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Advanced Medical Solutions Group PLC (GB:AMS)
LSE:AMS

Advanced Medical Solutions (AMS) AI Stock Analysis

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Advanced Medical Solutions

(LSE:AMS)

Rating:72Outperform
Price Target:
229.00p
▲(6.02%Upside)
Advanced Medical Solutions is showing strong revenue growth and a solid capital structure, which are significant positives. Technical indicators suggest bullish momentum, further supporting the stock's performance. However, the high P/E ratio indicates potential overvaluation, and corporate events have positively influenced the outlook. Improving profitability margins and careful monitoring of valuation are necessary for sustained growth.
Positive Factors
Revenue Growth
Revenues increased 41% to £177.5m, boosted by the acquisitions of Peters Surgical and Syntacoll, with organic reported revenue growth of 7%.
Strategic Integration
The integration of Peters and Syntacoll into the enlarged Surgical business is progressing well, with strong growth continuing across all surgical product categories.
Negative Factors
Gross Margin Decline
Adjusted group gross margin declined 250bps to 53.1%, due to adverse mix in Woundcare, dilution from lower margins for Syntacoll and Peters, and lower royalty income.
Woundcare Performance
Woundcare saw an 11% decline in revenues with an operating margin of just 6%.

Advanced Medical Solutions (AMS) vs. iShares MSCI United Kingdom ETF (EWC)

Advanced Medical Solutions Business Overview & Revenue Model

Company DescriptionAdvanced Medical Solutions Group plc, together with its subsidiaries, designs, develops, manufactures, and distributes products for the wound care, surgical, and wound closure markets in the United Kingdom, Germany, France, rest of Europe, the United States, and internationally. It operates in two segments, Surgical and Woundcare. The Surgical segment offers topical tissue adhesives for wound closure and sealing under the LiquiBand brand; sutures and collagen-based products for the surgical and dental markets under the RESORBA brand; collagens; and laparoscopic device used to fix hernia meshes placed inside the body under the LiquiBand Fix8 brand, as well as internal sealants under the Seal-G/Seal-G MIST brand. The Woundcare segment provides wound care platform technologies, which include alginates, foams, films, fibres, hydrogels, antimicrobial dressings, and hydrocolloids, as well as wound care products under the ActivHeal brand. Advanced Medical Solutions Group plc was incorporated in 1991 and is headquartered in Winsford, the United Kingdom.
How the Company Makes MoneyAMS makes money primarily through the sale of its medical products to hospitals, clinics, and other healthcare providers. The company generates revenue by developing proprietary technologies and manufacturing products that address specific medical challenges, such as wound care management and surgical efficiency. Key revenue streams include direct sales of wound care dressings, surgical adhesives, and sealants. Additionally, AMS may engage in strategic partnerships with healthcare organizations and distributors to expand its market reach and enhance product adoption. Regulatory approvals and clinical validations play a significant role in the company's ability to market its products effectively, thereby impacting its earnings.

