ASX:JHC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Slightly overvalued 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


Market Performance


7 Day Return

-0.8%

JHC

1.5%

AU Healthcare

-0.2%

AU Market


1 Year Return

3.5%

JHC

20.0%

AU Healthcare

10.5%

AU Market

Return vs Industry: JHC underperformed the Australian Healthcare industry which returned 20% over the past year.

Return vs Market: JHC underperformed the Australian Market which returned 10.5% over the past year.


Shareholder returns

JHCIndustryMarket
7 Day-0.8%1.5%-0.2%
30 Day-1.3%3.8%-1.4%
90 Day14.1%0.9%-1.0%
1 Year8.6%3.5%23.8%20.0%16.9%10.5%
3 Year-28.9%-39.2%11.5%1.2%36.9%18.6%
5 Year-39.8%-52.8%41.3%21.5%50.2%16.2%

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?

18.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JHC (A$1.17) is trading above our estimate of fair value (A$0.76)

Significantly Below Fair Value: JHC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JHC is good value based on its PE Ratio (19x) compared to the Healthcare industry average (19.2x).

PE vs Market: JHC is poor value based on its PE Ratio (19x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: JHC is poor value based on its PEG Ratio (6.7x)


Price to Book Ratio

PB vs Industry: JHC is good value based on its PB Ratio (0.6x) compared to the AU Healthcare industry average (1.7x).


Next Steps

Future Growth

How is Japara Healthcare forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JHC's forecast earnings growth (2.8% per year) is above the savings rate (2.3%).

Earnings vs Market: JHC's earnings (2.8% per year) are forecast to grow slower than the Australian market (10.2% per year).

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

Revenue vs Market: JHC's revenue (7.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: JHC's revenue (7.7% 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 (3.5%).


Next Steps

Past Performance

How has Japara Healthcare performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: JHC has become profitable over the past 5 years, growing earnings by 3.3% per year.

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 (-29.6%) over the past year, making it difficult to compare to the Healthcare industry average (0.3%).


Return on Equity

High ROE: JHC's Return on Equity (3.1%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Japara Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: JHC's short term assets (A$52.3M) do not cover its short term liabilities (A$668.0M)

Long Term Liabilities: JHC's short term assets (52.3M) do not cover its long term liabilities (178.6M)


Debt to Equity History and Analysis

Debt Level: JHC's debt to equity ratio (40%) is considered high

Reducing Debt: JHC's debt to equity ratio has increased from 3.1% to 40% over the past 5 years.

Debt Coverage: JHC's debt is not well covered by operating cash flow (15.9%).

Interest Coverage: JHC's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

5.26%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%2.4%markettop25%5.6%industryaverage2.9%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: JHC's dividend (5.26%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: JHC's dividend (5.26%) is low compared to the top 25% of dividend payers in the Australian market (5.61%).

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 (99.8%), 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 (100% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Mark Sudholz 0

0yrs

Tenure

AU$1,024,000

Compensation

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 D ...


CEO Compensation Analysis

Compensation vs. Market: Mark's total compensation ($USD702.72K) is above average for companies of similar size in the Australian market ($USD458.25K).

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


Management Age and Tenure

2.3yrs

Average Tenure

Experienced Management: JHC's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

65.5yo

Average Age

Experienced Board: JHC's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: JHC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$4,32613 Sep 19
JoAnne Stephenson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares3,666
Max PriceAU$1.18
BuyAU$8,03813 Sep 19
Linda Nicholls
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares6,812
Max PriceAU$1.18
BuyAU$3,46213 Sep 19
Richard Anthony England
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,934
Max PriceAU$1.18
BuyAU$126,66902 Sep 19
Leanne Rowe
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares114,000
Max PriceAU$1.11
SellAU$1,129,25402 Jul 19
Perpetual Limited
EntityCompany
Shares973,006
Max PriceAU$1.19
SellAU$2,637,41727 Jun 19
Perpetual Limited
EntityCompany
Shares2,154,874
Max PriceAU$1.27
BuyAU$959,22927 Jun 19
Perpetual Limited
EntityCompany
Shares777,115
Max PriceAU$1.24
SellAU$811,28926 Jun 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares630,593
Max PriceAU$1.29
BuyAU$37,17726 Jun 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares26,178
Max PriceAU$1.43
BuyAU$8,03917 Jun 19
Linda Nicholls
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares6,483
Max PriceAU$1.24
BuyAU$3,46117 Jun 19
Richard Anthony England
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,791
Max PriceAU$1.24
BuyAU$72217 Jun 19
JoAnne Stephenson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares582
Max PriceAU$1.24
SellAU$612,23411 Jun 19
Perpetual Limited
EntityCompany
Shares468,984
Max PriceAU$1.73
BuyAU$4,114,73211 Jun 19
Perpetual Limited
EntityCompany
Shares3,285,777
Max PriceAU$1.75
BuyAU$1,510,58719 May 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares1,109,017
Max PriceAU$1.53
SellAU$245,01919 May 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares197,814
Max PriceAU$1.32
BuyAU$3,492,18317 Apr 19
Pendal Group Limited
EntityCompany
Shares2,441,232
Max PriceAU$1.44
SellAU$295,02315 Mar 19
Pendal Group Limited
EntityCompany
Shares216,264
Max PriceAU$1.39
BuyAU$5,930,65915 Mar 19
Pendal Group Limited
EntityCompany
Shares4,373,570
Max PriceAU$1.36
BuyAU$1,73113 Mar 19
Richard Anthony England
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,273
Max PriceAU$1.36
BuyAU$4,02013 Mar 19
Linda Nicholls
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares2,956
Max PriceAU$1.36
BuyAU$14,96504 Mar 19
Linda Nicholls
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares11,300
Max PriceAU$1.32
BuyAU$3,46214 Dec 18
Richard Anthony England
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,959
Max PriceAU$1.17
BuyAU$8,03814 Dec 18
Linda Nicholls
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares6,870
Max PriceAU$1.17
BuyAU$24,86408 Nov 18
Linda Nicholls
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares20,000
Max PriceAU$1.24

Ownership Breakdown


Management Team

  • Bruce Paterson

    Company Secretary

    • Tenure: 3.8yrs
  • Mark Sudholz

    MD, CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$1.02m
  • Chris Price (54yo)

    CFO & Company Secretary

    • Tenure: 4.3yrs
    • Compensation: AU$590.00k
  • Anthony Rice

    Chief Investment Officer

    • Tenure: 0yrs
  • Peter McCann

    Group Executive of Consumer Engagement

    • Tenure: 0.8yrs
  • Valeria Camara

    Group Executive of People & Development

    • Tenure: 0.8yrs

Board Members

  • David Blight (56yo)

    Non Executive Director

    • Tenure: 5.6yrs
    • Compensation: AU$125.00k
  • Richard Anthony England (69yo)

    Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: AU$125.00k
  • Linda Nicholls (71yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$250.00k
  • Mark Sudholz

    MD, CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$1.02m
  • Leanne Rowe (62yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • JoAnne Stephenson

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: AU$125.00k

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$315.352m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 10:43
End of Day Share Price2019/10/22 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.