ASX:REG

Stock Analysis Report

Executive Summary

Regis Healthcare Limited provides residential aged care services in Australia.


Snowflake Analysis

Undervalued with reasonable growth potential.


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

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


Market Performance


7 Day Return

2.5%

REG

4.0%

AU Healthcare

5.0%

AU Market


1 Year Return

-64.3%

REG

-14.7%

AU Healthcare

-19.2%

AU Market

Return vs Industry: REG underperformed the Australian Healthcare industry which returned -14.7% over the past year.

Return vs Market: REG underperformed the Australian Market which returned -19.2% over the past year.


Shareholder returns

REGIndustryMarket
7 Day2.5%4.0%5.0%
30 Day-22.2%-20.4%-20.3%
90 Day-49.0%-23.8%-25.8%
1 Year-62.2%-64.3%-12.1%-14.7%-15.6%-19.2%
3 Year-68.4%-73.1%-12.1%-20.3%-3.6%-16.8%
5 Year-72.1%-78.2%-12.7%-25.4%6.6%-17.5%

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 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: REG (A$1.23) is trading below our estimate of fair value (A$12.49)

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


Price To Earnings Ratio

PE vs Industry: REG is good value based on its PE Ratio (9.6x) compared to the Healthcare industry average (12.2x).

PE vs Market: REG is good value based on its PE Ratio (9.6x) compared to the Australian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: REG is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: REG is overvalued based on its PB Ratio (2.2x) compared to the AU Healthcare industry average (1.3x).


Next Steps

Future Growth

How is Regis Healthcare forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

19.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REG's forecast earnings growth (19.3% per year) is above the savings rate (1.1%).

Earnings vs Market: REG's earnings (19.3% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: REG's revenue (4.5% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: REG's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: REG's Return on Equity is forecast to be high in 3 years time (26.2%)


Next Steps

Past Performance

How has Regis Healthcare performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REG has high quality earnings.

Growing Profit Margin: REG's current net profit margins (5.6%) are lower than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: REG has become profitable over the past 5 years, growing earnings by 3.2% per year.

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

Earnings vs Industry: REG had negative earnings growth (-23.4%) over the past year, making it difficult to compare to the Healthcare industry average (8.7%).


Return on Equity

High ROE: Whilst REG's Return on Equity (22.99%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Regis Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: REG's short term assets (A$50.3M) do not cover its short term liabilities (A$1.3B).

Long Term Liabilities: REG's short term assets (A$50.3M) do not cover its long term liabilities (A$349.5M).


Debt to Equity History and Analysis

Debt Level: REG's debt to equity ratio (161.8%) is considered high.

Reducing Debt: Insufficient data to determine if REG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: REG's debt is well covered by operating cash flow (68.4%).

Interest Coverage: REG's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

6.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: REG's dividend (6.54%) is higher than the bottom 25% of dividend payers in the Australian market (3.17%).

High Dividend: REG's dividend (6.54%) is low compared to the top 25% of dividend payers in the Australian market (8.1%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.8%), REG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: REG's dividends in 3 years are not forecast to be well covered by earnings (100.8% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Linda Mellors

0.58

Tenure

Dr. Linda Jane Mellors, BA, BSc (Hons), Ph.D.(Med) GAICD, Grad Cert HSM, has been Chief Executive Officer of Regis Healthcare Limited since September 4, 2019 and its Managing Director and Director since Se ...


Leadership Team

NamePositionTenureCompensationOwnership
Darren Lynch
Chief Commercial Officer1.67yrsAU$625.28k0.024% A$88.3k
Linda Mellors
CEO, MD & Director0.58yrno data0.053% A$194.4k
Rick Rostolis
Chief Financial Officer0.083yrno datano data
Kirsty Nottle
Executive General Manager of Investor Relations & Corporate Servicesno datano datano data
Martin Bede
Company Secretary & General Counsel10yrsno datano data
Trish Fairman
Executive General Manager of Quality & Compliance11.25yrsno datano data
Lee Jeffery
Executive General Manager of People & Cultureno datano datano data
Michael Horwood
General Manager of Property10.25yrsAU$496.30kno data
Phillip Mackney
General Manager of Operations - Victoriano dataAU$577.72kno data
Michelle Baker
General Manager of Operations - Queenslandno dataAU$527.27kno data

5.8yrs

Average Tenure

Experienced Management: REG's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Linda Mellors
CEO, MD & Director0.58yrno data0.053% A$194.4k
Graham Hodges
Independent Non-Executive Chairman1.75yrsAU$273.73k0.037% A$135.3k
Christine Bennett
Independent Non-Executive Director2.08yrsAU$135.66k0.020% A$75.0k
Matthew Quinn
Independent Non-Executive Director2.08yrsAU$152.42k0.021% A$78.7k
Ian Roberts
Non-Executive Director12.92yrsAU$126.86k27.24% A$100.8m
Bryan Dorman
Non-Executive Director12.92yrsAU$141.62k27.24% A$100.7m
Sylvia Falzon
Independent Non-Executive Director5.58yrsAU$156.81k0.0091% A$33.7k

2.1yrs

Average Tenure

60yo

Average Age

Experienced Board: REG's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: REG 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

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$369.921m
  • Shares outstanding: 300.75m
  • 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 services, including ageing-in-place, respite care, specialist dementia care, and palliative care services. It also operates retirement villages that provide retirement services; and Regis Day Therapy Centers, which provide a range of professional allied health services in the areas of physiotherapy, occupational therapy, exercise physiology, and podiatry, as well as rehabilitation services to people living in the community, in retirement villages, and in low care facilities. In addition, the company offers Day Respite Programs for carers. As of June 30, 2019, the company owned and operated 63 aged care facilities. The company was formerly known as Fairway Investment Holdings Pty Ltd. and changed its name to Regis Healthcare Limited in September 2014. Regis Healthcare Limited is based in Armadale, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 13:21
End of Day Share Price2020/04/03 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.