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Advanced Medical Solutions Group PLC AMS

Morningstar Rating
GBX 225.50 +4.50 (2.04%)
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Company Report

Advanced Medical Solutions Makes Progress on Its Branded Portfolio

Originally 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 at a 267% premium.
Price
GBX 225.50
Fair Value
GBX 892.00
Uncertainty
Medium
1-Star Price
GBX 433.20
5-Star Price
GBX 637.80
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 221.00
Day Range
GBX 219.50228.40
52-Week Range
GBX 165.60261.00
Bid/Ask
GBX 0.00 / GBX 0.00
Market Cap
GBX 48.35 Bil
Volume/Avg
506,007 / 474,787

Key Statistics

Price/Earnings (Normalized)
21.08
Price/Sales
3.92
Dividend Yield (Trailing)
1.05%
Dividend Yield (Forward)
1.05%
Total Yield
2.40%

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
JNJ
CTEC
Price/Earnings (Normalized)
21.0814.0020.57
Price/Book Value
2.085.033.69
Price/Sales
3.924.112.85
Price/Cash Flow
17.7815.8316.34
Price/Earnings
AMS
JNJ
CTEC

Financial Strength

Metric
AMS
JNJ
CTEC
Quick Ratio
3.900.840.79
Current Ratio
5.671.171.62
Interest Coverage
49.6623.573.21
Quick Ratio
AMS
JNJ
CTEC

Profitability

Metric
AMS
JNJ
CTEC
Return on Assets (Normalized)
7.17%12.64%7.44%
Return on Equity (Normalized)
9.11%31.72%16.69%
Return on Invested Capital (Normalized)
7.59%20.11%10.90%
Return on Assets
AMS
JNJ
CTEC
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