UDG Healthcare

UDG Healthcare

UDG Healthcare Socially Speaking

UDG Healthcare News, Fundamentals and Discussion on:

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UDG Healthcare RNS, News & Media


Headline
12 Apr 2017
RNS press release - Appointment announcement from Proactive Investors
3 Apr 2017
RNS press release - Sharp announces capacity expansion in US and UK from Proactive Investors
31 Mar 2017
RNS press release - Total Voting Rights from Proactive Investors
29 Mar 2017
RNS press release - Holding(s) in Company from Proactive Investors
28 Mar 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
21 Mar 2017
RNS press release - Holding(s) in Company from Proactive Investors
6 Mar 2017
RNS press release - Holding(s) in Company from Proactive Investors
27 Feb 2017
RNS press release - Holding(s) in Company from Proactive Investors
16 Feb 2017
RNS press release - Director Declaration from Proactive Investors
7 Feb 2017
RNS press release - Result of AGM from Proactive Investors
7 Feb 2017
RNS press release - Board Appointment from Proactive Investors
6 Feb 2017
RNS press release - Total Voting Rights from Proactive Investors
16 Jan 2017
RNS press release - Holding(s) in Company from Proactive Investors
16 Jan 2017
RNS press release - Notice of Q1 2017 Trading Update from Proactive Investors
12 Jan 2017
RNS press release - Holding(s) in Company from Proactive Investors
6 Jan 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
4 Jan 2017
RNS press release - Holding(s) in Company from Proactive Investors
3 Jan 2017
RNS press release - Block listing Interim Review from Proactive Investors
3 Jan 2017
RNS press release - Total Voting Rights from Proactive Investors
16 Dec 2016
RNS press release - Annual Report & AGM Documents from Proactive Investors
13 Dec 2016
RNS press release - Holding(s) in Company from Proactive Investors
9 Dec 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
8 Dec 2016
RNS press release - Holding(s) in Company from Proactive Investors
5 Dec 2016
RNS press release - Holding(s) in Company from Proactive Investors
24 Nov 2016
RNS press release - Dividend Correction from Proactive Investors
24 Nov 2016
RNS press release - Final Results from Proactive Investors
23 Nov 2016
RNS press release - Acquisition Update & Issue of Equity from Proactive Investors
18 Nov 2016
RNS press release - Director Declaration from Proactive Investors
16 Nov 2016
RNS press release - Holding(s) in Company from Proactive Investors
7 Nov 2016
RNS press release - Notice of Preliminary Results from Proactive Investors
21 Oct 2016
RNS press release - UDG Healthcare acquires STEM Marketing Limited from Proactive Investors
30 Sep 2016
RNS press release - Total Voting Rights from Proactive Investors
28 Sep 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
27 Sep 2016
RNS press release - Capital Markets Event from Proactive Investors
26 Sep 2016
RNS press release - Directorate Change from Proactive Investors
22 Sep 2016
RNS press release - Director Retirement & Change of Company Secretary from Proactive Investors
21 Sep 2016
RNS press release - Holding(s) in Company from Proactive Investors
9 Aug 2016
RNS press release - Holding(s) in Company from Proactive Investors
4 Aug 2016
RNS press release - Q3 Trading Statement from Proactive Investors
28 Jul 2016
RNS press release - Holding(s) in Company from Proactive Investors
26 Jul 2016
RNS press release - Holding(s) in Company from Proactive Investors
19 Jul 2016
RNS press release - Notice of Third Quarter 2016 Trading Update from Proactive Investors
14 Jul 2016
RNS press release - Holding(s) in Company from Proactive Investors
4 Jul 2016
RNS press release - Holding(s) in Company from Proactive Investors
1 Jul 2016
RNS press release - Block listing Interim Review from Proactive Investors
1 Jul 2016
RNS press release - Total Voting Rights from Proactive Investors
21 Jun 2016
RNS press release - Director Declaration from Proactive Investors
21 Jun 2016
RNS press release - Board Appointment from Proactive Investors
13 Aug 2009
News - United Drug and Medco to set up JV tapping into UK homecare pharmacy market from Proactive Investors

UDG Healthcare 3 Month Chart


UDG Healthcare Discussion on Interactive Investor

Re: TGISVP - UDG Healthcare by Our Haven

  Tue, 03 Jan 2017 13:25:00 GMT

I see your logic Wexboy but this is pretty much the same logic you employed back in 2014, excluding currency movements and who is to say what the Trump effect will bring on that score. Best of luck for 2017.

