ASX:EHE

Stock Analysis Report

Executive Summary

Estia Health Limited operates residential aged care homes in Australia.

Snowflake

Fundamentals

Good value with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

EHE

1.7%

AU Healthcare

0.4%

AU Market


1 Year Return

29.6%

EHE

17.9%

AU Healthcare

9.8%

AU Market

Return vs Industry: EHE exceeded the Australian Healthcare industry which returned 17.9% over the past year.

Return vs Market: EHE exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

EHEIndustryMarket
7 Day3.8%1.7%0.4%
30 Day4.9%3.6%-1.3%
90 Day5.7%1.0%-0.5%
1 Year38.2%29.6%21.6%17.9%16.1%9.8%
3 Year24.7%3.8%7.1%-2.8%36.1%17.9%
5 Yearn/a43.2%23.1%49.4%15.7%

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?

7.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EHE (A$2.76) is trading below our estimate of fair value (A$2.98)

Significantly Below Fair Value: EHE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EHE is good value based on its PE Ratio (17.4x) compared to the Healthcare industry average (19.2x).

PE vs Market: EHE is good value based on its PE Ratio (17.4x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: EHE is poor value based on its PEG Ratio (16.1x)


Price to Book Ratio

PB vs Industry: EHE is good value based on its PB Ratio (0.9x) compared to the AU Healthcare industry average (1.5x).


Next Steps

Future Growth

How is Estia Health forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EHE's forecast earnings growth (1.1% per year) is below the savings rate (2.3%).

Earnings vs Market: EHE's earnings (1.1% per year) are forecast to grow slower than the Australian market (10.3% per year).

High Growth Earnings: EHE's earnings are forecast to grow, but not significantly.

Revenue vs Market: EHE's revenue (4.4% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: EHE's revenue (4.4% 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 (5.6%).


Next Steps

Past Performance

How has Estia Health performed over the past 5 years?

48.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EHE has become profitable over the past 5 years, growing earnings by 48.2% per year.

Accelerating Growth: EHE's earnings growth over the past year (0.3%) is below its 5-year average (48.2% per year).

Earnings vs Industry: EHE earnings growth over the past year (0.3%) exceeded the Healthcare industry -1.7%.


Return on Equity

High ROE: EHE's Return on Equity (5.4%) is considered low.


Return on Assets

ROA vs Industry: EHE's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: EHE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Estia Health's financial position?


Financial Position Analysis

Short Term Liabilities: EHE's short term assets (A$30.8M) do not cover its short term liabilities (A$896.0M)

Long Term Liabilities: EHE's short term assets (30.8M) do not cover its long term liabilities (237.3M)


Debt to Equity History and Analysis

Debt Level: EHE's debt to equity ratio (16.6%) is considered satisfactory

Reducing Debt: EHE's debt to equity ratio has reduced from 195.1% to 16.6% over the past 5 years.

Debt Coverage: EHE's debt is well covered by operating cash flow (69.6%).

Interest Coverage: EHE's interest payments on its debt are well covered by EBIT (13.5x coverage).


Balance Sheet

Inventory Level: EHE has a high level of physical assets or inventory.

Debt Coverage by Assets: EHE's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

5.72%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%2.4%markettop25%5.6%industryaverage2.9%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EHE's dividend (5.72%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: EHE's dividend (5.72%) is in the top 25% of dividend payers in the Australian market (5.59%)

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

Growing Dividend: EHE's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.7%), EHE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EHE's dividends in 3 years are not forecast to be well covered by earnings (90.1% payout ratio).


Next Steps

Management

What is the CEO of Estia Health's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Ian Thorley 0

0.9yrs

Tenure

AU$778,119

Compensation

Mr. Ian Thorley is Chief Executive Officer and Managing Director at Estia Health Limited since November 23, 2018. Mr. Thorley was the Chief Operating Officer of Estia Health Limited since October 24, 2016  ...