Advanced Medical Solutions Financial Statement Overview

Summary
Advanced Medical Solutions demonstrates strong revenue growth and a solid capital structure. However, declining profitability margins and return on equity suggest potential operational inefficiencies or increased costs. The company's cash flow remains healthy, with a significant increase in operating cash flow, but free cash flow has been constrained by higher capital expenditures.
Income Statement
68
Positive
The company demonstrates a strong gross profit margin of 46.6% in 2024, indicating efficient cost management. However, the net profit margin has decreased from 12.6% in 2023 to 4.0% in 2024, suggesting increased expenses or lower operating efficiency. Revenue growth from 2023 to 2024 shows a significant increase of 40.6%, indicating robust demand for the company's products. EBIT and EBITDA margins have decreased to 5.9% and 16.7% respectively in 2024, highlighting potential operational challenges.
Balance Sheet
75
Positive
The balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.36 in 2024, suggesting moderate leverage and financial stability. The equity ratio remains healthy at 61.9% in 2024, underscoring a strong capital structure. However, the return on equity has declined to 2.9% in 2024 from 6.5% in 2023, indicating reduced profitability relative to shareholder investments.
Cash Flow
72
Positive
Operating cash flow has increased by 35.5% from 2023 to 2024, reflecting improved cash-generating capability. However, free cash flow has decreased due to higher capital expenditures. The operating cash flow to net income ratio is 2.36 in 2024, indicating strong cash flow relative to earnings. Nonetheless, the free cash flow to net income ratio is 1.79, which is robust, although lower than previous years.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
177.52M126.21M124.33M108.60M86.80M
Gross Profit
82.77M70.14M68.62M56.12M42.67M
EBIT
10.45M18.88M26.09M20.60M11.69M
EBITDA
29.68M31.40M34.94M29.45M17.53M
Net Income Common Stockholders
7.09M15.89M20.41M17.48M8.58M
Balance SheetCash, Cash Equivalents and Short-Term Investments
17.04M60.16M82.26M72.97M53.83M
Total Assets
389.00M289.17M281.09M249.51M238.56M
Total Debt
86.56M9.14M9.75M9.86M11.12M
Net Debt
69.53M-51.02M-72.51M-63.10M-42.71M
Total Liabilities
147.48M44.97M44.47M36.83M36.34M
Stockholders Equity
240.78M244.20M236.62M212.68M202.21M
Cash FlowFree Cash Flow
12.67M2.50M17.12M23.95M15.79M
Operating Cash Flow
16.73M12.35M27.08M30.41M21.05M
Investing Cash Flow
-68.38M-20.27M-12.70M-6.41M-27.05M
Financing Cash Flow
9.47M-13.26M-5.70M-4.41M-5.09M

Advanced Medical Solutions Technical Analysis

Technical Analysis Sentiment
Positive
Last Price216.00
Price Trends
50DMA
198.94
Positive
100DMA
205.01
Positive
200DMA
209.37
Positive
Market Momentum
MACD
5.15
Negative
RSI
67.11
Neutral
STOCH
82.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AMS, the sentiment is Positive. The current price of 216 is above the 20-day moving average (MA) of 202.28, above the 50-day MA of 198.94, and above the 200-day MA of 209.37, indicating a bullish trend. The MACD of 5.15 indicates Negative momentum. The RSI at 67.11 is Neutral, neither overbought nor oversold. The STOCH value of 82.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AMS.

Advanced Medical Solutions Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
£5.98B40.2711.12%1.73%3.94%41.63%
78
Outperform
£166.99M27.1119.61%6.49%10.32%1.25%
GBAMS
72
Outperform
£463.76M64.952.93%1.14%40.66%-55.09%
65
Neutral
£333.86M8.8211.74%38.80%
GBAPH
59
Neutral
$355.92M-5.04%-1.02%67.70%
GBAGY
54
Neutral
£333.65M-369.20%4.50%74.32%
54
Neutral
$5.38B3.40-45.06%3.28%16.75%-0.02%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AMS
Advanced Medical Solutions
216.00
-1.24
-0.57%
GB:AGY
Allergy Therapeutics
7.15
1.77
32.90%
GB:APH
Alliance Pharma
64.70
31.70
96.06%
GB:CTEC
ConvaTec
293.00
44.30
17.81%
GB:PRTC
PureTech Health
144.40
-81.10
-35.96%
GB:TSTL
Tristel
377.50
-47.11
-11.09%

Advanced Medical Solutions Corporate Events

Shareholder MeetingsFinancial Disclosures
Advanced Medical Solutions Releases Annual Report and Announces AGM
Positive
Jun 3, 2025

Advanced Medical Solutions Group plc has released its Annual Report and Accounts for the year ending December 31, 2024, and announced its Annual General Meeting scheduled for June 30, 2025. The report is accessible on the company’s website, and the AGM will take place in London. This announcement underscores AMS’s commitment to transparency and shareholder engagement, potentially strengthening its market position and stakeholder confidence.

