ConvaTec (CTEC) AI Stock Analysis

• Market Cap: £4.68B
• Dividend Yield: 2.17%
• Average Volume (3M): 7.05M
• Price to Earnings (P/E): 28.8
• Beta (1Y): 0.72
• Revenue Growth: 4.18%
• EPS Growth: 37.65%
• Country: UK
• Employees: 10,489
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.06
• Shares Outstanding: 2,026,925,200
• 10 Day Avg. Volume: 5,678,188
• 30 Day Avg. Volume: 7,050,625
• PEG Ratio: 0.62
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 2.48
• P/FCF Ratio: 20.67
• 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: £319.22
• Price Target Upside: 37.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 70 Outperform
• Price Target: 260.00p ▲(12.17% Upside)

ConvaTec's overall stock score is driven primarily by its strong financial performance, which is offset by a cautious technical outlook and a relatively high valuation. The company's robust financial health and effective cash flow management are significant strengths. However, the lack of positive technical indicators and a high P/E ratio suggest potential risks in the current market environment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates successful market penetration and product demand, supporting long-term business expansion and stability.

Cash Flow Management

Improved free cash flow highlights effective cash management, providing financial flexibility for investments and operational sustainability.

Profitability Margins

Strong profitability margins reflect efficient cost management and operational efficiency, enhancing long-term financial health.

Negative Factors

Stockholders’ Equity

Decreasing equity may signal potential financial strain or reduced shareholder value, impacting long-term investor confidence.

Debt Levels

While leverage is balanced, maintaining this ratio is crucial to avoid over-leverage, which could constrain future financial flexibility.

Equity Ratio

Although the equity ratio is strong, any decline could affect the company's ability to finance growth through equity, impacting long-term stability.

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 generates revenue primarily through the sale of its medical products across its key segments: wound care, ostomy care, continence care, and infusion devices. The company sells its products directly to healthcare providers and through distributors, which allows it to reach a broad customer base. Significant revenue streams include the ongoing need for wound care supplies and ostomy products, driven by an aging population and increasing incidence of chronic illnesses. Additionally, ConvaTec's partnerships with healthcare institutions and participation in government healthcare programs enhance its market presence. The company's focus on research and development also enables it to introduce new products, thereby expanding its offerings and driving sales growth.

ConvaTec Financial Statement Overview

Summary

ConvaTec presents a strong financial profile with consistent revenue growth, solid profitability margins, and effective cash flow management. The balance sheet reflects a stable leverage situation with a healthy equity ratio. While the company shows robust financial health, close monitoring of equity trends and maintaining operational efficiency will be key to sustaining its performance trajectory.

Income Statement

ConvaTec has demonstrated strong revenue growth with a 6.84% increase from 2023 to 2024. The company maintains impressive gross and net profit margins at 56.06% and 8.32% respectively for 2024, reflecting efficient cost management and profitability. The EBIT and EBITDA margins, at 14.19% and 23.60%, indicate robust operational performance. Overall, the income statement reflects a positive growth trajectory and solid profitability.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.71 for 2024, indicating a balanced approach to leverage. The equity ratio stands at 48.04%, suggesting strong equity backing relative to total assets. Return on equity is moderate at 11.28%, showing reasonable returns on shareholder investments. While the balance sheet is generally strong, a slight decrease in stockholders’ equity over the years could be an area to monitor.

Cash Flow

ConvaTec's cash flow analysis reveals a healthy operating cash flow to net income ratio of 2.08 in 2024, demonstrating effective cash generation relative to its earnings. Free cash flow increased by 15.08% from 2023 to 2024, indicating improved cash availability after capital expenditures. The free cash flow to net income ratio of 1.44 further underscores strong cash flow management. Overall, the company exhibits efficient cash flow dynamics, supporting its ongoing operations and investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.29B	2.14B	2.07B	2.04B	1.89B
Gross Profit	1.28B	1.20B	1.12B	1.12B	1.02B
EBITDA	540.20M	455.50M	429.80M	405.40M	390.70M
Net Income	190.50M	130.30M	62.90M	117.60M	112.50M
Balance Sheet
Total Assets	3.52B	3.71B	3.59B	3.67B	3.77B
Cash, Cash Equivalents and Short-Term Investments	64.70M	98.30M	145.80M	463.40M	565.40M
Total Debt	1.20B	1.31B	1.30B	1.44B	1.55B
Total Liabilities	1.83B	2.02B	1.98B	1.98B	2.10B
Stockholders Equity	1.69B	1.69B	1.61B	1.69B	1.67B
Cash Flow
Free Cash Flow	274.10M	238.20M	137.50M	211.80M	313.30M
Operating Cash Flow	396.20M	367.40M	281.70M	305.90M	399.50M
Investing Cash Flow	-160.80M	-285.70M	-348.30M	-206.50M	-56.30M
Financing Cash Flow	-263.80M	-124.00M	-237.10M	-199.90M	-162.10M

ConvaTec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 231.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CTEC, the sentiment is Negative. The current price of 231.8 is below the 20-day moving average (MA) of 236.05, below the 50-day MA of 235.75, and below the 200-day MA of 247.72, indicating a bearish trend. The MACD of -1.02 indicates Positive momentum. The RSI at 42.93 is Neutral, neither overbought nor oversold. The STOCH value of 27.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CTEC.

