Convatec GroupLSE:CTEC +1.26%77 ROE % is 8.50% as of Dec. 2025, which is 15% above its 10-year median of 7.39. GuruFocus rates LSE:CTEC with a GF Score™ of 77/100 and a GF Value™ of £2.55 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 799 Medical Devices & Instruments companies, Convatec Group ranks better than 74.84% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Convatec Group's annualized net income for the quarter that ended in Dec. 2025 was £105 Mil. Convatec Group's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was £1,234 Mil. Therefore, Convatec Group's annualized ROE % for the quarter that ended in Dec. 2025 was 8.50%.
The historical rank and industry rank for Convatec Group's ROE % or its related term are showing as below:
LSE:CTEC'
s ROE % Range Over the Past 10 Years
Min: -38.13 Med: 7.39 Max: 14.5
Current: 10.22
During the past 13 years, Convatec Group's highest ROE % was 14.50%. The lowest was -38.13%. And the median was 7.39%.
LSE:CTEC's ROE % is ranked better than 74.84% of 799
companies
in the Medical Devices & Instruments industry
Industry Median: 2.42
vs LSE:CTEC: 10.22
Convatec Group (LSE:CTEC) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Convatec Group ROE % Related Terms
Convatec Group ROE % Historical Data
* Premium members only.
The historical data trend for Convatec Group's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Medical Instruments & Supplies subindustry, Convatec Group's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Convatec Group ROE % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Convatec Group's ROE % distribution charts can be found below:
* The bar in red indicates where Convatec Group's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Convatec Group (LSE:CTEC) has a ROE % of 8.50% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Convatec Group and its competitors. This is 15% above median its historical median of 7.39. According to the industry distribution chart, Convatec Group ranks #201 out of 799 companies in the Medical Devices & Instruments industry, placing it in the top 25.2%.
Is Convatec Group's ROE % too high?
Convatec Group's current ROE % of 8.50% is 15% above median its 10-year median of 7.39. The Medical Devices & Instruments industry median ROE % is 2.42. Convatec Group's value of 8.50% is 251.2% above this industry median. Based on the distribution chart, Convatec Group ranks #201 out of 799 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, Convatec Group has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Convatec Group's ROE % compare to ISRG and BDX?
According to the Medical Devices & Instruments industry distribution chart, Convatec Group ranks #201 out of 799 companies for ROE %. This puts Convatec Group in the upper half of its industry. The industry median ROE % is 2.42. Convatec Group's value of 8.50% is 251.2% above this benchmark. While the company's 10-year median is 7.39 vs. the industry median of 2.42, Convatec Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Medical Devices & Instruments company?
The median ROE % among Medical Devices & Instruments companies is 2.42, based on 799 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Convatec Group's current ROE % of 8.50% is 251.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Convatec Group and its competitors. For the Medical Devices & Instruments industry, the median ROE % is 2.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Convatec Group's current ROE % is 8.50%, which is 15% above median its own 10-year median of 7.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Convatec Group stock overvalued right now?
Based on GuruFocus' analysis, Convatec Group (LSE:CTEC) is currently considered Modestly Undervalued. The stock's GF Value™ is £2.55, compared to a current price of £2.09 — trading 17.9% below its estimated fair value. The current ROE % is 8.50%, which is 15% above median its 10-year median of 7.39 and 251.2% above the Medical Devices & Instruments industry median of 2.42. Convatec Group's overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Convatec Group (LSE:CTEC), the current ROE % is 8.50% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Convatec Group (LSE:CTEC) Overvalued in 2026?
Based on GuruFocus' analysis, Convatec Group stock appears to be undervalued.
The current stock price of £2.09 is trading 17.9% below its estimated GF Value™ of £2.55.
GuruFocus considers Convatec Group to be Modestly Undervalued.
Key valuation signals for LSE:CTEC:
ROE %: 8.50% (15% above median its 10-year median of 7.39)
GF Value™: £2.55 vs. price of £2.09 (17.9% below fair value)
Industry Position: 251.2% above the Medical Devices & Instruments median (#201 of 799)
No single metric tells the full story. See the LSE:CTEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Originally spun out of Bristol-Myers Squibb, Convatec designs, manufactures, and markets advanced wound care, ostomy, continence care, and infusion sets for the acute-care hospital and chronic-care home settings. Advanced wound care and ostomy supplies are the largest divisions, accounting for 32% and 28% of total revenue, respectively. Continence care has become a slightly smaller business (22% of revenue) following the decision to exit the acute care market, and infusion sets contribute 18% of consolidated revenue.
77GF Score
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