olivLaw · European equity research
Convatec Group PLC CTEC.L
United Kingdom · London Stock Exchange · ISIN GB00BD3VFW73 · Vertical: Listed companies from United Kingdom
Convatec Group PLC is a UK-based medical technology company focused on wound care, ostomy and continence care, diabetes care and advanced therapies. Adjusted EBITDA rose by 70 million USD to 661 million USD in fiscal 2025, and the company is investing in manufacturing capacity and new products, which could support growth if these investments translate into durable sales.
At the close of 05 Nov 2026, Convatec Group PLC (CTEC.L) stock was 2.53 GBP (−0.39% on the day), with beta 0.51, 52-week range 1.94–2.56 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 71.3
- overbought (≥ 70)
- Bollinger (20, 2)
- 2.25 – 2.56
- in the upper half of the band · %B 0.91 · band width 12.8%
- SMA 50 / 200
- 2.28 / 2.23
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.07 / 0.06
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +15.8% | −0.6% | +16.5 pp | — |
| 3 months | +11.6% | −4.2% | +15.7 pp | — |
| 6 months | +19.7% | +4.3% | +15.4 pp | — |
| Year to date | +4.0% | +7.5% | −3.5 pp | — |
| 1 year | +4.3% | +9.9% | −5.6 pp | +5.8% |
| 3 years | +21.3% | +49.8% | −28.6 pp | +26.3% |
| 5 years | +14.0% | +42.8% | −28.9 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
the price (USD) and the reports are in different currencies
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 2.1 bn | 2.3 bn | 2.4 bn |
| Revenue YoY | unavailable | +6.8% | +6.6% |
| Net income | 130.3 m | 191.0 m | 175.0 m |
| Net income YoY | unavailable | +46.6% | −8.4% |
| Diluted EPS | 0.06 | 0.09 | 0.09 |
| Diluted EPS YoY | unavailable | +47.6% | −7.5% |
| net % | 6.1% | 8.3% | 7.2% |
| Free cash flow | unavailable | unavailable | unavailable |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 68.0 m USD
- Financial debt
- 1.4 bn USD
- Net debt
- 1.3 bn USD
- Equity
- 1.5 bn USD
- Total assets
- 3.8 bn USD
- Debt / equity
- 0.92x
- Current ratio
- 1.53x
- ROE
- 10.9%
- ROA
- 4.8%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 2.1 bn | 2.3 bn | 2.4 bn | esef· 18 Mar 2026verified |
| Cost of revenue | 941.8 m | 1.0 bn | 1.1 bn | esef· 18 Mar 2026verified |
| Gross profit | 1.2 bn | 1.3 bn | 1.4 bn | esef· 18 Mar 2026verified |
| Research & development | 110.0 m | 112.0 m | 111.0 m | esef· 18 Mar 2026verified |
| Operating income | 262.7 m | 325.0 m | 316.0 m | esef· 18 Mar 2026verified |
| Interest expense | 80.7 m | 83.0 m | 71.0 m | esef· 18 Mar 2026verified |
| Pre-tax income | 167.4 m | 246.0 m | 230.0 m | esef· 18 Mar 2026verified |
| Income tax | 37.1 m | 55.0 m | 55.0 m | esef· 18 Mar 2026verified |
| Net income | 130.3 m | 191.0 m | 175.0 m | esef· 18 Mar 2026verified |
| Diluted EPS | 0.06 | 0.09 | 0.09 | esef· 18 Mar 2026verified |
| Dividend per share | 0.05 | 0.06 | 0.07 | esef· 18 Mar 2026derived |
Balance sheet · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 98.0 m | 65.0 m | 68.0 m | esef· 18 Mar 2026verified |
| Inventories | 396.1 m | 349.0 m | 416.0 m | esef· 18 Mar 2026verified |
| Current assets | 870.0 m | 793.0 m | 940.0 m | esef· 18 Mar 2026verified |
| Property, plant & equipment, net | 473.8 m | 503.0 m | 673.0 m | esef· 18 Mar 2026verified |
| Goodwill | 1.3 bn | 1.3 bn | 1.4 bn | esef· 18 Mar 2026verified |
| Intangibles (excl. goodwill) | 935.3 m | 806.0 m | 646.0 m | esef· 18 Mar 2026verified |
| Total assets | 3.7 bn | 3.5 bn | 3.8 bn | esef· 18 Mar 2026verified |
| Long-term debt | 1.2 bn | 1.1 bn | 1.4 bn | esef· 18 Mar 2026verified |
| Current liabilities | 536.4 m | 511.0 m | 616.0 m | esef· 18 Mar 2026verified |
| Total liabilities | 2.0 bn | 1.8 bn | 2.3 bn | esef· 18 Mar 2026verified |
| Equity | 1.7 bn | 1.7 bn | 1.5 bn | esef· 18 Mar 2026verified |
| Shares outstanding at year end | 2.0 bn | 2.1 bn | 2.0 bn | esef· 18 Mar 2026derived |
