ASX:VRT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Virtus Health Limited provides various healthcare services in Australia, Denmark, the United Kingdom, Ireland, and Singapore. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Virtus Health's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VRT is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: VRT's weekly volatility has decreased from 10% to 5% over the past year.


Market Performance


7 Day Return

8.6%

VRT

-0.2%

AU Healthcare

2.0%

AU Market


1 Year Return

33.0%

VRT

0.2%

AU Healthcare

-1.2%

AU Market

Return vs Industry: VRT exceeded the Australian Healthcare industry which returned 0.2% over the past year.

Return vs Market: VRT exceeded the Australian Market which returned -1.2% over the past year.


Shareholder returns

VRTIndustryMarket
7 Day8.6%-0.2%2.0%
30 Day18.3%-0.5%5.5%
90 Day60.5%1.2%6.8%
1 Year40.9%33.0%2.1%0.2%2.2%-1.2%
3 Year23.8%5.2%19.6%10.1%22.4%7.1%
5 Year7.6%-16.0%22.8%6.0%53.9%23.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Virtus Health undervalued compared to its fair value and its price relative to the market?

35.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRT (A$5.44) is trading below our estimate of fair value (A$8.37)

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


Price To Earnings Ratio

PE vs Industry: VRT is poor value based on its PE Ratio (929x) compared to the AU Healthcare industry average (30.5x).

PE vs Market: VRT is poor value based on its PE Ratio (929x) compared to the Australian market (22.4x).


Price to Earnings Growth Ratio

PEG Ratio: VRT is poor value based on its PEG Ratio (24.5x)


Price to Book Ratio

PB vs Industry: VRT is good value based on its PB Ratio (1.6x) compared to the AU Healthcare industry average (1.8x).


Next Steps

Future Growth

How is Virtus Health forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

37.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRT's forecast earnings growth (37.9% per year) is above the savings rate (2.3%).

Earnings vs Market: VRT's earnings (37.9% 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: VRT's revenue (4% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: VRT's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VRT's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Virtus Health performed over the past 5 years?

-9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRT has a large one-off loss of A$23.1M impacting its June 30 2020 financial results.

Growing Profit Margin: VRT's current net profit margins (0.2%) are lower than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: VRT's earnings have declined by 9.4% per year over the past 5 years.

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

Earnings vs Industry: VRT had negative earnings growth (-98.4%) over the past year, making it difficult to compare to the Healthcare industry average (-8.1%).


Return on Equity

High ROE: VRT's Return on Equity (0.4%) is considered low.


Next Steps

Financial Health

How is Virtus Health's financial position?


Financial Position Analysis

Short Term Liabilities: VRT's short term assets (A$56.0M) do not cover its short term liabilities (A$89.8M).

Long Term Liabilities: VRT's short term assets (A$56.0M) do not cover its long term liabilities (A$268.4M).


Debt to Equity History and Analysis

Debt Level: VRT's debt to equity ratio (63.4%) is considered high.

Reducing Debt: VRT's debt to equity ratio has increased from 62% to 63.4% over the past 5 years.

Debt Coverage: VRT's debt is well covered by operating cash flow (39.1%).

Interest Coverage: VRT's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Virtus Health current dividend yield, its reliability and sustainability?

4.14%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.1yrs

Average management tenure


CEO

Kate Munnings

0.67

Tenure

AU$282,958

Compensation

Ms. Kathryn Marian Munnings, also known as Kate, serves as Group Chief Executive Officer, Managing Director and Executive Director at Virtus Health Limited since March 18, 2020. She serves as Director of D...


CEO Compensation Analysis

Compensation vs Market: Kate's total compensation ($USD206.99K) is below average for companies of similar size in the Australian market ($USD699.23K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kathryn Munnings
Group CEO0.67yrAU$282.96kno data
Glenn Powers
Group CFO & Company Secretary12.25yrsAU$404.70k0.14%
A$ 621.0k
Lyndon Hale
Medical Director of Victoria & Executive Director7.5yrsAU$166.89k1.03%
A$ 4.5m
Richard Banks
Chief Strategy Officer & European MD3.25yrsAU$69.77kno data
Dean Cleary
Chief Information Officer2.08yrsAU$474.62kno data
Steve Zappia
Managing Director of Queensland & Virtus Health Diagnosticsno dataAU$319.11kno data
Jade Phelan
Managing Director of Melbourne IVF & Tasmania3.92yrsAU$296.37kno data
Ann Tan
Medical Director of Singapore1.83yrsno datano data
Teena Pisarev
Managing Director of NSW1.83yrsno datano data

2.1yrs

Average Tenure

61yo

Average Age

Experienced Management: VRT's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kathryn Munnings
Group CEO0.67yrAU$282.96kno data
Lyndon Hale
Medical Director of Victoria & Executive Director7.5yrsAU$166.89k1.03%
A$ 4.5m
Michael Stanford
Independent Non-Executive Director1.17yrsAU$78.03k0.025%
A$ 108.8k
Sonia Petering
Independent Non-Executive Chairperson1yrAU$124.65k0.056%
A$ 244.8k
Shane Solomon
Independent Non-Executive Director2.17yrsAU$100.70kno data
Anthony Walsh
Executive Chairman of Irelandno dataAU$48.59kno data
Gregory Couttas
Independent Non-Executive Director4.08yrsAU$105.45k0.0063%
A$ 27.2k

1.7yrs

Average Tenure

Experienced Board: VRT's board of directors are not considered experienced ( 1.7 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: 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

Virtus Health Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Virtus Health Limited
  • Ticker: VRT
  • Exchange: ASX
  • Founded: 2008
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: AU$434.764m
  • Shares outstanding: 79.92m
  • Website: https://www.virtushealth.com.au

Number of Employees


Location

  • Virtus Health Limited
  • 176 Pacific Highway
  • Level 3
  • Greenwich
  • New South Wales
  • 2065
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2013
V6HDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2013
VRTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2013

Biography

Virtus Health Limited provides various healthcare services in Australia, Denmark, the United Kingdom, Ireland, and Singapore. The company operates through two segments, Healthcare Services Australia and He...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 10:42
End of Day Share Price2020/11/23 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.