NYSE:CTLT

Stock Analysis Report

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Executive Summary

Catalent, Inc. provides delivery technologies and development solutions for drugs, biologics, and consumer and animal health products worldwide.


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CTLT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.0%

CTLT

1.7%

US Pharmaceuticals

2.7%

US Market


1 Year Return

70.8%

CTLT

10.6%

US Pharmaceuticals

9.1%

US Market

Return vs Industry: CTLT exceeded the US Pharmaceuticals industry which returned 10.6% over the past year.

Return vs Market: CTLT exceeded the US Market which returned 9.1% over the past year.


Shareholder returns

CTLTIndustryMarket
7 Day-1.0%1.7%2.7%
30 Day12.4%0.08%4.5%
90 Day50.8%7.9%2.3%
1 Year70.8%70.8%13.4%10.6%11.5%9.1%
3 Year109.4%109.4%25.7%16.7%30.6%22.0%
5 Year162.5%162.5%25.3%11.7%57.2%39.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

109.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CTLT ($77.73) is trading above our estimate of fair value ($31.16)

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


Price To Earnings Ratio

PE vs Industry: CTLT is poor value based on its PE Ratio (109.5x) compared to the Pharmaceuticals industry average (16.6x).

PE vs Market: CTLT is poor value based on its PE Ratio (109.5x) compared to the US market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: CTLT is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: CTLT is overvalued based on its PB Ratio (5.5x) compared to the US Pharmaceuticals industry average (3.2x).


Next Steps

Future Growth

How is Catalent forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

30.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTLT's forecast earnings growth (30.3% per year) is above the savings rate (2.2%).

Earnings vs Market: CTLT's earnings (30.3% per year) are forecast to grow faster than the US market (21.7% per year).

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

Revenue vs Market: CTLT's revenue (8.5% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: CTLT's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTLT's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Catalent performed over the past 5 years?

-10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTLT has a large one-off loss of $58.7M impacting its March 31 2020 financial results.

Growing Profit Margin: CTLT's current net profit margins (3.6%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: CTLT's earnings have declined by -10.8% per year over the past 5 years.

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

Earnings vs Industry: CTLT had negative earnings growth (-29.8%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.5%).


Return on Equity

High ROE: CTLT's Return on Equity (4.9%) is considered low.


Next Steps

Financial Health

How is Catalent's financial position?


Financial Position Analysis

Short Term Liabilities: CTLT's short term assets ($1.7B) exceed its short term liabilities ($917.1M).

Long Term Liabilities: CTLT's short term assets ($1.7B) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: CTLT's debt to equity ratio (109.6%) is considered high.

Reducing Debt: CTLT's debt to equity ratio has reduced from 382.6% to 109.6% over the past 5 years.

Debt Coverage: CTLT's debt is not well covered by operating cash flow (11.6%).

Interest Coverage: CTLT's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if CTLT'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 CTLT'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?

1.0yrs

Average management tenure


CEO

John Chiminski (55yo)

11.17yrs

Tenure

US$8,514,987

Compensation

Mr. John R. Chiminski has been the Chief Executive Officer at Catalent, Inc. since March 2009 and has been its Chairman since October 25, 2016. He also served as President at Catalent, Inc. until February, ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD8.51M) is about average for companies of similar size in the US market ($USD11.65M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Chiminski
Chairman & CEO11.17yrsUS$8.51m0.14% $16.7m
Alessandro Maselli
President & COO1.17yrsUS$1.88m0.0085% $1.0m
Wetteny Joseph
Senior VP & CFO2.17yrsUS$1.74m0.030% $3.6m
Steven Fasman
Senior VPno dataUS$1.69m0.041% $4.9m
Peter Buzy
President of Gene Therapy1yrUS$4.54m0.029% $3.5m
Julien Meissonnier
VP & Chief Scientific Officer0.50yrno datano data
Paul Surdez
Vice President of Investor Relations0.33yrno datano data
Michael Grippo
Senior Vice President of Strategy & Corporate Development0.58yrno data0.011% $1.3m
Ricardo Pravda
Senior VP & Chief Human Resources Officer0.83yrno data0.0072% $860.9k
Aristippos Gennadios
President of Softgel & Oral Technologies1.33yrsno data0.029% $3.5m

1.0yrs

Average Tenure

51.5yo

Average Age

Experienced Management: CTLT's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Chiminski
Chairman & CEO11.17yrsUS$8.51m0.14% $16.7m
Donald Morel
Independent Director4.5yrsUS$294.98k0.027% $3.2m
Rolf Classon
Independent Director6.33yrsUS$284.98k0.0098% $1.2m
Jack Stahl
Independent Lead Director3.58yrsUS$314.98k0.016% $1.9m
Gregory Lucier
Independent Director5.08yrsUS$287.48k0.030% $3.6m
J. Carroll
Independent Director4.83yrsUS$284.98k0.015% $1.9m
John Greisch
Independent Director2.17yrsUS$299.98k0.012% $1.4m
Michael Buckley
Member of Advisory Board4.75yrsno datano data
Carolyn Bertozzi
Member of Scientfic & Advisory Board4.75yrsno datano data
Barry Buckland
Member of Advisory Board4.75yrsno datano data

4.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CTLT's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 6.3%.


Top Shareholders

Company Information

Catalent, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Catalent, Inc.
  • Ticker: CTLT
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$12.040b
  • Shares outstanding: 154.90m
  • Website: https://www.catalent.com

Number of Employees


Location

  • Catalent, Inc.
  • 14 Schoolhouse Road
  • Somerset
  • New Jersey
  • 8873
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTLTNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2014
0C8DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2014
CTLT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2014

Biography

Catalent, Inc. provides delivery technologies and development solutions for drugs, biologics, and consumer and animal health products worldwide. It operates through four segments: Softgel Technologies, Biologics and Specialty Drug Delivery, Oral Drug Delivery, and Clinical Supply Services. The Softgel Technologies segment provides formulation, development, and manufacturing services for soft capsules for use in a range of customer products, such as prescription drugs, over-the-counter medications, dietary supplements, unit-dose cosmetics, and animal health medicinal preparations. The Biologics and Specialty Drug Delivery segment engages in the drug substance development and manufacturing; drug product clinical and commercial manufacturing; and integrated clinical and commercial supply solutions for protein and gene therapy biologics and specialty small molecules through injection, inhalation, and ophthalmic routes. The Oral Drug Delivery segment formulates, develops, and manufactures technologies and related integrated solutions for a range of oral dose forms, including its proprietary fast-dissolve Zydis tablets and conventional tablets, capsules, and sachet products. The Clinical Supply Services segment offers manufacturing, packaging, storage, distribution, and inventory management for drugs and biologics clinical trials. It also offers FastChain clinical supply services. The company serves pharmaceutical, biotechnology, and consumer health companies; and companies in other healthcare market segments, such as animal health and medical devices, as well as in cosmetics industries. It has an agreement with Cycle Pharmaceuticals Ltd. to develop formulations targeting rare disease patients; a collaboration with the Janssen Pharmaceutical Companies, as well as Ennaid Therapeutics; and a partnership with Arcturus Therapeutics Holdings Inc. to support the manufacture of LUNAR-COV19. Catalent, Inc. was founded in 2007 and is headquartered in Somerset, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 06:49
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/06/30


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.