The most recent analyst rating on (GB:AMS) stock is a Buy with a £2.45 price target. To see the full list of analyst forecasts on Advanced Medical Solutions stock, see the GB:AMS Stock Forecast page.

Other
Advanced Medical Solutions Announces Change in Voting Rights
Neutral
Jun 3, 2025

Advanced Medical Solutions Group PLC has announced a change in its voting rights structure due to a recent transaction involving Octopus Investments Limited. The transaction resulted in Octopus Investments holding 11.95% of the voting rights, down from a previous 12.99%. This adjustment in voting rights may impact the company’s governance dynamics and reflects ongoing changes in shareholder composition.

The most recent analyst rating on (GB:AMS) stock is a Buy with a £2.45 price target. To see the full list of analyst forecasts on Advanced Medical Solutions stock, see the GB:AMS Stock Forecast page.

Regulatory Filings and Compliance
Advanced Medical Solutions Announces Total Voting Rights Update
Neutral
Jun 2, 2025

Advanced Medical Solutions Group plc announced its total voting rights, with an issued share capital of 219,201,148 ordinary shares as of May 30, 2025. This information is crucial for shareholders to determine their notification obligations under the FCA’s Disclosure and Transparency Rules. The announcement reflects AMS’s commitment to transparency and regulatory compliance, potentially impacting shareholder engagement and market perception.

The most recent analyst rating on (GB:AMS) stock is a Buy with a £2.45 price target. To see the full list of analyst forecasts on Advanced Medical Solutions stock, see the GB:AMS Stock Forecast page.

Business Operations and Strategy
Advanced Medical Solutions Appoints New Joint Corporate Broker
Positive
Jun 2, 2025

Advanced Medical Solutions Group plc has appointed Joh. Berenberg, Gossler & Co KG as a joint Corporate Broker alongside Investec Bank plc, effective immediately. This strategic move is expected to enhance AMS’s market presence and strengthen its financial advisory capabilities, potentially impacting its operations and industry positioning positively.

The most recent analyst rating on (GB:AMS) stock is a Buy with a £2.45 price target. To see the full list of analyst forecasts on Advanced Medical Solutions stock, see the GB:AMS Stock Forecast page.

Other
Advanced Medical Solutions Directors Increase Shareholdings
Positive
May 15, 2025

Advanced Medical Solutions Group plc announced recent share transactions involving its directors and employees. Susan Searle, a Non-Executive Director, and her husband purchased shares, while CEO Chris Meredith and CFO Eddie Johnson engaged in transactions to reinvest in the company’s Share Incentive Plan (SIP) and Employee Share Purchase Plan (ESPP). These transactions reflect the directors’ commitment to the company’s growth and align their interests with those of shareholders. The moves are expected to strengthen their beneficial ownership and demonstrate confidence in the company’s future prospects.

The most recent analyst rating on (GB:AMS) stock is a Buy with a £2.45 price target. To see the full list of analyst forecasts on Advanced Medical Solutions stock, see the GB:AMS Stock Forecast page.

Shareholder MeetingsDividends
Advanced Medical Solutions Announces AGM Delay and Dividend Record Date Change
Neutral
May 14, 2025

Advanced Medical Solutions Group plc has announced a delay in its Annual General Meeting (AGM) to 30 June 2025 due to unforeseen changes within its audit team at Deloitte LLP. Consequently, the record date for the proposed final dividend of 1.83p per share has been moved to 20 June 2025, with the dividend payment scheduled for 17 July 2025, pending shareholder approval at the AGM. This adjustment reflects the company’s commitment to maintaining transparency and adapting to operational changes, which may impact shareholder expectations and financial planning.

