CompuGroup Medical SE & Co. KGaA

0MSD.L

Software - Infrastructure · Technology

Price

41.50 GBp

+0.39 (+0.95%)

Market Cap

£1.17B

Exchange

London Stock Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 10, 2026 · filings through Dec 31, 2023

Share count rising — dilution

+6.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 49.4M (2019) → 52.5M (2023)

CompuGroup Medical (CGM) makes software for doctors, dentists, pharmacies, and hospitals. Its tools help healthcare workers manage patient records, schedule appointments, handle billing, and share medical information digitally. The company is one of the largest dedicated healthcare IT software providers in Europe.

CGM earns most of its revenue through software licenses, subscriptions, and maintenance contracts paid by healthcare practices and institutions. It operates primarily in Germany and across Europe, with additional presence in the United States and other markets, and generates roughly €1 billion in annual revenue. Its large installed base of long-term customers creates switching costs that make it difficult for rivals to take market share. The key growth driver is the ongoing push by governments across Europe to digitize healthcare records and connect medical providers through electronic health networks, though slow regulatory rollouts and rising competition from larger technology companies remain meaningful risks to its expansion.

Winston Score History

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

-5.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-215.4% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$27M/ year

↑ Rising (+110% vs prior year)

2.2% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

100.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$97M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

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

Revenue declining

CompuGroup Medical SE & Co. KGaA'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.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

27.2%

Modest — 27.2% gross margin

Operating Margin

2.1%

Thin — 2.1% operating margin

ROCE

0.5%

Weak — 0.5% 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

+4.5%

Slow sales growth (+4.5% YoY)

EPS YoY

-36.4%

Earnings shrinking (-36.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

391%

Turns 391% of profit into real cash

FCF Margin

13.1%

Converts sales into free cash efficiently (13.1%)

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

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Stability

Debt / Equity

1.12

Elevated debt (1.12)

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

0.5x

Attractive valuation — P/E 0.5

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

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend Yield

0.22%

Small dividend — 0.22% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+2.5%

Dividend flat

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