EHE

Estia HealthASX:EHE Stock Report

Market Cap

AU$651.0m

7D

7.8%

1Y

76.6%

Updated

18 Sep, 2021

Data

Company Financials +
EHE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance1/6
Financial Health3/6
Dividends0/6

EHE Overview

Estia Health Limited provides services in residential aged care homes in Australia.

Estia Health Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Estia Health
Historical stock prices
Current Share PriceAU$2.49
52 Week HighAU$1.28
52 Week LowAU$2.75
Beta1.42
1 Month Change8.73%
3 Month Change0%
1 Year Change76.60%
3 Year Change3.32%
5 Year Change-29.06%
Change since IPO-47.47%

Recent News & Updates

Apr 13
Estia Health (ASX:EHE) Use Of Debt Could Be Considered Risky

Estia Health (ASX:EHE) Use Of Debt Could Be Considered Risky

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Mar 08
Has Estia Health (ASX:EHE) Got What It Takes To Become A Multi-Bagger?

Has Estia Health (ASX:EHE) Got What It Takes To Become A Multi-Bagger?

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

EHEAU HealthcareAU Market
7D7.8%1.9%-0.02%
1Y76.6%23.6%27.0%

Return vs Industry: EHE exceeded the Australian Healthcare industry which returned 23.6% over the past year.

Return vs Market: EHE exceeded the Australian Market which returned 27% over the past year.

Price Volatility

Is EHE's price volatile compared to industry and market?
EHE volatility
EHE Beta1.42
Industry Beta0.58
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
20057,500Ian Thorleyhttps://www.estiahealth.com.au

Estia Health Limited provides services in residential aged care homes in Australia. The company operates residential aged care homes. As of June 30, 2021, it had 69 homes of which 62 are freehold sites that include 6,289 operational bed licenses in New South Wales, Queensland, South Australia, and Victoria.

Estia Health Fundamentals Summary

How do Estia Health's earnings and revenue compare to its market cap?
EHE fundamental statistics
Market CapAU$650.99m
Earnings (TTM)AU$6.00m
Revenue (TTM)AU$646.31m

108.5x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EHE income statement (TTM)
RevenueAU$646.31m
Cost of RevenueAU$505.16m
Gross ProfitAU$141.15m
ExpensesAU$135.15m
EarningsAU$6.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.023
Gross Margin21.84%
Net Profit Margin0.93%
Debt/Equity Ratio18.6%

How did EHE perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

100%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EHE (A$2.49) is trading below our estimate of fair value (A$19.49)

Significantly Below Fair Value: EHE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EHE is poor value based on its PE Ratio (108.5x) compared to the Australian Healthcare industry average (26.5x).

PE vs Market: EHE is poor value based on its PE Ratio (108.5x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: EHE is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: EHE is good value based on its PB Ratio (1.1x) compared to the AU Healthcare industry average (2.4x).


Future Growth

How is Estia Health forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

39.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EHE's forecast earnings growth (39.8% per year) is above the savings rate (1.9%).

Earnings vs Market: EHE's earnings (39.8% per year) are forecast to grow faster than the Australian market (11.5% per year).

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

Revenue vs Market: EHE's revenue (3.3% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: EHE's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EHE's Return on Equity is forecast to be low in 3 years time (5.2%).


Past Performance

How has Estia Health performed over the past 5 years?

-50.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EHE has a large one-off loss of A$5.5M impacting its June 30 2021 financial results.

Growing Profit Margin: EHE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: EHE's earnings have declined by 50.8% per year over the past 5 years.

Accelerating Growth: EHE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EHE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (61.3%).


Return on Equity

High ROE: EHE's Return on Equity (1%) is considered low.


Financial Health

How is Estia Health's financial position?


Financial Position Analysis

Short Term Liabilities: EHE's short term assets (A$52.0M) do not cover its short term liabilities (A$968.8M).

Long Term Liabilities: EHE's short term assets (A$52.0M) do not cover its long term liabilities (A$281.9M).


Debt to Equity History and Analysis

Debt Level: EHE's debt to equity ratio (18.6%) is considered satisfactory.

Reducing Debt: EHE's debt to equity ratio has reduced from 42.9% to 18.6% over the past 5 years.

Debt Coverage: EHE's debt is well covered by operating cash flow (49.3%).

Interest Coverage: EHE's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Dividend

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

0.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EHE's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: EHE's dividend (0.92%) is low compared to the top 25% of dividend payers in the Australian market (5.41%).


Stability and Growth of Payments

Stable Dividend: EHE is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: EHE is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: EHE is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EHE's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Ian Thorley

2.83yrs

Tenure

AU$917,618

Compensation

Mr. Ian Thorley is Chief Executive Officer and Managing Director at Estia Health Limited since November 23, 2018. He joined Estia Health in October 2016. Mr. Thorley was the Chief Operating Officer of Esti...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD667.36K) is about average for companies of similar size in the Australian market ($USD722.58K).

Compensation vs Earnings: Ian's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EHE's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: EHE's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EHE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Estia Health Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Estia Health Limited
  • Ticker: EHE
  • Exchange: ASX
  • Founded: 2005
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: AU$650.990m
  • Shares outstanding: 261.44m
  • Website: https://www.estiahealth.com.au

Number of Employees


Location

  • Estia Health Limited
  • 227 Elizabeth Street
  • Level 9
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 08:04
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.