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Convatec Group

BATS-CHIXE:CTECL
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CTECL
BATS-CHIXE
£4B
Market Cap
  1. Home
  2. GB
  3. Healthcare
Company description

ConvaTec Group Plc develops, manufactures, and markets medical products and technologies worldwide. The last earnings update was 22 days ago. More info.


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CTECL Share Price and Events
7 Day Returns
-3%
BATS-CHIXE:CTECL
-1.2%
GB Medical Equipment
0.1%
GB Market
1 Year Returns
30.9%
BATS-CHIXE:CTECL
-0.3%
GB Medical Equipment
-23.6%
GB Market
CTECL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Convatec Group (CTECL) -3% -2.3% -9.8% 30.9% -36.5% -
GB Medical Equipment -1.2% -12% -19.1% -0.3% -2.3% 20.9%
GB Market 0.1% -15.5% -27% -23.6% -24.3% -23.5%
1 Year Return vs Industry and Market
  • CTECL outperformed the Medical Equipment industry which returned -0.3% over the past year.
  • CTECL outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -23.6% over the past year.
Price Volatility
CTECL
Industry
5yr Volatility vs Market

CTECL Value

 Is Convatec Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Convatec Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Convatec Group.

BATS-CHIXE:CTECL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BATS-CHIXE:CTECL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.808 (1 + (1- 19%) (35.96%))
1.029
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (1.029 * 6.07%)
6.77%

Discounted Cash Flow Calculation for BATS-CHIXE:CTECL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Convatec Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BATS-CHIXE:CTECL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.77%)
2020 150.02 Analyst x5 140.50
2021 244.06 Analyst x8 214.07
2022 296.33 Analyst x6 243.43
2023 337.75 Analyst x4 259.85
2024 384.00 Analyst x3 276.69
2025 416.24 Est @ 8.39% 280.89
2026 441.36 Est @ 6.04% 278.94
2027 460.71 Est @ 4.38% 272.70
2028 475.58 Est @ 3.23% 263.64
2029 487.08 Est @ 2.42% 252.88
Present value of next 10 years cash flows $2,483.00
BATS-CHIXE:CTECL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $487.08 × (1 + 0.53%) ÷ (6.77% – 0.53%)
$7,841.24
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,841.24 ÷ (1 + 6.77%)10
$4,071.02
BATS-CHIXE:CTECL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,483.00 + $4,071.02
$6,554.02
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,554.02 / 1,978.67
$3.31
BATS-CHIXE:CTECL Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:CTEC)
0.814
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $3.31 x 0.814
£2.7
Non-primary Listing Adjustment Factor 1 share in BATS-CHIXE:CTECL represents 1.00417x of LSE:CTEC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00417x
Value per Share
(Listing Adjusted, GBP)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 2.70 x 1.00417
£2.71
Value per share (GBP) From above. £2.71
Current discount Discount to share price of £1.81
= -1 x (£1.81 - £2.71) / £2.71
33.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Convatec Group is available for.
Intrinsic value
33%
Share price is £1.81 vs Future cash flow value of £2.71
Current Discount Checks
For Convatec Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Convatec Group's share price is below the future cash flow value, and 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Convatec Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Convatec Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BATS-CHIXE:CTECL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.00
LSE:CTEC Share Price ** LSE (2020-04-06) in GBP £1.8
LSE:CTEC Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.229 $2.21
United Kingdom of Great Britain and Northern Ireland Medical Equipment Industry PE Ratio Median Figure of 11 Publicly-Listed Medical Equipment Companies 25.55x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 12.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Convatec Group.

BATS-CHIXE:CTECL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:CTEC Share Price ÷ EPS (both in USD)

= 2.21 ÷ 0.00

445.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Convatec Group is overvalued based on earnings compared to the GB Medical Equipment industry average.
  • Convatec Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Convatec Group's expected growth come at a high price?
Raw Data
BATS-CHIXE:CTECL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 445.05x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
44.4%per year
United Kingdom of Great Britain and Northern Ireland Medical Equipment Industry PEG Ratio Median Figure of 8 Publicly-Listed Medical Equipment Companies 2x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 517 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

BATS-CHIXE:CTECL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 445.05x ÷ 44.4%

10.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Convatec Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Convatec Group's assets?
Raw Data
BATS-CHIXE:CTECL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $0.79
LSE:CTEC Share Price * LSE (2020-04-06) in GBP £1.8
LSE:CTEC Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.229 $2.21
United Kingdom of Great Britain and Northern Ireland Medical Equipment Industry PB Ratio Median Figure of 20 Publicly-Listed Medical Equipment Companies 2.83x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,323 Publicly-Listed Companies 1.11x
BATS-CHIXE:CTECL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:CTEC Share Price ÷ Book Value per Share (both in USD)