By Our Haven

TGISVP - UDG Healthcare by Wexboy

  Tue, 03 Jan 2017 05:24:00 GMT

2016 – The Great Irish Share Valuation Project (Part IV):

Company: UDG Healthcare (UDG:LN)

Last TGISVP Post: Here

Market Cap: GBP 1,653 M

Price: GBP 668p

Ugh, well that looks like a disastrous call!? ‘Course, there’s plenty of water under the bridge since (& fair value estimates obviously change), but I anticipated a substantial UDG price decline back in 2014…in reality, the shares almost doubled in the last few years! So, time to stick or twist? Trouble is, UDG Healthcare’s one of those suspect Irish stocks (which shall remain nameless here) which consistently report a significant gap between IFRS & adjusted earnings, and (perhaps more importantly) between adjusted operating profit & underlying Op FCF…so which figures exactly should one focus on when attempting a valuation?! Not to mention UDG’s colossal P/E multiple – 27.7 times continuing adjusted diluted EPS, no less – which doesn’t remotely reflect the pedestrian underlying earnings growth we’ve actually seen in recent years. But let’s back up here…

And go back to 2015, which marked a decisive turning-point for UDG Healthcare – in Q3, the company announced the €0.4 billion sale of its supply chain services division, the original core business of United Drug (inc. its Irish pharmaceutical wholesaling business). [The CEO Liam Fitzgerald marked the occasion by also pre-announcing his own early retirement, after leading the company for 15 years, to be replaced by COO Brendan McAtamney]. Thereby unveiling a higher margin & (supposedly) faster growth company, focusing on: i) sales, marketing & healthcare communications services, and ii) pharmaceutical contract packaging & clinical trials materials – all intended to exploit the ongoing trend for healthcare companies to outsource non-core & specialist activities on an international basis.

Which has delivered a (totally transformed) 11.1% adjusted operating margin on continuing ops. revenue of €934 million – unfortunately, we continue to see the same cash flow issue each year, on average a 20%+ shortfall in Op FCF (vs. adjusted operating profit) over 2015-16, implying an adjusted 8.6% margin is more appropriate in determining a suitable 0.875 Price/Sales multiple. [There will be a meaningful currency hit next year from a stronger dollar (UDG will report in dollars from now on), but I expect this to be broadly offset by underlying revenue growth & recent acquisitions]. Interest coverage remains within a reasonable range, based on €275 million of debt left outstanding…but we can treat the effective sale proceeds, i.e. €384 million of surplus cash, as incremental value. As for earnings, UDG’s two main divisions boast underlying 25%+ operating profit growth over the 2010-2015 period, but in reality their 2016 growth rate isn’t much better than the sub-9% growth in underlying adjusted diluted EPS over the last 3 years – bearing in mind UDG may still be in transition, plus the usual stability of its earnings, we’ll basically split the difference in growth trajectories & assign what seems like a pretty balanced 15.0 Price/Earnings multiple:

(EUR 0.2861 Adj Dil EPS * 15.0 P/E + (943 M Rev * 0.875 P/S + 384 M Cash) / 247 M Shares) / 2 * 0.8438 EUR/GBP = GBP 387p

The numbers have changed, but I still reach the same conclusion – UDG’s as wildly over-valued as ever. It might be foolish setting this price target, because the outcome’s probably binary… Once they’re comfortable with an investment thesis, plus a valuation multiple/range, investors are loathe to change their minds…so if necessary, companies often have the time/space to grow into any valuation eventually. Of course, if things start going horribly wrong, everybody & their mother suddenly wakes up & notices all kinds of issues – the earnings gap, mediocre earnings growth (vs. the P/E), poor cash flow, a looming debt burden, etc. Of course, the latter doesn’t apply here (for once), as UDG’s in a comfortable net cash position (though doubtless it’s


By Wexboy

Going strong by wineberry

  Mon, 21 Dec 2015 18:06:00 GMT

UDG is one of Momentum Investor's major recommendations for this month with the opportunity for serious growth in its Ashfield Division. Its poorest performing sector -the old wholesale distribution business - is being sold off for E407.5m subject to regulatory approval - completion anticipated next June. This will put the company into a net cash position with a E500m borrowing facility and well able to make further acquisitions.

Right sector, right time but DYOR as always.


By wineberry

UDG Broker Views............. by oldjoe1

  Tue, 24 Mar 2015 15:22:00 GMT

<b>Analysts Set Udg Healthcare PLC PT at $408.00 (LON:UDG)
March 21st, 2015 Updated Tues 25 March/2015 - Filed Under - by Samantha Reynolds</b>

Shares of Udg Healthcare PLC (LON:UDG) have earned a consensus recommendation of “Buy” from the seven brokerages that are covering the company, American Banking & Market News reports. Three analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is GBX 408 ($6.02).

