ConvaTec Group Plc
ConvaTec Group Plc Fundamental Analysis
ConvaTec Group Plc (CNVVF) shows weak financial fundamentals with a PE ratio of 37.91, profit margin of 7.17%, and ROE of 10.53%. The company generates $2.4B in annual revenue with moderate year-over-year growth of 6.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CNVVF's fundamental strength across five key dimensions:
Efficiency Score
WeakCNVVF struggles to generate sufficient returns from assets.
Valuation Score
ModerateCNVVF shows balanced valuation metrics.
Growth Score
ExcellentCNVVF delivers strong and consistent growth momentum.
Financial Health Score
ModerateCNVVF shows balanced financial health with some risks.
Profitability Score
WeakCNVVF struggles to sustain strong margins.
Key Financial Metrics
Is CNVVF Expensive or Cheap?
P/E Ratio
CNVVF trades at 37.91 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CNVVF's PEG of -2.99 indicates potential undervaluation.
Price to Book
The market values ConvaTec Group Plc at 4.37 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.21 times EBITDA. This is generally considered low.
How Well Does CNVVF Make Money?
Net Profit Margin
For every $100 in sales, ConvaTec Group Plc keeps $7.17 as profit after all expenses.
Operating Margin
Core operations generate 16.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.53 in profit for every $100 of shareholder equity.
ROA
ConvaTec Group Plc generates $4.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ConvaTec Group Plc produces operating cash flow of $464.80M, showing steady but balanced cash generation.
Free Cash Flow
ConvaTec Group Plc generates strong free cash flow of $344.38M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.18 in free cash annually.
FCF Yield
CNVVF converts 5.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How CNVVF Stacks Against Its Sector Peers
| Metric | CNVVF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.91 | 28.25 | Worse (Expensive) |
| ROE | 10.53% | 780.00% | Weak |
| Net Margin | 7.17% | -20122.00% (disorted) | Weak |
| Debt/Equity | 1.06 | 0.30 | Weak (High Leverage) |
| Current Ratio | 1.53 | 4.66 | Neutral |
| ROA | 4.63% | -14687.00% (disorted) | Weak |
CNVVF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ConvaTec Group Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.60%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
1771.13%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-5.08%
Industry Style: Defensive, Growth, Innovation
Declining