ASX:CAJ

Stock Analysis Report

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Executive Summary

Capitol Health Limited provides diagnostic imaging and related services to the healthcare market in Australia. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Capitol Health's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CAJ is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CAJ's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.7%

CAJ

-0.2%

AU Healthcare

2.0%

AU Market


1 Year Return

19.1%

CAJ

0.2%

AU Healthcare

-1.2%

AU Market

Return vs Industry: CAJ exceeded the Australian Healthcare industry which returned 0.2% over the past year.

Return vs Market: CAJ exceeded the Australian Market which returned -1.2% over the past year.


Shareholder returns

CAJIndustryMarket
7 Day3.7%-0.2%2.0%
30 Day9.8%-0.5%5.5%
90 Day24.4%1.2%6.8%
1 Year23.7%19.1%2.1%0.2%2.2%-1.2%
3 Year2.8%-8.2%19.6%10.1%22.4%7.1%
5 Year2.8%-8.2%22.8%6.0%53.9%23.2%

Long-Term Price Volatility Vs. Market

How volatile is Capitol Health's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Capitol Health undervalued compared to its fair value and its price relative to the market?

263.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CAJ (A$0.28) is trading above our estimate of fair value (A$0.17)

Significantly Below Fair Value: CAJ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CAJ is poor value based on its PE Ratio (263.4x) compared to the AU Healthcare industry average (30.5x).

PE vs Market: CAJ is poor value based on its PE Ratio (263.4x) compared to the Australian market (22.4x).


Price to Earnings Growth Ratio

PEG Ratio: CAJ is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: CAJ is overvalued based on its PB Ratio (2x) compared to the AU Healthcare industry average (1.8x).


Next Steps

Future Growth

How is Capitol Health forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

46.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAJ's forecast earnings growth (46% per year) is above the savings rate (2.3%).

Earnings vs Market: CAJ's earnings (46% per year) are forecast to grow faster than the Australian market (17.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CAJ's revenue (9% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: CAJ's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CAJ's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Capitol Health performed over the past 5 years?

34.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAJ has a large one-off loss of A$10.5M impacting its June 30 2020 financial results.

Growing Profit Margin: CAJ's current net profit margins (0.6%) are lower than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: CAJ's earnings have grown significantly by 34.6% per year over the past 5 years.

Accelerating Growth: CAJ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CAJ had negative earnings growth (-96.4%) over the past year, making it difficult to compare to the Healthcare industry average (-8.1%).


Return on Equity

High ROE: CAJ's Return on Equity (0.8%) is considered low.


Next Steps

  • Explore strong past performing companies in the Healthcare industry.

Financial Health

How is Capitol Health's financial position?


Financial Position Analysis

Short Term Liabilities: CAJ's short term assets (A$20.3M) do not cover its short term liabilities (A$40.2M).

Long Term Liabilities: CAJ's short term assets (A$20.3M) do not cover its long term liabilities (A$78.1M).


Debt to Equity History and Analysis

Debt Level: CAJ's debt to equity ratio (11.8%) is considered satisfactory.

Reducing Debt: CAJ's debt to equity ratio has reduced from 72.1% to 11.8% over the past 5 years.

Debt Coverage: CAJ's debt is well covered by operating cash flow (205.9%).

Interest Coverage: CAJ's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Capitol Health current dividend yield, its reliability and sustainability?

3.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CAJ's dividend (3.57%) is higher than the bottom 25% of dividend payers in the Australian market (2.14%).

High Dividend: CAJ's dividend (3.57%) is low compared to the top 25% of dividend payers in the Australian market (5.1%).


Stability and Growth of Payments

Stable Dividend: CAJ has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CAJ's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (940.7%), CAJ's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CAJ's dividends in 3 years are forecast to be covered by earnings (63% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average board tenure


CEO

Justin Walter

1.33yrs

Tenure

AU$1,281,983

Compensation

Mr. Justin Samuel Walter, MPH (JCU) has been the Chief Executive Officer, Managing Director and a Director at Capitol Health Limited since July 1, 2019 and was its Chief Operating Officer since 2019 until ...


CEO Compensation Analysis

Compensation vs Market: Justin's total compensation ($USD937.81K) is above average for companies of similar size in the Australian market ($USD529.04K).

Compensation vs Earnings: Justin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Justin Walter
CEO, MD & Director1.33yrsAU$1.28mno data
Andrew Demetriou
Non-Executive Chairman6yrsAU$238.75k0.020%
A$ 56.0k
Nicole Sheffield
Non-Executive Director4.92yrsAU$91.61kno data
Richard Loveridge
Independent Non-Executive Director3.17yrsAU$102.69k0.064%
A$ 183.8k

4.0yrs

Average Tenure

Experienced Board: CAJ's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 33.4%.


Top Shareholders

Company Information

Capitol Health Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Capitol Health Limited
  • Ticker: CAJ
  • Exchange: ASX
  • Founded: 2005
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: AU$287.028m
  • Shares outstanding: 1.03b
  • Website: https://www.capitolhealth.com.au

Location

  • Capitol Health Limited
  • 288 Victoria Parade
  • Level 2
  • East Melbourne
  • Victoria
  • 3002
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAJASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2006
CAJCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2006
D4IDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2006

Biography

Capitol Health Limited provides diagnostic imaging and related services to the healthcare market in Australia. The company owns and operates clinics in Victoria, Tasmania, and Western Australia. It offers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 10:39
End of Day Share Price2020/11/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.