ASX:REG

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Moderate growth potential 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

Stable Share Price: REG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: REG's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

4.0%

REG

0.6%

AU Healthcare

-1.1%

AU Market


1 Year Return

-37.4%

REG

2.3%

AU Healthcare

1.7%

AU Market

Return vs Industry: REG underperformed the Australian Healthcare industry which returned -1.8% over the past year.

Return vs Market: REG underperformed the Australian Market which returned 0% over the past year.


Shareholder returns

REGIndustryMarket
7 Day4.0%0.6%-1.1%
30 Day76.9%2.0%10.8%
90 Day47.2%1.3%8.1%
1 Year-35.4%-37.4%4.3%2.3%5.2%1.7%
3 Year-45.1%-51.8%14.8%5.7%24.1%8.7%
5 Year-56.8%-65.2%24.7%7.8%58.8%26.5%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: REG (A$1.84) is trading below our estimate of fair value (A$8.02)

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


Price To Earnings Ratio

PE vs Industry: REG is poor value based on its PE Ratio (147x) compared to the AU Healthcare industry average (30.9x).

PE vs Market: REG is poor value based on its PE Ratio (147x) compared to the Australian market (22.7x).


Price to Earnings Growth Ratio

PEG Ratio: REG is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: REG is overvalued based on its PB Ratio (3.8x) compared to the AU Healthcare industry average (1.7x).


Next Steps

Future Growth

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

28.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REG's forecast earnings growth (28.3% per year) is above the savings rate (2.3%).

Earnings vs Market: REG's earnings (28.3% per year) are forecast to grow faster than the Australian market (17.9% 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 low in 3 years time (13%).


Next Steps

Past Performance

How has Regis Healthcare performed over the past 5 years?

-13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REG has a large one-off loss of A$18.8M impacting its June 30 2020 financial results.

Growing Profit Margin: REG's current net profit margins (0.6%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: REG's earnings have declined by 13.1% 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 (-92.6%) over the past year, making it difficult to compare to the Healthcare industry average (-8.1%).


Return on Equity

High ROE: REG's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is Regis Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: REG's short term assets (A$28.0M) do not cover its short term liabilities (A$1.3B).

Long Term Liabilities: REG's short term assets (A$28.0M) do not cover its long term liabilities (A$308.6M).


Debt to Equity History and Analysis

Debt Level: REG's debt to equity ratio (163.2%) is considered high.

Reducing Debt: REG's debt to equity ratio has increased from 0.05% to 163.2% over the past 5 years.

Debt Coverage: REG's debt is well covered by operating cash flow (52.9%).

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


Balance Sheet


Next Steps

Dividend

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

1.59%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.0yrs

Average management tenure


CEO

Linda Mellors

1.25yrs

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 ($USD536.86K) is about average for companies of similar size in the Australian market ($USD701.87K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Linda Mellors
CEO, MD & Director1.25yrsAU$729.28k0.053%
A$ 286.0k
Rick Rostolis
Chief Financial Officer0.75yrAU$504.98kno data
Gaylene Coulton
Executive General Manager Operations – QLD0.33yrno datano data
Max Girard
Chief Information Officer & GM of Projects1.33yrsno datano data
Martin Bede
Company Secretary & General Counsel10.67yrsno datano data
Dawn Griffiths
Acting Executive General Manager of People & Culture0.75yrno datano data
Michael Horwood
General Manager of Property10.92yrsAU$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
Rebecca Dean
Deputy Company Secretary0.42yrno datano data

1.0yrs

Average Tenure

Experienced Management: REG's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Linda Mellors
CEO, MD & Director1.25yrsAU$729.28k0.053%
A$ 286.0k
Graham Hodges
Independent Non-Executive Chairman2.42yrsAU$276.71k0.037%
A$ 199.1k
Christine Bennett
Independent Non-Executive Director2.75yrsAU$140.00k0.027%
A$ 149.3k
Matthew Quinn
Independent Non-Executive Director2.75yrsAU$160.00k0.028%
A$ 152.1k
Ian Roberts
Non-Executive Director13.58yrsAU$130.00k27.24%
A$ 148.3m
Bryan Dorman
Non-Executive Director13.58yrsAU$150.00k27.23%
A$ 148.3m
Sylvia Falzon
Independent Non-Executive Director6.25yrsAU$156.26k0.0091%
A$ 49.6k

2.8yrs

Average Tenure

61yo

Average Age

Experienced Board: REG's board of directors are not considered experienced ( 2.8 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: 2007
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: AU$544.413m
  • 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

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 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 Analysis2020/12/02 07:09
End of Day Share Price2020/12/02 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.