NYSE:CMD

Stock Analysis Report

Executive Summary

Cantel Medical Corp. provides infection prevention and control products and services for the healthcare market.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.8%

CMD

-0.4%

US Medical Equipment

1.0%

US Market


1 Year Return

-19.0%

CMD

12.8%

US Medical Equipment

6.7%

US Market

Return vs Industry: CMD underperformed the US Medical Equipment industry which returned 12.8% over the past year.

Return vs Market: CMD underperformed the US Market which returned 6.7% over the past year.


Share holder returns

CMDIndustryMarket
7 Day-2.8%-0.4%1.0%
30 Day-20.4%-2.7%-1.8%
90 Day-12.5%-0.3%-1.8%
1 Year-18.8%-19.0%13.7%12.8%9.1%6.7%
3 Year-8.4%-8.9%70.0%64.8%46.1%36.6%
5 Year83.4%81.5%130.9%105.1%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

52.42x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: CMD ($69.13) is trading above our estimate of fair value ($59.21)

Significantly Undervalued: CMD is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: CMD is poor value based on its PE Ratio (52.4x) compared to the Medical Equipment industry average (40.1x).

PE vs Market: CMD is poor value based on its PE Ratio (52.4x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: CMD is poor value based on its PEG Ratio (1.4x)


Price Based on Value of Assets

PB vs Industry: CMD is overvalued based on its PB Ratio (4.3x) compared to the US Medical Equipment industry average (3.7x).


Next Steps

Future Growth

How is Cantel Medical expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

38.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CMD's forecast earnings growth (38% per year) is above the savings rate (2.7%).

Earnings vs Market: CMD's earnings (38% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CMD's revenue (12.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: CMD's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: CMD's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Cantel Medical performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CMD's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: CMD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CMD had negative earnings growth (-39.4%) over the past year, making it difficult to compare to the Medical Equipment industry average (28.2%).


Return on Equity

High ROE: CMD's Return on Equity (8.3%) is considered low.


Return on Assets

ROA vs Industry: CMD's Return on Assets is below or equal to the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: CMD's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Cantel Medical's financial position?


Financial Position Analysis

Short Term Liabilities: CMD's short term assets ($351.8M) exceeds its short term liabilities ($151.4M)

Long Term Liabilities: CMD's short term assets (351.8M) exceeds its long term liabilities (257.4M)


Debt to Equity History and Analysis

Debt Level: CMD's debt to equity ratio (34.9%) is considered satisfactory

Reducing Debt: CMD's debt to equity ratio has increased from 22.1% to 34.9% over the past 5 years.

Debt Coverage: CMD's debt is well covered by operating cash flow (29%).

Interest Coverage: CMD's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet

Inventory Level: CMD has a high level of physical assets or inventory.

Debt Coverage by Assets: CMD's debt is covered by short term assets (assets are 1.523900x debt).


Next Steps

Dividend

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

0.36%

Expected Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%1.5%markettop25%3.8%industryaverage0.8%forecastin3Years0.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CMD's dividend (0.29%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: CMD's dividend (0.29%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: CMD is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CMD is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CMD is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CMD'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 Cantel Medical's salary, the management and board of directors tenure and is there insider trading?

0.5yrs

Average management tenure


CEO

George Fotiades (65yo)

0.6yrs

Tenure

US$283,693

Compensation

Mr. George L. Fotiades has been President and Chief Executive Officer at Cantel Medical Corp. since March 5, 2019. He is an Operating Partner at FAPI focused on Pharma Services / Medical Technology. Mr. Ge ...


Management Age and Tenure

0.5yrs

Average Tenure

49yo

Average Age

Experienced Management: CMD's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Age and Tenure

8.6yrs

Average Tenure

67yo

Average Age

Experienced Board: CMD's board of directors are considered experienced (8.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$53,60005 Apr 19
Lawrence Conway
EntityIndividual
Shares800
Max PriceUS$67.00
SellUS$4,62729 Mar 19
Brian Capone
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares70
Max PriceUS$66.09
SellUS$17,36126 Mar 19
Ronnie Myers
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares261
Max PriceUS$66.52
SellUS$80,11918 Jan 19
Ronnie Myers
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,006
Max PriceUS$79.64

Ownership Breakdown


Management Team

  • George Fotiades (65yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$283.69k
  • Mark Diker (84yo)

    Chairman and Member of Office of the Chairman

    • Tenure: 33.5yrs
    • Compensation: US$856.54k
  • Seth Yellin (45yo)

    Executive VP of Strategy & Corporate Development and Member of Office of the Chairman

    • Tenure: 3.1yrs
    • Compensation: US$966.29k
  • Peter Clifford (49yo)

    Executive VP

    • Tenure: 0.4yrs
    • Compensation: US$1.15m
  • Milicent Brooks

    Head of Corporate Communications

    • Tenure: 0yrs
  • Brian Capone (44yo)

    Senior VP

    • Tenure: 2.5yrs
  • Daniel Khalili

    Chief Technology Officer

    • Tenure: 0yrs
  • Shaun Blakeman

    Senior VP & CFO

    • Tenure: 0.4yrs
  • Matt Micowski

    Vice President of Corporate FP&A and Investor Relations

    • Tenure: 0yrs
  • Jeff Mann

    Senior VP

    • Tenure: 0.2yrs

Board Members

  • Mark Diker (53yo)

    Director

    • Tenure: 12yrs
    • Compensation: US$115.03k
  • Tony Evnin (78yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$116.03k
  • George Fotiades (65yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$283.69k
  • Mark Diker (84yo)

    Chairman and Member of Office of the Chairman

    • Tenure: 33.5yrs
    • Compensation: US$856.54k
  • Alan Batkin (74yo)

    Presiding Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$155.03k
  • Peter Pronovost (54yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$25.00k
  • Ann Berman (67yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$152.53k
  • Laura Forese (58yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$123.53k
  • Ronnie Myers (67yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$123.53k

Company Information

Cantel Medical Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cantel Medical Corp.
  • Ticker: CMD
  • Exchange: NYSE
  • Founded: 1963
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$2.923b
  • Shares outstanding: 42.29m
  • Website: https://www.cantelmedical.com

Number of Employees


Location

  • Cantel Medical Corp.
  • 150 Clove Road
  • 9th Floor
  • Little Falls
  • New Jersey
  • 7424
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMDNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1976
CI2DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1976

Biography

Cantel Medical Corp. provides infection prevention and control products and services for the healthcare market. The company’s Medical segment offers automated endoscope reprocessing systems; disinfectants  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:05
End of Day Share Price2019/10/11 00:00
Earnings2019/07/31
Annual Earnings2019/07/31


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.

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