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Japara Healthcare

ASX:JHC
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
JHC
ASX
A$351M
Market Cap
  1. Home
  2. AU
  3. Healthcare
Company description

Japara Healthcare Limited, together with its subsidiaries, owns, develops, and operates residential aged care facilities in Australia. The last earnings update was 111 days ago. More info.


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JHC Share Price and Events
7 Day Returns
5.6%
ASX:JHC
1.6%
AU Healthcare
1.5%
AU Market
1 Year Returns
-27.3%
ASX:JHC
7.8%
AU Healthcare
5.1%
AU Market
JHC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Japara Healthcare (JHC) 5.6% -6.7% -6.1% -27.3% -47% -50.4%
AU Healthcare 1.6% 4.8% 8.5% 7.8% -1.3% 36.8%
AU Market 1.5% 4% 5.5% 5.1% 24.8% 12%
1 Year Return vs Industry and Market
  • JHC underperformed the Healthcare industry which returned 7.8% over the past year.
  • JHC underperformed the Market in Australia which returned 5.1% over the past year.
Price Volatility
JHC
Industry
5yr Volatility vs Market

JHC Value

 Is Japara Healthcare undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Japara Healthcare to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Japara Healthcare.

ASX:JHC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:JHC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.638 (1 + (1- 30%) (50.51%))
0.908
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.908 * 5.96%)
7.73%

Discounted Cash Flow Calculation for ASX:JHC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Japara Healthcare is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:JHC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.73%)
2019 24.31 Analyst x1 22.56
2020 -21.56 Analyst x1 -18.58
2021 19.61 Analyst x1 15.69
2022 151.69 Analyst x1 112.64
2023 235.48 Est @ 55.23% 162.31
2024 328.15 Est @ 39.36% 209.96
2025 420.84 Est @ 28.24% 249.95
2026 506.96 Est @ 20.46% 279.51
2027 583.09 Est @ 15.02% 298.43
2028 648.44 Est @ 11.21% 308.07
Present value of next 10 years cash flows A$1,640.55
ASX:JHC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$648.44 × (1 + 2.31%) ÷ (7.73% – 2.31%)
A$12,253.24
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$12,253.24 ÷ (1 + 7.73%)10
A$5,821.47
ASX:JHC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$1,640.55 + A$5,821.47
A$7,462.01
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$7,462.01 / 267.25
A$27.92
ASX:JHC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$27.92
Current discount Discount to share price of A$1.32
= -1 x (A$1.32 - A$27.92) / A$27.92
95.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Japara Healthcare is available for.
Intrinsic value
>50%
Share price is A$1.32 vs Future cash flow value of A$27.92
Current Discount Checks
For Japara Healthcare to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Japara Healthcare's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Japara Healthcare's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Japara Healthcare's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Japara Healthcare's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:JHC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.08
ASX:JHC Share Price ** ASX (2019-06-14) in AUD A$1.32
Australia Healthcare Industry PE Ratio Median Figure of 24 Publicly-Listed Healthcare Companies 16.97x
Australia Market PE Ratio Median Figure of 545 Publicly-Listed Companies 16.04x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Japara Healthcare.

ASX:JHC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:JHC Share Price ÷ EPS (both in AUD)

= 1.32 ÷ 0.08

17.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Japara Healthcare is overvalued based on earnings compared to the AU Healthcare industry average.
  • Japara Healthcare is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Japara Healthcare's expected growth come at a high price?
Raw Data
ASX:JHC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
12.2%per year
Australia Healthcare Industry PEG Ratio Median Figure of 18 Publicly-Listed Healthcare Companies 1.91x
Australia Market PEG Ratio Median Figure of 357 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

ASX:JHC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.16x ÷ 12.2%

1.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Japara Healthcare is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Japara Healthcare's assets?
Raw Data
ASX:JHC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.98
ASX:JHC Share Price * ASX (2019-06-14) in AUD A$1.32
Australia Healthcare Industry PB Ratio Median Figure of 29 Publicly-Listed Healthcare Companies 1.57x
Australia Market PB Ratio Median Figure of 1,687 Publicly-Listed Companies 1.65x
ASX:JHC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:JHC Share Price ÷ Book Value per Share (both in AUD)

