Deep Value: cash covers more than 100% of the stock price

This company holds roughly $140M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Cegedim S.A.

0DYQ.L

Medical - Equipment & Services · Healthcare

Price

10.40 GBp

-0.36 (-3.35%)

Market Cap

£142.8M

Exchange

London Stock Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 13, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Exceptional

Stability

Mixed

Valuation

Good

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Winston Score History

The full picture

Cegedim is a French technology and services company that builds software and tools for the healthcare industry. Its main products include practice management software for doctors and pharmacists, digital health platforms, and data analytics services sold to pharmaceutical companies. It has been operating in this space for over 50 years, making it one of the more established healthcare IT providers in Europe.

Cegedim earns money primarily through software subscriptions, licensing fees, and data services rather than selling physical products, which explains its very high gross margin. The company operates mainly in France but also has a presence in the United Kingdom, Romania, and other European markets, with roughly 6,000 employees. Its long-standing relationships with healthcare professionals and proprietary patient and prescription data give it some stickiness with customers, but its very thin operating margin of under 2% signals that costs are high relative to revenue, and the key risk is whether it can scale efficiently enough to meaningfully improve profitability.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-2.6% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+153.6% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (18%)

Research and development spending

Insider Activity

61.8%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$122M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Cegedim S.A.'s revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.2% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 13.8M (2021) → 13.8M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

8.8%

Thin — 8.8% gross margin

Operating Margin

6.3%

Modest — 6.3% operating margin

ROCE

3.9%

Weak — 3.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-0.8%

Shrinking sales (-0.8% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

1592%

Turns 1592% of profit into real cash

FCF Margin

19.3%

Converts sales into free cash efficiently (19.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.87

Moderate — manageable debt (0.87)

Interest Cover

1.50x

Dangerous — barely covers interest (1.5x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

0.2x

Attractive valuation — P/E 0.2

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

-6.7

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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