NYSE:CMD

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Moderate growth potential and overvalued.


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

Stable Share Price: CMD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: CMD's weekly volatility has decreased from 13% to 8% over the past year.


Market Performance


7 Day Return

1.8%

CMD

0.2%

US Medical Equipment

-1.3%

US Market


1 Year Return

21.1%

CMD

33.4%

US Medical Equipment

41.9%

US Market

Return vs Industry: CMD underperformed the US Medical Equipment industry which returned 35.8% over the past year.

Return vs Market: CMD underperformed the US Market which returned 36.5% over the past year.


Shareholder returns

CMDIndustryMarket
7 Day1.8%0.2%-1.3%
30 Day-4.0%1.9%7.5%
90 Day26.9%8.4%15.9%
1 Year21.1%21.1%34.5%33.4%44.8%41.9%
3 Year-34.4%-34.7%77.2%72.8%49.1%41.0%
5 Year14.4%13.4%156.9%138.4%113.1%92.8%

Long-Term 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 compared to its fair value and its price relative to the market?

98.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CMD ($75.8) is trading above our estimate of fair value ($53.92)

Significantly Below Fair Value: CMD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CMD is poor value based on its PE Ratio (98.9x) compared to the US Medical Equipment industry average (55.1x).

PE vs Market: CMD is poor value based on its PE Ratio (98.9x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: CMD is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: CMD is good value based on its PB Ratio (4.1x) compared to the US Medical Equipment industry average (5.2x).


Next Steps

Future Growth

How is Cantel Medical forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

33.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMD's forecast earnings growth (33.4% per year) is above the savings rate (2%).

Earnings vs Market: CMD's earnings (33.4% per year) are forecast to grow faster than the US market (20% per year).

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

Revenue vs Market: CMD's revenue (7.6% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: CMD's revenue (7.6% 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 CMD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cantel Medical performed over the past 5 years?

-10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMD has a large one-off loss of $36.2M impacting its October 31 2020 financial results.

Growing Profit Margin: CMD's current net profit margins (3.1%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: CMD's earnings have declined by 10.8% 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 (-21.6%) over the past year, making it difficult to compare to the Medical Equipment industry average (9.8%).


Return on Equity

High ROE: CMD's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Cantel Medical's financial position?


Financial Position Analysis

Short Term Liabilities: CMD's short term assets ($627.1M) exceed its short term liabilities ($200.2M).

Long Term Liabilities: CMD's short term assets ($627.1M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: CMD's debt to equity ratio (132.7%) is considered high.

Reducing Debt: CMD's debt to equity ratio has increased from 35.4% to 132.7% over the past 5 years.

Debt Coverage: CMD's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: CMD's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

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

0.22%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CMD'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 CMD's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


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

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

1.9yrs

Average management tenure


CEO

George Fotiades (66 yo)

1.92yrs

Tenure

US$1,267,701

Compensation

Mr. George L. Fotiades has been Chief Executive Officer at Cantel Medical Corp. since March 5, 2019 and serves as its Member of Office of the Chairman. He is an Operating Partner at FAPI focused on Pharma ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD1.27M) is below average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Diker
Chairman & Member of Office of the Chairman34.83yrsUS$529.48k8.89%
$ 273.9m
George Fotiades
CEO, Vice Chairman & Member of Office of the Chairman1.92yrsUS$1.27m0.34%
$ 10.5m
Peter Clifford
President & COO0.50yrUS$1.60m0.043%
$ 1.3m
Shaun Blakeman
Senior VP1.75yrsUS$768.16k0.0030%
$ 91.9k
Jeffrey Mann
Senior VP1.5yrsUS$888.31k0.0064%
$ 197.3k
Seth Yellin
Executive Vice President of Strategy & Corporate Development4.42yrsUS$856.58k0.058%
$ 1.8m
Michael Drexel
CTO & Senior VP0.33yrno datano data
Matthew Micowski
VP of Corporate FP&A and Investor Relationsno datano datano data
Milicent Brooks
Head of Corporate Communicationsno datano datano data
Jean Casner
Senior VP & Chief Human Resources Officer1.92yrsno data0.0039%
$ 121.5k
Neil Blewitt
President of Europe1.92yrsno datano data
Michael McGrath
President of Canada & Asia Pacific2.08yrsno datano data

1.9yrs

Average Tenure

50yo

Average Age

Experienced Management: CMD's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Charles Diker
Chairman & Member of Office of the Chairman34.83yrsUS$529.48k8.89%
$ 273.9m
George Fotiades
CEO, Vice Chairman & Member of Office of the Chairman1.92yrsUS$1.27m0.34%
$ 10.5m
Mark Diker
Director13.33yrsUS$125.01k1.29%
$ 39.6m
Anthony Evnin
Independent Director4.08yrsUS$128.51k0.025%
$ 757.4k
Alan Batkin
Lead Independent Director16.17yrsUS$164.38k0.13%
$ 4.1m
Peter Pronovost
Independent Director3.25yrsUS$128.51k0.051%
$ 1.6m
Ann Berman
Independent Director9.92yrsUS$149.38k0.019%
$ 573.7k
Laura Forese
Independent Director5.92yrsUS$142.88k0.014%
$ 418.6k
Karen Prange
Independent Director1.33yrsUS$146.01k0%
$ 0
Ronnie Myers
Independent Director4.67yrsUS$135.88k0.0047%
$ 145.2k

7.9yrs

Average Tenure

67yo

Average Age

Experienced Board: CMD's board of directors are considered experienced (7.9 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

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$3.083b
  • Shares outstanding: 41.50m
  • Website: https://www.cantelmedical.com

Number of Employees


Location

  • Cantel Medical Corp.
  • 150 Clove Road
  • 9th Floor
  • Little Falls
  • New Jersey
  • 07424-2139
  • 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 Analysis2021/03/01 23:19
End of Day Share Price2021/03/01 00:00
Earnings2020/10/31
Annual Earnings2020/07/31


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.