OTCPK:CNVV.F

Stock Analysis Report

Executive Summary

ConvaTec Group Plc develops, manufactures, and markets medical products and technologies worldwide.

Snowflake

Fundamentals

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

CNVV.F

2.0%

US Medical Equipment

1.8%

US Market


1 Year Return

-27.1%

CNVV.F

13.3%

US Medical Equipment

7.3%

US Market

Return vs Industry: CNVV.F underperformed the US Medical Equipment industry which returned 13.3% over the past year.

Return vs Market: CNVV.F underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

CNVV.FIndustryMarket
7 Day0%2.0%1.8%
30 Day0%-1.8%-0.7%
90 Day18.3%-0.5%0.06%
1 Year-27.1%-27.1%14.2%13.3%9.7%7.3%
3 Yearn/a70.5%65.3%46.3%36.9%
5 Yearn/a127.0%101.8%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

7.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CNVV.F ($2.15) is trading below our estimate of fair value ($2.32)

Significantly Undervalued: CNVV.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CNVV.F is good value based on its PE Ratio (28.6x) compared to the Medical Equipment industry average (41.8x).

PE vs Market: CNVV.F is poor value based on its PE Ratio (28.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CNVV.F is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: CNVV.F is good value based on its PB Ratio (2.9x) compared to the US Medical Equipment industry average (3.8x).


Next Steps

Future Growth

How is Convatec Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNVV.F's forecast earnings growth (18.9% per year) is above the savings rate (2.7%).

Earnings vs Market: CNVV.F's earnings (18.9% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: CNVV.F's revenue (3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CNVV.F's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CNVV.F's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has Convatec Group performed over the past 5 years?

63.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CNVV.F has become profitable over the past 5 years, growing earnings by 63.2% per year.

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

Earnings vs Industry: CNVV.F had negative earnings growth (-32.4%) over the past year, making it difficult to compare to the Medical Equipment industry average (28.2%).


Return on Equity

High ROE: CNVV.F's Return on Equity (10.1%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: CNVV.F has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Convatec Group's financial position?


Financial Position Analysis

Short Term Liabilities: CNVV.F's short term assets ($972.0M) exceeds its short term liabilities ($410.2M)

Long Term Liabilities: CNVV.F's short term assets (972.0M) do not cover its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: CNVV.F's debt to equity ratio (99.4%) is considered high

Reducing Debt: CNVV.F had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: CNVV.F's debt is well covered by operating cash flow (24%).

Interest Coverage: CNVV.F's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

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

Debt Coverage by Assets: CNVV.F's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

2.42%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%3.7%industryaverage1.2%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CNVV.F's dividend (2.42%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CNVV.F's dividend (2.42%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: Whilst dividend payments have been stable, CNVV.F has been paying a dividend for less than 10 years.

Growing Dividend: CNVV.F's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.3%), CNVV.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CNVV.F's dividends in 3 years are forecast to be well covered by earnings (43% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Karim Bitar (54yo)

0.08yrs

Tenure

0

Mr. Karim Bitar served as the Chief Executive Officer of Genus plc from September 30, 2011 to September 13, 2019. Mr. Bitar Serves as Chief Executive Officer and Director at Convatec Group Plc since Septem ...


Management Age and Tenure

2.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CNVV.F's management team is considered experienced (2 years average tenure).


Board Age and Tenure

1.6yrs

Average Tenure

63yo

Average Age

Experienced Board: CNVV.F's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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

BuyUS$302,56529 Mar 19
Frank Schulkes
EntityIndividual
Role
Member of the Board of Directors
CFO & Director
Shares165,000
Max PriceUS$1.83
SellUS$302,56529 Mar 19
Frank Schulkes
EntityIndividual
Role
Member of the Board of Directors
CFO & Director
Shares165,000
Max PriceUS$1.83
BuyUS$100,06026 Mar 19
Rick Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares55,500
Max PriceUS$1.80
BuyUS$148,67325 Oct 18
Rick Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares75,000
Max PriceUS$1.98

Ownership Breakdown


Management Team

  • Adam Deutsch

    Executive VP of Corporate Development & General Counsel

    • Tenure: 5.2yrs
  • Supratim Bose (67yo)

    Executive VP & President of APAC

    • Tenure: 0.8yrs
  • Frank Schulkes (57yo)

    CFO & Director

    • Tenure: 1.9yrs
    • Compensation: US$627.00k
  • Karim Bitar (54yo)

    CEO & Director

    • Tenure: 0.08yrs
  • Douglas Le Fort (53yo)

    Senior Vice President of Corporate Development

    • Tenure: 4yrs
  • John Crosse

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Robert Steele

    Executive Vice President of Quality

    • Tenure: 0yrs
  • Christian Hoengaard

    Senior VP & GM - USA

    • Tenure: 0yrs
  • Donal Balfe

    Executive Vice President of Global Operations

    • Tenure: 2yrs
  • Sean McGrath

    Executive VP of Global Human Resources

    • Tenure: 1.8yrs

Board Members

  • John David McAdam (71yo)

    Chairman

    • Tenure: 0.08yrs
  • Regina Benjamin (62yo)

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: US$72.00k
  • Margaret Ewing (64yo)

    Senior Independent Director

    • Tenure: 0.6yrs
    • Compensation: US$84.00k
  • Sten Scheibye (68yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: US$30.00k
  • Rick Anderson (58yo)

    Non-Executive Director

    • Tenure: 3yrs
    • Compensation: US$1.22m
  • Frank Schulkes (57yo)

    CFO & Director

    • Tenure: 1.9yrs
    • Compensation: US$627.00k
  • Karim Bitar (54yo)

    CEO & Director

    • Tenure: 0.08yrs
  • Ros Rivaz (64yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: US$84.00k

Company Information

Convatec Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Convatec Group Plc
  • Ticker: CNVV.F
  • Exchange: OTCPK
  • Founded: 2008
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: UK£3.616b
  • Listing Market Cap: UK£4.652b
  • Shares outstanding: 1.97b
  • Website: https://www.convatecgroup.com

Number of Employees


Location

  • Convatec Group Plc
  • 3 Forbury Place
  • 23 Forbury Road
  • Reading
  • Berkshire
  • RG1 3JH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTECLSE (London Stock Exchange)YesCommon StockGBGBPOct 2016
CTECLBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBGBPOct 2016
CNVV.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2016
2CVDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2016
CNVV.YOTCPK (Pink Sheets LLC)UNSPONSORE ADRUSUSDJan 2017

Biography

ConvaTec Group Plc develops, manufactures, and markets medical products and technologies worldwide. It offers advanced wound dressings and skin care products for the management of chronic wounds resulting  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:19
End of Day Share Price2019/08/12 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.