ASX:EHE

Stock Analysis Report

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Executive Summary

Estia Health Limited operates residential aged care homes in Australia. More Details

Rewards

Trading at 54.4% below our estimate of its fair value

Earnings are forecast to grow 72.99% per year

Risk Analysis

No risks detected for EHE from our risk checks.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EHE is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: EHE's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

11.8%

EHE

-2.3%

AU Healthcare

2.4%

AU Market


1 Year Return

-33.8%

EHE

-3.3%

AU Healthcare

-0.6%

AU Market

Return vs Industry: EHE underperformed the Australian Healthcare industry which returned -3.3% over the past year.

Return vs Market: EHE underperformed the Australian Market which returned -0.6% over the past year.


Shareholder returns

EHEIndustryMarket
7 Day11.8%-2.3%2.4%
30 Day32.5%-2.0%8.0%
90 Day16.9%1.5%8.8%
1 Year-32.0%-33.8%-1.5%-3.3%2.7%-0.6%
3 Year-45.7%-52.8%14.7%5.5%24.3%9.0%
5 Year-69.3%-76.6%19.2%2.9%56.9%25.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

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$1.8) is trading below our estimate of fair value (A$3.93)

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


Price To Earnings Ratio

PE vs Industry: EHE is unprofitable, so we can't compare its PE Ratio to the AU Healthcare industry average.

PE vs Market: EHE is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EHE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EHE is good value based on its PB Ratio (0.8x) compared to the AU Healthcare industry average (1.7x).


Next Steps

Future Growth

How is Estia Health forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

73.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EHE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: EHE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EHE's is expected to become profitable in the next 3 years.

Revenue vs Market: EHE's revenue (3% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: EHE's revenue (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 (4.7%).


Next Steps

Past Performance

How has Estia Health performed over the past 5 years?

-13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EHE is currently unprofitable.

Growing Profit Margin: EHE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EHE is unprofitable, and losses have increased over the past 5 years at a rate of 13.5% per year.

Accelerating Growth: Unable to compare EHE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EHE is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (-8.1%).


Return on Equity

High ROE: EHE has a negative Return on Equity (-19.2%), as it is currently unprofitable.


Next Steps

Financial Health

How is Estia Health's financial position?


Financial Position Analysis

Short Term Liabilities: EHE's short term assets (A$50.6M) do not cover its short term liabilities (A$960.3M).

Long Term Liabilities: EHE's short term assets (A$50.6M) do not cover its long term liabilities (A$301.3M).


Debt to Equity History and Analysis

Debt Level: EHE's debt to equity ratio (21.4%) is considered satisfactory.

Reducing Debt: EHE's debt to equity ratio has increased from 10% to 21.4% over the past 5 years.

Debt Coverage: EHE's debt is well covered by operating cash flow (96.9%).

Interest Coverage: EHE is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

4.81%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EHE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EHE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EHE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EHE's dividend payments have been 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?

2.6yrs

Average management tenure


CEO

Ian Thorley

2yrs

Tenure

AU$752,173

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 ($USD553.27K) is about average for companies of similar size in the Australian market ($USD700.86K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ian Thorley
MD, CEO & Director2yrsAU$752.17k0.053%
A$ 248.4k
Steve Lemlin
Chief Financial Officer3.75yrsAU$484.52k0.017%
A$ 78.6k
Sean Bilton
COO & Deputy CEO2.08yrsAU$551.05k0.0026%
A$ 12.1k
Fiona Caldwell
Chief Information Officer3.08yrsno datano data
Lisa Keogh
Chief People Officer0.17yrno datano data
Mark Brandon
Chief Policy & Regulatory Officer3.92yrsno datano data
Damian Hiser
Chief Customer Officer3.08yrsno datano data
Leanne Laidler
Chief Quality & Risk Officer1.5yrsno datano data
Leanne Ralph
Company Secretary1.58yrsno datano data
Mark Kennedy
Development Manager4.33yrsno data1.24%
A$ 5.8m

2.6yrs

Average Tenure

Experienced Management: EHE's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ian Thorley
MD, CEO & Director2yrsAU$752.17k0.053%
A$ 248.4k
Paul Foster
Independent Non-Executive Director4.75yrsAU$135.00k0.0092%
A$ 43.2k
Gary Hilton Weiss
Independent Non-Executive Chairman3.92yrsAU$280.00k0.030%
A$ 141.0k
Norah Barlow
Independent Non-Executive Director6yrsno data0.050%
A$ 233.0k
Helen Kurincic
Independent Non-Executive Director3.33yrsAU$125.00k0.019%
A$ 90.0k
Warwick Smith
Independent Non-Executive Director3.5yrsAU$125.00k0.070%
A$ 327.6k
Karen Lee Penrose
Independent Non-Executive Director2.08yrsAU$125.00k0.012%
A$ 58.2k

3.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: EHE's board of directors are considered experienced (3.5 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 company bio, 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$470.331m
  • Shares outstanding: 261.29m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EHEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2014
EHECHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2014
26EDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2014

Biography

Estia Health Limited operates residential aged care homes in Australia. As of June 30, 2020, it had 69 homes, which include 6,182 resident places in New South Wales, Queensland, South Australia, and Victor...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 07:03
End of Day Share Price2020/11/26 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.