ASX:VRT

Stock Analysis Report

Executive Summary

Virtus Health Limited provides various healthcare services in New South Wales, Queensland, Victoria, Tasmania, Denmark, the United Kingdom, Ireland, and Singapore.


Snowflake Analysis

Undervalued average dividend payer.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-27.8%

VRT

8.9%

AU Healthcare

13.4%

AU Market


1 Year Return

-60.5%

VRT

-10.9%

AU Healthcare

-18.8%

AU Market

Return vs Industry: VRT underperformed the Australian Healthcare industry which returned -17.7% over the past year.

Return vs Market: VRT underperformed the Australian Market which returned -22.9% over the past year.


Shareholder returns

VRTIndustryMarket
7 Day-27.8%8.9%13.4%
30 Day-62.4%-17.7%-20.7%
90 Day-66.7%-20.4%-24.4%
1 Year-57.0%-60.5%-8.2%-10.9%-15.2%-18.8%
3 Year-66.8%-72.4%-9.0%-17.5%-2.8%-15.9%
5 Year-72.4%-79.0%-8.9%-22.3%9.3%-15.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRT (A$1.56) is trading below our estimate of fair value (A$6.36)

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


Price To Earnings Ratio

PE vs Industry: VRT is good value based on its PE Ratio (4.4x) compared to the Healthcare industry average (11.6x).

PE vs Market: VRT is good value based on its PE Ratio (4.4x) compared to the Australian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: VRT is poor value based on its PEG Ratio (18.7x)


Price to Book Ratio

PB vs Industry: VRT is good value based on its PB Ratio (0.4x) compared to the AU Healthcare industry average (1x).


Next Steps

Future Growth

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

0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRT's forecast earnings growth (0.2% per year) is below the savings rate (1.1%).

Earnings vs Market: VRT's earnings (0.2% per year) are forecast to grow slower than the Australian market (9.7% per year).

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

Revenue vs Market: VRT's revenue (2.3% per year) is forecast to grow slower than the Australian market (4% per year).

High Growth Revenue: VRT's revenue (2.3% 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 (8.4%).


Next Steps

Past Performance

How has Virtus Health performed over the past 5 years?

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRT has high quality earnings.

Growing Profit Margin: VRT's current net profit margins (10.2%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: VRT's earnings have declined by -1.4% 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 (-0.2%) over the past year, making it difficult to compare to the Healthcare industry average (8.7%).


Return on Equity

High ROE: VRT's Return on Equity (10.2%) 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$27.6M) do not cover its short term liabilities (A$58.3M).

Long Term Liabilities: VRT's short term assets (A$27.6M) do not cover its long term liabilities (A$269.5M).


Debt to Equity History and Analysis

Debt Level: VRT's debt to equity ratio (60.7%) is considered high.

Reducing Debt: VRT's debt to equity ratio has increased from 60.2% to 60.7% over the past 5 years.

Debt Coverage: VRT's debt is well covered by operating cash flow (26.6%).

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


Balance Sheet

Inventory Level: VRT has a low level of unsold assets or inventory.

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


Next Steps

Dividend

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

15.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VRT's dividend (15.38%) is higher than the bottom 25% of dividend payers in the Australian market (3.35%).

High Dividend: VRT's dividend (15.38%) is in the top 25% of dividend payers in the Australian market (8.5%)


Stability and Growth of Payments

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

Growing Dividend: VRT has only been paying a dividend for 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67%), VRT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VRT's dividends in 3 years are forecast to be covered by earnings (63.1% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Glenn Powers (59yo)

no data

Tenure

AU$435,883

Compensation

Mr. Glenn Powers has been the Group Chief Financial Officer and Company Secretary of Virtus Health Limited since joining it in August 2008. Mr. Powers has been an Interim Chief Executive Officer of Virtus  ...


CEO Compensation Analysis

Compensation vs Market: Glenn's total compensation ($USD267.35K) is about average for companies of similar size in the Australian market ($USD245.34K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Glenn Powers
Group CFO & Company Secretaryno dataAU$435.88k0.14% A$179.2k
Dean Cleary
Chief Information Officer1.42yrsAU$474.62kno data
Lyndon Hale
Medical Director of Victoria & Executive Director6.83yrsAU$170.27k1.03% A$1.3m
Steve Zappia
Managing Director of Queensland & Virtus Health Diagnosticsno dataAU$319.11kno data
Jade Phelan
Managing Director of Victoria & Tasmania3.25yrsAU$296.37kno data
Richard Banks
Managing Director of Europe2.58yrsAU$318.61kno data
Raju Narayan
Managing Director of Singapore4.42yrsno datano data
Ann Tan
Medical Director of Singapore1.17yrsno datano data
Teena Pisarev
Managing Director of NSW1.17yrsno datano data

2.0yrs

Average Tenure

59.5yo

Average Age

Experienced Management: VRT's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lyndon Hale
Medical Director of Victoria & Executive Director6.83yrsAU$170.27k1.03% A$1.3m
Kathryn Munnings
Directorno datano datano data
Michael Stanford
Independent Non-Executive Director0.50yrno data0.025% A$31.4k
Sonia Petering
Independent Chairman of the Board0.33yrAU$99.65k0.056% A$70.7k
Shane Solomon
Non-Executive Director1.5yrsAU$71.75kno data
Anthony Walsh
Executive Chairman of Irelandno dataAU$48.59kno data
Gregory Couttas
Independent Non-Executive Director3.42yrsAU$100.17k0.0063% A$7.9k

1.5yrs

Average Tenure

Experienced Board: VRT's board of directors are not considered experienced ( 1.5 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: VRT 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$125.466m
  • Shares outstanding: 79.91m
  • 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 New South Wales, Queensland, Victoria, Tasmania, Denmark, the United Kingdom, Ireland, and Singapore. It operates through two segments, Healthcare Services Australia and Healthcare Services International. The company provides fertility care and related specialized diagnostics, as well as day hospital services. It offers in-vitro fertilization (IVF) services, including ovulation induction, intrauterine insemination, intracytoplasmic injection, GIFT, blastocyst culture, frozen embryo transfer, egg and semen freezing and storage, testicular biopsy, and support and counseling services, as well as donor egg, embryo, and sperm services. The company also provides endocrinology, andrology, preimplantation genetic, and cytogenetic diagnostic services; and gynecological and obstetric ultrasound scanning and procedures. In addition, it offers day hospital procedures, such as IVF, endoscopy, gynecology, urology, dental, ophthalmic, and cosmetic and plastic surgery. As of August 20, 2019, the company operated through a network of 127 fertility specialists. Virtus Health Limited was founded in 2008 and is headquartered in Greenwich, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 10:41
End of Day Share Price2020/03/30 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.