reports
- Debbie Wang
Morningstar | ConvaTec's First-Quarter Revenue Results Held No Surpris...
Narrow-moat ConvaTec posted first-quarter revenue results that were consistent with our measured expectations, and we’re holding steady on our fair value estimate. Quarterly organic revenue growth was down 2% year over year, reflecting weakness in advanced wound care and ostomy. In the past, we’ve described ConvaTec as a dumpster fire, and we now think it resembles more of a smoldering fire. Interim management has laid out a series of tactical plans to establish more strategic marketing, inc...
- Debbie Wang
ConvaTec's First-Quarter Revenue Results Held No Surprises; No Change ...
Narrow-moat ConvaTec posted first-quarter revenue results that were consistent with our measured expectations, and we’re holding steady on our fair value estimate. Quarterly organic revenue growth was down 2% year over year, reflecting weakness in advanced wound care and ostomy. In the past, we’ve described ConvaTec as a dumpster fire, and we now think it resembles more of a smoldering fire. Interim management has laid out a series of tactical plans to establish more strategic marketing, inc...
- Debbie Wang
Morningstar | Narrow-Moat ConvaTec Tripped Up by Poor Execution
Since its initial public offering two years ago, ConvaTec has followed a familiar playbook to press its advantage in advanced wound care and enhance its ostomy business. By and large, we like ConvaTec’s businesses that focus on chronic care, which translates into an ongoing stream of revenue. However, the company has lagged significantly behind its key competitor, Coloplast. From our perspective, there is plenty of opportunity for ConvaTec to remedy the situation, but its ability to execute hi...
- Debbie Wang
Narrow-Moat ConvaTec Tripped Up by Poor Execution
With ConvaTec plagued by operational difficulties and missteps over the last 18 months, we think it’s fair to say it currently looks more like a dumpster fire than anything else. We’re putting the company under review as we examine its challenges with the geographical relocation of key manufacturing facilities, aftermath of supply constraints, integration of recent acquisitions of distributors, and its ability to weather the tougher competitive conditions we’ve seen develop in the advanced...
- Debbie Wang
Morningstar | ConvaTec Under Review as We Re-Evaluate Its Operational ...
With ConvaTec plagued by operational difficulties and missteps over the last 18 months, we think it’s fair to say it currently looks more like a dumpster fire than anything else. We’re putting the company under review as we examine its challenges with the geographical relocation of key manufacturing facilities, aftermath of supply constraints, integration of recent acquisitions of distributors, and its ability to weather the tougher competitive conditions we’ve seen develop in the advanced...
- Debbie Wang
ConvaTec Under Review as We Re-Evaluate Its Operational Challenges
With ConvaTec plagued by operational difficulties and missteps over the last 18 months, we think it’s fair to say it currently looks more like a dumpster fire than anything else. We’re putting the company under review as we examine its challenges with the geographical relocation of key manufacturing facilities, aftermath of supply constraints, integration of recent acquisitions of distributors, and its ability to weather the tougher competitive conditions we’ve seen develop in the advanced...
- Debbie Wang
Morningstar | ConvaTec is struggling to overcome operational problems,...
Since its initial public offering two years ago, ConvaTec has followed a familiar playbook to press its advantage in advanced wound care and enhance its ostomy business. By and large, we like ConvaTec’s businesses that focus on chronic care, which translates into an ongoing stream of revenue. However, the company has lagged significantly behind its key competitor, Coloplast. From our perspective, there is plenty of opportunity for ConvaTec to remedy the situation, but its ability to execute a ...
- Debbie Wang
ConvaTec is struggling to overcome operational problems, but its narro...
We're putting ConvaTec under review and plan to moderately lower our fair value estimate following CEO Paul Moraviec’s resignation and changes in inventory management at Medtronic--ConvaTec’s largest customer for infusion sets--that will materially lower infusion set sales in the fourth quarter. ConvaTec’s progress since its initial public offering could be characterized as one step forward, two steps back, in our opinion. Overall, we expect to further dial down our already-tempered projec...
- Debbie Wang
Morningstar | ConvaTec's Shares Swoon on Management Change and Invento...
