ConvaTec (CTEC) AI Stock Analysis

• Market Cap: £6.02B
• Dividend Yield: 1.71%
• Average Volume (3M): 6.01M
• Price to Earnings (P/E): 40.5
• Beta (1Y): 0.62
• Revenue Growth: 3.94%
• EPS Growth: 41.63%
• Country: UK
• Employees: 10,489
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.06
• Shares Outstanding: 2,049,789,600
• 10 Day Avg. Volume: 8,260,863
• 30 Day Avg. Volume: 6,006,411
• PEG Ratio: 2.64
• Price to Book (P/B): 4.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £322.90
• Price Target Upside: 9.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 80 Outperform
• Price Target: 316.00p ▲(6.97%Upside)

ConvaTec's overall stock score reflects its strong financial performance, particularly its robust revenue growth and effective cash flow management. Technical analysis suggests positive momentum, although caution is warranted due to overbought signals. The company's high valuation indicates strong market expectations, and recent corporate events reinforce its positive growth outlook. These factors position ConvaTec well in the medical equipment and supplies industry.

Positive Factors

Earnings Outlook

Convatec still expects margin expansion in FY25 to 22.0-22.5%, and to deliver double-digit adjusted EPS growth, both in-line or slightly ahead of expectations.

Financial Performance

FY24 results are at the top end of guidance and expectations, with 7.7% organic revenue growth the best since IPO.

Regulatory Clarity

The postponement of the LCDs relating to Skin Substitute Grafts/Cellular and Tissue-Based Products by the CMS removes, at least for now, the uncertainty regarding the potential long-term impact on InnovaMatrix and alleviates any market concern regarding the LCDs' effect on the company's growth trajectory.

Negative Factors

Market Uncertainty

CTEC has subsequently raised its guidance for InnovaMatrix from $50m to $75m taking into account the current ongoing uncertainty in the market.

ConvaTec Business Overview & Revenue Model

Company 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 acute and chronic wounds resulting from various conditions, such as diabetes, immobility, and venous disease, as well as from traumatic injury, burns, invasive surgery, and other causes. The company also provides devices, accessories, and services for people with a 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 other urological disorders, as well as devices and products used 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 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 hospital and home healthcare markets. 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 1978 and is headquartered in Reading, the United Kingdom.

How the Company Makes Money

ConvaTec makes money primarily through the sale of its medical products and technologies across its four key business units: Advanced Wound Care, Ostomy Care, Continence and Critical Care, and Infusion Care. The company generates revenue by providing healthcare solutions to hospitals, healthcare professionals, and patients directly or through partnerships with healthcare distributors and providers. Key revenue streams include sales of wound dressings, ostomy care solutions, continence and critical care devices, and infusion systems. ConvaTec's global presence and its focus on innovation and meeting the specialized needs of patients contribute significantly to its earnings. Strategic partnerships and collaborations with healthcare providers and continuous investment in research and development also play a crucial role in sustaining and enhancing its revenue streams.

ConvaTec Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.20B	2.14B	2.07B	2.04B	1.89B	1.83B
	Gross Profit
1.23B	1.20B	1.12B	1.12B	1.02B	955.60M
	EBIT
294.60M	262.70M	255.80M	231.30M	224.90M	214.40M
	EBITDA
486.40M	455.50M	429.80M	405.40M	390.70M	391.40M
	Net Income Common Stockholders
153.20M	130.30M	62.90M	117.60M	112.50M	9.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.60M	98.30M	145.80M	463.40M	565.40M	385.80M
	Total Assets
3.71B	3.71B	3.59B	3.67B	3.77B	3.61B
	Total Debt
1.31B	1.31B	1.30B	1.44B	1.55B	1.57B
	Net Debt
1.21B	1.21B	1.16B	971.70M	983.10M	1.19B
	Total Liabilities
2.02B	2.02B	1.98B	1.98B	2.10B	2.05B
	Stockholders Equity
1.69B	1.69B	1.61B	1.69B	1.67B	1.56B
Cash Flow		Free Cash Flow
235.70M	238.20M	137.50M	211.80M	313.30M	340.40M
	Operating Cash Flow
356.80M	367.40M	281.70M	305.90M	399.50M	401.80M
	Investing Cash Flow
-149.20M	-285.70M	-348.30M	-206.50M	-56.30M	-72.80M
	Financing Cash Flow
-182.10M	-124.00M	-237.10M	-199.90M	-162.10M	-252.50M