= 1.32 ÷ 1.98

0.67x

* Primary Listing of Japara Healthcare.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Japara Healthcare is good value based on assets compared to the AU Healthcare industry average.
X
Value checks
We assess Japara Healthcare's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Japara Healthcare has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

JHC Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Japara Healthcare expected to grow at an attractive rate?
  • Japara Healthcare's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Japara Healthcare's earnings growth is expected to exceed the Australia market average.
  • Japara Healthcare's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:JHC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:JHC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 12.2%
ASX:JHC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 10%
Australia Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 10.6%
Australia Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 6.4%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.1%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:JHC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:JHC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 547 29 1
2021-06-30 475 47 24 4
2020-06-30 430 43 21 5
2019-06-30 395 28 18 4
ASX:JHC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 374 31 21
2018-09-30 368 33 22
2018-06-30 362 35 23
2018-03-31 360 32 24
2017-12-31 358 29 25
2017-09-30 356 31 28
2017-06-30 354 32 30
2017-03-31 351 35 29
2016-12-31 348 38 29
2016-09-30 337 37 30
2016-06-30 325 37 30
2016-03-31 311 38 30

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Japara Healthcare's earnings are expected to grow by 12.2% yearly, however this is not considered high growth (20% yearly).
  • Japara Healthcare's revenue is expected to grow by 10% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:JHC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Japara Healthcare Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:JHC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.11 0.11 0.11 1.00
2021-06-30 0.09 0.11 0.08 5.00
2020-06-30 0.08 0.09 0.07 5.00
2019-06-30 0.07 0.07 0.06 5.00
ASX:JHC Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.08
2018-09-30 0.08
2018-06-30 0.09
2018-03-31 0.09
2017-12-31 0.10
2017-09-30 0.10
2017-06-30 0.11
2017-03-31 0.11
2016-12-31 0.11
2016-09-30 0.11
2016-06-30 0.12
2016-03-31 0.11

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Japara Healthcare is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Japara Healthcare's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Japara Healthcare has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

JHC Past Performance

  How has Japara Healthcare performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Japara Healthcare's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Japara Healthcare's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Japara Healthcare's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Japara Healthcare's 1-year earnings growth is negative, it can't be compared to the AU Healthcare industry average.
Earnings and Revenue History
Japara Healthcare's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Japara Healthcare Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:JHC Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 374.26 20.60 35.15
2018-09-30 367.89 21.96 33.42
2018-06-30 361.52 23.33 31.69
2018-03-31 359.51 24.34 29.88
2017-12-31 357.50 25.36 28.07
2017-09-30 355.75 27.54 27.80
2017-06-30 354.00 29.71 27.52
2017-03-31 351.17 29.25 27.27
2016-12-31 348.33 28.80 27.02
2016-09-30 336.80 29.59 25.84
2016-06-30 325.28 30.38 24.65
2016-03-31 310.96 29.81 23.50
2015-12-31 296.64 29.24 22.34
2015-09-30 287.45 29.04 21.52
2015-06-30 278.26 28.84 20.70
2014-06-30 193.51 -11.75 14.63

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Japara Healthcare has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Japara Healthcare used its assets less efficiently than the AU Healthcare industry average last year based on Return on Assets.
  • Japara Healthcare's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Japara Healthcare's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Japara Healthcare has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

JHC Health

 How is Japara Healthcare's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Japara Healthcare's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Japara Healthcare's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Japara Healthcare's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Japara Healthcare's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Japara Healthcare Company Filings, last reported 5 months ago.

