OTCPK:CNVV.Y

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet second-rate dividend payer.


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

-0.4%

OTCPK:CNVV.Y

-0.9%

US Medical Equipment

1.3%

US Market


1 Year Return

-29.2%

OTCPK:CNVV.Y

9.1%

US Medical Equipment

2.0%

US Market

CNVV.Y underperformed the Medical Equipment industry which returned 8.7% over the past year.

CNVV.Y underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

CNVV.YIndustryMarket
7 Day-0.4%-0.9%1.3%
30 Day-3.9%0.7%3.9%
90 Day19.9%4.4%3.4%
1 Year-27.8%-29.2%10.0%9.1%4.2%2.0%
3 Yearn/a70.7%65.5%47.2%37.6%
5 Yearn/a130.7%104.3%60.5%42.9%

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

2%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Convatec Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Convatec Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Convatec Group is good value based on earnings compared to the US Medical Equipment industry average.

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


Price Based on Expected Growth

Convatec Group is poor value based on expected growth next year.


Price Based on Value of Assets

Convatec Group is good value based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Convatec Group expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Convatec Group's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Convatec Group's earnings are expected to grow by 12.3% yearly, however this is not considered high growth (20% yearly).

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

Convatec Group's earnings growth is positive but not above the United States of America market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

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


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

Convatec Group has delivered over 20% year on year earnings growth in the past 5 years.

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

Convatec Group's 1-year earnings growth is negative, it can't be compared to the US Medical Equipment industry average.


Return on Equity

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


Return on Assets

Convatec Group used its assets less efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Convatec Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Convatec Group's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Convatec Group's level of debt (99.4%) compared to net worth is high (greater than 40%).

Convatec Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is well covered by operating cash flow (24%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4x coverage).


Balance Sheet

Low level of unsold assets.

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?

2.63%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Convatec Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Convatec Group's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, Convatec Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Convatec Group only paid a dividend in the past 2 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Rick Anderson (58yo)

0.9yrs

Tenure

US$1,215,715

Compensation

Mr. Rick D. Anderson serves as the Chairman and Managing Director at Revival Healthcare Capital. Mr. Anderson has been an Executive Chairman at Convatec Group Pl since May 09, 2019 and its Director since O ...


CEO Compensation Analysis

Rick's remuneration is lower than average for companies of similar size in United States of America.

Rick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.9yrs

Average Tenure

57.5yo

Average Age

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


Board Age and Tenure

1.5yrs

Average Tenure

63yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Adam Deutsch

    Executive VP of Corporate Development & General Counsel

    • Tenure: 5.1yrs
  • Supratim Bose (67yo)

    Executive VP & President of APAC

    • Tenure: 0.8yrs
  • Rick Anderson (58yo)

    Executive Chairman & Interim CEO

    • Tenure: 0.9yrs
    • Compensation: US$1.22m
  • Frank Schulkes (57yo)

    CFO & Director

    • Tenure: 1.8yrs
    • Compensation: US$627.00k
  • Douglas Le Fort (53yo)

    Senior Vice President of Corporate Development

    • Tenure: 3.9yrs
  • 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: 1.9yrs
  • Sean McGrath

    Executive VP of Global Human Resources

    • Tenure: 1.7yrs

Board Members

  • Regina Benjamin (62yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: US$72.00k
  • Margaret Ewing (64yo)

    Senior Independent Director

    • Tenure: 0.5yrs
    • Compensation: US$84.00k
  • Sten Scheibye (68yo)

    Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: US$30.00k
  • Rick Anderson (58yo)

    Executive Chairman & Interim CEO

    • Tenure: 0.9yrs
    • Compensation: US$1.22m
  • Frank Schulkes (57yo)

    CFO & Director

    • Tenure: 1.8yrs
    • Compensation: US$627.00k
  • 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.Y
  • Exchange: OTCPK
  • Founded: 2008
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: UK£3.503b
  • Listing Market Cap: UK£4.362b
  • 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 Analysis2019/09/16 00:31
End of Day Share Price2019/09/11 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.