Cash flow · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 367.4 m | 397.0 m | 470.0 m | esef· 18 Mar 2026verified |
| Investing cash flow | -285.7 m | -161.0 m | -208.0 m | esef· 18 Mar 2026verified |
| Financing cash flow | -124.0 m | -264.0 m | -258.0 m | esef· 18 Mar 2026verified |
| Dividends paid | 110.7 m | 130.0 m | 140.0 m | esef· 18 Mar 2026verified |
| Share repurchases | 0 | 11.0 m | 326.0 m | esef· 18 Mar 2026verified |
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 4 of at least 6
- score weight coverage: 27.1% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Price and reporting are in different currencies; market indicators are unavailable.
Key indicators
Coverage and freshness
Score by group
27% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.90 – 1.50 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E0.97 – 1.50 (Mid 1.24)17 companies used · median multiple 14.4x · quartiles 11.3x – 17.4x0EV1.L, ABDN.L, ABF.L, AIRE.L, AJB.L, ALFA.L, AMIF.L, APTD.L, ASHM.L, AUTO.L, BAB.L, BAG.L, BATS.L, BBY.L, BCG.L, BKG.L, BME.L
- Dividend discount (DDM)0.90 – 1.22 (Mid 1.04)
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 27.1% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 8.6% | 29 (vs peers) | 38% |
| Net margin · Quality | 7.2% | 43 (vs peers) | 23% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 4.5x | 45 (on a fixed band) | 23% |
| Current ratio · Balance sheet | 1.5x | 60 (on a fixed band) | 15% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet51/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality34/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
CONVATEC GROUP PLC (CTEC.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 2.4 bn USD in 2025; YoY growth 6.6%; net margin 7.2%; ROE 10.9%.
The estimated value range is 0.94–1.36 USD per share (median of 2 methods, agreement: high); assumptions are illustrative. The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 27.1% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
- ROIC: 8.6%
Not assessed (insufficient data or a ratio without meaning): FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
| AEP.LAnglo-Eastern Plantations PLC | — | — | 16.1% | 19.5% | +25.0% | +5% / +113% |
1- and 3-year price returns: for CTEC.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Convatec Group PLC is a UK-based medical technology company focused on wound care, ostomy and continence care, diabetes care and advanced therapies. Adjusted EBITDA rose by 70 million USD to 661 million USD in fiscal 2025 1, and the company is investing in manufacturing capacity and new products, which could support growth if these investments translate into durable sales.
SWOT
Strengths
- Diversified product portfolio and global market position, described by management as a group strength.
- Solid cash generation, with rising free cash flow to capital and high profit-to-cash conversion.
- Diversified capital structure with access to a revolving credit facility largely undrawn at year end.
Weaknesses
- Higher net debt than the prior year, at a level close to management's leverage target.
- Significant impairment of the InnovaMatrix platform, signalling performance problems in this product line.
- Working capital absorbed cash in 2025 because of higher inventory and receivables.
Opportunities
- New manufacturing capacity, automation and a new R&D hub could support new product launches.
- The acquisition strategy could strengthen key geographies or categories if suitable opportunities arise.
- Long-term refinancing and extended maturities could provide flexibility for future investment.
Threats
- Currency movements can affect reported results, especially given exposure to sterling and the euro.
- Rising interest rates could increase the cost of floating-rate debt.
- If demand or pricing in core markets deteriorates, margins and cash generation could be affected.