We're putting ConvaTec under review and plan to moderately lower our fair value estimate following CEO Paul Moraviec’s resignation and changes in inventory management at Medtronic--ConvaTec’s largest customer for infusion sets--that will materially lower infusion set sales in the fourth quarter. ConvaTec’s progress since its initial public offering could be characterized as one step forward, two steps back, in our opinion. Overall, we expect to further dial down our already-tempered projec...
- Debbie Wang
ConvaTec's Shares Swoon on Management Change and Inventory Issues, but...
We're putting ConvaTec under review and plan to moderately lower our fair value estimate following CEO Paul Moraviec’s resignation and changes in inventory management at Medtronic--ConvaTec’s largest customer for infusion sets--that will materially lower infusion set sales in the fourth quarter. ConvaTec’s progress since its initial public offering could be characterized as one step forward, two steps back, in our opinion. Overall, we expect to further dial down our already-tempered projec...
- Debbie Wang
Morningstar | ConvaTec Makes Modest Progress on Turnaround; No Change ...
Slowly but surely, ConvaTec is making progress on its turnaround with another quarter that delivered slight improvements. Revenue growth in the first half of 2018 was largely consistent with our tempered expectations, and reported margins hit our estimates nearly on the nose. We’re leaving our fair value estimate unchanged. In terms of green shoots, we take the return of organic growth in ostomy care and 5.9% organic growth in continence care as positive signs. In particular, we think this gro...
- Debbie Wang
ConvaTec Makes Modest Progress on Turnaround; No Change to Our FVE
Slowly but surely, ConvaTec is making progress on its turnaround with another quarter that delivered slight improvements. Revenue growth in the first half of 2018 was largely consistent with our tempered expectations, and reported margins hit our estimates nearly on the nose. We’re leaving our fair value estimate unchanged. In terms of green shoots, we take the return of organic growth in ostomy care and 5.9% organic growth in continence care as positive signs. In particular, we think this gro...
- Debbie Wang
ConvaTec Is Moving in the Right Direction; No Change to Our FVE
ConvaTec’s abbreviated first-quarter results demonstrated improvement, and we’re leaving our fair value estimate unchanged as the firm remains on track to meet our full-year projections. Despite a string of operational setbacks in 2017, we think ConvaTec is moving in the right direction as it builds on robust demand for its Aquacel wound-care products, greater presence in U.S. home distribution, and the introduction of the MiniMed Mio Advanced infusion set inserter. We are confident that Con...
- Debbie Wang
We Think ConvaTec's Appetite for Distributors Should Pay Off in the U....
Narrow-moat ConvaTec has further bolstered its distribution footprint in the U.S. with its impending acquisition of J&R Medical, a Texas-based independent distributor of medical supplies. This addition was relatively small, and we’re holding steady on our fair value estimate. We’re pleased to see the firm has largely ameliorated the glitches associated with moving its manufacturing facility in Greensboro, North Carolina, to the Dominican Republic. The back orders in advanced wound care and c...
- Debbie Wang
ConvaTec Navigates Near-Term Speed Bumps From Relocation of Production...
Despite the near-term operational challenges that ConvaTec has run into as it relocates one of its major manufacturing sites, we still like the firm’s footprint in advanced wound care, where it offers innovative products, and its position in the highly consolidated ostomy market. We’re holding steady on our fair value estimate. Market growth in ostomy and advanced wound care remains steady in the low- to mid-single digit range, with significant growth opportunities in emerging markets. Nar...
- Debbie Wang
ConvaTec is struggling to overcome operational problems, but its moat ...
ConvaTec posted first-half results, with the ostomy segment outpacing our expectations, but this was offset by advanced wound-care results that fell slightly short due to near-term manufacturing bumps. Because timing differences do not usually make a material difference in our valuation, we do not expect any changes to our fair value estimate. Thanks to the highly consolidated nature of the ostomy market, we think ConvaTec has a strong shot at reviving growth in that segment once it executes bet...
- Debbie Wang
Initiating Coverage on ConvaTec With a Narrow Moat
We have initiated coverage on ConvaTec, which has recently emerged from under private equity ownership with plans to press its advantage in advanced wound care and enhance its ostomy business where it is playing catch-up. By and large, we like ConvaTec’s businesses that focus on chronic care, which translates into an ongoing stream of revenue. However, we recognize the firm has lagged significantly behind its key competitor, Coloplast. From our perspective, there is plenty of opportunity for ...
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