# ConvaTec Group (CTEC.LSE)

Canonical: https://gigainvestors.com/s/CTEC.LSE

Analysis as of: 2026-10-16T07:37:03.383Z. Financial observations: FY2015–FY2025.

Listing currency: GBX. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 236.80 per share; close as of 2026-10-15.

Estimated value: low GBX 106.48 per share, central GBX 121.03 per share, high GBX 140.39 per share. Buy at or below the central value GBX 121.03 per share. Valuation as of 2026-10-16T07:37:03.383Z; scenarios are not confidence intervals.

Expected annual return: 6.5% at the stated quote. About 6.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.16×

- FY2018: 0.15×

- FY2019: 0.12×

- FY2020: 0.11×

- FY2021: 0.10×

- FY2022: 0.10×

- FY2023: 0.12×

- FY2024: 0.14×

- FY2025: 0.17×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 11.6%

- ROIC, second-lowest year: 8.8%

- Typical minus recent gross margin: -1.3 pp

- Typical gross margin (annual median): 53.9%

- Recent gross margin (lower of latest and 3-year median): 55.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.7%

- ROIC including acquisitions, ten-year median: 7.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 8.8%

- FY2017: 13.7%

- FY2018: 14.8%

- FY2019: 8.3%

- FY2020: 8.8%

- FY2021: 10.5%

- FY2022: 10.3%

- FY2023: 12.7%

- FY2024: 16.3%

- FY2025: 19.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.54×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.0B

- Net income, five-year total: $680M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -2.8 pp

- Working capital / revenue, final three-year average: 20.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.84×

- FY2022: 1.75×

- FY2023: 1.53×

- FY2024: 1.44×

- FY2025: 1.37×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 13.7% vs 16.3%

- Per-share earnings: -0.04 to 0.09 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.8%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: $321M

- Cumulative retained earnings: $4.0B

- Diluted shares, 10-year annual growth: -1.8%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $0.13

- Per-share value, starting three-year median: -$0.04

- Per-share value, ending three-year median: $0.09

- Buybacks concentrated in cheaper years (correlation): -0.20

- Average buyback yield: 1.2%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Acquisition spending: $289M

- Cumulative net income, 10 years: $979M

- ROIC, first three-year median: 13.7%

- ROIC, last three-year median: 16.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.10

- FY2017: $0.08

- FY2018: $0.12

- FY2019: $0.00

- FY2020: $0.06

- FY2021: $0.06

- FY2022: $0.03

- FY2023: $0.06

- FY2024: $0.09

- FY2025: $0.09

### accounting: pass

- Sloan accruals: -8.0%

- Receivables to sales index (DSRI): 1.34×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.69×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.31×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.9%

- FY2017: -3.9%

- FY2018: -3.6%

- FY2019: -10.9%

- FY2020: -7.6%

- FY2021: -5.1%

- FY2022: -6.1%

- FY2023: -6.4%

- FY2024: -5.9%

- FY2025: -8.0%

## Holders

## Price story

Price needs cash profits to grow 9.4% a year for ten years · sales +8.8%

Story as of 2026-10-16T10:00:08.542Z; price observation 2026-10-15.

Price needs cash profits to grow 9.4% a year for ten years

- 2026-02-24: ConvaTec Leads FTSE 100 Gainers on Higher Revenue, Raised Outlook ([finance.yahoo.com](https://finance.yahoo.com/m/2d1fd46f-b2ff-305e-a0b3-c6edc4b8c9fc/convatec-leads-ftse-100.html))

### Sales · FY2024–2025

sales +8.8%; source https://filings.xbrl.org/213800LS272L4FIDOH92/2025-12-31/ESEF/GB/0/213800LS272L4FIDOH92-2025-12-31/reports/213800LS272L4FIDOH92-2025-12-31-T01.html; observed 2026-03-18.

- FY2016: $1.7B 

- FY2017: $1.8B 

- FY2018: $1.8B 

- FY2019: $1.8B 

- FY2020: $1.9B 

- FY2021: $2.0B 

- FY2022: $2.1B 

- FY2023: $2.1B 

- FY2024: $2.3B 

- FY2025: $2.5B 

### Gross margin · FY2025

gross margin 55.2%; source https://filings.xbrl.org/213800LS272L4FIDOH92/2025-12-31/ESEF/GB/0/213800LS272L4FIDOH92-2025-12-31/reports/213800LS272L4FIDOH92-2025-12-31-T01.html; observed 2026-03-18.

