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Market Cap

AU$476.7m

Last Updated

2021/05/07 08:18 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Second-rate dividend payer with mediocre balance sheet.


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 +/- 4% a week.

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


Market Performance


7 Day Return

4.4%

VRT

-3.9%

AU Healthcare

0.3%

AU Market


1 Year Return

84.8%

VRT

24.0%

AU Healthcare

35.9%

AU Market

Return vs Industry: VRT exceeded the Australian Healthcare industry which returned 24.1% over the past year.

Return vs Market: VRT exceeded the Australian Market which returned 37.3% over the past year.


Shareholder returns

VRTIndustryMarket
7 Day4.4%-3.9%0.3%
30 Day-6.7%-5.0%1.8%
90 Day1.4%-0.9%2.8%
1 Year88.7%84.8%26.1%24.0%39.9%35.9%
3 Year20.5%2.9%22.4%12.9%30.1%14.7%
5 Year13.3%-11.4%24.2%7.9%60.1%29.9%

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?

41.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRT (A$5.97) is trading below our estimate of fair value (A$10.13)

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 (30.9x) compared to the AU Healthcare industry average (21.2x).

PE vs Market: VRT is poor value based on its PE Ratio (30.9x) compared to the Australian market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: VRT is poor value based on its PEG Ratio (17.7x)


Price to Book Ratio

PB vs Industry: VRT's PB Ratio (1.6x) is in line with the AU Healthcare industry average.


Future Growth

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

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRT's forecast earnings growth (1.8% per year) is below the savings rate (1.9%).

Earnings vs Market: VRT's earnings (1.8% per year) are forecast to grow slower than the Australian market (14% per year).

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

Revenue vs Market: VRT's revenue (1.5% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: VRT's revenue (1.5% 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 (10.5%).


Past Performance

How has Virtus Health performed over the past 5 years?

-15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRT has a large one-off loss of A$21.5M impacting its December 31 2020 financial results.

Growing Profit Margin: VRT's current net profit margins (5.1%) are lower than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: VRT's earnings have declined by 15.1% 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 (-46.1%) over the past year, making it difficult to compare to the Healthcare industry average (25.5%).


Return on Equity

High ROE: VRT's Return on Equity (5.3%) is considered low.


Financial Health

How is Virtus Health's financial position?


Financial Position Analysis

Short Term Liabilities: VRT's short term assets (A$54.0M) do not cover its short term liabilities (A$69.2M).

Long Term Liabilities: VRT's short term assets (A$54.0M) do not cover its long term liabilities (A$256.3M).


Debt to Equity History and Analysis

Debt Level: VRT's debt to equity ratio (53.6%) is considered high.

Reducing Debt: VRT's debt to equity ratio has reduced from 56% to 53.6% over the past 5 years.

Debt Coverage: VRT's debt is well covered by operating cash flow (47.1%).

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


Balance Sheet


Dividend

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

4.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VRT's dividend (4.02%) is higher than the bottom 25% of dividend payers in the Australian market (2.03%).

High Dividend: VRT's dividend (4.02%) is low compared to the top 25% of dividend payers in the Australian market (5.25%).


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 7 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.2%), 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 (60.1% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Kate Munnings

1.17yrs

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 ($USD219.96K) is below average for companies of similar size in the Australian market ($USD712.72K).

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


Leadership Team

Experienced Management: VRT's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: VRT's board of directors are not considered experienced ( 2.7 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: 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$476.712m
  • Shares outstanding: 80.39m
  • 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


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 Analysis2021/05/07 08:18
End of Day Share Price2021/05/07 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.