Udg Healthcare PLC (LON:UDG) opened at 465.70 on Wednesday. Udg Healthcare PLC has a 52-week low of GBX 315.20 and a 52-week high of GBX 479.03. The stock’s 50-day moving average is GBX 445. and its 200-day moving average is GBX 378.. The company’s market cap is £1.13 billion.

UDG has been the subject of a number of recent research reports. Analysts at N+1 Singer reiterated a “hold” rating on shares of Udg Healthcare PLC in a research note on Friday, March 6th. Analysts at Berenberg Bank raised their price target on shares of Udg Healthcare PLC from GBX 425 ($6.27) to GBX 455 ($6.71) and gave the company a “hold” rating in a research note on Thursday, February 12th. Analysts at Jefferies Group LLC reiterated a “buy” rating and set a GBX 400 ($5.90) price target on shares of Udg Healthcare PLC in a research note on Tuesday, February 3rd. Finally, analysts at Investec raised their price target on shares of Udg Healthcare PLC from GBX 340 ($5.02) to GBX 387 ($5.71) and gave the company a “hold” rating in a research note on Tuesday, February 3rd.

UDG Healthcare plc is an international provider of services to healthcare manufacturers and pharmaceutical retailers. It is engaged in supply chain, packaging, medical, regulatory, and sales and marketing services. The Company provides outsourced services. Aquilant is a provider of healthcare and scientific products and services, providing outsource sales, marketing, distribution and engineering for the medical and scientific sectors.


By oldjoe1

Re: UDG ..New All Time High.... by oldjoe1

  Tue, 03 Feb 2015 13:07:00 GMT

UPDATE 2 – UDG Healthcare expects 5 – 8 pct rise in full – year EPS

03 Feb 2015 - 11:11

Says reported EPS to be higher if current exchange rates persist
To take 10 mln euro restructuring charge this year
Sees 2 pct benefit to EPS from restructuring
Shares rise 5 pct to record high
(Adds details, analyst and CFO comments; updates share movement)

By Roshni Menon

Feb 3 (Reuters) – UDG Healthcare Plc said it expected a 5-8 percent rise in adjusted full-year earnings per share on a constant-currency basis, and that reported EPS could be higher than this if exchange rates remained around current levels.

Shares in the FTSE-250 company, which provides outsourced sales and marketing, drug distribution and packaging services to healthcare companies, rose more than 5 percent to a record high of 417.5 pence in morning trade on Tuesday.

Dublin-based UDG, formerly known as United Drug, reports results in euros but makes about 70 percent of its profit in pounds and dollars. ...

The euro has fallen about 10 percent against the dollar and about 3 percent against the pound since the start of the company's 2015 financial year on Oct. 1.

"UDG has left enough room for upgrades through FY15 if positive momentum continues," Jefferies analysts said in a note.

The company reported adjusted earnings of 28.77 euro cents per share in the year ended Sept. 30. Average exchange rates were 82 pence and $1.36 to the euro, UDG said. ...

"At current exchange rates, we would expect a further 5-6 percent benefit on the bottom line, meaning guidance implies adjusted EPS growth of 10-13 percent for the full year," Berenberg analysts said in a note.

Chief Financial Officer Alan Ralph told Reuters the company would take a charge of about 10 million euros this year, related mainly to the restructuring of its healthcare communications business and for changes in its United Drug supply chain unit.

The restructuring is expected boost earnings per share by 2 percent in the current financial year and by an additional 1 to 2 percent the following year, Ralph added.

UDG shares were up 4.1 percent at 413 pence at 1035 GMT.

Shares of the company, which has a market value of about 970 million pounds ($1.46 billion), have gained more than 20 percent since the company reported full-year results in November. ($1 = 0.6641 pounds)

(Reporting by Roshni Menon in Bengaluru; Editing by Gopakumar Warrier and Ted Kerr) ((roshni.menon@thomsonreuters.com; within UK +44 20 7542 1810, outside UK +91 80 6749 1136; Reuters Messaging: roshni.menon.thomsonreuters.com@reuters.net;)

Keywords: UDG HEALTH OUTLOOK/


By oldjoe1

UDG ..New All Time High.... by oldjoe1

  Tue, 03 Feb 2015 11:26:00 GMT

UDG UDG Healthcare, gaps up to a new all time high on excellent update this morning. Presently + 5.10% on the day.