= 2.21 ÷ 0.79

2.8x

* Primary Listing of Convatec Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Convatec Group is good value based on assets compared to the GB Medical Equipment industry average.
X
Value checks
We assess Convatec Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. Convatec Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CTECL Future Performance

 How is Convatec Group expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
44.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Convatec Group expected to grow at an attractive rate?
  • Convatec Group's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Convatec Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Convatec Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
BATS-CHIXE:CTECL Future Growth Rates Data Sources
Data Point Source Value (per year)
BATS-CHIXE:CTECL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 44.4%
BATS-CHIXE:CTECL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 3.2%
United Kingdom of Great Britain and Northern Ireland Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 21.1%
United Kingdom of Great Britain and Northern Ireland Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.5%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BATS-CHIXE:CTECL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BATS-CHIXE:CTECL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 2,162 432 3
2023-12-31 2,070 427 227 6
2022-12-31 1,992 385 174 9
2021-12-31 1,930 340 132 14
2020-12-31 1,866 309 69 13
2020-04-07
BATS-CHIXE:CTECL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,827 402 10
2019-09-30 1,813 391 86
2019-06-30 1,800 381 162
2019-03-31 1,816 367 192
2018-12-31 1,832 352 222
2018-09-30 1,843 351 230
2018-06-30 1,855 351 239
2018-03-31 1,810 329 199
2017-12-31 1,765 307 158
2017-09-30 1,728 225 26
2017-06-30 1,691 143 -106
2017-03-31 1,700 117 -150

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Convatec Group's earnings are expected to grow significantly at over 20% yearly.
  • Convatec Group's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BATS-CHIXE:CTECL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Convatec Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:CTECL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31 0.12 0.15 0.09 2.00
2022-12-31 0.09 0.10 0.08 5.00
2021-12-31 0.07 0.08 0.06 5.00
2020-12-31 0.04 0.05 0.03 4.00
2020-04-07
BATS-CHIXE:CTECL Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.00
2019-09-30 0.04
2019-06-30 0.08
2019-03-31 0.10
2018-12-31 0.11
2018-09-30 0.12
2018-06-30 0.12
2018-03-31 0.10
2017-12-31 0.08
2017-09-30 0.01
2017-06-30 -0.06
2017-03-31 -0.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Convatec Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Convatec Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Convatec Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CTECL Past Performance

  How has Convatec Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Convatec Group's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 GB Medical Equipment industry average.
Earnings and Revenue History
Convatec Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Convatec Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:CTECL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,827.20 9.80 687.40 53.80
2019-09-30 1,813.45 85.65 665.95 50.80
2019-06-30 1,799.70 161.50 644.50 47.80
2019-03-31 1,815.90 191.55 645.75 48.55
2018-12-31 1,832.10 221.60 647.00 49.30
2018-09-30 1,843.35 230.20 647.60 46.45
2018-06-30 1,854.60 238.80 648.20 43.60
2018-03-31 1,809.60 198.60 639.35 41.95
2017-12-31 1,764.60 158.40 630.50 40.30
2017-09-30 1,727.65 26.25 647.40 39.90
2017-06-30 1,690.70 -105.90 663.80 39.50
2017-03-31 1,700.25 -150.40 690.80 37.55
2016-12-31 1,688.30 -202.80 669.30 36.90
2016-09-30 1,693.90 -46.35 650.70 36.70
2016-06-30 1,676.80 -14.80 607.50 38.90
2016-03-31 1,658.10 -174.90 564.40 42.20
2015-12-31 1,650.40 -93.40 558.90 40.10
2015-09-30 1,621.50 -324.70 541.80 42.50
2015-06-30 1,662.10 -314.60 552.40 41.20
2015-03-31 1,699.00 -290.30 565.30 38.60
2014-12-31 1,733.90 -286.50 578.50 37.20
2014-09-30 1,788.20 -211.20 587.60 35.30
2014-06-30 1,770.80 -212.40 582.60 35.60
2014-03-31 1,753.60 -196.40 582.00 33.40
2013-12-31 1,700.70 -173.70 570.30 32.00
2013-09-30 1,705.10 -93.80 544.70 32.50
2013-06-30 1,675.60 -119.80 560.60 31.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Convatec Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Convatec Group used its assets less efficiently than the GB Medical Equipment industry average last year based on Return on Assets.
  • Convatec Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Convatec Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Convatec Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CTECL Health

 How is Convatec Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Convatec Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Convatec Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Convatec Group Company Filings, last reported 3 months ago.

