AIM:COS

Stock Analysis Report

Executive Summary

Collagen Solutions plc sources, develops, manufactures, and supplies medical grade collagen components and biomaterials for use in research, regenerative medicines, medical devices, and in-vitro diagnostics in Europe, the Middle East, Africa, North America, and Asia.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

How has Collagen Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: COS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.4%

COS

1.5%

GB Biotechs

0.05%

GB Market


1 Year Return

-26.3%

COS

8.2%

GB Biotechs

7.1%

GB Market

Return vs Industry: COS underperformed the UK Biotechs industry which returned 8.2% over the past year.

Return vs Market: COS underperformed the UK Market which returned 7.1% over the past year.


Shareholder returns

COSIndustryMarket
7 Day-3.4%1.5%0.05%
30 Day-17.6%0.2%-1.7%
90 Day-21.1%6.2%4.1%
1 Year-26.3%-26.3%9.1%8.2%12.6%7.1%
3 Year-51.3%-51.3%8.3%6.6%18.4%3.6%
5 Year-68.9%-68.9%31.3%28.2%35.2%4.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Collagen Solutions undervalued compared to its fair value and its price relative to the market?

0.55x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate COS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate COS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: COS is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: COS is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate COS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: COS is good value based on its PB Ratio (0.5x) compared to the GB Biotechs industry average (2.1x).


Next Steps

Future Growth

How is Collagen Solutions forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

53.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: COS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: COS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: COS's revenue (12.6% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: COS's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if COS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Collagen Solutions performed over the past 5 years?

-9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COS is currently unprofitable.

Growing Profit Margin: COS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: COS is unprofitable, and losses have increased over the past 5 years at a rate of -9.3% per year.

Accelerating Growth: Unable to compare COS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: COS is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: COS has a negative Return on Equity (-7.83%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Collagen Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: COS's short term assets (£7.1M) exceed its short term liabilities (£3.1M).

Long Term Liabilities: COS's short term assets (£7.1M) exceed its long term liabilities (£529.6K).


Debt to Equity History and Analysis

Debt Level: COS's debt to equity ratio (9.5%) is considered satisfactory.

Reducing Debt: COS's debt to equity ratio has increased from 0.01% to 9.5% over the past 5 years.


Balance Sheet

Inventory Level: COS has a low level of unsold assets or inventory.

Debt Coverage by Assets: COS's debt is covered by short term assets (assets are 3.7x 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: COS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: COS has sufficient cash runway for 1.4 years if free cash flow continues to reduce at historical rates of -14.9% each year.


Next Steps

Dividend

What is Collagen Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.8%markettop25%5.1%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate COS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate COS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if COS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if COS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of COS's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Jamal Rushdy (47yo)

3.8yrs

Tenure

UK£243,501

Compensation

Mr. Jamal D. Rushdy has been the Chief Executive Officer and Director of Collagen Solutions PLC since May 3, 2016. Mr. Rushdy served as Chief Business Officer of Collagen Solutions PLC since November 18, 2 ...


CEO Compensation Analysis

Compensation vs Market: Jamal's total compensation ($USD313.51K) is about average for companies of similar size in the UK market ($USD321.87K).

Compensation vs Earnings: Jamal's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jamal Rushdy
CEO & Director3.8yrsUK£243.50k0.23% £28.0k
Hilary Spence
CFO & Director2.1yrsUK£123.60k0.12% £15.4k
Tom Hyland
Chief Technical Adviser0.3yrsUK£72.10k0.11% £13.3k
John Higgins
Chief Technology Officer4.6yrsno datano data
Lisa Baderoon
Head of Investor Relations0yrsno datano data
Brad Selman
Vice President of Global Sales & Marketing3yrsno datano data
Diane Mitchell
Chief Commercial Officer0yrsno datano data
Kevin Darling
VP of Tissue Products & MD of New Zealand0yrsno datano data
Gillian Black
Company Secretary5.9yrsUK£71.84k0.23% £28.2k
Stewart White
Consultant & Member of Scientific Advisory Board2.7yrsUK£57.58kno data

3.0yrs

Average Tenure

51yo

Average Age

Experienced Management: COS's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jamal Rushdy
CEO & Director3.8yrsUK£243.50k0.23% £28.0k
Hilary Spence
CFO & Director2.1yrsUK£123.60k0.12% £15.4k
Stewart White
Consultant & Member of Scientific Advisory Board2.7yrsUK£57.58kno data
Malcolm Gillies
Non-Executive Director6.9yrsUK£9.75k1.13% £140.0k
Christopher Brinsmead
Chairman0.6yrsUK£9.75k0.39% £48.5k
Geoffrey Bennett
Non-Executive Director0yrsUK£9.75k1.43% £177.1k
Wade Rosen
Non-Executive Director0.7yrsno datano data

2.4yrs

Average Tenure

59yo

Average Age

Experienced Board: COS's board of directors are not considered experienced ( 2.4 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 been diluted in the past year, with total shares outstanding growing by 11.6%.


Top Shareholders

Company Information

Collagen Solutions plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Collagen Solutions plc
  • Ticker: COS
  • Exchange: AIM
  • Founded: 2013
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£12.423m
  • Shares outstanding: 443.68m
  • Website: https://www.collagensolutions.com

Number of Employees


Location

  • Collagen Solutions plc
  • Condor House
  • 10 St. Paul’s Churchyard
  • London
  • Greater London
  • EC4M 8AL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COSAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPApr 2013

Biography

Collagen Solutions plc sources, develops, manufactures, and supplies medical grade collagen components and biomaterials for use in research, regenerative medicines, medical devices, and in-vitro diagnostics in Europe, the Middle East, Africa, North America, and Asia. It offers collagen soluble collagen, collagen powders, fibrillars, collagen gels, freeze dried collagen, and other products for use in orthopaedic, sports medicine, dental, wound care, cardiovascular, general, plastic, and reconstructive surgeries, as well as 3D cell culture research; Bovine Pericardium is used in bio-prosthetic heart valves, dural closures, bone and dental membranes, and surgical buttressing applications; and BSE-free bovine biomaterials. The company also provides product development and contract manufacturing services, including technology transfer and regulatory support services for collagen-based products. It serves pharmaceutical and medical device companies. Collagen Solutions plc was incorporated in 2013 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:31
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.