NYSE:CTLT

Stock Analysis Report

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Executive Summary

Catalent, Inc., together with its subsidiaries, provides delivery technologies and development solutions for drugs, biologics, and consumer and animal health products worldwide. More Details


Snowflake Analysis

Proven track record with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.8%

CTLT

-2.6%

US Pharmaceuticals

-2.4%

US Market


1 Year Return

88.5%

CTLT

11.1%

US Pharmaceuticals

18.2%

US Market

Return vs Industry: CTLT exceeded the US Pharmaceuticals industry which returned 12.4% over the past year.

Return vs Market: CTLT exceeded the US Market which returned 19.5% over the past year.


Shareholder returns

CTLTIndustryMarket
7 Day-3.8%-2.6%-2.4%
30 Day7.5%-2.2%4.2%
90 Day7.3%-1.2%6.3%
1 Year88.5%88.5%13.9%11.1%20.9%18.2%
3 Year112.5%112.5%20.8%11.8%41.2%31.8%
5 Year253.4%253.4%38.1%21.9%84.8%63.9%

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?

79.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CTLT ($91.26) is trading above our estimate of fair value ($67.57)

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 (79x) compared to the US Pharmaceuticals industry average (22.9x).

PE vs Market: CTLT is poor value based on its PE Ratio (79x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: CTLT is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: CTLT is overvalued based on its PB Ratio (5.1x) 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?

24.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTLT's forecast earnings growth (24.5% per year) is above the savings rate (2.2%).

Earnings vs Market: CTLT's earnings (24.5% per year) are forecast to grow faster than the US market (22.1% per year).

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

Revenue vs Market: CTLT's revenue (10% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CTLT's revenue (10% 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 (12.2%).


Next Steps

Past Performance

How has Catalent performed over the past 5 years?

-10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTLT has high quality earnings.

Growing Profit Margin: CTLT's current net profit margins (5.6%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: CTLT's earnings have declined by 10.5% per year over the past 5 years.

Accelerating Growth: CTLT's earnings growth over the past year (31%) exceeds its 5-year average (-10.5% per year).

Earnings vs Industry: CTLT earnings growth over the past year (31%) exceeded the Pharmaceuticals industry 12.6%.


Return on Equity

High ROE: CTLT's Return on Equity (6.3%) is considered low.


Next Steps

Financial Health

How is Catalent's financial position?


Financial Position Analysis

Short Term Liabilities: CTLT's short term assets ($2.3B) exceed its short term liabilities ($893.2M).

Long Term Liabilities: CTLT's short term assets ($2.3B) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: CTLT's debt to equity ratio (82.1%) is considered high.

Reducing Debt: CTLT's debt to equity ratio has reduced from 284.8% to 82.1% over the past 5 years.

Debt Coverage: CTLT's debt is not well covered by operating cash flow (15.3%).

Interest Coverage: CTLT's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Catalent 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?

1.3yrs

Average management tenure


CEO

John Chiminski (56 yo)

11.58yrs

Tenure

US$9,126,195

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 ($USD9.13M) is about average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Chiminski
Chairman & CEO11.58yrsUS$9.13m0.11%
$ 15.8m
Alessandro Maselli
President & COO1.67yrsUS$2.79m0.019%
$ 2.9m
Wetteny Joseph
Senior VP & CFO2.67yrsUS$1.79m0.045%
$ 6.8m
Steven Fasman
Senior VPno dataUS$2.02m0.046%
$ 6.9m
Karen Flynn
President of Biologics & Chief Commercial Officer0.75yrUS$2.67mno data
Julien Meissonnier
VP & Chief Scientific Officer0.92yrno datano data
Paul Surdez
Vice President of Investor Relations0.75yrno datano data
Michael Grippo
Senior Vice President of Strategy & Corporate Development1yrno data0.010%
$ 1.6m
Ricardo Pravda
Senior VP & Chief Human Resources Officer1.25yrsno data0.0071%
$ 1.1m
Aristippos Gennadios
President of Softgel & Oral Technologies1.75yrsno data0.031%
$ 4.7m
Lance Miyamoto
1.33yrsno data0.028%
$ 4.3m
Michael Riley
Region President of Biologics North America0.75yrno datano data

1.3yrs

Average Tenure

54yo

Average Age

Experienced Management: CTLT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Chiminski
Chairman & CEO11.58yrsUS$9.13m0.11%
$ 15.8m
Peter Buzy
Chairman of Gene Therapy0.33yrUS$4.54m0.027%
$ 4.1m
Donald Morel
Independent Director4.92yrsUS$294.98k0.027%
$ 4.1m
Rolf Classon
Independent Director6.75yrsUS$284.98k0.0067%
$ 1.0m
Daniel Marshak
Member of Advisory Board5.17yrsno datano data
Jack Stahl
Independent Lead Director4yrsUS$314.98k0.017%
$ 2.6m
Gregory Lucier
Independent Director5.5yrsUS$287.48k0.0031%
$ 462.4k
J. Carroll
Independent Director5.25yrsUS$284.98k0.015%
$ 2.2m
John Greisch
Independent Director2.67yrsUS$301.98k0.011%
$ 1.7m
Michael Buckley
Member of Advisory Board5.17yrsno datano data
Carolyn Bertozzi
Member of Scientfic & Advisory Board5.17yrsno datano data
Barry Buckland
Member of Advisory Board5.17yrsno datano data

5.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CTLT's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CTLT insiders have only sold shares 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 12.5%.


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$15.013b
  • Shares outstanding: 164.51m
  • 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., together with its subsidiaries, provides delivery technologies and development solutions for drugs, biologics, and consumer and animal health products worldwide. It operates through four se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:04
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.