ASX:REG

Stock Analysis Report

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Market Cap

AU$610.6m

Last Updated

2021/08/04 16:06 UTC

Data Sources

Company Financials +

Executive Summary

Regis Healthcare Limited provides residential aged care services in Australia. More Details


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: REG's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-4.7%

REG

1.9%

AU Healthcare

1.3%

AU Market


1 Year Return

53.2%

REG

20.8%

AU Healthcare

27.5%

AU Market

Return vs Industry: REG exceeded the Australian Healthcare industry which returned 20.8% over the past year.

Return vs Market: REG exceeded the Australian Market which returned 27.5% over the past year.


Shareholder returns

REGIndustryMarket
7 Day-4.7%1.9%1.3%
30 Day4.1%5.6%2.3%
90 Day-7.7%10.0%5.6%
1 Year54.8%53.2%23.1%20.8%32.2%27.5%
3 Year-32.4%-39.9%44.3%32.9%35.2%18.8%
5 Year-48.9%-58.6%28.7%11.8%65.9%34.0%

Long-Term 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?

15.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: REG (A$2.03) is trading below our estimate of fair value (A$2.4)

Significantly Below Fair Value: REG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: REG is poor value based on its PE Ratio (227.6x) compared to the Australian Healthcare industry average (21x).

PE vs Market: REG is poor value based on its PE Ratio (227.6x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: REG is poor value based on its PEG Ratio (6.4x)


Price to Book Ratio

PB vs Industry: REG is overvalued based on its PB Ratio (3.9x) compared to the AU Healthcare industry average (1.9x).


Future Growth

How is Regis Healthcare forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

35.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REG's forecast earnings growth (35.6% per year) is above the savings rate (1.9%).

Earnings vs Market: REG's earnings (35.6% per year) are forecast to grow faster than the Australian market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: REG's revenue (5% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: REG's revenue (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 (20.8%)


Past Performance

How has Regis Healthcare performed over the past 5 years?

-22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REG has a large one-off loss of A$26.1M impacting its December 31 2020 financial results.

Growing Profit Margin: REG's current net profit margins (0.4%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: REG's earnings have declined by 22.4% per year over the past 5 years.

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 (-93%) over the past year, making it difficult to compare to the Healthcare industry average (43.2%).


Return on Equity

High ROE: REG's Return on Equity (1.7%) is considered low.


Financial Health

How is Regis Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: REG's short term assets (A$65.3M) do not cover its short term liabilities (A$1.4B).

Long Term Liabilities: REG's short term assets (A$65.3M) do not cover its long term liabilities (A$266.9M).


Debt to Equity History and Analysis

Debt Level: REG's debt to equity ratio (119.9%) is considered high.

Reducing Debt: REG's debt to equity ratio has increased from 5.2% to 119.9% over the past 5 years.

Debt Coverage: REG's debt is well covered by operating cash flow (55.2%).

Interest Coverage: REG's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Dividend

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

1.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: REG's dividend (1.97%) is higher than the bottom 25% of dividend payers in the Australian market (1.96%).

High Dividend: REG's dividend (1.97%) is low compared to the top 25% of dividend payers in the Australian market (4.98%).


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 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (224.2%), REG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: REG's dividends in 3 years are forecast to be covered by earnings (89% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Linda Mellors

1.92yrs

Tenure

AU$729,277

Compensation

Dr. Linda Jane Mellors, B.A., B.Sc. (Hons), Ph.D. (Med) GAICD, Grad Cert HSM, has been Chief Executive Officer of Regis Healthcare Limited since September 4, 2019 and serves as its Managing Director and Di...


CEO Compensation Analysis

Compensation vs Market: Linda's total compensation ($USD538.13K) is about average for companies of similar size in the Australian market ($USD678.09K).

Compensation vs Earnings: Insufficient data to compare Linda's compensation with company performance.


Leadership Team

Experienced Management: REG's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: REG's board of directors are considered experienced (3.4 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

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


Key Information

  • Name: Regis Healthcare Limited
  • Ticker: REG
  • Exchange: ASX
  • Founded: 2007
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: AU$610.585m
  • Shares outstanding: 300.78m
  • Website: https://www.regis.com.au

Number of Employees


Location

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

Listings


Biography

Regis Healthcare Limited provides residential aged care services in Australia. The company offers home care services, including personal hygiene, dressing and undressing, and mobility and transportation; h...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 16:06
End of Day Share Price2021/08/04 00:00
Earnings2020/12/31
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.