO-generating: An Option for Both Acute and Chronic Wounds Dr. Francesca Pasquali Wednesday 6 May 12:29 - 12:33 CEST E-Poster Screen 2 Effectiveness of a nitric oxide-generating dressing in patients with diabetic foot ulcers: preliminary data from a case series study Dr. Marco Meloni Thursday 7 May 13:20 - 13:25 E-Poster Screen 3 To assess real-world characteristics and short-term outcomes of diabetic foot ulcers (DFUs) managed with a multi-modal nitric oxide-generating medical device using a structured clinical follow-up case report form Natalia Maella-Rius Thursday 7 May 13:30 - 13:35 E-Poster Screen 3 ConvaFoam™ Performance and user satisfaction with a superabsorbent dressing: results from an international survey Janet MacKenzie Thursday 7 May 12:54 – 12:57 E-Poster Screen 2 Early outcomes of implementing a new multilayer foam dressing in an acute setting: Assessing clinical and financial impact through value-based procurement Rebecca Rodger Thursday 7 May 16:10 - 16:15 E-Poster Screen 4 ConvaMatrix™ The clinical performance of decellularized porcine placental extracellular matrix (PPECM) in hard-to-heal wounds at a single-center: a retrospective study Helen Hahn Wednesday 6 May 00:00 - 00:00 E-poster browsing stations for display Real-world use of porcine placental extracellular matrix (PPECM) in hard-to-heal wounds: retrospective, multicenter analysis Helen Hahn Wednesday 6 May 00:00 - 00:00 E-poster browsing stations for display Real world data Hospital-to-home transition and care coordination in wound management: cost-effectiveness evaluation in a Brazilian specialized service Michele Rocha Thursday 7 May 10:36 - 10:39 E-Poster Screen 4 Therapeutic success indicators in hard-to-heal wounds: effectiveness of a specialized ambulatory care model Michele Rocha Thursday 7 May 16:30 - 16:35 E-Poster Screen 4. Announcement • Apr 13
Convatec Group Plc Announces Professor Constantin Coussios OBE Steps Down as Non-Executive Director, Effective April 30, 2026 Convatec Group Plc announces that Professor Constantin Coussios OBE will be stepping down as a Non-Executive Director of Convatec Group Plc with effect from April 30, 2026 as he takes up his new appointment as Pro-Vice-Chancellor for Innovation at the University of Oxford. Since his appointment in September 2020, Professor Coussios has worked closely with the Board, senior management and Convatec's Chief Science, Innovation & Quality Officer Dr Divakar Ramakrishnan to transform and re-shape Convatec's research and development capabilities, accelerate new product development, and position the Company for sustained, innovation-led growth. Over the past six years, Convatec has completed several transformative strategic acquisitions, its internal new product development cycle time has been compressed by approximately 30%, and the vitality index has strengthened steadily from approximately 10% to approximately 30%, with 16 new product launches underway since 2022. The company confirms that the resolution to re-elect Professor Coussios as a Non-Executive Director of the company (resolution number 9) is now withdrawn. Upcoming Dividend • Apr 09
Upcoming dividend of UK£0.04 per share Eligible shareholders must have bought the stock before 16 April 2026. Payment date: 28 May 2026. Payout ratio is on the higher end at 84%, however this is supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of British dividend payers (5.8%). In line with average of industry peers (2.4%). Recent Insider Transactions Derivative • Mar 19
CEO & Director exercised options and sold UK£682k worth of stock On the 16th of March, Jonathan Mason exercised options to acquire 291k shares at no cost and sold these for an average price of UK£2.34 per share. This trade did not impact their existing holding. For the year to December 2022, Jonathan's total compensation was 21% salary and 79% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since June 2025, Jonathan's direct individual holding has increased from 326.59k shares to 386.94k. Company insiders have collectively sold UK£3.4m more than they bought, via options and on-market transactions in the last 12 months. Announcement • Mar 18
Convatec Group PLC to Report First Half, 2026 Results on Aug 04, 2026 Convatec Group PLC announced that they will report first half, 2026 results on Aug 04, 2026 Announcement • Mar 17
Convatec and Eakin Healthcare Introduce Co-Branded Eakin Freeseal Ostomy Seal in North America Expanding the Esenta Family of Accessories Convatec, a medical products and technologies company focused on solutions for the management of chronic conditions, and Eakin Healthcare, a provider of ostomy solutions, announced the launch of eakin freeseal, the thinnest ostomy seal used to help prevent leaks and protect the skin around a stoma. This new co-branded seal is part of the ESENTA family of accessories, available in the United States. Ostomy seals are designed to create a protective layer around the stoma to prevent leakage. Recurrent leakage can lead to skin breakdown and irritation, leading to longer term issues, both physically and emotionally for patients. With approximately 1 