ConvaTec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 295.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CTEC, the sentiment is Positive. The current price of 295.4 is above the 20-day moving average (MA) of 279.71, above the 50-day MA of 263.30, and above the 200-day MA of 240.05, indicating a bullish trend. The MACD of 9.36 indicates Negative momentum. The RSI at 79.50 is Negative, neither overbought nor oversold. The STOCH value of 60.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CTEC.

ConvaTec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTEC	80 Outperform	£6.02B	40.52	11.12%	1.71%	3.94%	41.63%
SN	76 Outperform	£9.84B	30.45	7.78%	2.57%	1.85%	51.77%
SPI	74 Outperform	£836.93M	33.02	3.41%	1.10%	11.20%	-6.80%
AMS	72 Outperform	£456.21M	63.90	2.93%	1.14%	40.66%	-55.09%
HIK	71 Outperform	£4.64B	16.58	15.79%	2.91%	5.83%	83.35%
CRW	69 Neutral	£721.40M	61.82	4.50%	1.43%	6.74%	54.83%
Sector *	54 Neutral	$5.31B	3.29	-45.39%	2.79%	16.77%	-0.07%

ConvaTec Corporate Events

Convatec Awards Performance Shares and RSUs to Leadership

Convatec Group Plc announced the grant of Performance Share Awards (PSAs) and Restricted Stock Unit Awards (RSUs) to its CEO, Karim Bitar, and CFO, Jonny Mason, under the company’s 2025 Omnibus Incentive Plan. These awards, which are part of the company’s remuneration policy approved by shareholders, are set to vest in 2028 and are contingent on specific performance conditions and continued employment. This move aligns with Convatec’s strategic goals and aims to incentivize its leadership, potentially impacting its operational focus and market competitiveness.

The most recent analyst rating on (GB:CTEC) stock is a Buy with a £305.00 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.

Convatec AGM Resolutions Passed Amid Shareholder Engagement Focus

Convatec Group Plc successfully held its Annual General Meeting, where all proposed resolutions were passed. Notably, the Directors’ Remuneration Policy and the Convatec Group Omnibus Incentive Plan received less than 80% approval, prompting the company to commit to further shareholder engagement. This outcome underscores the importance of ongoing dialogue with investors to align on key governance issues.

The most recent analyst rating on (GB:CTEC) stock is a Buy with a £305.00 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.

Convatec Reports Strong Start to 2025 with Robust Revenue Growth

Convatec reported a strong start to 2025, with broad-based organic revenue growth across its four main categories, despite challenges with its InnovaMatrix® product due to postponed US regulatory decisions. The company has tightened its financial guidance for the year, expecting organic revenue growth excluding InnovaMatrix® to be between 5.5-7.0%. Convatec’s innovation pipeline is robust, with new product launches planned across various segments, and the company is making strides in automation and productivity improvements. These developments position Convatec well for sustained revenue and earnings growth, benefiting stakeholders and enhancing its market position.

The most recent analyst rating on (GB:CTEC) stock is a Buy with a £305.00 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.

ConvaTec Announces Change in Voting Rights by Black Creek Investment Management

ConvaTec Group PLC has announced a change in the voting rights held by Black Creek Investment Management Inc., a Canadian investment management firm. The firm’s voting rights in ConvaTec have decreased from 4.83% to 3.99%, as of April 24, 2025. This adjustment reflects a disposal of shares, impacting the company’s shareholder structure. The shares are owned by 15 separate funds and clients, with Black Creek acting as the investment fund manager and exercising voting rights on their behalf.