ConvaTec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SN	77 Outperform	11.85B	31.57	7.83%	2.33%	2.51%	56.56%
CRW	71 Outperform	833.46M	54.83	0.00%	1.24%	5.74%	62.18%
CTEC	70 Outperform	£4.68B	28.79	12.73%	2.17%	4.18%	37.65%
HIK	70 Outperform	3.56B	12.46	15.54%	3.94%	3.73%	27.13%
AMS	64 Neutral	480.74M	50.00	2.95%	1.22%	68.03%	-18.27%
SPI	62 Neutral	993.86M	53.70	3.39%	0.93%	6.95%	-34.38%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

ConvaTec Corporate Events

Convatec Grants Share Options to Interim Executives

Convatec Group Plc announced the grant of share options under its 2017 Save as You Earn scheme to interim executives Jonny Mason and Fiona Ryder. These options, covering a total of 18,686 ordinary shares, are exercisable from September 2028, reflecting the company’s commitment to aligning managerial interests with long-term shareholder value.

The most recent analyst rating on (GB:CTEC) stock is a Hold with a £263.00 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.

ConvaTec Executes Share Buyback to Enhance Shareholder Value

ConvaTec Group PLC has announced the purchase of 1,354,470 of its ordinary shares as part of a share buyback program valued at up to $300 million, initially announced in August 2025. This move is part of the company’s strategy to manage its capital structure effectively and could potentially enhance shareholder value by reducing the number of shares in circulation, thereby increasing earnings per share.

The most recent analyst rating on (GB:CTEC) stock is a Hold with a £263.00 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.

ConvaTec Executes Share Buyback to Enhance Shareholder Value

ConvaTec Group PLC has announced the purchase of 1,221,168 ordinary shares as part of its $300 million share buyback program. This strategic move is aimed at optimizing the company’s capital structure and enhancing shareholder value, reflecting confidence in its financial health and future prospects.

The most recent analyst rating on (GB:CTEC) stock is a Buy with a £315.00 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.

ConvaTec Advances $300 Million Share Buyback Initiative

ConvaTec Group PLC has announced the purchase of 1,194,433 ordinary shares as part of its $300 million share buyback program. The shares were acquired through UBS AG London Branch and will be held in treasury. This move is part of ConvaTec’s strategy to optimize its capital structure and return value to shareholders, potentially enhancing the company’s market position and financial flexibility.

The most recent analyst rating on (GB:CTEC) stock is a Buy with a £315.00 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.

Convatec Announces Executive Share Option Transactions

Convatec has announced the exercise and grant of share options under its 2017 Save as You Earn scheme, involving key executives Jonny Mason and Karim Bitar. Jonny Mason, Interim CEO, exercised options for 10,346 shares, while CEO Karim Bitar was granted options for 10,253 shares. These transactions highlight Convatec’s commitment to aligning managerial interests with company performance, potentially impacting stakeholder confidence and market positioning.

The most recent analyst rating on (GB:CTEC) stock is a Buy with a £315.00 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.

ConvaTec Executes Share Buyback Program

ConvaTec Group PLC has executed a share buyback program, purchasing over 1.19 million ordinary shares at an average price of 239.24 pence per share. This move is part of a larger $300 million buyback initiative announced in August 2025, aimed at optimizing the company’s capital structure and enhancing shareholder value.

The most recent analyst rating on (GB:CTEC) stock is a Buy with a £315.00 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.

ConvaTec Executes Share Buyback as Part of $300 Million Program

ConvaTec Group PLC has executed a share buyback, purchasing 1,075,326 ordinary shares as part of its $300 million share buyback program announced in August 2025. The shares, bought at a volume-weighted average price of 239.32 pence, will be held in treasury, impacting the company’s total voting rights and potentially influencing shareholder interests.

The most recent analyst rating on (GB:CTEC) stock is a Buy with a £315.00 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.

Convatec CFO Exercises Share Options Under Employee Scheme

Convatec announced that Fiona Ryder, the Interim Chief Financial Officer, exercised options over 10,346 shares under the company’s 2017 Save As You Earn scheme. This transaction reflects internal managerial movements and the company’s ongoing commitment to its employee share option schemes, potentially impacting stakeholder perceptions of Convatec’s financial strategies and executive engagement.

The most recent analyst rating on (GB:CTEC) stock is a Buy with a £315.00 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.

ConvaTec Advances Share Buyback Program with Latest Purchase

ConvaTec Group PLC announced the purchase of 1,295,977 ordinary shares as part of its $300 million share buyback program. This strategic move, executed through UBS AG London Branch, is aimed at optimizing the company’s capital structure and enhancing shareholder value. The purchased shares will be held in treasury, and the company now holds a total of 10,295,900 shares in treasury, with 2,039,493,659 shares in issue. This buyback is expected to positively impact the company’s market positioning and shareholder returns.

The most recent analyst rating on (GB:CTEC) stock is a Buy with a £315.00 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.

ConvaTec Announces Significant Share Buyback

ConvaTec Group PLC has announced the purchase of 1,864,441 of its ordinary shares as part of a $300 million share buyback program. This move is part of a strategic initiative to manage the company’s capital structure and potentially enhance shareholder value. The purchased shares will be held in treasury, and following this transaction, the company now holds a total of 8,999,923 ordinary shares in treasury. This buyback could impact the company’s market positioning by potentially increasing earnings per share and providing a signal of confidence in the company’s future prospects.

The most recent analyst rating on (GB:CTEC) stock is a Buy with a £315.00 price target. To see the full list of analyst forecasts on ConvaTec stock, see the GB:CTEC Stock Forecast page.