Convatec Group
Market Cap
UK£3.5b
Last Updated
2019/08/22 21:52 UTC
Data Sources
Company Financials +
Executive Summary
ConvaTec Group Plc develops, manufactures, and markets medical products and technologies worldwide.
Snowflake
Fundamentals
Adequate balance sheet second-rate dividend payer.
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
Market Performance
7 Day Return
-2.2%
LSE:CTEC
1.8%
GB Medical Equipment
1.4%
GB Market
1 Year Return
-19.0%
LSE:CTEC
19.9%
GB Medical Equipment
-5.7%
GB Market
CTEC underperformed the Medical Equipment industry which returned 20.6% over the past year.
CTEC underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -4.8% over the past year.
Share holder returns
| CTEC | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.2% | 1.8% | 1.4% |
| 30 Day | 18.1% | 9.8% | -4.8% |
| 90 Day | 25.0% | 14.6% | -1.9% |
| 1 Year | -16.7%-19.0% | 22.4%19.9% | -1.3%-5.7% |
| 3 Year | n/a | 59.4%51.0% | 17.6%3.6% |
| 5 Year | n/a | 87.0%70.7% | 24.6%-2.0% |
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 days ago | Simply Wall St
Is Convatec Group Plc's (LON:CTEC) Stock Available For A Good Price After Accounting For Growth?1 week ago | Simply Wall St
Who Has Been Buying Convatec Group Plc (LON:CTEC) Shares?3 weeks ago | Simply Wall St
Is Convatec Group Plc's (LON:CTEC) ROE Of 14% Impressive?Valuation
Is Convatec Group undervalued based on future cash flows and its price relative to the stock market?
9%
Discount to future cash flow value
Intrinsic Value Based on Future Cash Flows
Convatec Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Convatec Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
Price Based on Earnings
Convatec Group is good value based on earnings compared to the GB Medical Equipment industry average.
Convatec Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price Based on Expected Growth
Convatec Group is poor value based on expected growth next year.
Price Based on Value of Assets
Convatec Group is good value based on assets compared to the GB Medical Equipment industry average.
Next Steps
Future Growth
How is Convatec Group expected to perform in the next 1 to 3 years based on estimates from 12 analysts?
12.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Estimates
Future Annual Growth Analysis
Convatec Group's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
Convatec Group's earnings are expected to grow by 12.3% yearly, however this is not considered high growth (20% yearly).
Convatec Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Convatec Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Convatec Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Earnings per Share Growth Estimates
Future Return on Equity
Convatec Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Next Steps
Past Performance
How has Convatec Group performed over the past 5 years?
63.2%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Convatec Group has delivered over 20% year on year earnings growth in the past 5 years.
Convatec Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
Convatec Group's 1-year earnings growth is negative, it can't be compared to the GB Medical Equipment industry average.
Return on Equity
Convatec Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Return on Assets
Convatec Group used its assets less efficiently than the GB Medical Equipment industry average last year based on Return on Assets.
Return on Capital Employed
Convatec Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Next Steps
Financial Health
How is Convatec Group's financial position?
Financial Position Analysis
Convatec Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Convatec Group's long term commitments exceed its cash and other short term assets.
Debt to Equity History and Analysis
Convatec Group's level of debt (99.4%) compared to net worth is high (greater than 40%).
Convatec Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
Debt is well covered by operating cash flow (24%, greater than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 4x coverage).
Balance Sheet
Low level of unsold assets.
Debt is not covered by short term assets, assets are 0.6x debt.
Next Steps
Dividend
What is Convatec Group's current dividend yield, its reliability and sustainability?
2.68%
Expected Dividend Yield
Upcoming Dividend Payment
Purchase Convatec Group before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield and Payments Analysis
Convatec Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.07%).
Convatec Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.66%).
Whilst dividend payments have been stable, Convatec Group has been paying a dividend for less than 10 years.
Dividend payments have increased, but Convatec Group only paid a dividend in the past 2 years.
Current Payout to Shareholders
Dividends paid are covered by earnings (1.4x coverage).
Future Payout to Shareholders
Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
Next Steps
Management
What is the CEO of Convatec Group's salary, the management and board of directors tenure and is there insider trading?
1.8yrs
Average management tenure
CEO
Rick Anderson (58yo)
0.8yrs
Tenure
US$1,215,715
Compensation
Mr. Rick D. Anderson serves as the Chairman and Managing Director at Revival Healthcare Capital. Mr. Anderson has been an Executive Chairman at Convatec Group Pl since May 09, 2019 and its Director since O ...
CEO Compensation Analysis
Rick's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Rick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
1.8yrs
Average Tenure
57.5yo
Average Age
The average tenure for the Convatec Group management team is less than 2 years, this suggests a new team.
Board Age and Tenure
1.4yrs
Average Tenure
63yo
Average Age
The average tenure for the Convatec Group board of directors is less than 3 years, this suggests a new board.
Insider Trading
No 3 month open market individual insider trading information.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors CFO & Director |
| Shares | 165,000 |
| Max Price | US$1.40 |
| Entity | Individual |
| Role | Member of the Board of Directors CFO & Director |
| Shares | 165,000 |
| Max Price | US$1.40 |
| Entity | Individual |
| Role | Chief Executive Officer Executive Chairman & Interim CEO |
| Shares | 55,500 |
| Max Price | US$1.37 |
| Entity | Individual |
| Role | Chief Executive Officer Executive Chairman & Interim CEO |
| Shares | 75,000 |
| Max Price | US$1.54 |
| Entity | Individual |
| Shares | 45,000 |
| Max Price | US$1.42 |
Ownership Breakdown
Management Team
Adam Deutsch
Executive VP of Corporate Development & General Counsel
- Tenure: 5.0yrs
Supratim Bose (67yo)
Executive VP & President of APAC
- Tenure: 0.7yrs
Rick Anderson (58yo)
Executive Chairman & Interim CEO
- Tenure: 0.8yrs
- Compensation: US$1.22m
Frank Schulkes (57yo)
CFO & Director
- Tenure: 1.8yrs
- Compensation: US$627.00k
Douglas Le Fort (53yo)
Senior Vice President of Corporate Development
- Tenure: 3.8yrs
John Crosse
Vice President of Investor Relations
- Tenure: 0.0yrs
Robert Steele
Executive Vice President of Quality
- Tenure: 0.0yrs
Christian Hoengaard
Senior VP & GM - USA
- Tenure: 0.0yrs
Donal Balfe
Executive Vice President of Global Operations
- Tenure: 1.8yrs
Sean McGrath
Executive VP of Global Human Resources
- Tenure: 1.6yrs
Board Members
Regina Benjamin (62yo)
Non-Executive Director
- Tenure: 2.0yrs
- Compensation: US$72.00k
Margaret Ewing (64yo)
Senior Independent Director
- Tenure: 0.4yrs
- Compensation: US$84.00k
Sten Scheibye (68yo)
Non-Executive Director
- Tenure: 1.1yrs
- Compensation: US$30.00k
Rick Anderson (58yo)
Executive Chairman & Interim CEO
- Tenure: 0.8yrs
- Compensation: US$1.22m
Frank Schulkes (57yo)
CFO & Director
- Tenure: 1.8yrs
- Compensation: US$627.00k
Ros Rivaz (64yo)
Independent Non-Executive Director
- Tenure: 2.2yrs
- Compensation: US$84.00k
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£3.493b
- Shares outstanding: 1.97b
- 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) | UNSPONSORE ADR | US | USD | 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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/08/22 21:52 |
| End of Day Share Price | 2019/08/22 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.