ASX:JHC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 532.94 177.50 45.65
2018-09-30 532.94 177.50 45.65
2018-06-30 533.78 145.50 29.16
2018-03-31 533.78 145.50 29.16
2017-12-31 531.12 86.00 61.62
2017-09-30 531.12 86.00 61.62
2017-06-30 535.71 61.00 41.38
2017-03-31 535.71 61.00 41.38
2016-12-31 534.43 71.00 63.23
2016-09-30 534.43 71.00 63.23
2016-06-30 532.31 59.50 24.57
2016-03-31 532.31 59.50 24.57
2015-12-31 532.51 46.80 45.81
2015-09-30 532.51 46.80 45.81
2015-06-30 530.04 0.00 53.88
2014-06-30 513.99 15.82 28.11
  • Japara Healthcare's level of debt (33.3%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Japara Healthcare's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (17.4%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).
X
Financial health checks
We assess Japara Healthcare's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Japara Healthcare has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

JHC Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.26%
Current annual income from Japara Healthcare dividends. Estimated to be 5.65% next year.
If you bought A$2,000 of Japara Healthcare shares you are expected to receive A$85 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Japara Healthcare's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.68%).
  • Japara Healthcare's dividend is below the markets top 25% of dividend payers in Australia (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:JHC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Australia Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 2.9%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.7%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:JHC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.11 1.00
2021-06-30 0.08 5.00
2020-06-30 0.07 5.00
2019-06-30 0.06 5.00
ASX:JHC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-25 0.056 3.974
2018-08-27 0.078 6.173
2018-02-26 0.098 5.165
2017-08-28 0.113 5.811
2017-02-27 0.113 5.540
2016-08-22 0.115 5.644
2016-02-16 0.115 4.199
2015-08-24 0.110 3.700
2015-02-26 0.110 4.109

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Japara Healthcare has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Japara Healthcare has only been paying a dividend for 4 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Japara Healthcare's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.8x coverage).
X
Income/ dividend checks
We assess Japara Healthcare's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Japara Healthcare afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Japara Healthcare has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

JHC Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Sudholz
COMPENSATION A$1,012,000
CEO Bio

Mr. Andrew Sudholz, also known as Mark, FPI, MAICD, serves as the Chief Executive Officer and Executive Director of JAPARA Holdings Pty Ltd. Mr. Sudholz serves as the Chief Executive Officer and Managing Director of Japara Healthcare Limited and has been its Executive Director since March 19, 2014. He served as Managing Partner of Ernst & Young LLP. He has experience in the real estate, healthcare and professional services industries. Prior to joining Japara, he was a Global Partner of Arthur Andersen Group, a national partner of Ernst & Young Real Estate Advisory Services Group and the state general manager of the Triden Corporation. He is a National Board Member of the Property Council of Australia and is a Member of the Australian Institute of Company Directors. Mr. Sudholz holds an Associate Diploma of Valuations from the Royal Melbourne Institution of Technology. He holds FPI & MAICD. He was president of the Victorian division.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mark's remuneration is higher than average for companies of similar size in Australia.
Management Team

Mark Sudholz

TITLE
MD, CEO & Executive Director
COMPENSATION
A$1M

Chris Price

TITLE
CFO & Company Secretary
COMPENSATION
A$546K
AGE
53
TENURE
4 yrs

Ashley van Winkel

TITLE
Group Executive of People & Infrastructure
COMPENSATION
A$70K

Wendy Waddell

TITLE
Group Executive of Care & Commercial

Bruce Paterson

TITLE
Company Secretary
TENURE
3.5 yrs
Board of Directors Tenure

Average tenure and age of the Japara Healthcare board of directors in years:

5.3
Average Tenure
68
Average Age
  • The tenure for the Japara Healthcare board of directors is about average.
Board of Directors