- FY2016: 53.9% 

- FY2017: 53.9% 

- FY2018: 53.3% 

- FY2019: 52.3% 

- FY2020: 53.9% 

- FY2021: 55.1% 

- FY2022: 53.9% 

- FY2023: 56.2% 

- FY2024: 56.1% 

- FY2025: 55.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical instruments & supplies; annual sales are USD 2.5 billion.

- Source: https://filings.xbrl.org/213800LS272L4FIDOH92/2025-12-31/ESEF/GB/0/213800LS272L4FIDOH92-2025-12-31/reports/213800LS272L4FIDOH92-2025-12-31-T01.html (filed 2026-03-18); FY2025: revenue 2490170962; grossProfit 1374239489; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CTEC.LSE: Convatec Group PLC engages in the development, manufacturing, and sale of medical products, services and technologies for the management of chronic conditions in Europe, North America, and internationally. The company offers advanced wound care products for the management of acute and chronic wounds resulting from various conditions, such as diabetes, and acute conditions resulting from traumatic injury and burns. It also provides ostomy care solutions, including devices, accessories, and services for people with a stoma resulting from colorectal cancer, bladder cancer, inflammatory bowel disease, and trauma. In addition, the company offers continence care products and services for people with urinary continence issues related to spinal cord injuries, neurological disease, prostate enlargement or other causes. Further, it provides infusion care solutions comprising disposable infusion sets for diabetes insulin pumps, or for use in continuous infusion treatments for conditions such as Parkinson's disease. 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. Convatec Group PLC was founded in 1978 and is headquartered in London, the United Kingdom.

### Why customers stay

Margins ranged from 55.2% to 56.2% during 2023–25; it earns 11.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2023: grossProfit / revenue = 56.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: grossProfit / revenue = 56.1%.

- Source: https://filings.xbrl.org/213800LS272L4FIDOH92/2025-12-31/ESEF/GB/0/213800LS272L4FIDOH92-2025-12-31/reports/213800LS272L4FIDOH92-2025-12-31-T01.html (filed 2026-03-18); FY2025: grossProfit / revenue = 55.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); 10-year return on capital observations [[2016,0.08761528828877879],[2017,0.13676277625157873],[2018,0.14754873627239767],[2019,0.08274551715948225],[2020,0.08810869844532956],[2021,0.10478803619852946],[2022,0.10341567061281252],[2023,0.12716365157486167],[2024,0.163394729569101],[2025,0.19625345668346925]]; median 0.11597584388669557. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 332.8 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2017: growth capex 0; upkeep 82700000; owner earnings 255100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2018: growth capex 0; upkeep 72100000; owner earnings 339500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2019: growth capex 0; upkeep 61400000; owner earnings 140500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2020: growth capex 0; upkeep 86200000; owner earnings 205580000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2021: growth capex 0; upkeep 94100000; owner earnings 216000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2022: growth capex 0; upkeep 144200000; owner earnings 110240000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2023: growth capex 0; upkeep 129200000; owner earnings 198800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: growth capex 0; upkeep 122100000; owner earnings 273440000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/213800LS272L4FIDOH92/2025-12-31/ESEF/GB/0/213800LS272L4FIDOH92-2025-12-31/reports/213800LS272L4FIDOH92-2025-12-31-T01.html (filed 2026-03-18); FY2025: growth capex 0; upkeep 137832346; owner earnings 245538793. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Dividend observations: [[2016,26300000],[2017,26300000],[2018,74900000],[2019,79900000],[2020,62900000],[2021,85800000],[2022,88100000],[2023,110700000],[2024,130200000],[2025,142937241]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/213800LS272L4FIDOH92/2025-12-31/ESEF/GB/0/213800LS272L4FIDOH92-2025-12-31/reports/213800LS272L4FIDOH92-2025-12-31-T01.html (filed 2026-03-18); FY2025: cash repurchases 332839578 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CTEC.LSE SharesStats.PercentInsiders = 0.199 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://filings.xbrl.org/213800LS272L4FIDOH92/2025-12-31/ESEF/GB/0/213800LS272L4FIDOH92-2025-12-31/reports/213800LS272L4FIDOH92-2025-12-31-T01.html (filed 2026-03-18); es

in which we operate, and we are market-

leading in categories contributing over

60% of Group revenues. There are

notable synergies across the Convatec

categories in areas such as product and

clinical development, automated

manufacturing, polymer and biomaterial

sciences, adhesive technologies, sales

& marketing and shared mid-and-back-

office processes.