LINK


By oldjoe1

Re: UDG Well Ahead Of Last Year............ by oldjoe1

  Tue, 03 Feb 2015 09:02:00 GMT

03 Feb 2015 UDG Healthcare PLC UDG N+1 Singer Buy 414.15 396.70 - - Reiterates

By oldjoe1

Re: UDG Well Ahead Of Last Year............ by oldjoe1

  Tue, 03 Feb 2015 08:54:00 GMT

UDG Healthcare sees 5 – 8 pct rise in full – year EPS

03 Feb 2015 - 08:30

(Corrects paragraph 1 to say UDG is based in Ireland, not UK)

Feb 3 (Reuters) – Ireland's UDG Healthcare Plc said it had made a strong start to the year and expected adjusted full-year earnings per share to be 5-8 percent ahead of last year on a constant currency basis.

The healthcare services provider added that if current exchange rates were sustained for the year, reported EPS would be higher than this range. ...

UDG, which reports results in euros, stands to benefit from the recent strengthening of the dollar and sterling against the euro.

The company reported adjusted earnings of 28.77 euro cents per share in the year ended Sept. 30, 2014. ...

(Reporting by Roshni Menon in Bengaluru; Editing by Gopakumar Warrier) ((roshni.menon@thomsonreuters.com; within UK +44 20 7542 1810, outside UK +91 80 6749 1136; Reuters Messaging: roshni.menon.thomsonreuters.com@reuters.net;)

Keywords: UDG HEALTH OUTLOOK/


By oldjoe1

Re: UDG Well Ahead Of Last Year........... by oldjoe1

  Tue, 03 Feb 2015 08:09:00 GMT

BRIEF – UDG Healthcare says Q1 trading well ahead of prior year

03 Feb 2015 - 07:19

Feb 3 (Reuters) – UDG Healthcare Plc

Has made a strong start to year with trading for quarter to 31 December 2014 well ahead of prior year
Expect constant currency adjusted diluted EPS (EPS) for year to 30 September 2015 to be between 5% and 8% ahead of last year
Source text for Eikon: ... Further company coverage: UDG.L

(Bengaluru Newsroom: +91 806 749 7920;)


By oldjoe1

UDG Well Ahead Of Last Year........... by oldjoe1

  Tue, 03 Feb 2015 07:53:00 GMT

UDG WELL AHEAD OF LAST YEAR...

Excelent Trading Update...

UDG HEALTHCARE PLC

FIRST QUARTER TRADING UPDATE

Strong Start to the Year and Full Year Guidance Issued


3 February 2015:
UDG Healthcare plc ("the Group"), a leading international provider of healthcare services issues the following trading update covering the period from 1 October to 31 December 2014. The company will hold its Annual General Meeting in Dublin at 12.00pm today.

Quarter to 31 December 2014

Group

<b>The Group has made a strong start to the year with trading for the quarter to 31 December 2014 well ahead of the prior year.</b>

LINK


By oldjoe1

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  Sun, 15 Jun 2014 23:05:00 GMT

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By dickie3times

TGISVP I - UDG Healthcare by Wexboy

  Wed, 05 Feb 2014 05:25:00 GMT


Company: UDG Healthcare

Prior Post(s): 2012 & 2013

Ticker: UDG:LN

Price: GBP 355.8p

Some might consider UDG Healthcare to be the DCC of the healthcare/pharma outsourcing sector – another acquisition machine. [Funnily enough, they're now competitors to some extent, and UDG's also migrated to a London-only listing - although it's retained the EUR as its reporting currency]. And that was probably true many years back. But UDG isn’t so pretty when you look beneath the surface – there’s a lot more blood & guts… Two big problems:

First, management continues to pursue diversification at all costs. This is particularly annoying from a geographic perspective, with UDG now boasting a third of profits come from the US – all very well, if you prefer to ignore the fact they’re still a minnow in a very large lake. Now they’re even boasting of a Japanese presence – hmmm, perhaps management first developed a sushi habit visiting NYC?!

And second, I had a sneaking suspicion I should take a harsher look at UDG’s financials this year, and unfortunately this was justified. There’s a gigantic gap between IFRS & adjusted operating profit. The usual suspects are to blame – amortization, write-downs, exceptional & acquisition-related expenses, etc. – which I might accept on an isolated, or a case-by-case basis. But on average over the last 3 years, UDG’s operating free cash flow is barely over 60% of adjusted operating profit (which management obviously prefers to highlight). A capex spend that’s well in excess of depreciation is another culprit here, but I’m far less certain now of the prudence or the ultimate payback on that investment – so I’m definitely not going to make an exception for it.