Linda Nicholls

TITLE
Non-Executive Chairman
COMPENSATION
A$250K
AGE
70

Mark Sudholz

TITLE
MD, CEO & Executive Director
COMPENSATION
A$1M
TENURE
5.3 yrs

Richard Anthony England

TITLE
Non-Executive Director
COMPENSATION
A$125K
AGE
68
TENURE
5.3 yrs

David Blight

TITLE
Non Executive Director
COMPENSATION
A$125K
AGE
55
TENURE
5.3 yrs

JoAnne Stephenson

TITLE
Independent Non-Executive Director
COMPENSATION
A$125K
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
11. Jun 19 Sell Perpetual Limited Company 11. Sep 18 30. Oct 18 -468,984 A$1.73 A$-612,234
11. Jun 19 Buy Perpetual Limited Company 13. Sep 18 06. Jun 19 3,285,777 A$1.75 A$4,114,732
19. May 19 Sell Dimensional Fund Advisors L.P. Company 16. Jan 19 11. Feb 19 -197,814 A$1.32 A$-245,019
19. May 19 Buy Dimensional Fund Advisors L.P. Company 16. Jan 19 16. May 19 1,109,017 A$1.53 A$1,510,587
17. Apr 19 Buy Pendal Group Limited Company 02. Apr 19 15. Apr 19 2,441,232 A$1.44 A$3,492,183
15. Mar 19 Sell Pendal Group Limited Company 30. Jan 19 05. Mar 19 -216,264 A$1.39 A$-295,023
15. Mar 19 Buy Pendal Group Limited Company 30. Oct 18 12. Mar 19 4,373,570 A$1.36 A$5,930,659
13. Mar 19 Buy Linda Nicholls Individual 11. Mar 19 11. Mar 19 2,956 A$1.36 A$4,020
13. Mar 19 Buy Richard Anthony England Individual 11. Mar 19 11. Mar 19 1,273 A$1.36 A$1,731
04. Mar 19 Buy Linda Nicholls Individual 28. Feb 19 28. Feb 19 11,300 A$1.32 A$14,965
14. Dec 18 Buy Linda Nicholls Individual 10. Dec 18 10. Dec 18 6,870 A$1.17 A$8,038
14. Dec 18 Buy Richard Anthony England Individual 10. Dec 18 10. Dec 18 2,959 A$1.17 A$3,462
08. Nov 18 Buy Linda Nicholls Individual 05. Nov 18 05. Nov 18 20,000 A$1.24 A$24,864
19. Sep 18 Buy Pendal Group Limited Company 27. Feb 18 17. Sep 18 5,432,120 A$1.80 A$9,726,254
17. Sep 18 Sell Dimensional Fund Advisors L.P. Company 16. Jun 18 31. Jul 18 -42,782 A$1.77 A$-75,911
17. Sep 18 Buy Dimensional Fund Advisors L.P. Company 10. Jul 18 13. Sep 18 490,920 A$1.93 A$895,264
09. Sep 18 Buy JoAnne Stephenson Individual 05. Sep 18 05. Sep 18 12,000 A$1.78 A$21,360
07. Sep 18 Buy Perpetual Limited Company 04. Sep 18 04. Sep 18 1,367,087 A$1.79 A$2,445,663
06. Sep 18 Buy Linda Nicholls Individual 03. Sep 18 03. Sep 18 17,467 A$1.79 A$31,249
31. Aug 18 Sell Perpetual Limited Company 15. Aug 18 27. Aug 18 -284,705 A$1.85 A$-521,205
31. Aug 18 Buy Perpetual Limited Company 28. Aug 18 29. Aug 18 1,349,767 A$1.78 A$2,384,899
10. Aug 18 Sell Perpetual Limited Company 05. Jul 18 08. Aug 18 -338,374 A$1.87 A$-628,983
10. Jul 18 Sell Dimensional Fund Advisors L.P. Company 13. Jun 18 25. Jun 18 -15,370 A$1.84 A$-28,263
10. Jul 18 Buy Dimensional Fund Advisors L.P. Company 09. Mar 18 09. Jul 18 1,204,345 A$1.98 A$2,277,050
X
Management checks
We assess Japara Healthcare's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Japara Healthcare has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

JHC News

Simply Wall St News

Could The Japara Healthcare Limited (ASX:JHC) Ownership Structure Tell Us Something Useful?

