NasdaqGS:WMGI

Stock Analysis Report

Executive Summary

Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells upper and lower extremities, and biologics products in the United States, Europe, the Middle East, Africa, Canada, Asia, Australia, and Latin America.

Snowflake

Fundamentals

Fair value with concerning outlook.


Similar Companies

Share Price & News

How has Wright Medical Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

WMGI

-1.6%

US Medical Equipment

0.07%

US Market


1 Year Return

-25.3%

WMGI

13.8%

US Medical Equipment

8.9%

US Market

Return vs Industry: WMGI underperformed the US Medical Equipment industry which returned 13.8% over the past year.

Return vs Market: WMGI underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

WMGIIndustryMarket
7 Day-1.9%-1.6%0.07%
30 Day-5.3%-4.3%-0.3%
90 Day-28.1%-4.3%-1.6%
1 Year-25.3%-25.3%14.7%13.8%11.3%8.9%
3 Year-10.9%-10.9%70.7%65.6%46.3%36.8%
5 Yearn/a117.3%93.5%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Wright Medical Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WMGI ($19.91) is trading below our estimate of fair value ($50.5)

Significantly Below Fair Value: WMGI is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WMGI is good value based on its PB Ratio (2.8x) compared to the US Medical Equipment industry average (3.7x).


Next Steps

Future Growth

How is Wright Medical Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

29.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: WMGI's revenue (9.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: WMGI's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WMGI's Return on Equity is forecast to be low in 3 years time (5.6%).


Next Steps

Past Performance

How has Wright Medical Group performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WMGI is unprofitable, but has reduced losses over the past 5 years at a rate of 21.4% per year.

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

Earnings vs Industry: WMGI is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (28.2%).


Return on Equity

High ROE: WMGI has a negative Return on Equity (-11.92%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: WMGI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: WMGI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Wright Medical Group's financial position?


Financial Position Analysis

Short Term Liabilities: WMGI's short term assets ($779.5M) do not cover its short term liabilities ($857.0M)

Long Term Liabilities: WMGI's short term assets (779.5M) do not cover its long term liabilities (999.7M)


Debt to Equity History and Analysis

Debt Level: WMGI's debt to equity ratio (123.3%) is considered high

Reducing Debt: WMGI's debt to equity ratio has increased from 62.6% to 123.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: WMGI's debt is not covered by short term assets (assets are 0.7x 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: WMGI has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if WMGI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Wright Medical Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if WMGI'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 WMGI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

Bob Palmisano (74yo)

8.1yrs

Tenure

US$6,376,447

Compensation

Mr. Robert J. Palmisano, also known as Bob, serves as Chairman of the Board of Directors at Avedro Inc. since May 14, 2014. He has been the Chief Executive Officer, President and Executive Director of Torn ...


CEO Compensation Analysis

Compensation vs. Market: Bob's total compensation ($USD6.38M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

7.6yrs

Average Tenure

53yo

Average Age

Experienced Management: WMGI's management team is seasoned and experienced (7.6 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

63yo

Average Age

Experienced Board: WMGI's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: WMGI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$313,05015 Aug 19
Elizabeth Weatherman
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares15,000
Max PriceUS$20.87
BuyUS$215,00013 Aug 19
Barry Regan
EntityIndividual
Shares10,000
Max PriceUS$21.50
BuyUS$495,88012 Aug 19
Richard Wallman
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares23,000
Max PriceUS$21.56
BuyUS$997,74212 Aug 19
Robert Palmisano
EntityIndividual
Role
Chief Executive Officer
President
Shares46,654
Max PriceUS$21.39
SellUS$29,78030 Jul 19
Timothy Lanier
EntityIndividual
Shares1,000
Max PriceUS$29.78
SellUS$248,61817 Dec 18
Patrick Fisher
EntityIndividual
Shares9,000
Max PriceUS$27.62
BuyUS$536,60011 Dec 18
Richard Wallman
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares20,000
Max PriceUS$26.83
SellUS$76,34020 Nov 18
Elizabeth Weatherman
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,640
Max PriceUS$28.92

Ownership Breakdown


Management Team

  • Bob Palmisano (74yo)

    President

    • Tenure: 8.1yrs
    • Compensation: US$6.38m
  • Jim Lightman (61yo)

    Senior VP

    • Tenure: 7.8yrs
    • Compensation: US$1.16m
  • Tracy Dewey (58yo)

    Senior VP & Chief Communications Officer

    • Tenure: 8yrs
  • Lance Berry (47yo)

    Executive VP

    • Tenure: 9.8yrs
    • Compensation: US$1.83m
  • Kevin Cordell (53yo)

    Executive VP & Chief Global Commercial Officer

    • Tenure: 0.8yrs
    • Compensation: US$1.63m
  • Jennifer Walker (51yo)

    Senior Vice President of Process Improvement

    • Tenure: 7.8yrs
  • Drew Morton (53yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.6yrs
    • Compensation: US$1.89m
  • Julie Andrews (48yo)

    Senior Vice President of Global Finance

    • Tenure: 7.4yrs
  • Peter Cooke (54yo)

    President of emerging markets

    • Tenure: 0.8yrs
    • Compensation: US$2.57m
  • Jonathan Porter (49yo)

    Senior VP & Chief Compliance Officer

    • Tenure: 5yrs

Board Members

  • David Stevens (65yo)

    Chairman of The Board

    • Tenure: 10.8yrs
    • Compensation: US$338.18k
  • Richard Wallman (68yo)

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: US$336.74k
  • John Miclot (60yo)

    Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: US$269.18k
  • Bob Palmisano (74yo)

    President

    • Tenure: 8.1yrs
    • Compensation: US$6.38m
  • Bess Weatherman (59yo)

    Non-Executive Director

    • Tenure: 13.3yrs
    • Compensation: US$320.71k
  • Gary Blackford (62yo)

    Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: US$273.18k
  • Amy Paul (67yo)

    Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: US$303.25k
  • Kevin O'Boyle (63yo)

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: US$273.18k
  • J. Mackin (52yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: US$220.68k

Company Information

Wright Medical Group N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wright Medical Group N.V.
  • Ticker: WMGI
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$2.522b
  • Shares outstanding: 126.68m
  • Website: https://www.wright.com

Number of Employees


Location

  • Wright Medical Group N.V.
  • Prins Bernhardplein 200
  • Amsterdam
  • Noord-Holland
  • 1097 JB
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WMGINasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDFeb 2011
T98DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2011
WMGI NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNFeb 2011

Biography

Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells upper and lower extremities, and biologics products in the United States, Europe, the Middle East, Africa, Can ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:17
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/30


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.