# ConvaTec Group Plc (CTEC.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Healthcare / Health Care Equipment & Supplies. Price 224p, market value 4.3 billionp.

## Valuation
- **P/E (trailing): 44.9×** (5-yr avg 3962.4×, 3-yr avg 2995.8×). ConvaTec Group Plc trades at 44.9× trailing earnings, well below its own five-year average of 3962.4×: cheap by its own standards. The Healthcare median in the September 2026 study was 28.5×. Forward P/E is 13.2×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.2×**. Each dollar of revenue is priced at 1.2×.
- **Price / book: 4.1×**. The shares trade at 4.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.3×**. Enterprise value is 6.3× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 10.5%** (5-yr avg 0.1%). Free cash flow equals 10.5% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 2.2%**. The inverse of the P/E: 2.2% of the price is earned each year.

## Profitability
- **Gross margin: 55.9%**. ConvaTec Group Plc keeps 55.9% of revenue after the direct cost of what it sells.
- **Operating margin: 15.4%**. 15.4% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 7.2%**. 7.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 11.8%**. 11.8% on shareholders' equity is solid.
- **Return on invested capital: 18.9%**. Return on all capital, debt included, is 18.9%: comfortably above what that capital costs.
- **Return on assets: 9.7%**. Each dollar of assets produces 9.7% of profit.

## Growth
- **Revenue growth (1 yr): 8.8%** (3-yr 6.3%/yr, 5-yr 5.6%/yr). Revenue grew 8.8% over the last year, against 5.6% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -5.5%** (3-yr 41.5%/yr, 5-yr 9.4%/yr). Earnings per share fell 5.5%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 35.5%/yr**. Free cash flow has compounded at 35.5% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.00**. Debt is 1.00 times equity, moderate leverage.
- **Net debt / EBITDA: 1.2×**. It would take 1.2 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 5.3×**. Operating profit covers interest 5.3× over, a safe margin.
- **Current ratio: 1.53** (quick 0.85). Current assets cover the next year's liabilities 1.53 times.
- **Altman Z-score: 2.85**. A Z-score of 2.85 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.43%** (0p per share, trailing). ConvaTec Group Plc yields 2.43%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 80%** (43% of free cash flow). 80% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Dividend growth (5 yr): 2.7%/yr** (1-yr 2.0%). The dividend has grown 2.7% a year over five years.
- **Shareholder yield: 8.2%**. Dividends plus net buybacks return 8.2% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (19 analysts). 19 analysts cover ConvaTec Group Plc; the consensus is strong_buy, with an average price target of 300p (+34% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -5.2%** (YTD -6.8%, 3-mo 12.6%). The shares are down 5.2% over twelve months including dividends.
- **From 52-week high: -13.5%** (16.3% above the low). Trading 13% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 49**. An RSI of 49 is neutral.
- **Beta (1 yr): 0.86** (volatility 29%). Beta of 0.86 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CTEC.L · Page: https://foliofundamentals.com/stocks/ctec.l

Not investment advice.