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REG

Regis HealthcareASX:REG Stock Report

Market Cap

AU$520.4m

7D

-6.0%

1Y

-6.5%

Updated

01 Dec, 2021

Data

Company Financials +
REG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health3/6
Dividends1/6

REG Stock Overview

Regis Healthcare Limited provides residential aged care services in Australia.

Regis Healthcare Competitors

Estia Health

ASX:EHE

AU$562.0m

Japara Healthcare

ASX:JHC

AU$379.5m

Summerset Group Holdings

NZSE:SUM

NZ$2.9b

Oceania Healthcare

NZSE:OCA

NZ$924.5m

Price History & Performance

Summary of all time highs, changes and price drops for Regis Healthcare
Historical stock prices
Current Share PriceAU$1.73
52 Week HighAU$2.40
52 Week LowAU$1.59
Beta1.78
1 Month Change-11.51%
3 Month Change-19.91%
1 Year Change-6.49%
3 Year Change-32.16%
5 Year Change-60.23%
Change since IPO-56.97%

Recent News & Updates

May 27
Is Regis Healthcare Limited (ASX:REG) Potentially Undervalued?

Is Regis Healthcare Limited (ASX:REG) Potentially Undervalued?

Regis Healthcare Limited ( ASX:REG ), might not be a large cap stock, but it saw significant share price movement...

Shareholder Returns

REGAU HealthcareAU Market
7D-6.0%0.6%-1.9%
1Y-6.5%18.9%11.7%

Return vs Industry: REG underperformed the Australian Healthcare industry which returned 18.9% over the past year.

Return vs Market: REG underperformed the Australian Market which returned 11.7% over the past year.

Price Volatility

Is REG's price volatile compared to industry and market?
REG volatility
REG Average Weekly Movement4.4%
Healthcare Industry Average Movement4.6%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.9%
10% least volatile stocks in AU Market3.6%

Stable Share Price: REG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: REG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1994n/aLinda Mellorshttps://www.regis.com.au

Regis Healthcare Limited provides residential aged care services in Australia. It offers home care services, including personal hygiene, dressing and undressing, and mobility and transportation; home help services, such as cooking and cleaning, shopping and transportation, and facilitating social outings; aged care facilities; owns and operates specialist retirement and independent living villages, which provides laundry, meals, cleaning, and allied health services consist of physiotherapy, podiatry, diversional therapy, and therapeutic activities. The company also offers companionship and government-funded and private home care services; aged care services, including ageing-in-place, respite care, specialist dementia care, and palliative care services; in-home disability support and veterans’ home care services; Day Respite Programs for carers; and therapeutic services to people living in the community, in retirement villages, and aged care facilities.

Regis Healthcare Fundamentals Summary

How do Regis Healthcare's earnings and revenue compare to its market cap?
REG fundamental statistics
Market CapAU$520.44m
Earnings (TTM)AU$19.95m
Revenue (TTM)AU$701.37m

26.1x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REG income statement (TTM)
RevenueAU$701.37m
Cost of RevenueAU$574.43m
Gross ProfitAU$126.93m
ExpensesAU$106.98m
EarningsAU$19.95m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.066
Gross Margin18.10%
Net Profit Margin2.84%
Debt/Equity Ratio103.1%

How did REG perform over the long term?

See historical performance and comparison

Dividends

5.4%

Current Dividend Yield

100%

Payout Ratio

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$1.73) is trading below our estimate of fair value (A$8.75)

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 (26.1x) compared to the Global Healthcare industry average (21.1x).

PE vs Market: REG is poor value based on its PE Ratio (26.1x) compared to the Australian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: REG is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: REG is overvalued based on its PB Ratio (3.7x) compared to the XX Healthcare industry average (2.5x).


Future Growth

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

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REG's forecast earnings growth (13.6% per year) is above the savings rate (1.9%).

Earnings vs Market: REG's earnings (13.6% per year) are forecast to grow faster than the Australian market (11.8% per year).

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

Revenue vs Market: REG's revenue (5.7% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: REG's revenue (5.7% 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 (22.9%)


Past Performance

How has Regis Healthcare performed over the past 5 years?

-26.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REG has a large one-off gain of A$18.6M impacting its June 30 2021 financial results.

Growing Profit Margin: REG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: REG's earnings have declined by 26.7% per year over the past 5 years.

Accelerating Growth: REG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: REG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (61.3%).


Return on Equity

High ROE: REG's Return on Equity (14.1%) is considered low.


Financial Health

How is Regis Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: REG's short term assets (A$21.9M) do not cover its short term liabilities (A$1.4B).

Long Term Liabilities: REG's short term assets (A$21.9M) do not cover its long term liabilities (A$198.2M).


Debt to Equity History and Analysis

Debt Level: REG's net debt to equity ratio (100.4%) is considered high.

Reducing Debt: REG's debt to equity ratio has reduced from 122.8% to 103.1% over the past 5 years.

Debt Coverage: REG's debt is well covered by operating cash flow (71.8%).

Interest Coverage: REG's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Dividend

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

5.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: REG's dividend (5.35%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: REG's dividend (5.35%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).


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 (100%), REG's dividend payments are not well 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 (101.7% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Linda Mellors

2.25yrs

Tenure

AU$767,124

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 ($USD544.29K) is about average for companies of similar size in the Australian market ($USD767.17K).

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


Leadership Team

Experienced Management: REG's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: REG's board of directors are considered experienced (3.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Regis Healthcare Limited
  • Ticker: REG
  • Exchange: ASX
  • Founded: 1994
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: AU$520.442m
  • Shares outstanding: 300.83m
  • Website: https://www.regis.com.au

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 15:54
End of Day Share Price2021/12/01 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.