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ERGO

ErgomedAIM:ERGO Stock Report

Market Cap

UK£653.5m

7D

-7.3%

1Y

55.7%

Updated

27 Nov, 2021

Data

Company Financials +
ERGO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance6/6
Financial Health6/6
Dividends0/6

ERGO Stock Overview

Ergomed plc, together with its subsidiaries, provides clinical trial planning, management, and monitoring; and drug safety and medical information services in the United Kingdom, Rest of Europe, the Middle East, Africa, North America, Asia, and Australia.

Ergomed Competitors

ICON

NasdaqGS:ICLR

US$22.1b

Charles River Laboratories International

NYSE:CRL

US$18.9b

Price History & Performance

Summary of all time highs, changes and price drops for Ergomed
Historical stock prices
Current Share PriceUK£13.30
52 Week HighUK£15.85
52 Week LowUK£8.50
Beta0.68
1 Month Change-8.59%
3 Month Change-9.22%
1 Year Change55.74%
3 Year Change772.13%
5 Year Change830.07%
Change since IPO718.46%

Recent News & Updates

Nov 24
I Ran A Stock Scan For Earnings Growth And Ergomed (LON:ERGO) Passed With Ease

I Ran A Stock Scan For Earnings Growth And Ergomed (LON:ERGO) Passed With Ease

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Aug 28
Calculating The Intrinsic Value Of Ergomed plc (LON:ERGO)

Calculating The Intrinsic Value Of Ergomed plc (LON:ERGO)

In this article we are going to estimate the intrinsic value of Ergomed plc ( LON:ERGO ) by taking the forecast future...

Jul 31
If You Like EPS Growth Then Check Out Ergomed (LON:ERGO) Before It's Too Late

If You Like EPS Growth Then Check Out Ergomed (LON:ERGO) Before It's Too Late

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Jul 06
Getting In Cheap On Ergomed plc (LON:ERGO) Might Be Difficult

Getting In Cheap On Ergomed plc (LON:ERGO) Might Be Difficult

Ergomed plc's ( LON:ERGO ) price-to-earnings (or "P/E") ratio of 57.4x might make it look like a strong sell right now...

Shareholder Returns

ERGOGB Life SciencesGB Market
7D-7.3%-7.3%-3.0%
1Y55.7%13.5%11.7%

Return vs Industry: ERGO exceeded the UK Life Sciences industry which returned 13.5% over the past year.

Return vs Market: ERGO exceeded the UK Market which returned 11.7% over the past year.

Price Volatility

Is ERGO's price volatile compared to industry and market?
ERGO volatility
ERGO Average Weekly Movement5.3%
Life Sciences Industry Average Movement7.0%
Market Average Movement4.8%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: ERGO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

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

About the Company

FoundedEmployeesCEOWebsite
19971,150n/ahttps://www.ergomedplc.com

Ergomed plc, together with its subsidiaries, provides clinical trial planning, management, and monitoring; and drug safety and medical information services in the United Kingdom, Rest of Europe, the Middle East, Africa, North America, Asia, and Australia. It operates through two segments, Clinical Research Outsourcing and Pharmacovigilance. The company provides and manages clinical development, post-approval management, and pharmacovigilance services for pharmaceutical and generics companies, as well as small and mid-sized drug development companies.

Ergomed Fundamentals Summary

How do Ergomed's earnings and revenue compare to its market cap?
ERGO fundamental statistics
Market CapUK£653.46m
Earnings (TTM)UK£12.04m
Revenue (TTM)UK£102.05m

54.3x

P/E Ratio

6.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERGO income statement (TTM)
RevenueUK£102.05m
Cost of RevenueUK£45.01m
Gross ProfitUK£57.04m
ExpensesUK£45.00m
EarningsUK£12.04m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.24
Gross Margin55.89%
Net Profit Margin11.79%
Debt/Equity Ratio0%

How did ERGO perform over the long term?

See historical performance and comparison

Valuation

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

19.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ERGO (£13.3) is trading below our estimate of fair value (£16.5)

Significantly Below Fair Value: ERGO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ERGO is poor value based on its PE Ratio (54.3x) compared to the European Life Sciences industry average (47.6x).

PE vs Market: ERGO is poor value based on its PE Ratio (54.3x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: ERGO is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: ERGO is overvalued based on its PB Ratio (11.1x) compared to the GB Life Sciences industry average (4.6x).


Future Growth

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

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERGO's forecast earnings growth (15.4% per year) is above the savings rate (0.9%).

Earnings vs Market: ERGO's earnings (15.4% per year) are forecast to grow faster than the UK market (12.7% per year).

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

Revenue vs Market: ERGO's revenue (14.1% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: ERGO's revenue (14.1% 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 ERGO's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Ergomed performed over the past 5 years?

48.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERGO has high quality earnings.

Growing Profit Margin: ERGO's current net profit margins (11.8%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: ERGO's earnings have grown significantly by 48.6% per year over the past 5 years.

Accelerating Growth: ERGO's earnings growth over the past year (92.9%) exceeds its 5-year average (48.6% per year).

Earnings vs Industry: ERGO earnings growth over the past year (92.9%) exceeded the Life Sciences industry 77.1%.


Return on Equity

High ROE: ERGO's Return on Equity (20.4%) is considered high.


Financial Health

How is Ergomed's financial position?


Financial Position Analysis

Short Term Liabilities: ERGO's short term assets (£50.8M) exceed its short term liabilities (£31.7M).

Long Term Liabilities: ERGO's short term assets (£50.8M) exceed its long term liabilities (£4.5M).


Debt to Equity History and Analysis

Debt Level: ERGO is debt free.

Reducing Debt: ERGO had no debt 5 years ago.

Debt Coverage: ERGO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ERGO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Ergomed current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if ERGO'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 ERGO'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?

2.4yrs

Average management tenure


CEO

Ergomed has no CEO, or we have no data on them.


Leadership Team

Experienced Management: ERGO's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: ERGO'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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ergomed plc's employee growth, exchange listings and data sources


Key Information

  • Name: Ergomed plc
  • Ticker: ERGO
  • Exchange: AIM
  • Founded: 1997
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£653.457m
  • Shares outstanding: 49.13m
  • Website: https://www.ergomedplc.com

Number of Employees


Location

  • Ergomed plc
  • Surrey Research Park
  • 1 Occam Court
  • Guildford
  • Surrey
  • GU2 7HJ
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/27 18:55
End of Day Share Price2021/11/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.