NasdaqGS:CVET

Stock Analysis Report

Executive Summary

Covetrus, Inc. operates as an animal-health technology and services company.

Snowflake

Fundamentals

Good value with moderate growth potential.

Risks

  • Covetrus has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-11.3%

NasdaqGS:CVET

0.1%

US Healthcare

0.8%

US Market


1 Year Return

n/a

NasdaqGS:CVET

-8.4%

US Healthcare

1.9%

US Market

No trading data on CVET.

No trading data on CVET.


Share holder returns

CVETIndustryMarket
7 Day-11.3%0.1%0.8%
30 Day-11.6%-1.4%3.4%
90 Day-46.3%-0.7%2.1%
1 Yearn/a-7.0%-8.4%4.2%1.9%
3 Yearn/a30.6%25.3%46.7%37.2%
5 Yearn/a64.9%55.1%62.3%44.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Covetrus undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Covetrus's share price is below the future cash flow value, and at a moderate discount (> 20%).

Covetrus's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Covetrus is overvalued based on earnings compared to the US Healthcare industry average.

Covetrus is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Covetrus is good value based on expected growth next year.


Price Based on Value of Assets

Covetrus is good value based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Covetrus expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

76.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Covetrus's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Covetrus's earnings are expected to grow significantly at over 20% yearly.

Covetrus's revenue growth is positive but not above the United States of America market average.

Covetrus's earnings growth is expected to exceed the United States of America market average.

Covetrus's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Covetrus is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Covetrus performed over the past 5 years?

-1.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Covetrus's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Covetrus's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Covetrus's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.


Return on Equity

Covetrus has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Covetrus used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Covetrus improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Covetrus's financial position?


Financial Position Analysis

Covetrus is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Covetrus's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Covetrus's level of debt (52.4%) compared to net worth is high (greater than 40%).

Unable to establish if Covetrus's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (9.5%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

13.60%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Covetrus's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Covetrus's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Covetrus has not reported any payouts.

Unable to verify if Covetrus's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Covetrus has not reported any payouts.


Future Payout to Shareholders

Analysts do not expect the company to pay a dividend in 3 years, no need to check if it is sustainable.


Next Steps

Management

What is the CEO of Covetrus's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Ben Shaw (40yo)

0.6yrs

Tenure

0

Mr. Benjamin J. Shaw, also known as Ben, has been President, Chief Executive Officer and Director of Covetrus, Inc. since February 2019. Mr. Shaw co-founded Black Point Group and served as Founding Partner ...


Management Age and Tenure

0.6yrs

Average Tenure

51.5yo

Average Age

The average tenure for the Covetrus management team is less than 2 years, this suggests a new team.


Board Age and Tenure

0.6yrs

Average Tenure

61yo

Average Age

The average tenure for the Covetrus board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Covetrus individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$25,09221 Aug 19
Erin Brennan
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,684
Max PriceUS$14.90
BuyUS$74,88821 Aug 19
Christine Komola
EntityIndividual
Role
Chief Financial Officer
EVP & CFO
Shares5,060
Max PriceUS$14.80
BuyUS$24,96421 Aug 19
Benjamin Shaw
EntityIndividual
Role
Chief Executive Officer
President
Shares1,800
Max PriceUS$13.87
SellUS$19,40623 May 19
David Dollar
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Global Software Services
Shares685
Max PriceUS$28.33
SellUS$1,962,40821 May 19
Timothy Ludlow
EntityIndividual
Shares70,000
Max PriceUS$28.03

Ownership Breakdown


Management Team

  • Anthony Providenti (52yo)

    Senior Vice President of Corporate Development

    • Tenure: 0.6yrs
  • Christine Komola (51yo)

    EVP & CFO

    • Tenure: 0.6yrs
  • Ben Shaw (40yo)

    President

    • Tenure: 0.6yrs
  • Nick Jansen

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Russell Cooke (53yo)

    Senior VP & Operational CFO

    • Tenure: 0.6yrs
  • Erin Brennan (48yo)

    Senior VP

    • Tenure: 0.6yrs
  • David Dollar (53yo)

    Senior VP & President of Global Software Services

    • Tenure: 0.6yrs
  • Michael Ellis (59yo)

    Senior VP & President of Europe

    • Tenure: 0.6yrs
  • Kiní Schoop

    Director of Public Relations

    • Tenure: 0yrs
  • Laura Phillips (49yo)

    VP, Chief Accounting Officer & Principal Accounting Officer

    • Tenure: 0.3yrs

Board Members

  • Deborah Ellinger (60yo)

    Director

    • Tenure: 0.6yrs
  • Phil Laskawy (78yo)

    Lead Independent Director

    • Tenure: 0.6yrs
  • Sandra Helton (69yo)

    Director

    • Tenure: 0.6yrs
  • Steven Paladino (62yo)

    Director

    • Tenure: 1.4yrs
  • Mark Manoff (62yo)

    Director

    • Tenure: 0.6yrs
  • Ravi Sachdev (42yo)

    Director

    • Tenure: 0.6yrs
  • Ben Wolin (43yo)

    Chair of Board of Directors

    • Tenure: 0yrs
  • Ted McNamara (54yo)

    Director

    • Tenure: 0.6yrs
  • David Shaw (68yo)

    Director

    • Tenure: 0.6yrs
  • Ben Shaw (40yo)

    President

    • Tenure: 0.6yrs

Company Information

Covetrus, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Covetrus, Inc.
  • Ticker: CVET
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: US$1.487b
  • Shares outstanding: 111.98m
  • Website: https://www.covetrus.com

Number of Employees


Location

  • Covetrus, Inc.
  • 7 Custom House Street
  • Portland
  • Maine
  • 4101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVETNasdaqGS (Nasdaq Global Select)YesShare CapitalUSUSDFeb 2019
2NJDB (Deutsche Boerse AG)YesShare CapitalDEEURFeb 2019

Biography

Covetrus, Inc. operates as an animal-health technology and services company. It operates through two segments, Supply Chain, and Technology and Value-Added Services. The company sells and distributes pharm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 00:39
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/29


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.