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Advanced Medical Solutions Group PLC AMS

Morningstar Rating
GBX 210.50 −6.00 (2.77%)
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Company Report

AMS Earnings: Near-Term Headwinds Easing; New Products Bode Well for the Future

Advanced Medical Solutions delivered full-year results that were slightly better than we expected, but they weren’t enough to move the needle on our fair value estimate. With consolidated revenue for 2023 rolling in at 2% in constant currency, this positive growth was better than the low-level decline we’d been expecting. However, this slight outperformance from 2023 changed little about our more optimistic expectations for 2024-27, which features mid-single-digit top-line and high-single-digit earnings growth. We anticipate the narrow-moat firm has moved beyond most of the US destocking issues and should reap the rewards of new branded product launches over the next 18 months.

Price vs Fair Value

AMS is trading at a 500% premium.
Price
GBX 210.50
Fair Value
GBX 822.00
Uncertainty
Medium
1-Star Price
GBX 171.80
5-Star Price
GBX 263.10
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

We think AMS' intellectual property, trade secrets, materials, and manufacturing expertise make it difficult to simply copy its products.

Bears

With branded wound care manufacturers racing to build out their biologic and tissue-based therapies, AMS could have a hard time penetrating this niche, as it requires a different expertise than what is needed for more common wound care products, such as foams and silvers.

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News

Trading Information

Previous Close Price
GBX 216.50
Day Range
GBX 207.00218.17
52-Week Range
GBX 165.60261.00
Bid/Ask
GBX 0.00 / GBX 0.00
Market Cap
GBX 45.09 Bil
Volume/Avg
1.1 Mil / 676,485

Key Statistics

Price/Earnings (Normalized)
19.68
Price/Sales
3.66
Dividend Yield (Trailing)
1.05%
Dividend Yield (Forward)
1.05%
Total Yield
2.49%

Company Profile

UK-based Advanced Medical Solutions was founded in 1991 to design, develop, and manufacture advanced wound-care products for other healthcare manufacturers. AMS' key branded products include the ActivHeal franchise of hydrogel, hydrocolloid, foam, and alginate wound dressings. The firm also manufactures and markets a suite of branded products in surgical use, including the LiquiBand franchise for tissue adhesion and the Resorba line of sutures and collagen-based products for tissue repair. The firm derives approximately 60% of total revenue from branded products, with nonbranded contributing 40%.
Sector
Healthcare
Industry
Medical Instruments & Supplies
Stock Style Box
Small Growth
Total Number of Employees
850

Competitors

Valuation

Metric
AMS
CTEC
SNN
Price/Earnings (Normalized)
19.6821.8914.33
Price/Book Value
1.943.932.19
Price/Sales
3.663.032.05
Price/Cash Flow
16.6017.3912.12
Price/Earnings
AMS
CTEC
SNN

Financial Strength

Metric
AMS
CTEC
SNN
Quick Ratio
4.130.790.67
Current Ratio
5.531.621.77
Interest Coverage
26.373.212.84
Quick Ratio
AMS
CTEC
SNN

Profitability

Metric
AMS
CTEC
SNN
Return on Assets (Normalized)
8.23%7.44%7.27%
Return on Equity (Normalized)
10.57%16.69%13.79%
Return on Invested Capital (Normalized)
8.91%10.90%9.92%
Return on Assets
AMS
CTEC
SNN
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