million people living with a stoma in the United States, about 90% experience leakage at some point in their journey. The use of ostomy seals can reduce or eliminate leakage, leading to a better quality of life for those living with an ostomy. The eakin freeseal range includes two product lines, eakin freeseal air, and eakin freeseal versa, providing healthcare professionals with versatile options that combine discretion, comfort and high performance. While Convatec currently addresses the patient's needs with the eakin Cohesive seal, eakin freeseal provides healthcare professionals with a wider range of options to meet their clinical needs. The thinner offering, eakin freeseal air has a depth starting at 1.8mm, making it the thinnest seal on the market and is designed to be paired with convex pouches. Eakin freeseal versa is slightly thicker and designed to absorb fluid at the best rate in the market without breaking down, leading to easier removal for the end user. The thinness of this new ostomy seal, together with its composition and design, allows it to absorb up to four times its weight in fluid without breaking down underneath the skin barrier. This high performance, combined with eakin seals’ moldability, makes eakin freeseal a relatable solution to any person living with a stoma immediately post-surgery. Ostomy seals and barriers designed to prevent leakage and skin irritation is one of the largest product categories in the United States and continues to grow at a consistent rate. This co-branded product reflects Convatec and Eakin Healthcare’s ongoing commitment to patients and healthcare professionals to provide choice – working together to provide a better ostomy experience so patients can live the life they want. Integrating eakin seals into the ESENTA range reinforces the importance of using a reliable ostomy seal as part of the customers skincare routine. New Risk • Mar 13
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 31% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks High level of debt (88% net debt to equity). Large one-off items impacting financial results. Declared Dividend • Feb 26
Final dividend of UK£0.04 announced Shareholders will receive a dividend of UK£0.04. Ex-date: 16th April 2026 Payment date: 28th May 2026 Dividend yield will be 2.1%, which is lower than the industry average of 2.4%. Sustainability & Growth Dividend is covered by both earnings (84% earnings payout ratio) and cash flows (50% cash payout ratio). The dividend has increased by an average of 11% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 71% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 25
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: US$0.086 (down from US$0.093 in FY 2024). Revenue: US$2.44b (up 6.5% from FY 2024). Net income: US$175.0m (down 8.1% from FY 2024). Profit margin: 7.2% (down from 8.3% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 27%. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Medical Equipment industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Feb 25
Convatec Group PLC, Annual General Meeting, May 21, 2026 Convatec Group PLC, Annual General Meeting, May 21, 2026. Announcement • Feb 24
Convatec Group PLC Recommends Final Dividend for the Year 2025, Payable on 28 May 2026 Convatec Group PLC has recommended a final 2025 dividend of 5.367 cents per share, which would bring the full-year dividend to 7.244 cents per share (2024: 6.416 cents per share), an increase of 13% and a pay-out ratio when compared to adjusted net profit of 40% (2024: 42%). Ex-dividend is on 16 April 2026 with Record date on 17 April 2026. Payment date on 28 May 2026. Announcement • Nov 13
Convatec Group plc Maintains Revenue Guidance for the Year 2025 ConvaTec Group PLC maintained revenue guidance for the year 2025. FY25 Group organic revenue growth excluding InnovaMatrix 6.0-6.5% (previously 5.5-7.0%). Medium-term targets: 5-7% organic revenue. Announcement • Oct 28
Convatec Group plc Announces Demise of Karim Bitar, Chief Executive Officer ConvaTec Group PLC announced that its Karim Bitar, who has been on medical leave of absence since 4 August 2025, has passed away. As previously announced, interim leadership arrangements remain in place and a further announcement will be made in due course. Recent Insider Transactions • Aug 10
CEO & Director (Leave Of Absence) recently sold UK£2.8m worth of stock On the 7th of August, Karim Bitar sold around 1m shares on-market at roughly UK£2.26 per share. This transaction amounted to 35% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. New Risk • Aug 06
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.1% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks High level of debt (64% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Declared Dividend • Jul 31
First half dividend of UK£0.014 announced Shareholders will receive a dividend of UK£0.014. Ex-date: 21st August 2025 Payment date: 1st October 2025 Dividend yield will be 2.2%, which is lower than the industry average of 2.4%. Sustainability & Growth Dividend is covered by both earnings (61% earnings payout ratio) and cash flows (39% cash payout ratio). The dividend has increased by an average of 11% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to grow by 48% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 29
