ASX:REG

Stock Analysis Report

Executive Summary

Regis Healthcare Limited provides residential aged care services in Australia.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-4.0%

ASX:REG

-1.0%

AU Healthcare

0.5%

AU Market


1 Year Return

-11.7%

ASX:REG

8.7%

AU Healthcare

6.3%

AU Market

REG underperformed the Healthcare industry which returned 8.7% over the past year.

REG underperformed the Market in Australia which returned 6.3% over the past year.


Share holder returns

REGIndustryMarket
7 Day-4.0%-1.0%0.5%
30 Day3.9%-0.3%4.5%
90 Day1.9%-1.4%2.5%
1 Year-6.9%-11.7%12.1%8.7%12.4%6.3%
3 Year-23.7%-34.6%2.7%-6.7%41.3%22.3%
5 Yearn/a44.7%24.9%47.8%14.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.65x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Regis Healthcare's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Regis Healthcare's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Regis Healthcare is good value based on earnings compared to the AU Healthcare industry average.

Regis Healthcare is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Regis Healthcare is poor value based on expected growth next year.


Price Based on Value of Assets

Regis Healthcare is overvalued based on assets compared to the AU Healthcare industry average.


Next Steps

Future Growth

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

1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Regis Healthcare's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

Regis Healthcare's earnings are expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).

Regis Healthcare's revenue growth is expected to exceed the Australia market average.

Regis Healthcare's earnings growth is positive but not above the Australia market average.

Regis Healthcare's earnings growth is positive but not above the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Regis Healthcare is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Regis Healthcare performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Regis Healthcare's year on year earnings growth rate has been positive over the past 5 years.

Regis Healthcare's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Regis Healthcare's 1-year earnings growth is negative, it can't be compared to the AU Healthcare industry average.


Return on Equity

Whilst Regis Healthcare has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Regis Healthcare used its assets less efficiently than the AU Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Regis Healthcare's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Regis Healthcare's financial position?


Financial Position Analysis

Regis Healthcare's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Regis Healthcare's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Regis Healthcare's level of debt (169.8%) compared to net worth is high (greater than 40%).

Regis Healthcare had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is well covered by operating cash flow (72.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

5.49%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Regis Healthcare's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.44%).

Regis Healthcare's dividend is below the markets top 25% of dividend payers in Australia (5.52%).

Regis Healthcare has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Regis Healthcare has only been paying a dividend for 4 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).


Next Steps

Management

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

9.4yrs

Average management tenure


CEO

Linda Mellors 0

0yrs

Tenure

0

Dr. Linda Mellors, BA, BSc (Hons), Ph.D.(Med) GAICD, Grad Cert HSM is Chief Executive Officer, Managing Director and Director at Regis Healthcare Limited since September 4, 2019 and served as its Chief Exe ...


Management Age and Tenure

9.4yrs

Average Tenure

The average tenure for the Regis Healthcare management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.3yrs

Average Tenure

60yo

Average Age

The tenure for the Regis Healthcare board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyAU$93,90006 Mar 19
Graham Hodges
EntityIndividual
Role
Chairman of the Board
Chairman
Shares30,000
Max PriceAU$3.13
BuyAU$31,89001 Mar 19
Christine Bennett
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceAU$3.19
BuyAU$30,33501 Nov 18
Christine Bennett
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares12,500
Max PriceAU$2.43
BuyAU$1,094,71828 Sep 18
Realindex Investments Pty Limited
EntityCompany
Shares368,880
Max PriceAU$2.97
SellAU$2,053,27028 Sep 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares698,953
Max PriceAU$2.94
BuyAU$8,947,98220 Sep 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares2,545,487
Max PriceAU$3.52
BuyAU$2,548,22520 Sep 18
Realindex Investments Pty Limited
EntityCompany
Shares753,039
Max PriceAU$3.38

Ownership Breakdown


Management Team

  • Kirsty Nottle

    Executive General Manager of Investor Relations

    • Tenure: 0yrs
  • Michael Horwood

    General Manager of Property

    • Tenure: 9.7yrs
    • Compensation: AU$496.30k
  • Martin Bede

    Company Secretary & General Counsel

    • Tenure: 9.4yrs
  • Darren Lynch

    Chief Commercial Officer

    • Tenure: 1.1yrs
    • Compensation: AU$476.22k
  • Trish Fairman

    General Manager of Quality & Compliance

    • Tenure: 10.7yrs
  • David Noonan

    Chief Financial Officer

    • Tenure: 4.1yrs
    • Compensation: AU$722.97k
  • Phil Mackney

    General Manager of Operations - Victoria

    • Tenure: 0yrs
    • Compensation: AU$577.72k
  • Michelle Baker

    General Manager of Operations - Queensland

    • Tenure: 0yrs
    • Compensation: AU$527.27k
  • Grant Waldron

    Group Manager of Human Resources

    • Tenure: 0yrs
  • Linda Mellors

    CEO, MD & Director

    • Tenure: 0yrs

Board Members

  • Graham Hodges (64yo)

    Chairman

    • Tenure: 1.2yrs
    • Compensation: AU$91.38k
  • Christine Bennett (63yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: AU$38.63k
  • Matthew Quinn (57yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: AU$41.00k
  • Ian Roberts

    Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: AU$122.50k
  • Bryan Dorman

    Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: AU$130.00k
  • Sylvia Falzon (54yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: AU$150.00k
  • Linda Mellors

    CEO, MD & Director

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Regis Healthcare Limited
  • Ticker: REG
  • Exchange: ASX
  • Founded:
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: AU$802.745m
  • Shares outstanding: 300.65m
  • Website: https://www.regis.com.au

Number of Employees


Location

  • Regis Healthcare Limited
  • 615 Dandenong Road
  • Level 2
  • Armadale
  • Victoria
  • 3143
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2014
REGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2014
06K1DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2014

Biography

Regis Healthcare Limited provides residential aged care services in Australia. The company offers home care, home help, companionship, and government-funded and private home care services; and aged care se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 10:38
End of Day Share Price2019/09/16 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.