ConvaTec Share Price (CTEC)

$511m revenue and EBIT of 18% - 19% suggests a doubling of profit (2020 averaged $475m and circa 10% EBIT per quarter).

The outlook remains positive with a global backlog of operations; northern hemisphere winter and talk of 4th/5th etc waves of covid could be a dampener..... but at sub 200p is already in the price.

Convatec is a company that steeps heritage and has been around for a very long time with a healthy market share to this day.
With the wound care market growing due to demographic changes, growing population, people living longer, younger people presenting wounds, complex wounds needing innovation in products on the market ,I can only see convatec being part of the journey ahead and with it the business growing.

To be fair the shares had a great run in H2 of 2019. Keeping their head down and getting on with business has helped them. Looking at the fundamental results they still look overvalued to me on an EV/ebitda basis and they don’t generate much free cash flow. However the market clearly expects the new management team to deliver big time in future and gives them the valuation accordingly.
Current virus shouldn’t impact them too badly unless hospitals start delaying procedures etc in a big way to keep their beds free. But hard to tell at present if that’s going to happen. GLAH.

Both ctec and scapa are doing well for me :)

Thu, 11th Jul 2019 07:00

RNS Number : 1609F
Scapa Group PLC
11 July 2019



11 July 2019



LEI No. 213800QIPVTK5ES5UU36





Scapa Group plc ("the Company")



Scapa commences legal action against ConvaTec



Further to the announcement made on 3 June 2019, Scapa Group plc (AIM: SCPA) announces that on 10 July, Scapa Tapes North America LLC. ("Scapa Tapes"), a US subsidiary of Scapa Group plc, filed a complaint against ConvaTec Inc. ("ConvaTec"), for breach of contract with regard to a Master Supply Agreement (MSA) between those respective parties, in which Scapa Tapes is claiming damages in excess of $83.81m and a declaratory judgement.



In addition, Scapa Group plc and Scapa Tapes have filed a motion to dismiss the complaint filed by ConvaTec with regard to the MSA between ConvaTec and Scapa Tapes.



The complaint is available for public review on http://civilinquiry.jud.ct.gov/CaseDetail/PublicCaseDetail.aspx?DocketNo=HHDCV196114103S; and the motion to dismiss is available for public review on https://ecf.njd.uscourts.gov/cgi-bin/login.pl.