The most recent analyst rating on (GB:AMS) stock is a Buy with a £2.45 price target. To see the full list of analyst forecasts on Advanced Medical Solutions stock, see the GB:AMS Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Advanced Medical Solutions Grants New Share Options to Directors
Neutral
May 6, 2025

Advanced Medical Solutions Group plc has announced the granting of new nil-cost share options to its directors under the Long Term Incentive Plan (LTIP), based on performance criteria such as Earnings Per Share and Total Shareholder Return. This move is part of the company’s strategy to align management incentives with shareholder interests, potentially impacting its market positioning and stakeholder confidence.

Regulatory Filings and Compliance
Advanced Medical Solutions Announces Share Capital Details
Neutral
Apr 30, 2025

Advanced Medical Solutions Group plc announced its total issued share capital as of April 30, 2025, which comprises 218,107,619 ordinary shares with voting rights. This information is essential for shareholders to determine their notification obligations under the FCA’s Disclosure and Transparency Rules, potentially impacting shareholder engagement and compliance activities.

M&A TransactionsBusiness Operations and Strategy
AMS Confirms Montagu’s Decision Against Acquisition Offer
Neutral
Apr 24, 2025

Advanced Medical Solutions Group plc announced that Montagu Private Equity LLP has decided not to make an offer for the company, as confirmed by Montagu’s adherence to Rule 2.8 of the City Code on Takeovers and Mergers. The AMS Board expressed satisfaction with the company’s performance and remains confident in its growth strategy, which is expected to drive value creation for shareholders.

Regulatory Filings and Compliance
Advanced Medical Solutions Announces Share Capital Details
Neutral
Mar 31, 2025

Advanced Medical Solutions Group plc announced that its issued share capital as of March 31, 2025, consists of 217,994,699 ordinary shares with voting rights, with no shares held in treasury. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules, impacting how they manage their interests in the company.

Executive/Board ChangesBusiness Operations and Strategy
Advanced Medical Solutions Strengthens Board with New Appointment
Positive
Mar 31, 2025

Advanced Medical Solutions Group plc has appointed Susan Searle as an Independent Non-Executive Director, enhancing its board with her extensive experience in healthcare and other sectors. This strategic appointment is expected to bolster AMS’s growth trajectory and strengthen its governance as the company continues to expand its global presence in the tissue-healing technology market.

M&A Transactions
Advanced Medical Solutions Faces Potential Takeover Bid from Montagu
Neutral
Mar 27, 2025

Advanced Medical Solutions Group plc (AMS) has acknowledged an announcement by Montagu Private Equity LLP regarding a potential offer for the company. However, AMS has not received a formal proposal, and there is no certainty that an offer will be made. The company is now in an ‘offer period’ as per the City Code on Takeovers and Mergers, with Montagu required to make a decision by April 24, 2025. This development places AMS under scrutiny, potentially impacting its market positioning and shareholder interests.

M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Advanced Medical Solutions Reports Robust 2024 Results Amid Strategic Acquisitions
Positive
Mar 19, 2025

Advanced Medical Solutions Group plc reported strong financial results for 2024, with a 43% increase in revenue to £177.5 million, driven by the successful integration of Peters Surgical and Syntacoll acquisitions. The company saw significant growth in its US LiquiBand® product and launched the LIQUIFIX™ hernia fixation device in the US, contributing to record sales. Despite a decrease in reported profit due to acquisition costs, AMS remains optimistic about future growth, supported by strategic initiatives and an increased dividend proposal, reflecting confidence in its outlook.

Executive/Board ChangesM&A TransactionsBusiness Operations and Strategy
Leadership Transition at Advanced Medical Solutions Group
Neutral
Mar 18, 2025

Advanced Medical Solutions Group plc has announced a change in its board leadership as Liz Shanahan steps down as Chair and Director for personal reasons, effective March 31, 2025. Grahame Cook, currently the Senior Independent Non-Executive Director, will succeed her as Non-Executive Chair. This transition occurs as AMS is poised to advance its business in the surgical sector, particularly following the acquisition of Peters Surgical. The company also announced that it is in the process of appointing an additional Non-Executive Director, highlighting its commitment to strengthening its leadership team.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.