CEO Compensation Analysis

Compensation vs. Market: Ian has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

Compensation vs Earnings: Ian's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.0yrs

Average Tenure

Experienced Management: EHE's management team is considered experienced (2 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: EHE's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellAU$5,884,83503 Oct 19
The Vanguard Group, Inc.
EntityCompany
Shares2,079,927
Max PriceAU$2.83
BuyAU$3,208,51803 Oct 19
The Vanguard Group, Inc.
EntityCompany
Shares1,123,739
Max PriceAU$2.94
BuyAU$4,444,23702 Oct 19
Norges Bank Investment Management
EntityCompany
Shares1,665,308
Max PriceAU$2.67
BuyAU$4,482,37129 Sep 19
Norges Bank Investment Management
EntityCompany
Shares1,665,308
Max PriceAU$2.69
SellAU$7,492,62326 Aug 19
Perpetual Limited
EntityCompany
Shares2,691,060
Max PriceAU$2.80
BuyAU$100,51216 Aug 19
Warwick Smith
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares45,000
Max PriceAU$2.23
BuyAU$10,772,31028 Jun 19
Perpetual Limited
EntityCompany
Shares4,034,821
Max PriceAU$2.67
SellAU$3,729,32928 Jun 19
Perpetual Limited
EntityCompany
Shares1,385,265
Max PriceAU$2.69
SellAU$2,715,57812 Jun 19
Vinva Investment Management
EntityCompany
Shares1,027,076
Max PriceAU$2.64
BuyAU$1,618,09212 Jun 19
Vinva Investment Management
EntityCompany
Shares724,968
Max PriceAU$2.23
SellAU$247,40426 May 19
The Vanguard Group, Inc.
EntityCompany
Shares105,812
Max PriceAU$2.36
BuyAU$191,20726 May 19
The Vanguard Group, Inc.
EntityCompany
Shares320,519
Max PriceAU$2.89
SellAU$626,16322 Apr 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares268,723
Max PriceAU$2.37
BuyAU$24,26022 Apr 19
Allianz Various Insurance Products Trust - AZL DFA International Core Equity Fund
EntityCompany
Shares9,829
Max PriceAU$2.47
BuyAU$4,093,17822 Apr 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares1,680,280
Max PriceAU$2.85
BuyAU$16,17008 Apr 19
Karen Lee Penrose
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,000
Max PriceAU$2.70
BuyAU$121,00018 Mar 19
Ian Thorley
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares50,000
Max PriceAU$2.42
SellAU$17,872,60506 Mar 19
Perpetual Limited
EntityCompany
Shares7,573,139
Max PriceAU$2.36
BuyAU$19,95805 Mar 19
Karen Lee Penrose
EntityIndividual
Role
Member of the Board of Directors
Director
Shares8,333
Max PriceAU$2.39
BuyAU$6,119,80601 Mar 19
Perpetual Limited
EntityCompany
Shares2,705,893
Max PriceAU$2.26
SellAU$229,13907 Dec 18
Vinva Investment Management
EntityCompany
Shares100,113
Max PriceAU$2.29
BuyAU$1,203,90607 Dec 18
Vinva Investment Management
EntityCompany
Shares524,037
Max PriceAU$2.30

Ownership Breakdown


Management Team

  • Leanne Ralph

    Company Secretary

    • Tenure: 0.5yrs
  • Damian Hiser

    Chief Customer Officer

    • Tenure: 2yrs
  • Ian Thorley

    MD, CEO & Director

    • Tenure: 0.9yrs
    • Compensation: AU$778.12k
  • Sean Bilton

    COO & Deputy CEO

    • Tenure: 1yrs
    • Compensation: AU$760.06k
  • Mark Brandon

    Chief Policy & Regulatory Officer

    • Tenure: 2.8yrs
  • Suzy Watson

    General Counsel

    • Tenure: 4.8yrs
  • Steve Lemlin

    Chief Financial Officer

    • Tenure: 2.7yrs
    • Compensation: AU$540.13k
  • Jane Murray

    Chief People Officer

    • Tenure: 2.3yrs
  • Fiona Caldwell

    Chief Information Officer

    • Tenure: 2yrs
  • Leanne Laidler

    Chief Quality & Risk Officer

    • Tenure: 0.4yrs

Board Members

  • Paul Foster (50yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: AU$135.00k
  • Gary Weiss (66yo)

    Non-Executive Chairman

    • Tenure: 3.8yrs
    • Compensation: AU$280.00k
  • Norah Barlow (62yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: AU$1.16m
  • Helen Kurincic

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$125.00k
  • Warwick Smith

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: AU$125.00k
  • Karen Lee Penrose (59yo)

    Director

    • Tenure: 1yrs
    • Compensation: AU$87.16k
  • Ian Thorley

    MD, CEO & Director

    • Tenure: 0.9yrs
    • Compensation: AU$778.12k

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$725.829m
  • Shares outstanding: 261.09m
  • 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. It has 69 homes that comprise 6,180 operating bed licenses in Victoria, South Australia, New South Wales, and Queensland. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:40
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.