Frankly, the real (underlying) problem here may simply be a never-ending erosion of margins (& even volume), as governments, the healthcare industry & large pharma companies all grapple with containing costs – which would certainly explain the problems as manifested above…

Let’s employ an approach similar to DCC – but in this instance, I’ll end up averaging out quite different perspectives & valuations. On the one hand, let’s rely on adjusted diluted EPS – noting UDG’s stumbles in more recent years, and earnings growth of 11% & 7% in the past two years (respectively), I see no reason to raise my 10 P/E multiple. On the other hand, I note a 4.7% adjusted operating margin last year (& 4.6% the prior year) – but as highlighted, this should be haircut by 39% to better reflect actual operating free cash flow. That’s an effective 2.8% margin, which I’ll award a 0.25 P/S multiple. Now, this means underlying interest coverage isn’t great either – I should probably haircut my P/S valuation accordingly, with a negative debt adjustment. But I’ll grant a free pass, this time ’round – anyway, UDG could actually pay down a significant portion of debt with cash on hand (174 M). This all averages out to:

(27.05 cts EPS * 10.0 P/E + 2,033 M Revenue *0.25 P/S / 241.3 M Shares) / 2 * 0.8206 EUR/GBP = GBP 197p

But investors are often happy to ignore underlying cash flows, and potentially diminishing returns, for long periods of time – so I may prove wide of the mark here. But upon mature reflection, UDG Healthcare definitely looks wildly over-valued to me. Don’t forget, as with all companies – if things ever start going (seriously) wrong here, that’s when investors will finally focus on the cash flow statement, see the lower underlying margins & potential interest coverage/debt risks, and join in as the share price spirals lower. Anyway, even if you still prefer a P/E valuation, how exactly do you justify UDG’s current 16 P/E based on its recent & likely earnings growth? [And that multiple's based on adjusted diluted EPS - use actual diluted EPS, and you're talking about a 37 P/E!?]

Price Target: GBP 197p

Upside/(Downside): (45)%



For links, charts, file, and other companies, see the Wexboy investment blog.


By Wexboy

United Drug by Wexboy

  Wed, 10 Apr 2013 03:57:00 GMT


2013 – The Great Irish Share Valuation Project (Part IX)

Including:

Company: United Drug

Prior Post: Here

Ticker: UDG:LN

Price: GBP 275.8p

Long gone are the days when United Drug was a rock-solid earnings machine… For years now, the emphasis has been on acquisitions, with United Drug funding them with debt which was comfortably under-pinned by predictable revenues & steady earnings. The credit crisis put paid to much of that confidence, with everybody pulling in their horns & hunkering down. The company also had to face up to ever-increasing pressure on its domestic Irish/UK revenues as government budgets & prospects turned increasingly sour.

I’ve always suspected the CEO & his management team are more than enamoured with international expansion – take a look & count the number of ‘international‘s in their latest results!? Presumably this is propelled by the usual desire to empire-build & play with the big boys – I detect an absurd pride that over 25% of profits are now earned in the US (and over 70% outside Ireland). This means plenty of fun trips across the Atlantic for management, but shareholders should reflect more on United Drug’s status in the US market – an outsider & a minnow, perhaps? I’m reminded of Greencore Group’s (GNC:LN) poor shareholders – they’re now enduring an even more quixotic push into North America…

I really think sticking to a buy & build European strategy would have been the far more sensible option in both cases. Perhaps even more so for United Drug – US healthcare may turn out to be a truly unpleasant sector to be in, for years to come.

Anyway, after 4 long years in a funk, the share price took off in mid-2012 & is up 55% since last year (far out-pacing my 20% upside target). Which happens to coincide exactly with the re-ignition of United Drug’s acquisition machine – they managed five of them in the second half of last year! So much for my reservations, clearly this is what investors are looking for… Earnings growth remains relatively slow, however, at 11% last year & a projected 5-8% this year – so I suspect we’re looking at the same old story here, i.e. acquisitions are required simply to compensate for the relentless pressure on core revenues & earnings. I’ll stick with a 10 P/E ratio for the moment. Adjusted operating margin’s now 4.6%, which deserves a small bump-up to a 0.4 Price/Sales multiple, and a positive debt adjustment is also warranted to reflect additional debt capacity (for acquisitions). All this, plus the run-up in the share price, have left United Drug looking slightly over-valued at this point.

Price Target: GBP 245p

Upside: (11)%

_

See the Wexboy Blog for full post, links, etc.


By Wexboy

UDG Valuation by Wexboy

  Thu, 23 Feb 2012 02:46:00 GMT

Hi folks,

Just posted Part V of The Great Irish Share Valuation Project, including valuation and some commentary about United Drug:

LINK

Cheers,

Wexboy


By Wexboy

biopharm- tiddler by dickie3times

  Wed, 28 Dec 2011 22:57:00 GMT

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By dickie3times