BATS-CHIXE:CTECL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,561.00 1,486.10 385.80
2019-09-30 1,561.00 1,486.10 385.80
2019-06-30 1,597.30 1,587.80 376.00
2019-03-31 1,597.30 1,587.80 376.00
2018-12-31 1,617.20 1,620.80 315.60
2018-09-30 1,617.20 1,620.80 315.60
2018-06-30 1,557.10 1,803.10 339.10
2018-03-31 1,557.10 1,803.10 339.10
2017-12-31 1,523.80 1,797.30 289.30
2017-09-30 1,523.80 1,797.30 289.30
2017-06-30 1,365.10 1,809.60 302.50
2017-03-31 1,365.10 1,809.60 302.50
2016-12-31 1,246.20 1,752.60 264.10
2016-09-30 1,246.20 1,752.60 264.10
2016-06-30 -2,364.20 4,044.20 271.20
2016-03-31 -2,336.90 4,105.00 259.10
2015-12-31 -218.80 3,498.30 273.00
2015-09-30 -2,207.10 4,103.90 276.10
2015-06-30 -2,147.20 4,101.10 241.10
2015-03-31 -2,016.80 3,976.40 233.00
2014-12-31 -2,174.60 4,257.80 234.00
2014-09-30 -2,101.80 4,411.80 208.60
2014-06-30 -2,235.70 4,654.60 139.60
2014-03-31 -2,197.70 4,745.10 238.20
2013-12-31 -2,132.50 4,738.90 271.40
2013-09-30 -2,033.60 5,925.20 240.60
2013-06-30 -1,943.30 4,565.10 129.10
  • Convatec Group's level of debt (95.2%) 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 (27%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
X
Financial health checks
We assess Convatec Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Convatec Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CTECL Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.58%
Current annual income from Convatec Group dividends. Estimated to be 2.8% next year.
If you bought £2,000 of Convatec Group shares you are expected to receive £52 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Convatec Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.59%).
  • Convatec Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (7.08%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BATS-CHIXE:CTECL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 588 Stocks 5.6%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.3%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.6%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BATS-CHIXE:CTECL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 0.09 2.00
2023-12-31 0.07 5.00
2022-12-31 0.07 9.00
2021-12-31 0.06 14.00
2020-12-31 0.05 12.00
2020-04-07
BATS-CHIXE:CTECL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-03-16 0.057 2.737
2020-02-28 0.057 2.511
2019-04-11 0.057 2.619
2018-04-12 0.057 2.517
2017-08-03 0.028 0.948

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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 3 years.
Current Payout to shareholders
What portion of Convatec Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Convatec Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Convatec Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Convatec Group has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CTECL Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Karim Bitar
COMPENSATION $6,878,000
AGE 54
TENURE AS CEO 0.6 years
CEO Bio

Mr. Karim Bitar serves as Chief Executive Officer and Director at Convatec Group Plc since September 30, 2019. Mr. Bitar served as the Chief Executive Officer of Genus plc from September 30, 2011 to September 13, 2019. He served as an Executive Director of Genus plc since September 1, 2011 until September 13, 2019. He was responsible for devising and implementing Genus' strategy and for managing its day-to-day operations. He is accountable to the Board for Genus' development, in line with its strategy, taking into account the risks, objectives and policies set out by the Board and its Committees. He has extensive experience of leading international, technology-focused organisations. He led the strategic review of Genus in 2012, resulting in a new vision, strategy, structure and core values. He served many years at Eli Lilly and Company including as the President of European Operations since July 2008 and Lilly Canada and Lilly Australia. He held a variety of international roles, including, General Manager of Lilly Italy. He is an ex-McKinsey and Company consultant, he also held management roles at Johnson and Johnson and the Dow Chemical Company. He has been a Non Executive Director of Spectris plc since July 01, 2017. He has been a member of the University of Michigan Ross School of Business Advisory Board. He has a BSc in Biochemistry from the University of Wisconsin and an MBA from the University of Michigan.

CEO Compensation
  • Insufficient data for Karim to compare compensation growth.
  • Karim's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Convatec Group management team in years:

1.4
Average Tenure
57.5
Average Age
  • The average tenure for the Convatec Group management team is less than 2 years, this suggests a new team.
Management Team

Karim Bitar

TITLE
CEO & Director
COMPENSATION
$7M
AGE
54
TENURE
0.6 yrs

Frank Schulkes

TITLE
CFO & Director
COMPENSATION
$979K
AGE
57
TENURE
2.5 yrs

Donal Balfe

TITLE
Executive Vice President of Global Quality
TENURE
0.2 yrs

Divakar Ramakrishnan

TITLE
Chief Technology Officer
TENURE
0.3 yrs

Mark Reynolds

TITLE
Director of Investor Relations

Adam Deutsch

TITLE
Chief Transformation Officer & General Counsel
TENURE
5.7 yrs

Sean McGrath

TITLE
Executive Vice President of Human Resources
TENURE
2.3 yrs

John Lindskog

TITLE
President & COO of Global Infusion Care
AGE
60
TENURE
0.2 yrs

Christian Hoengaard

TITLE
Senior VP & GM - USA

Kjersti Grimsrud

TITLE
President & COO of Global Continence Care
AGE
58
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Convatec Group board of directors in years:

1.8
Average Tenure
62
Average Age
  • The average tenure for the Convatec Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

John David McAdam

TITLE
Independent Chairman
COMPENSATION
$81K
AGE
71
TENURE
0.6 yrs

Karim Bitar

TITLE
CEO & Director
COMPENSATION
$7M
AGE
54
TENURE
0.6 yrs

Frank Schulkes

TITLE
CFO & Director
COMPENSATION
$979K
AGE
57
TENURE
2.4 yrs

Ros Rivaz

TITLE
Independent Non-Executive Director
COMPENSATION
$109K
AGE
64
TENURE
2.8 yrs

Margaret Ewing

TITLE
Senior Independent Director
COMPENSATION
$123K
AGE
64
TENURE
1.1 yrs

Rick Anderson

TITLE
Non-Executive Director
COMPENSATION
$1M
AGE
58
TENURE
3.5 yrs

Regina Benjamin

TITLE
Independent Non-Executive Director
COMPENSATION
$94K
AGE
62
TENURE
2.7 yrs

Sten Scheibye

TITLE
Non-Executive Director
COMPENSATION
$60K
AGE
68
TENURE
1.8 yrs

Brian May

TITLE
Non-Executive Director
AGE
55
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Convatec Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
13. Mar 20 Buy Brian May Individual 12. Mar 20 12. Mar 20 25,000 £1.60 £40,090
13. Mar 20 Buy Margaret Ewing Individual 12. Mar 20 12. Mar 20 10,000 £1.61 £16,083
11. Mar 20 Buy John David McAdam Individual 10. Mar 20 10. Mar 20 23,181 £1.71 £39,660
10. Jan 20 Buy Regina Benjamin Individual 08. Jan 20 08. Jan 20 10,000 £2.09 £20,934
14. Oct 19 Sell Karim Bitar Individual 09. Oct 19 09. Oct 19 -879,817 £1.76 £-1,545,838
X
Management checks
We assess Convatec Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Convatec Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CTECL News

Simply Wall St News

CTECL Company Info

Description

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 from various conditions, such as diabetes, immobility, and venous disease, as well as for traumatic injury, burns, invasive surgery, and other causes. The company also provides devices, accessories, and services for people with an ostomy or stoma resulting from colorectal cancer, inflammatory bowel disease, bladder cancer, obesity, and other causes. In addition, it offers continence and critical care products, including intermittent urinary catheters; and products for people with urinary continence issues related to spinal cord injuries, multiple sclerosis, spina bifida, and urological disorders, as well as devices and products use in intensive care units and hospital settings. Further, the company provides advanced systems for managing acute fecal incontinence, as well as for monitoring urine production output and intra-abdominal pressure; and various disposable medical devices, such as wound drainage systems, urine collection bags and catheters, airway management and oxygen/aerosol therapy devices, suction handles and tubes, gastroenterology tubes, and securement devices. Additionally, it offers disposable infusion sets to the manufacturers of insulin pumps for diabetes, as well as similar pumps that are used in continuous infusion treatments for other conditions; and various products to hospitals and the home healthcare sector. The company sells its products to pharmacies, hospitals, and other acute and post-acute healthcare service providers directly or through distributors and wholesalers. It serves a range of customers, including healthcare providers, patients, and manufacturers. The company was founded in 2008 and is headquartered in Reading, the United Kingdom.

Details
Name: Convatec Group Plc
CTECL
Exchange: BATS-CHIXE
Founded: 2008
£3,563,576,154
1,978,665,272
Website: http://www.convatecgroup.com
Address: Convatec Group Plc
3 Forbury Place,
23 Forbury Road,
Reading,
Berkshire, RG1 3JH,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE CTEC Common Stock London Stock Exchange GB GBP 26. Oct 2016
OTCPK CNVV.F Common Stock Pink Sheets LLC US USD 26. Oct 2016
DB 2CV Common Stock Deutsche Boerse AG DE EUR 26. Oct 2016
BATS-CHIXE CTECL Common Stock BATS 'Chi-X Europe' GB GBP 26. Oct 2016
OTCPK CNVV.Y UNSP ADR EACH REP 4 ORD SHS Pink Sheets LLC US USD 26. Jan 2017
DB 2CVU UNSP ADR EACH REP 4 ORD SHS Deutsche Boerse AG DE EUR 26. Jan 2017
Number of employees
Current staff
Staff numbers
9,197
Convatec Group employees.
Industry
Health Care Supplies
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 20:04
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/03/16
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.