ASX:JHC

Stock Analysis Report

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Executive Summary

Japara Healthcare Limited, together with its subsidiaries, owns, develops, and operates residential aged care homes in Australia.


Snowflake Analysis

Undervalued with limited growth.

Share Price & News

How has Japara Healthcare's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JHC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.8%

JHC

3.5%

AU Healthcare

2.9%

AU Market


1 Year Return

-59.9%

JHC

-5.2%

AU Healthcare

-13.6%

AU Market

Return vs Industry: JHC underperformed the Australian Healthcare industry which returned -5.2% over the past year.

Return vs Market: JHC underperformed the Australian Market which returned -13.6% over the past year.


Shareholder returns

JHCIndustryMarket
7 Day1.8%3.5%2.9%
30 Day12.1%10.1%8.3%
90 Day-39.0%-12.2%-18.0%
1 Year-56.8%-59.9%-2.4%-5.2%-10.0%-13.6%
3 Year-68.6%-73.7%4.6%-4.9%9.8%-4.7%
5 Year-72.9%-79.4%7.7%-7.9%20.7%-5.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Japara Healthcare 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: JHC (A$0.56) is trading below our estimate of fair value (A$14.95)

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


Price To Earnings Ratio

PE vs Industry: JHC is good value based on its PE Ratio (10.4x) compared to the Healthcare industry average (12.6x).

PE vs Market: JHC is good value based on its PE Ratio (10.4x) compared to the Australian market (14.8x).


Price to Earnings Growth Ratio

PEG Ratio: JHC is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: JHC is good value based on its PB Ratio (0.3x) compared to the AU Healthcare industry average (1.4x).


Next Steps

Future Growth

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

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JHC's forecast earnings growth (6.8% per year) is above the savings rate (2.3%).

Earnings vs Market: JHC's earnings (6.8% per year) are forecast to grow slower than the Australian market (14.4% per year).

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

Revenue vs Market: JHC's revenue (8% per year) is forecast to grow faster than the Australian market (4.3% per year).

High Growth Revenue: JHC's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JHC's Return on Equity is forecast to be low in 3 years time (1.7%).


Next Steps

Past Performance

How has Japara Healthcare performed over the past 5 years?

-14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JHC has a large one-off gain of A$10.0M impacting its December 31 2019 financial results.

Growing Profit Margin: JHC's current net profit margins (3.5%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: JHC's earnings have declined by -14.3% per year over the past 5 years.

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

Earnings vs Industry: JHC had negative earnings growth (-30.6%) over the past year, making it difficult to compare to the Healthcare industry average (4.3%).


Return on Equity

High ROE: JHC's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is Japara Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: JHC's short term assets (A$81.3M) do not cover its short term liabilities (A$699.0M).

Long Term Liabilities: JHC's short term assets (A$81.3M) do not cover its long term liabilities (A$251.8M).


Debt to Equity History and Analysis

Debt Level: JHC's debt to equity ratio (45.2%) is considered high.

Reducing Debt: JHC's debt to equity ratio has increased from 1.5% to 45.2% over the past 5 years.

Debt Coverage: JHC's debt is not well covered by operating cash flow (14.4%).

Interest Coverage: JHC's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Japara Healthcare's current dividend yield, its reliability and sustainability?

9.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JHC's dividend (9.64%) is higher than the bottom 25% of dividend payers in the Australian market (2.67%).

High Dividend: JHC's dividend (9.64%) is in the top 25% of dividend payers in the Australian market (6.98%)


Stability and Growth of Payments

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

Growing Dividend: JHC has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (100%), JHC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JHC's dividends in 3 years are not forecast to be well covered by earnings (155.9% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Chris Price (54yo)

0.17

Tenure

AU$590,000

Compensation

Mr. Christopher Murray Price, also known as Chris, B. Bus, CA, serves as Secretary at Japara Holdings Pty Ltd. Mr. Price had been the Chief Financial Officer of Japara Healthcare Limited since June 22, 201 ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD386.20K) is above average for companies of similar size in the Australian market ($USD250.79K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Price
CEO, MD & Director0.17yrAU$590.00kno data
Anthony Rice
CFO & Chief Investment Officer0.17yrno datano data
Valeria Camara
Chief HR Officer1.33yrsno datano data
Bruce Paterson
Company Secretary4.42yrsno datano data

0.8yrs

Average Tenure

Experienced Management: JHC's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Price
CEO, MD & Director0.17yrAU$590.00kno data
David Blight
Non Executive Director6.17yrsAU$125.00k0.034% A$50.0k
Richard Anthony England
Independent Non-Executive Director6.17yrsAU$125.00k0.028% A$41.2k
Linda Nicholls
Non-Executive Chairmanno dataAU$250.00k0.087% A$128.8k
Leanne Rowe
Independent Non-Executive Director0.83yrno data0.043% A$63.3k
JoAnne Stephenson
Independent Non-Executive Director4.67yrsAU$125.00k0.020% A$29.8k

4.7yrs

Average Tenure

62yo

Average Age

Experienced Board: JHC's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: JHC 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

Japara Healthcare Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Japara Healthcare Limited
  • Ticker: JHC
  • Exchange: ASX
  • Founded: 2005
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: AU$148.322m
  • Shares outstanding: 267.25m
  • Website: https://japara.com.au

Number of Employees


Location

  • Japara Healthcare Limited
  • Q1 Building
  • Level 4
  • Southbank
  • Victoria
  • 3006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JHCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2014
JHCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2014
7JHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2014

Biography

Japara Healthcare Limited, together with its subsidiaries, owns, develops, and operates residential aged care homes in Australia. It operates approximately 5,750 resident places across 50 homes located in Victoria, New South Wales, Queensland, South Australia, and Tasmania; and 180 independent living units across 5 retirement villages. The company was founded in 2005 and is based in Southbank, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 14:30
End of Day Share Price2020/05/26 00:00
Earnings2019/12/31
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.