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Advanced Medical Solutions Group PLC AMS

Morningstar Rating
GBX 192.20 +1.80 (0.95%)
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Company Report

Advanced Medical Solutions Sees Ripple Effects From Medicare Cuts

Once solely an original equipment manufacturer for advanced wound-care products, Advanced Medical Solutions has built on its technical expertise and expanded into adjacent markets. Though AMS remains significantly smaller than Smith & Nephew, Molnlycke, and ConvaTec, we like how it has shifted its focus toward higher-margin branded surgical products and believe this strategy should enhance its already attractive returns on invested capital.

Price vs Fair Value

AMS is trading within a range we consider fairly valued.
Price
GBX 187.60
Fair Value
GBX 715.00
Uncertainty
Medium
1-Star Price
GBX 189.50
5-Star Price
GBX 747.70
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

If OEM customers decide to bring manufacturing in-house, it could significantly hamper AMS' unbranded business and leave it with excess capacity.

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News

Trading Information

Previous Close Price
GBX 190.40
Day Range
GBX 189.32192.66
52-Week Range
GBX 165.60261.00
Bid/Ask
GBX 0.00 / GBX 0.00
Market Cap
GBX 41.77 Bil
Volume/Avg
4.7 Mil / 645,483

Key Statistics

Price/Earnings (Normalized)
16.48
Price/Sales
3.34
Dividend Yield (Trailing)
1.20%
Dividend Yield (Forward)
1.20%
Total Yield
2.74%

Company Profile

U.K.-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
800

Competitors

Valuation

Metric
AMS
CTEC
SNN
Price/Earnings (Normalized)
16.4824.5113.50
Price/Book Value
1.854.402.06
Price/Sales
3.343.391.93
Price/Cash Flow
15.1519.4711.41
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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Medical Instruments & Supplies Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ISRG
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BDX
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CLPBY
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WST
West Pharmaceutical Services IncPrqvkrflnqVcw$28.6 Bil
RMD
ResMed IncGnphhtzgMlfgrjl$27.0 Bil
BAX
Baxter International IncXqfjckkkHtdgx$20.9 Bil
COO
The Cooper Companies IncRzknxcnjrNpccypg$18.2 Bil
HOLX
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TFX
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