Further growth in operating margin

Adjusted operating margin

1

increased by

110 bps to 22.3% (22.2% on a constant FX

basis; 13.0% reported). This was despite

a $30m reduction in InnovaMatrix

®

sales, and c.$6m incremental tariffs YoY.

Margin growth was driven by further

simplification and productivity in

operations and G&A, pricing and

operational leverage.

Our simplification and productivity

initiatives continued to progr

[Noncontiguous filing excerpt]

ding InnovaMatrix

®

),

adjusted operating margin up c.110 bps

to 22.3% and adjusted EPS

2

up 16.0%

(reported diluted EPS 8.6 cents). Growth

was broad-based across categories,

geographies and products.

In 2025 we sold over 1 billion high-quality

consumable products and are among a

small number of leaders in the categories

in which we operate, and we are market-

leading in categories contributing over

60% of Group revenues. There are

notable synergies across the Convatec

categories in areas such as product and

clinical development, automated

manufacturing, polymer and biomaterial

sciences, adhesive technologies, sales

& marketing and shared mid-and-back-

office processes.

Further growth in operating margin

Adjusted operating margin

1

increased by

110 bps to 22.3% (22.2% on a constant FX

basis; 13.0% reported). This was despite

a $30m reduction in InnovaMatrix

®

sales, and c.$6m incremental tariffs YoY.

Margin growth was driven by further

simplification and productivity in

operations and G&A, pricing and

operational leverage.

Our simplification and productivity

initiatives continued to progress well. In

Global Quality & Operations, we further

increased automation in our facilities and

continued to optimise our plant network

for scale and efficiency. In commercial

areas, our Centres of Excellence (CoE)

in Global Marketing & Sales, Pricing


[Noncontiguous filing excerpt]

o 22.3% and adjusted EPS

2

up 16.0%

(reported diluted EPS 8.6 cents). Growth

was broad-based across categories,

geographies and products.

In 2025 we sold over 1 billion high-quality

consumable products and are among a

small number of leaders in the categories

in which we operate, and we are market-

leading in categories contributing over

60% of Group revenues. There are

notable synergies across the Convatec

categories in areas such as product and

clinical development, automated

manufacturing, polymer and biomaterial

sciences, adhesive technologies, sales

& marketing and shared mid-and-back-

office

### What the price says

The price assumes cash profits grow 9.4% yearly over ten years; actual growth was 21%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Ten-year compound average after fade. Initial solved rate 0.12193242782945546. Price 236.8; FX 75.34943299551671; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.01817028016705208 → FY2025 0.12224758269327377. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 250.00 per share

