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. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

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

2.6%

JHC

-1.4%

AU Healthcare

-1.4%

AU Market


1 Year Return

-64.7%

JHC

3.6%

AU Healthcare

-7.1%

AU Market

Return vs Industry: JHC underperformed the Australian Healthcare industry which returned 3.6% over the past year.

Return vs Market: JHC underperformed the Australian Market which returned -7.1% over the past year.


Shareholder returns

JHCIndustryMarket
7 Day2.6%-1.4%-1.4%
30 Day12.9%1.8%3.4%
90 Day-17.7%8.1%3.8%
1 Year-63.0%-64.7%5.6%3.6%-3.7%-7.1%
3 Year-77.4%-80.4%20.5%10.9%16.9%2.1%
5 Year-83.8%-87.4%28.7%11.1%46.0%15.6%

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$0.4) is trading below our estimate of fair value (A$3.56)

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


Price To Earnings Ratio

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

PE vs Market: JHC 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 JHC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: JHC is good value based on its PB Ratio (0.5x) compared to the AU Healthcare industry average (1.5x).


Next Steps

Future Growth

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

118.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: JHC's revenue (6% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: JHC's revenue (6% 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 (2.2%).


Next Steps

Past Performance

How has Japara Healthcare performed over the past 5 years?

-62.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JHC is currently unprofitable.

Growing Profit Margin: JHC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: JHC is unprofitable, and losses have increased over the past 5 years at a rate of 62.2% per year.

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

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


Return on Equity

High ROE: JHC has a negative Return on Equity (-131%), as it is currently unprofitable.


Next Steps

Financial Health

How is Japara Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: JHC's short term assets (A$71.4M) do not cover its short term liabilities (A$747.2M).

Long Term Liabilities: JHC's short term assets (A$71.4M) do not cover its long term liabilities (A$281.9M).


Debt to Equity History and Analysis

Debt Level: JHC's debt to equity ratio (109.5%) is considered high.

Reducing Debt: JHC's debt to equity ratio has increased from 0.2% to 109.5% over the past 5 years.

Debt Coverage: JHC's debt is well covered by operating cash flow (30.8%).

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


Balance Sheet


Next Steps

Dividend

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

4.57%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate JHC'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 JHC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JHC's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JHC'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?

0.6yrs

Average management tenure


CEO

Chris Price (55 yo)

0.58

Tenure

AU$730,000

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 ($USD520.02K) is above average for companies of similar size in the Australian market ($USD277.63K).

Compensation vs Earnings: Chris's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Price
CEO, MD & Director0.58yrAU$730.00k0.049%
A$ 52.8k
Anthony Rice
CFO & Chief Investment Officer0.58yrAU$550.82kno data
Lindon Le Griffon
Chief Operations Officer0.67yrAU$371.34kno data
Cameron Mackay
Group Executive of Information Communications & Technology0.33yrno datano data
Valeria Camara
Chief HR Officer1.75yrsno datano data
Stuart Nicolson
Group Executive of Senior Living0.33yrno datano data
Jo Gatehouse
Chief Clinical Governance & Risk Officer0.75yrno datano data
Bruce Paterson
Company Secretary4.83yrsno datano data

0.6yrs

Average Tenure

Experienced Management: JHC's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Price
CEO, MD & Director0.58yrAU$730.00k0.049%
A$ 52.8k
David Blight
Independent Non Executive Director6.58yrsAU$105.00k0.034%
A$ 36.0k
Linda Nicholls
Non-Executive Chairmanno dataAU$250.00k0.091%
A$ 97.6k
Leanne Rowe
Independent Non-Executive Director1.25yrsAU$125.00k0.043%
A$ 45.6k
JoAnne Stephenson
Independent Non-Executive Director5.08yrsAU$125.00k0.023%
A$ 24.0k

3.2yrs

Average Tenure

60yo

Average Age

Experienced Board: JHC's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$106.758m
  • Shares outstanding: 266.89m
  • 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 4,400 resident places across 51 homes located in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 10:31
End of Day Share Price2020/10/27 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.