First half 2025 earnings released: EPS: US$0.051 (vs US$0.038 in 1H 2024) First half 2025 results: EPS: US$0.051 (up from US$0.038 in 1H 2024). Revenue: US$1.18b (up 6.0% from 1H 2024). Net income: US$104.8m (up 33% from 1H 2024). Profit margin: 8.9% (up from 7.1% in 1H 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Medical Equipment industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Jul 29
ConvaTec Group PLC to Report Fiscal Year 2025 Results on Feb 25, 2026 ConvaTec Group PLC announced that they will report fiscal year 2025 results on Feb 25, 2026 Buy Or Sell Opportunity • Jun 13
Now 20% undervalued Over the last 90 days, the stock has risen 13% to UK£2.87. The fair value is estimated to be UK£3.60, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.5% over the last 3 years. Earnings per share has grown by 28%. For the next 3 years, revenue is forecast to grow by 5.7% per annum. Earnings are also forecast to grow by 17% per annum over the same time period. Upcoming Dividend • Apr 10
Upcoming dividend of UK£0.036 per share Eligible shareholders must have bought the stock before 17 April 2025. Payment date: 29 May 2025. Payout ratio is a comfortable 69% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of British dividend payers (6.5%). Lower than average of industry peers (2.7%). Board Change • Apr 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. No highly experienced directors. Group CFO & Director Jonny Mason was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions Derivative • Mar 20
CEO & Director exercised options and sold UK£1.5m worth of stock On the 17th of March, Karim Bitar exercised options to acquire 569k shares at no cost and sold these for an average price of UK£2.56 per share. This trade did not impact their existing holding. For the year to December 2019, Karim's total compensation was 19% salary and 81% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since June 2024, Karim has owned 3.27m shares directly. This was the only transaction from an insider over the last 12 months. Declared Dividend • Feb 28
Final dividend of UK£0.036 announced Shareholders will receive a dividend of UK£0.036. Ex-date: 17th April 2025 Payment date: 29th May 2025 Dividend yield will be 2.0%, which is lower than the industry average of 2.4%. Sustainability & Growth Dividend is covered by both earnings (69% earnings payout ratio) and cash flows (48% cash payout ratio). The dividend has increased by an average of 11% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to grow by 60% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 27
Full year 2024 earnings: Revenues and EPS in line with analyst expectations Full year 2024 results: EPS: US$0.093 (up from US$0.064 in FY 2023). Revenue: US$2.29b (up 6.9% from FY 2023). Net income: US$190.5m (up 46% from FY 2023). Profit margin: 8.3% (up from 6.1% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Medical Equipment industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Announcement • Feb 27
ConvaTec Group PLC, Annual General Meeting, May 22, 2025 ConvaTec Group PLC, Annual General Meeting, May 22, 2025. Announcement • Dec 17
ConvaTec Group PLC to Report Fiscal Year 2024 Results on Feb 26, 2025 ConvaTec Group PLC announced that they will report fiscal year 2024 results on Feb 26, 2025 New Risk • Nov 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (75% net debt to equity). Share price has been volatile over the past 3 months (6.9% average weekly change). Valuation Update With 7 Day Price Move • Nov 12
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to UK£2.64, the stock trades at a forward P/E ratio of 33x. Average trailing P/E is 33x in the Medical Equipment industry in the United Kingdom. Total returns to shareholders of 28% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£3.89 per share. Upcoming Dividend • Aug 16
Upcoming dividend of UK£0.014 per share Eligible shareholders must have bought the stock before 22 August 2024. Payment date: 04 October 2024. Payout ratio is on the higher end at 84%, however this is supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of British dividend payers (5.5%). Lower than average of industry peers (2.3%). Declared Dividend • Aug 02
First half dividend of UK£0.014 announced Shareholders will receive a dividend of UK£0.014. Ex-date: 22nd August 2024 Payment date: 4th October 2024 Dividend yield will be 2.1%, which is lower than the industry average of 2.4%. Sustainability & Growth Dividend is covered by both earnings (84% earnings payout ratio) and cash flows (50% cash payout ratio). The dividend has increased by an average of 12% per year over the past 7 years. However, payments have been volatile during that time. EPS is expected to grow by 76% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 02
