ConvaTec Group
Market Cap
UK£4.5b
Last Updated
2021/05/17 02:21 UTC
Data Sources
Company Financials +
Executive Summary
ConvaTec Group Plc develops, manufactures, and markets medical products and technologies worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record 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 is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: CTEC's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-2.1%
CTEC
-1.6%
GB Medical Equipment
-1.3%
GB Market
1 Year Return
5.4%
CTEC
0.6%
GB Medical Equipment
23.3%
GB Market
Return vs Industry: CTEC underperformed the UK Medical Equipment industry which returned 6.5% over the past year.
Return vs Market: CTEC underperformed the UK Market which returned 27.6% over the past year.
Shareholder returns
| CTEC | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.1% | -1.6% | -1.3% |
| 30 Day | 8.0% | 5.0% | 0.4% |
| 90 Day | 10.3% | -0.5% | 4.7% |
| 1 Year | 7.7%5.4% | 2.5%0.6% | 28.8%23.3% |
| 3 Year | 5.8%-1.8% | 19.4%12.6% | 10.1%-2.5% |
| 5 Year | n/a | 43.2%31.4% | 48.9%20.9% |
Long-Term 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
2 weeks ago | Simply Wall St
The Returns At ConvaTec Group (LON:CTEC) Aren't Growing1 month ago | Simply Wall St
Have Insiders Been Selling ConvaTec Group Plc (LON:CTEC) Shares?1 month ago | Simply Wall St
Is Convatec Group Plc (LON:CTEC) A Great Dividend Stock?Valuation
Is ConvaTec Group undervalued compared to its fair value and its price relative to the market?
14.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CTEC (£2.23) is trading below our estimate of fair value (£2.6)
Significantly Below Fair Value: CTEC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CTEC is poor value based on its PE Ratio (55.6x) compared to the UK Medical Equipment industry average (48.2x).
PE vs Market: CTEC is poor value based on its PE Ratio (55.6x) compared to the UK market (25.7x).
Price to Earnings Growth Ratio
PEG Ratio: CTEC is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: CTEC's PB Ratio (3.8x) is in line with the GB Medical Equipment industry average.
Future Growth
How is ConvaTec Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
18.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CTEC's forecast earnings growth (18.3% per year) is above the savings rate (0.9%).
Earnings vs Market: CTEC's earnings (18.3% per year) are forecast to grow faster than the UK market (17.6% per year).
High Growth Earnings: CTEC's earnings are forecast to grow, but not significantly.
Revenue vs Market: CTEC's revenue (4.3% per year) is forecast to grow slower than the UK market (5.3% per year).
High Growth Revenue: CTEC's revenue (4.3% 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 (18.8%).
Past Performance
How has ConvaTec Group performed over the past 5 years?
39.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CTEC has high quality earnings.
Growing Profit Margin: CTEC's current net profit margins (5.9%) are higher than last year (0.5%).
Past Earnings Growth Analysis
Earnings Trend: CTEC has become profitable over the past 5 years, growing earnings by 39.5% per year.
Accelerating Growth: CTEC's earnings growth over the past year (1038.6%) exceeds its 5-year average (39.5% per year).
Earnings vs Industry: CTEC earnings growth over the past year (1038.6%) exceeded the Medical Equipment industry 13.8%.
Return on Equity
High ROE: CTEC's Return on Equity (6.7%) is considered low.
Financial Health
How is ConvaTec Group's financial position?
Financial Position Analysis
Short Term Liabilities: CTEC's short term assets ($1.2B) exceed its short term liabilities ($513.2M).
Long Term Liabilities: CTEC's short term assets ($1.2B) do not cover its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: CTEC's debt to equity ratio (87.6%) is considered high.
Reducing Debt: CTEC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: CTEC's debt is well covered by operating cash flow (27.3%).
Interest Coverage: CTEC's interest payments on its debt are well covered by EBIT (5.3x coverage).
Balance Sheet
Dividend
What is ConvaTec Group current dividend yield, its reliability and sustainability?
1.81%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CTEC's dividend (1.81%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).
High Dividend: CTEC's dividend (1.81%) is low compared to the top 25% of dividend payers in the UK market (4.09%).
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 4 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (100.9%), 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 (40.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.7yrs
Average management tenure
CEO
Karim Bitar (55 yo)
1.67yrs
Tenure
US$3,803,725
Compensation
Mr. Karim Bitar serves as Chief Executive Officer and Director at Convatec Group Plc since September 30, 2019. Mr. Bitar served as the Chief Executive Officer of Genus plc from September 30, 2011 to Septem...
CEO Compensation Analysis
Compensation vs Market: Karim's total compensation ($USD3.80M) is above average for companies of similar size in the UK market ($USD2.25M).
Compensation vs Earnings: Karim's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: CTEC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Board Members
Experienced Board: CTEC's board of directors are not considered experienced ( 1.9 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
ConvaTec Group Plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: ConvaTec Group Plc
- Ticker: CTEC
- Exchange: LSE
- Founded: 1978
- Industry: Health Care Supplies
- Sector: Healthcare
- Market Cap: UK£4.462b
- Shares outstanding: 2.00b
- 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
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 acute and chronic wounds ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/17 02:21 |
| End of Day Share Price | 2021/05/14 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.