ConvaTec Announces Change in Voting Rights Structure

ConvaTec Group PLC has announced a change in its voting rights structure following an acquisition or disposal of voting rights by FMR LLC, a company based in Boston, USA. As of April 25, 2025, FMR LLC holds 5.065% of the voting rights in ConvaTec, amounting to 103,822,184 shares. This change in voting rights could potentially impact ConvaTec’s governance and decision-making processes, influencing its strategic direction and stakeholder interests.

ConvaTec Announces Major Change in Shareholding Structure

ConvaTec Group PLC has announced a change in its major holdings, with FMR LLC acquiring a significant portion of voting rights, now holding 5.065% of the total. This acquisition positions FMR LLC as a notable stakeholder, potentially influencing ConvaTec’s strategic decisions and impacting its market dynamics.

Convatec Boosts InnovaMatrix® Sales Outlook Following LCD Postponement

Convatec has announced that the postponement of Local Coverage Determinations (LCDs) by the Centers for Medicare & Medicaid Services in the US will positively impact its InnovaMatrix® sales, increasing the projected revenue from $50 million to $75 million for FY25. This delay allows Medicare patients continued access to InnovaMatrix® for treating Diabetic Foot Ulcers and Venous Leg Ulcers, supporting Convatec’s commitment to evidence-based medicine and patient choice, while reinforcing its market position in the US.

FIL Limited Increases Stake in ConvaTec Group PLC

ConvaTec Group PLC, a UK-based company, has announced a change in its major holdings. FIL Limited, registered in Bermuda, has increased its voting rights in ConvaTec to 6.2098% from a previous 5.1%, crossing the 5% threshold. This acquisition of voting rights by FIL Limited, through its controlled undertaking FIL Investments International, indicates a significant stake in ConvaTec, potentially impacting the company’s governance and strategic decisions.

Convatec CFO’s Share Awards Vesting and Sale for Tax Liabilities

Convatec Group Plc announced the vesting of share awards under its Long Term Incentive Plan for Jonny Mason, the Chief Financial Officer. On March 14, 2025, Mason’s performance share awards vested, and on March 18, 2025, a portion of these shares were sold to cover tax and national insurance obligations. This transaction reflects the company’s ongoing commitment to aligning management incentives with shareholder interests, potentially impacting the company’s financial strategy and market perception.

Convatec CEO’s Share Awards Vesting and Sale to Cover Liabilities

Convatec Group Plc announced the vesting of share awards for its CEO, Karim Bitar, under the company’s Long Term Incentive Plan and Deferred Bonus Plan. The shares were subsequently sold to cover tax and National Insurance liabilities. This transaction reflects the company’s ongoing commitment to aligning executive compensation with performance, potentially impacting stakeholder perceptions and reinforcing its market position.

Convatec Aligns Executive Incentives with Performance Goals

Convatec Group Plc announced the grant of conditional awards to its CEO, Karim Bitar, and CFO, Jonny Mason, under the company’s Long Term Incentive Plan (LTIP) and Deferred Bonus Plan (DBP). These awards, in the form of Performance Share Awards and Restricted Stock Units, are set to vest in three years, with the LTIP awards contingent on specific performance conditions. This move underscores Convatec’s commitment to aligning executive incentives with company performance, potentially impacting its market positioning and stakeholder interests.

Convatec Releases 2024 Annual Report and Announces AGM

Convatec Group Plc has released its Annual Report and Accounts for 2024 and announced its upcoming Annual General Meeting scheduled for May 22, 2025, in London. The report, along with the Notice of Annual General Meeting, has been distributed to shareholders and submitted to the National Storage Mechanism, reflecting the company’s compliance with FCA Listing Rules. This announcement underscores Convatec’s commitment to transparency and regulatory adherence, potentially strengthening its position in the medical solutions industry.