First half 2024 earnings released: EPS: US$0.038 (vs US$0.027 in 1H 2023) First half 2024 results: EPS: US$0.038 (up from US$0.027 in 1H 2023). Revenue: US$1.11b (up 5.5% from 1H 2023). Net income: US$78.6m (up 41% from 1H 2023). Profit margin: 7.1% (up from 5.3% in 1H 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Medical Equipment industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has remained flat. Announcement • May 17
ConvaTec Group PLC Provides Revenue Guidance for the Full Year 2024 ConvaTec Group PLC provided revenue guidance for the full year 2024. Given the strong start so far this year, the company expects more balanced growth between first half and the second half of the year, and the company is on track to deliver its full year guidance of 5% to 7% organic revenue growth. Upcoming Dividend • Apr 18
Upcoming dividend of UK£0.035 per share Eligible shareholders must have bought the stock before 25 April 2024. Payment date: 23 May 2024. Payout ratio is on the higher end at 97%, however this is supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of British dividend payers (6.1%). Lower than average of industry peers (2.6%). Announcement • Apr 16
Convatec Launches New Esteem Body with Leak Defense Convatec announced that it has launched Esteem Body™ with Leak Defense™ in the United States. The use of soft convexity ostomy barriers, starting post-surgery, is a growing practice fueled in part by global obesity, which has nearly tripled since 1975. The trend has driven abdominal topography changes and related challenges for ostomy care management, such as skin folds and complicated abdominal contours. Convatec's new offering to address this growing patient need is a comprehensive, one-piece, soft convexity ostomy system portfolio designed to fit a full range of body types and stoma shapes. The portfolio includes drainable, closed-end, and urostomy pouching solutions. There are five principal characteristics of convexity design, with two of these – 'tension location' and 'convex depth' - serving as significant drivers for achieving clinical goals of stoma protrusion and/or skin flattening. Convatec's Esteem Body™ offers eight different combinations of these key characteristics, with four 'tension locations' (split centrally and peripherally) across two different 'convex depths'. This range gives greater choice and provides the healthcare provider and ostomate the ability to achieve the best possible fit, given that each person living with an ostomy is unique. Leak Defense™ refers to the exclusive combination of Convatec's gold-standard adhesives (Durahesive® and Modified Stomahesive®) coupled with the comprehensive, soft convexity range, which together are designed to adapt to the body for a secure seal that can help prevent leaks and achieve a predictable wear time. The product also offers Convatec's new 'body' pouch, which comes in a patented '8-shape' that has been designed to sag less as it fills. The soft yet water-repellent 'flocking' material, that covers both sides of the pouch, is a warm gray color that hides content, even when wet, and is also discreet, even when worn under white clothing. The flocking was selected to optimise the functionality and discretion of Convatec's new, modern-looking and feeling pouch design. Convatec has recently published Finite Element Analysis (FEA) simulations that help visualize how both magnitude and location, of the tension applied to the ostomy and its surrounding multi-layer tissue, change in accordance with the product selected. It was clear how both tension location and convex depth are key contributors, working together with all convexity characteristics to achieve clinical stoma management goals. The FEA work is the foundation for the scientific and translational work Convatec is doing in ostomy care, and upon which research will be expanded to support clinicians and ostomates. Buy Or Sell Opportunity • Apr 06
Now 21% undervalued Over the last 90 days, the stock has risen 17% to UK£2.86. The fair value is estimated to be UK£3.61, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.2% over the last 3 years. Earnings per share has declined by 14%. For the next 3 years, revenue is forecast to grow by 5.7% per annum. Earnings are also forecast to grow by 21% per annum over the same time period. Buy Or Sell Opportunity • Mar 21
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 18% to UK£2.89. The fair value is estimated to be UK£2.38, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.2% over the last 3 years. Earnings per share has declined by 14%. For the next 3 years, revenue is forecast to grow by 5.5% per annum. Earnings are also forecast to grow by 20% per annum over the same time period. Recent Insider Transactions Derivative • Mar 15
CEO & Director exercised options and sold UK£1.2m worth of stock On the 11th of March, Karim Bitar exercised options to acquire 421k shares at no cost and sold these for an average price of UK£2.81 per share. This trade did not impact their existing holding. For the year to December 2019, Karim's total compensation was 21% salary and 79% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since June 2023, Karim has owned 2.79m shares directly. Company insiders have collectively sold UK£1.2m more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • Mar 07
