ScoreWhy is Convatec Group Plc ?
1
The company is Net-Debt Free
- Poor long term growth as Operating profit has grown by an annual rate 11.20% of over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 8.68% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate 11.20% of over the last 5 years
3
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at GBP 657.77 MM
- INTEREST COVERAGE RATIO(Q) Highest at 904.81
- RAW MATERIAL COST(Y) Fallen by -2.64% (YoY)
4
With ROE of 16.79%, it has a very expensive valuation with a 3.76 Price to Book Value
- Over the past year, while the stock has generated a return of -25.97%, its profits have risen by 17.8% ; the PEG ratio of the company is 1
5
Below par performance in long term as well as near term
- Along with generating -25.97% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Convatec Group Plc should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Convatec Group Plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Convatec Group Plc
-25.97%
-0.51
30.86%
FTSE 100
17.87%
1.52
11.77%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.62%
EBIT Growth (5y)
11.20%
EBIT to Interest (avg)
4.08
Debt to EBITDA (avg)
2.16
Net Debt to Equity (avg)
0.63
Sales to Capital Employed (avg)
0.73
Tax Ratio
22.55%
Dividend Payout Ratio
81.89%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
9.70%
ROE (avg)
8.68%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
3.76
EV to EBIT
16.93
EV to EBITDA
10.93
EV to Capital Employed
2.46
EV to Sales
2.84
PEG Ratio
0.97
Dividend Yield
NA
ROCE (Latest)
14.54%
ROE (Latest)
16.79%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 657.77 MM
INTEREST COVERAGE RATIO(Q)
Highest at 904.81
RAW MATERIAL COST(Y)
Fallen by -2.64% (YoY
NET SALES(Q)
Highest at GBP 940.25 MM
OPERATING PROFIT(Q)
Highest at GBP 252.7 MM
OPERATING PROFIT MARGIN(Q)
Highest at 26.88 %
PRE-TAX PROFIT(Q)
Highest at GBP 136.14 MM
NET PROFIT(Q)
Highest at GBP 103.2 MM
-3What is not working for the Company
CASH AND EQV(HY)
Lowest at GBP 55.76 MM
DEBT-EQUITY RATIO
(HY)
Highest at 95.06 %
EPS(Q)
Lowest at GBP 0.03
Here's what is working for Convatec Group Plc
Interest Coverage Ratio
Highest at 904.81
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at GBP 657.77 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Net Sales
Highest at GBP 940.25 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (GBP MM)
Operating Profit
Highest at GBP 252.7 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (GBP MM)
Operating Profit Margin
Highest at 26.88 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at GBP 136.14 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Net Profit
Highest at GBP 103.2 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (GBP MM)
Raw Material Cost
Fallen by -2.64% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Convatec Group Plc
EPS
Lowest at GBP 0.03
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (GBP)
Cash and Eqv
Lowest at GBP 55.76 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 95.06 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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