LSE:UDG

Stock Analysis Report

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Executive Summary

UDG Healthcare plc, together with its subsidiaries, provides advisory, communication, commercial, clinical, and packaging services in the Republic of Ireland, the United Kingdom, North America, and internationally. More Details

Rewards

Earnings are forecast to grow 8.93% per year

Earnings grew by 61.1% over the past year

Risk Analysis

No risks detected for UDG from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has UDG Healthcare's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UDG is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: UDG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

8.4%

UDG

2.9%

GB Healthcare

-0.4%

GB Market


1 Year Return

-2.5%

UDG

-3.9%

GB Healthcare

-10.0%

GB Market

Return vs Industry: UDG exceeded the UK Healthcare industry which returned -3.9% over the past year.

Return vs Market: UDG exceeded the UK Market which returned -10% over the past year.


Shareholder returns

UDGIndustryMarket
7 Day8.4%2.9%-0.4%
30 Day10.9%9.5%13.6%
90 Day10.3%14.9%6.4%
1 Year-0.9%-2.5%-2.4%-3.9%-6.4%-10.0%
3 Year-1.4%-6.1%-22.4%-26.5%1.6%-10.9%
5 Year57.0%46.8%25.3%14.9%27.5%-1.5%

Long-Term Price Volatility Vs. Market

How volatile is UDG Healthcare's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is UDG Healthcare undervalued compared to its fair value and its price relative to the market?

28.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UDG (£8.05) is trading above our estimate of fair value (£7.17)

Significantly Below Fair Value: UDG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UDG's PE Ratio (29x) is in line with the GB Healthcare industry average.

PE vs Market: UDG is poor value based on its PE Ratio (29x) compared to the UK market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: UDG is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: UDG is overvalued based on its PB Ratio (2.7x) compared to the GB Healthcare industry average (1.5x).


Next Steps

Future Growth

How is UDG Healthcare forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UDG's forecast earnings growth (8.9% per year) is above the savings rate (1.2%).

Earnings vs Market: UDG's earnings (8.9% per year) are forecast to grow slower than the UK market (27.2% per year).

High Growth Earnings: UDG's earnings are forecast to grow, but not significantly.

Revenue vs Market: UDG's revenue (4.3% per year) is forecast to grow slower than the UK market (6.8% per year).

High Growth Revenue: UDG'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: UDG's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has UDG Healthcare performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UDG has high quality earnings.

Growing Profit Margin: UDG's current net profit margins (7.3%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: UDG's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: UDG's earnings growth over the past year (61.1%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: UDG earnings growth over the past year (61.1%) exceeded the Healthcare industry 4.8%.


Return on Equity

High ROE: UDG's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is UDG Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: UDG's short term assets ($597.2M) exceed its short term liabilities ($311.2M).

Long Term Liabilities: UDG's short term assets ($597.2M) exceed its long term liabilities ($469.2M).


Debt to Equity History and Analysis

Debt Level: UDG's debt to equity ratio (28.2%) is considered satisfactory.

Reducing Debt: UDG's debt to equity ratio has reduced from 71.7% to 28.2% over the past 5 years.

Debt Coverage: UDG's debt is well covered by operating cash flow (83.3%).

Interest Coverage: UDG's interest payments on its debt are well covered by EBIT (11.4x coverage).


Balance Sheet


Next Steps

Dividend

What is UDG Healthcare current dividend yield, its reliability and sustainability?

1.59%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: UDG's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: UDG's dividend (1.59%) is low compared to the top 25% of dividend payers in the UK market (4.93%).


Stability and Growth of Payments

Stable Dividend: UDG's dividends per share have been stable in the past 10 years.

Growing Dividend: UDG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.9%), UDG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UDG's dividends in 3 years are forecast to be well covered by earnings (35.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Brendan McAtamney (57 yo)

4.75yrs

Tenure

US$2,165,000

Compensation

Mr. Brendan McAtamney has been the Chief Executive Officer of UDG Healthcare plc since February 2, 2016 and has been an Executive Director since December 16, 2013. Mr. McAtamney has been a Non-Executive Di...


CEO Compensation Analysis

Compensation vs Market: Brendan's total compensation ($USD2.82M) is above average for companies of similar size in the UK market ($USD2.12M).

Compensation vs Earnings: Brendan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brendan McAtamney
CEO & Executive Director4.75yrsUS$2.17m0.056%
$ 1.1m
Nigel Clerkin
CFO & Executive Director2.5yrsUS$987.00k0.024%
$ 482.8k
Ryan Quigley
Chief Operating Officer0.17yrno datano data
Keith Byrne
Head of Investor Relationsno datano datano data
Eleanor Garvey
Group Head of Quality & Complianceno datano datano data
Damien Moynagh
General Counsel & Company Secretaryno datano data0.0028%
$ 56.4k
Liam Logue
Executive Vice President of Corporate Development7.08yrsno data0.020%
$ 394.3k
Lucy MacLauchlan-Wharton
Global Head of Marketing and Communicationsno datano datano data
Eimear Kenny
Group Head of Human Resourcesno datano datano data
Tom Mitchell
Uk Head of Syndicated Services for Ashfield3.58yrsno datano data
Rob Wood
Global President of Advisory Services & Business Developmentno datano datano data
Mike O'Hara
MD & President of Sharp Packagingno datano datano data

3.6yrs

Average Tenure

50yo

Average Age

Experienced Management: UDG's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brendan McAtamney
CEO & Executive Director4.75yrsUS$2.17m0.056%
$ 1.1m
Nigel Clerkin
CFO & Executive Director2.5yrsUS$987.00k0.024%
$ 482.8k
Linda Wilding
Independent Non-Executive Director6.92yrsUS$86.00k0.0077%
$ 155.3k
Peter Chambré
Independent Non-Executive Director1.67yrsUS$46.00k0.0020%
$ 40.2k
Shane Cooke
Independent & Non-Executive Chairman0.083yrUS$46.00k0.0062%
$ 124.6k
Myles Lee
Senior Independent Director1.5yrsUS$88.00k0.0040%
$ 80.4k
Lisa Ricciardi
Independent Non-Executive Director7.42yrsUS$69.00k0.0091%
$ 183.0k
Anne Whitaker
Non-Executive Director0.083yrno datano data
Liz Shanahan
Non-Executive Director0.75yrno datano data
Erik Van Snippenberg
Independent Non-Executive Director2.33yrsUS$70.00k0.0030%
$ 60.4k

2.0yrs

Average Tenure

57.5yo

Average Age

Experienced Board: UDG's board of directors are not considered experienced ( 2 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

UDG Healthcare plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: UDG Healthcare plc
  • Ticker: UDG
  • Exchange: LSE
  • Founded: 1948
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: UK£2.020b
  • Shares outstanding: 251.09m
  • Website: https://www.udghealthcare.com

Number of Employees


Location

  • UDG Healthcare plc
  • UDG Healthcare
  • 20 Riverwalk
  • Dublin
  • Co. Dublin
  • 24
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UDGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
UDHC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
UN6ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
UDGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
UDRG.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

UDG Healthcare plc, together with its subsidiaries, provides advisory, communication, commercial, clinical, and packaging services in the Republic of Ireland, the United Kingdom, North America, and interna...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 19:33
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.