With a market capitalization of AU$369m, Japara Healthcare is a small cap stock, so it might not be well known by many institutional investors. … View our latest analysis for Japara Healthcare ASX:JHC Ownership Summary, June 4th 2019 What Does The Institutional Ownership Tell Us About Japara Healthcare? … Insider Ownership Of Japara Healthcare The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Is Japara Healthcare Limited (ASX:JHC) An Attractive Dividend Stock?

Dividend paying stocks like Japara Healthcare Limited (ASX:JHC) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to be form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Japara Healthcare paid out 85% of its profit as dividends. Paying out a majority of its earnings limits the amount that can be reinvested in the business. This may indicate a commitment to paying a dividend, or a dearth of investment opportunities. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Unfortunately, while Japara Healthcare pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. Is Japara Healthcare's Balance Sheet Risky? As Japara Healthcare has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Japara Healthcare has been paying a dividend for the past four years.

Simply Wall St -

Should You Worry About Japara Healthcare Limited's (ASX:JHC) CEO Salary Level?

See our latest analysis for Japara Healthcare How Does Mark Sudholz's Compensation Compare With Similar Sized Companies? … It would therefore appear that Japara Healthcare Limited pays Mark Sudholz more than the median CEO remuneration at companies of a similar size, in the same market. … We compared the total CEO remuneration paid by Japara Healthcare Limited, and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Japara Healthcare Limited’s (ASX:JHC) Investment Returns Are Lagging Its Industry

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Is Japara Healthcare Limited (ASX:JHC) Potentially Undervalued?

Japara Healthcare Limited (ASX:JHC), which is in the healthcare business, and is based in Australia,. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s take a look at Japara Healthcare’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Is Japara Healthcare Limited (ASX:JHC) Overpaying Its CEO?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Mark Sudholz's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Japara Healthcare Limited has a market cap of AU$387m, and is paying total annual CEO compensation of AU$1.0m.

Simply Wall St -

Japara Healthcare Limited (ASX:JHC): Is Growth Priced In?

Growth expectations for Japara Healthcare Limited (ASX:JHC) are high, but many investors are starting to ask whether its last close at A$1.46 can still be rationalized by the future potential. … View our latest analysis for Japara Healthcare? … Investors in Japara Healthcare have been patiently waiting for the uptick in earnings.

Simply Wall St -

Read This Before You Buy Japara Healthcare Limited (ASX:JHC) Because Of Its P/E Ratio

We'll look at Japara Healthcare Limited's (ASX:JHC) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Japara Healthcare's P/E ratio is 18.27. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Why You Should Care About Japara Healthcare Limited’s (ASX:JHC) Cash Levels

What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … I will take you through Japara Healthcare’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Japara Healthcare’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure.

Simply Wall St -

Investors Who Bought Japara Healthcare Shares Three Years Ago Are Now Down 60%

Long term Japara Healthcare Limited (ASX:JHC) shareholders know that all too well, since the share price is down considerably over three years. … Sadly for them, the share price is down 60% in that time. … In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business.

Simply Wall St -

JHC Company Info

Description

Japara Healthcare Limited, together with its subsidiaries, owns, develops, and operates residential aged care facilities in Australia. It operates approximately 5,400 resident places across 48 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.

Details
Name: Japara Healthcare Limited
JHC
Exchange: ASX
Founded: 2005
A$351,430,236
267,247,328
Website: http://japara.com.au
Address: Japara Healthcare Limited
Q1 Building,
Level 4,
Southbank,
Victoria, 3006,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX JHC Ordinary Shares Australian Securities Exchange AU AUD 17. Apr 2014
DB 7JH Ordinary Shares Deutsche Boerse AG DE EUR 17. Apr 2014
Number of employees
Current staff
Staff numbers
0
Japara Healthcare employees.
Industry
Health Care Facilities
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 10:35
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/05/24
Last earnings filing: 2019/02/24
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.