NYSE:CTLT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential with acceptable track record.


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


Market Performance


7 Day Return

-0.8%

CTLT

-1.2%

US Pharmaceuticals

0.07%

US Market


1 Year Return

23.8%

CTLT

-6.3%

US Pharmaceuticals

8.9%

US Market

Return vs Industry: CTLT exceeded the US Pharmaceuticals industry which returned -6.3% over the past year.

Return vs Market: CTLT exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

CTLTIndustryMarket
7 Day-0.8%-1.2%0.07%
30 Day-6.1%-1.9%-0.3%
90 Day-14.0%-2.0%-1.6%
1 Year23.8%23.8%-4.0%-6.3%11.3%8.9%
3 Year107.2%107.2%18.7%10.3%46.3%36.8%
5 Year89.5%89.5%21.6%8.8%62.1%44.3%

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?

11.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTLT ($48.41) is trading below our estimate of fair value ($54.66)

Significantly Below Fair Value: CTLT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CTLT is poor value based on its PE Ratio (52.9x) compared to the Pharmaceuticals industry average (16.5x).

PE vs Market: CTLT is poor value based on its PE Ratio (52.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CTLT is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: CTLT is overvalued based on its PB Ratio (4.2x) compared to the US Pharmaceuticals industry average (2.8x).


Next Steps

Future Growth

How is Catalent forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

23.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTLT's forecast earnings growth (23.5% per year) is above the savings rate (2.7%).

Earnings vs Market: CTLT's earnings (23.5% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: CTLT's revenue (8.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: CTLT's revenue (8.4% 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 (14%).


Next Steps

Past Performance

How has Catalent performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CTLT's earnings have grown by 1.6% per year over the past 5 years.

Accelerating Growth: CTLT's earnings growth over the past year (57.9%) exceeds its 5-year average (1.6% per year).

Earnings vs Industry: CTLT earnings growth over the past year (57.9%) exceeded the Pharmaceuticals industry 24.3%.


Return on Equity

High ROE: CTLT's Return on Equity (6%) is considered low.


Return on Assets

ROA vs Industry: CTLT's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: CTLT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Catalent's financial position?


Financial Position Analysis

Short Term Liabilities: CTLT's short term assets ($1.4B) exceeds its short term liabilities ($670.7M)

Long Term Liabilities: CTLT's short term assets (1.4B) do not cover its long term liabilities (3.2B)


Debt to Equity History and Analysis

Debt Level: CTLT's debt to equity ratio (122%) is considered high

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

Debt Coverage: CTLT's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: CTLT's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: CTLT has a high level of physical assets or inventory.

Debt Coverage by Assets: CTLT's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

0.8yrs

Average management tenure


CEO

John Chiminski (55yo)

10.6yrs

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 ($USD8.51M) is about average for companies of similar size in the US market ($USD6.88M).

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


Management Age and Tenure

0.8yrs

Average Tenure

53yo

Average Age

Experienced Management: CTLT's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CTLT's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: CTLT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$103,28011 Sep 19
Gregory Lucier
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$51.64
BuyUS$2,008,28530 May 19
Peter Buzy
EntityIndividual
Role
Unit President
President of Gene Therapy
Shares44,500
Max PriceUS$45.13
BuyUS$444,40016 May 19
Donald Morel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$44.44
BuyUS$90,16013 May 19
Gregory Lucier
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$45.08
BuyUS$488,93013 Nov 18
John Greisch
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,000
Max PriceUS$37.61

Ownership Breakdown


Management Team

  • Pete Buzy (59yo)

    President of Gene Therapy

    • Tenure: 0.4yrs
    • Compensation: US$4.54m
  • Lance Miyamoto (64yo)

    • Tenure: 0.3yrs
  • Wetteny Joseph (47yo)

    Senior VP & CFO

    • Tenure: 1.7yrs
    • Compensation: US$1.74m
  • Steven Fasman (56yo)

    Senior VP

    • Tenure: 0yrs
    • Compensation: US$1.69m
  • John Chiminski (55yo)

    Chairman & CEO

    • Tenure: 10.6yrs
    • Compensation: US$8.51m
  • Barry Littlejohns (53yo)

    President of Biologics

    • Tenure: 2yrs
    • Compensation: US$1.27m
  • Aris Gennadios (53yo)

    President of Softgel & Oral Technologies

    • Tenure: 0.8yrs
  • Tom Castellano

    VP of Finance & Investor Relations and Treasurer

    • Tenure: 4.7yrs
  • Alessandro Maselli (47yo)

    President & COO

    • Tenure: 0.7yrs
    • Compensation: US$1.88m
  • Ricardo Pravda (48yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.3yrs

Board Members

  • Donald Morel (61yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$294.98k
  • Rolf Classon (74yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$284.98k
  • Jack Stahl (66yo)

    Lead Director

    • Tenure: 3yrs
    • Compensation: US$314.98k
  • Greg Lucier (55yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$287.48k
  • Marty Carroll (70yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$284.98k
  • John Greisch (64yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$299.98k
  • Mike Buckley (58yo)

    Member of Advisory Board

    • Tenure: 4.2yrs
  • Carolyn Bertozzi (52yo)

    Member of Scientfic & Advisory Board

    • Tenure: 4.2yrs
  • John Chiminski (55yo)

    Chairman & CEO

    • Tenure: 10.6yrs
    • Compensation: US$8.51m
  • Barry Buckland (71yo)

    Member of Advisory Board

    • Tenure: 4.2yrs

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$7.080b
  • Shares outstanding: 146.26m
  • 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, Bio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:35
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.