- 2016-11: GBX 238.00 per share

- 2016-12: GBX 233.90 per share

- 2017-01: GBX 245.90 per share

- 2017-02: GBX 236.00 per share

- 2017-03: GBX 279.00 per share

- 2017-04: GBX 307.10 per share

- 2017-05: GBX 320.00 per share

- 2017-06: GBX 319.20 per share

- 2017-07: GBX 310.70 per share

- 2017-08: GBX 286.90 per share

- 2017-09: GBX 273.90 per share

- 2017-10: GBX 195.90 per share

- 2017-11: GBX 194.00 per share

- 2017-12: GBX 205.50 per share

- 2018-01: GBX 202.20 per share

- 2018-02: GBX 206.50 per share

- 2018-03: GBX 199.10 per share

- 2018-04: GBX 217.20 per share

- 2018-05: GBX 231.70 per share

- 2018-06: GBX 212.40 per share

- 2018-07: GBX 219.00 per share

- 2018-08: GBX 213.30 per share

- 2018-09: GBX 232.40 per share

- 2018-10: GBX 162.00 per share

- 2018-11: GBX 151.95 per share

- 2018-12: GBX 138.95 per share

- 2019-01: GBX 142.80 per share

- 2019-02: GBX 132.65 per share

- 2019-03: GBX 141.55 per share

- 2019-04: GBX 138.55 per share

- 2019-05: GBX 139.55 per share

- 2019-06: GBX 145.80 per share

- 2019-07: GBX 156.10 per share

- 2019-08: GBX 174.35 per share

- 2019-09: GBX 175.20 per share

- 2019-10: GBX 197.15 per share

- 2019-11: GBX 191.45 per share

- 2019-12: GBX 198.45 per share

- 2020-01: GBX 208.00 per share

- 2020-02: GBX 205.00 per share

- 2020-03: GBX 186.50 per share

- 2020-04: GBX 212.40 per share

- 2020-05: GBX 202.80 per share

- 2020-06: GBX 195.60 per share

- 2020-07: GBX 203.40 per share

- 2020-08: GBX 191.60 per share

- 2020-09: GBX 178.80 per share

- 2020-10: GBX 180.70 per share

- 2020-11: GBX 206.80 per share

- 2020-12: GBX 199.20 per share

- 2021-01: GBX 200.20 per share

- 2021-02: GBX 188.40 per share

- 2021-03: GBX 196.10 per share

- 2021-04: GBX 218.20 per share

- 2021-05: GBX 237.60 per share

- 2021-06: GBX 240.60 per share

- 2021-07: GBX 236.90 per share

- 2021-08: GBX 225.40 per share

- 2021-09: GBX 216.00 per share

- 2021-10: GBX 213.80 per share

- 2021-11: GBX 193.00 per share

- 2021-12: GBX 193.15 per share

- 2022-01: GBX 175.50 per share

- 2022-02: GBX 180.25 per share

- 2022-03: GBX 215.60 per share

- 2022-04: GBX 212.00 per share

- 2022-05: GBX 216.00 per share

- 2022-06: GBX 224.40 per share

- 2022-07: GBX 228.20 per share

- 2022-08: GBX 217.60 per share

- 2022-09: GBX 205.60 per share

- 2022-10: GBX 218.00 per share

- 2022-11: GBX 230.20 per share

- 2022-12: GBX 232.60 per share

- 2023-01: GBX 234.20 per share

- 2023-02: GBX 224.40 per share

- 2023-03: GBX 228.60 per share

- 2023-04: GBX 219.80 per share

- 2023-05: GBX 202.80 per share

- 2023-06: GBX 205.20 per share

- 2023-07: GBX 208.60 per share

- 2023-08: GBX 232.40 per share

- 2023-09: GBX 217.80 per share

- 2023-10: GBX 204.20 per share

- 2023-11: GBX 224.80 per share

- 2023-12: GBX 244.20 per share

- 2024-01: GBX 241.00 per share

- 2024-02: GBX 246.20 per share

- 2024-03: GBX 286.40 per share

- 2024-04: GBX 250.00 per share

- 2024-05: GBX 248.60 per share

- 2024-06: GBX 234.80 per share

- 2024-07: GBX 234.20 per share

- 2024-08: GBX 239.00 per share

- 2024-09: GBX 227.00 per share

- 2024-10: GBX 213.40 per share

- 2024-11: GBX 235.60 per share

- 2024-12: GBX 221.20 per share

- 2025-01: GBX 247.00 per share

- 2025-02: GBX 259.40 per share

- 2025-03: GBX 257.20 per share

- 2025-04: GBX 259.80 per share

- 2025-05: GBX 289.80 per share

- 2025-06: GBX 288.40 per share

- 2025-07: GBX 233.40 per share

- 2025-08: GBX 236.60 per share

- 2025-09: GBX 231.40 per share

- 2025-10: GBX 244.20 per share

- 2025-11: GBX 235.60 per share

- 2025-12: GBX 243.20 per share

- 2026-01: GBX 230.00 per share

- 2026-02: GBX 256.40 per share

- 2026-03: GBX 215.40 per share

- 2026-04: GBX 210.80 per share

- 2026-05: GBX 202.20 per share

- 2026-06: GBX 215.00 per share

- 2026-07: GBX 224.00 per share

- 2026-08: GBX 227.60 per share

- 2026-09: GBX 217.00 per share

- 2026-10: GBX 236.80 per share

## Annual estimated value (GBX per share)

- FY2019: low GBX 71.70 per share, central GBX 79.76 per share, high GBX 90.48 per share

- FY2020: low GBX 103.70 per share, central GBX 115.28 per share, high GBX 130.70 per share

- FY2021: low GBX 105.53 per share, central GBX 117.91 per share, high GBX 134.40 per share

- FY2022: low GBX 92.10 per share, central GBX 104.28 per share, high GBX 120.48 per share

- FY2023: low GBX 81.70 per share, central GBX 92.68 per share, high GBX 107.31 per share

- FY2024: low GBX 97.83 per share, central GBX 111.22 per share, high GBX 129.05 per share

- FY2025: low GBX 101.63 per share, central GBX 115.51 per share, high GBX 133.99 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:42:46.482Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800LS272L4FIDOH92/2025-12-31/ESEF/GB/0/213800LS272L4FIDOH92-2025-12-31/reports/213800LS272L4FIDOH92-2025-12-31-T01.html); period 2025-12-31, filed 2026-03-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.