ConvaTec Group Plc (CTEC.L) stock analysis

In our weekly check, ConvaTec Group Plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 4, red flags: 1.

About ConvaTec Group Plc

ConvaTec Group Plc is a Healthcare company (Medical - Instruments & Supplies) based in the United Kingdom, listed on LSE as CTEC.L.

What our checks show for CTEC.L

Red flags

• The stock has fallen as much as 66% from a peak. Would you have held through that?

Warning signs

• Net debt is 2.2x a year of EBITDA (debt/equity 1.22). That limits room in a downturn and raises refinancing risk.
• The net margin is only 7.2%: little room if costs rise.
• The dividend takes 80% of profit: little cushion if profit falls.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 1.4 points over 5 years, to 7.2%.
• Operating cash flow is 2.69x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 42.7% a year over the next years.
• Analysts expect the net margin to improve by 10.8 points from today's 7.2%.
• Earnings per share grew 41.6% a year over the last 3 years.
• Net profit grew 41.6% a year over the last 3 years.

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Questions

What grade does ConvaTec Group Plc (CTEC.L) have?

In our weekly check, ConvaTec Group Plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 4, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of CTEC.L stock?

This week's biggest flags for ConvaTec Group Plc: Deep past fall, High debt, Thin margins. In total 5 of 25 checks show a warning or a red flag.

What does ConvaTec Group Plc do?

ConvaTec Group Plc is a Healthcare company (Medical - Instruments & Supplies) based in the United Kingdom, listed on LSE as CTEC.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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