Risks
- Asset impairment riskmedium
The impairment of the InnovaMatrix platform shows that acquisition-related assets may need adjustment if performance does not improve.
- Currency riskhigh
Revenue and the balance sheet are exposed to several currencies, and exchange rate movements can affect reported results.
- Refinancing and interest rate riskmedium
Floating-rate debt exposes the group to interest rate movements, although part is covered through swaps.
- Working capital riskmedium
Rising inventory and receivables can absorb cash and reduce cash conversion.
- Liquidity risklow
If cash flows deteriorate, the company could need additional financing, although the liquidity presented in the report appears adequate.
Investment thesis
What would need to be true (bull case)
- Rising adjusted EBITDA and free cash flow show the business can generate cash as investments take effect.
- The capital structure has been extended and maturities lengthened, providing flexibility.
- Investment in manufacturing and research could support future growth if demand for new products materialises.
What would break the thesis
- Net debt has risen and leverage is higher than the prior year, reducing headroom.
- The impairment of the InnovaMatrix platform suggests some investments have not delivered the expected results.
- Rising working capital and currency exposure could make results more volatile.
What to watch
- Working capital trend and cash conversionQ1 2027
- Net debt relative to adjusted EBITDA2027
- InnovaMatrix performance after the impairmentnext 10-K
- Opening timeline of the Manchester R&D hub2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Convatec reports in US dollars and operates globally, describing a strong global market position and a diversified product portfolio 1. Its strategy combines organic growth with acquisitions aimed at strengthening key geographies or categories or providing access to new technology 1. In 2025 the company generated free cash flow to capital of 487 million USD 1, which helped fund investment and a share buyback of up to 300 million USD 1.
The financing structure changed in 2025: the company issued 500 million USD of ten-year senior unsecured notes, used to repay a term loan due in 2027 1. Net debt excluding lease liabilities reached 1,330 million USD, equivalent to 2.0x adjusted EBITDA, up from 1.8x a year earlier 1. Management targets leverage of about 2x over time but is comfortable temporarily going above or below this depending on M&A and investment opportunities 1.
Capital expenditure rose to 185 million USD in 2025 1, of which 121 million USD was growth capex for manufacturing capacity, automation, new products and digital tools 1. The company also announced a new R&D hub in Manchester set to open in 2027 1.
Segments
Wound care and continence products
The annual report describes a diversified medical product portfolio, but the source does not break out revenue by segment. The company recorded a non-cash impairment of 72 million USD on the InnovaMatrix platform 1, suggesting performance in this product line fell short of expectations.
Market context
Convatec's market is global, and its revenue is exposed mainly to the US dollar, which represented 55% of revenue in 2025, followed by the euro at 20% 1. Sterling was a smaller share at 5% 1. The company describes its market position as strong, particularly because of the diversity of its portfolio 1.
Currency exposure matters: a 10% strengthening of the US dollar against sterling would reduce profit before income taxes by 6 million USD, and against the Danish krone by 15 million USD in 2025, according to the group's sensitivity analysis 1. Interest rates also have an effect, though smaller: a 100 basis point increase would raise interest expense by 2 million USD 1.
Trends
- Growth in adjusted EBITDA and gross profittailwind
Higher adjusted gross profit contributed to the rise in adjusted EBITDA, more than offsetting higher adjusted operating expenses 1. If this dynamic persists, it could support cash generation.
- Heavier working capitalheadwind
Working capital produced a cash outflow due to higher inventory and receivables 1. If these trends continue, they could reduce cash conversion.
- Currency effectsmixed
The weaker US dollar in 2025 affected the balance sheet and reported results, and revenue in currencies other than the dollar can amplify or dampen dollar results 1. The effect can be positive or negative depending on exchange rate moves.
- Buyback and dividendstailwind
The group returned capital to shareholders through buybacks and dividends, and the proposed final dividend for 2025 is 105 million USD 1. The dividend policy is applied flexibly over time to reflect performance 1.
Competitive position
The source provided does not present a detailed competitive analysis, and competitors cannot be confirmed from the annual report. The company describes a strong market position but does not name direct competitors 1.
- Competitors not named in source
The annual report does not identify direct competitors, so no tickers or comparisons can be attributed.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202518 Mar 2026
- Annual report 202411 Mar 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Convatec Group PLC · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.