TSX:CHH

Stock Analysis Report

Executive Summary

Centric Health Corporation provides pharmacy and other healthcare services to patients and customers in Canada.

Snowflake

Poor track record with worrying balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CHH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.8%

CHH

1.2%

CA Consumer Retailing

0.6%

CA Market


1 Year Return

-41.2%

CHH

22.2%

CA Consumer Retailing

7.2%

CA Market

Return vs Industry: CHH underperformed the Canadian Consumer Retailing industry which returned 22.2% over the past year.

Return vs Market: CHH underperformed the Canadian Market which returned 7.2% over the past year.


Shareholder returns

CHHIndustryMarket
7 Day-11.8%1.2%0.6%
30 Day15.4%0.4%3.0%
90 Day0%-1.8%4.5%
1 Year-41.2%-41.2%23.9%22.2%10.7%7.2%
3 Year-65.9%-65.9%32.6%20.8%18.4%7.8%
5 Year-58.3%-58.3%67.7%47.7%26.7%8.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Centric Health is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Centric Health has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of CHH’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Centric Health regulatory filings.
  • Explore potentially undervalued companies in the Consumer Retailing industry.

Future Growth

How is Centric Health forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

4.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CHH's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if CHH's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CHH's revenue (4.4% per year) is forecast to grow slower than the Canadian market (4.9% per year).

High Growth Revenue: CHH's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CHH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Centric Health performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHH has large one-off items impacting its financial results.

Growing Profit Margin: CHH's current net profit margins (-14.3%) are higher than last year (-31.4%).


Past Earnings Growth Analysis

Earnings Trend: CHH is unprofitable, but has reduced losses over the past 5 years at a rate of 22% per year.

Accelerating Growth: Unable to compare CHH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CHH is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (14.7%).


Return on Equity

High ROE: CHH's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Centric Health's financial position?


Financial Position Analysis

Short Term Liabilities: CHH has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CHH has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CHH has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CHH's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: CHH has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CHH has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: CHH has less than a year of cash runway if free cash flow continues to reduce at historical rates of -33.2% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate CHH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CHH's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CHH's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Centric Health's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

David Murphy 0

1.5yrs

Tenure

CA$647,481

Compensation

Mr. David Murphy has been the President at Cardinal Health Canada Inc. since April 2016. He has been the President and Chief Executive Officer at Centric Health Corporation since May 1, 2018. He has been a ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD489.50K) is above average for companies of similar size in the Canadian market ($USD136.08K).

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


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: CHH's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: CHH's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: CHH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$4,50021 Aug 19
Kevin Dalton
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares30,000
Max PriceCA$0.15
BuyCA$4,50019 Aug 19
Kevin Dalton
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares30,000
Max PriceCA$0.15

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.7%.


Management Team

  • Harold Becker

    Head of Catastrophic Injury Assessment Field

    • Tenure: 13.6yrs
  • David Murphy

    President

    • Tenure: 1.5yrs
    • Compensation: CA$647.48k
  • Paul Rakowski

    VP, General Counsel & Corporate Secretary

    • Tenure: 2.2yrs
    • Compensation: CA$281.20k
  • Ryan Stempfle

    VP & GM of Western Canada for the Specialty Pharmacy Division

    • Tenure: 2.8yrs
    • Compensation: CA$234.67k
  • Nina Freier

    Chief Human Resources Officer

    • Tenure: 1.1yrs
  • Andrew Mok

    Chief Financial Officer

    • Tenure: 1yrs
    • Compensation: CA$198.66k

Board Members

  • Matt Hills (59yo)

    Independent Member of the Board of Directors

    • Tenure: 0.3yrs
  • Jack Shevel (62yo)

    Chairman Emeritus

    • Tenure: 1.4yrs
    • Compensation: CA$279.08k
  • Yazdi Bharucha (70yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: CA$93.43k
  • Darren Youngleson (48yo)

    Director

    • Tenure: 10.4yrs
    • Compensation: CA$70.68k
  • John Ewing

    Independent Director

    • Tenure: 0.7yrs
  • Kevin Dalton

    Independent Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: CA$120.44k
  • David Murphy

    President

    • Tenure: 1.5yrs
    • Compensation: CA$647.48k

Company Information

Centric Health Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Centric Health Corporation
  • Ticker: CHH
  • Exchange: TSX
  • Founded: 2001
  • Industry: Drug Retail
  • Sector: Consumer Retailing
  • Market Cap: CA$31.967m
  • Shares outstanding: 213.12m
  • Website: https://www.centrichealth.ca

Number of Employees


Location

  • Centric Health Corporation
  • 20 Eglinton Avenue West
  • Suite 2100
  • Toronto
  • Ontario
  • M4R 1K8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHHTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2003
CHHH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2003
29CDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2003

Biography

Centric Health Corporation provides pharmacy and other healthcare services to patients and customers in Canada. The company operates a network of pharmacy fulfilment centers that provide chronic medication ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 00:21
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.