Convatec Group CTEC.L
United KingdomHealthcare · Medical Instruments & SuppliesLondon Stock Exchange · GBP
3.06 GBP (+41.0%)
19 analysts
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Convatec Group is a British medical technology company that designs and markets products for ostomy care, wound care, continence, and infusion, selling to hospitals and patients worldwide.
Listed on London Stock Exchange · Symbol CTEC.L · LON: CTEC · Currency GBP
Key points
from its scores- ✓Favourable backdrop7.6
- ✕Weak growth2.8
- ✕Little or no dividend3.5
- ✕Poor share-price trend3.6
AI analysis
bottom line, main risk, context and newsThe forward valuation is attractive only if the earnings recovery is confirmed, but weak growth and an unsustainable payout warrant caution.
Convatec shows acceptable financial health (6.09) with controlled debt (ND/EBITDA 2.83), but growth is weak (2.75) after a 47.1% profit decline and a 116% payout that compromises dividend sustainability. The forward valuation (P/E 12.5, PEG 0.54) suggests the market already discounts a recovery, limiting upside if it fails to materialize.
The main risk is dividend sustainability, given a 116.49% payout that exceeds net income, which could force a cut if margin recovery is delayed.
Context and risks
Convatec is a UK-based medical device company in a developed market with stable institutions. No specific regulatory, geopolitical, or business model risks are identified that are not already reflected in its financial metrics. Its international exposure is diversified and does not depend on conflict maritime routes or volatile commodities.
Is Convatec Group stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 23% above the Healthcare median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 43.4 | 26.7 | +62% |
| EV / EBITDA | 12.3 | 14.5 | −15% |
| Price / book | 3.6 | 4.1 | −12% |
| Price / sales | 2.2 | 3.4 | −36% |
Sector: median of the 217 Healthcare companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.6 out of 10 (median for Healthcare: 4.7).
Average analyst target: 3.06 GBP, +41.0% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 5.3 (sector 5.5), Growth 2.8 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Healthcare medianValuation
- P/E
- 43.4
- Forward P/E
- 12.5
- EV / EBITDA
- 12.3
- Price / book
- 3.6
- Price / sales
- 2.2
- PEG
- 0.54
- Market cap
- 4.2B GBP
- Enterprise value
- 7.1B USD
Profitability
- ROE
- 7.7%
- ROA
- 6.7%
- ROIC (approx.)
- 11.0%
- Gross margin
- 56.0%
- Operating margin
- 14.4%
- Net margin
- 5.0%
- Free cash flow
- 182.8M USD
- FCF yield
- 3.3%
- Cash conversion
- 31%
Solvency
- Total debt
- 1.7B USD
- Net debt
- 1.6B USD
- Cash
- 92.0M USD
- EBITDA
- 582.0M USD
- Net debt / EBITDA
- 2.83
- Debt / equity
- 121.83
- Current ratio
- 1.93
- Quick ratio
- 1.06
Growth
- Revenue growth
- +4.4%
- Earnings growth
- −47.1%
- EPS (TTM)
- 0.05 GBP
- EPS (forward)
- 0.17 GBP
Dividend
- Dividend yield
- 2.8%
- Payout
- 116.5%
Risk and market
- Beta
- 0.77
- Analyst consensus
- Strong buy (19)
- Target price
- 3.06 GBP
Recent news
All CTEC.L news →Compare it with its sector
All 217 in Healthcare →Frequently asked questions about Convatec Group
Is Convatec Group stock cheap or expensive?
On P/E and EV / EBITDA, it trades 23% above the Healthcare median on average. Valuation score: 5.6 out of 10 (median for Healthcare: 4.7). Average analyst target: 3.06 GBP, +41.0% versus the price. This is not investment advice.
What score does Convatec Group get on MeridIAn Screener?
It scores 5.2 out of 10, rank 1,581 of 2,130 (better than 24% of the companies analysed). Its strongest category is Risk & Context (7.6) and its weakest, Growth (2.8). Analysis of 08/10/2026.
What is Convatec Group's P/E ratio?
Its P/E is 43.4: the share price equals 43.4 times earnings per share over the last 12 months. The Healthcare median is 26.7. Based on the earnings analysts expect, the forward P/E is 12.5.
How much is Convatec Group worth on the stock market?
Its market capitalisation is 4.2B GBP and its enterprise value, debt included, is 7.1B GBP.
How much debt does Convatec Group have?
Its net debt (debt minus cash) is 1.6B USD. That is 2.83 times its EBITDA; the Healthcare median is 1.53.
Does Convatec Group pay a dividend?
Yes: its dividend yield is 2.77% and it pays out 116% of its earnings.
How has Convatec Group stock performed over the last year?
It has fallen 8.8% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 2.59 GBP. Past performance does not guarantee future results.
What do analysts think of Convatec Group?
19 analysts cover it; their average recommendation is “Strong buy” and their average target is 3.06 GBP (+41.0% versus the price). It is an estimate, not market data.