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: US$0.064 (up from US$0.031 in FY 2022). Revenue: US$2.14b (up 3.4% from FY 2022). Net income: US$130.3m (up 107% from FY 2022). Profit margin: 6.1% (up from 3.0% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 10%. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Medical Equipment industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • Mar 06
ConvaTec Group PLC, Annual General Meeting, May 16, 2024 ConvaTec Group PLC, Annual General Meeting, May 16, 2024. Agenda: To consider Final Dividend. Announcement • Feb 16
ConvaTec Group PLC to Report First Half, 2024 Results on Jul 30, 2024 ConvaTec Group PLC announced that they will report first half, 2024 results on Jul 30, 2024 Announcement • Nov 14
ConvaTec Group PLC Revises Earnings Guidance for the Year 2023 ConvaTec Group PLC revised earnings guidance for the year 2023. For the year, the company now expect organic revenue growth for 2023 to be between 6.75% and 7.5% (previously 6.0%-7.5%). Announcement • Sep 14
ConvaTec Group PLC to Report Fiscal Year 2023 Results on Mar 06, 2024 ConvaTec Group PLC announced that they will report fiscal year 2023 results on Mar 06, 2024 Upcoming Dividend • Aug 10
Upcoming dividend of UK£0.014 per share at 2.1% yield Eligible shareholders must have bought the stock before 17 August 2023. Payment date: 28 September 2023. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 2.1%. Lower than top quartile of British dividend payers (6.1%). Lower than average of industry peers (2.4%). New Risk • Aug 03
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 18% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (18% operating cash flow to total debt). Minor Risk Large one-off items impacting financial results. Reported Earnings • Aug 03
First half 2023 earnings: EPS misses analyst expectations First half 2023 results: EPS: US$0.027 (up from US$0.024 in 1H 2022). Revenue: US$1.06b (up 1.1% from 1H 2022). Net income: US$55.7m (up 15% from 1H 2022). Profit margin: 5.3% (up from 4.6% in 1H 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 10.0%. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Medical Equipment industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • May 19
ConvaTec Group PLC Provides Revenue Guidance for the Year 2023 ConvaTec Group PLC provided revenue guidance for the year 2023. For the year, the company now expects organic revenue growth to be between 5.0% and 6.5% (previously 4.5%-6.0%). Upcoming Dividend • Mar 30
Upcoming dividend of UK£0.037 per share at 2.2% yield Eligible shareholders must have bought the stock before 06 April 2023. Payment date: 25 May 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 2.2%. Lower than top quartile of British dividend payers (5.9%). Lower than average of industry peers (2.5%). Recent Insider Transactions Derivative • Mar 13
CEO & Director exercised options and sold UK£61k worth of stock On the 9th of March, Karim Bitar exercised options to acquire 28k shares at no cost and sold these for an average price of UK£2.21 per share. This trade did not impact their existing holding. For the year to December 2019, Karim's total compensation was 24% salary and 76% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since June 2022, Karim has owned 1.61m shares directly. Company insiders have collectively bought UK£139k more than they sold, via options and on-market transactions, in the last 12 months. Reported Earnings • Mar 10
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: US$0.031 (down from US$0.059 in FY 2021). Revenue: US$2.07b (up 1.7% from FY 2021). Net income: US$62.9m (down 47% from FY 2021). Profit margin: 3.0% (down from 5.8% in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 43%. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Medical Equipment industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Dec 23
Group CFO & Director recently bought UK£64k worth of stock On the 19th of December, Jonathan Mason bought around 28k shares on-market at roughly UK£2.27 per share. This transaction increased Jonathan's direct individual holding by 1x at the time of the trade. This was the largest purchase by an insider in the last 3 months. Jonathan has been a buyer over the last 12 months, purchasing a net total of UK£113k worth in shares. Announcement • Dec 14
ConvaTec Group Plc to Report Fiscal Year 2022 Results on Mar 09, 2023 ConvaTec Group Plc announced that they will report fiscal year 2022 results on Mar 09, 2023 Major Estimate Revision • Nov 30
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from US$0.05 to US$0.06. Revenue forecast steady at US$2.05b. Net income forecast to grow 57% next year vs 0.9% decline forecast for Medical Equipment industry in the United Kingdom. Consensus price target broadly unchanged at UK£2.63. Share price was steady at UK£2.30 over the past week. Board Change • Nov 16
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Group CFO & Director Jonny Mason was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. 
