TSX:CRH

Stock Analysis Report

Executive Summary

CRH Medical Corporation provides various products and services to gastroenterologists in the United States and Canada.

Rewards

Trading at 78.3% below its fair value

Earnings are forecast to grow 52.34% per year

Risk Analysis

Has a high level of debt

Profit margins (3.5%) are lower than last year (10.6%)



Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

Share Price & News

How has CRH Medical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CRH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

CRH

-0.5%

CA Healthcare

-0.4%

CA Market


1 Year Return

-10.9%

CRH

-5.4%

CA Healthcare

10.5%

CA Market

Return vs Industry: CRH underperformed the Canadian Healthcare industry which returned -5.4% over the past year.

Return vs Market: CRH underperformed the Canadian Market which returned 10.5% over the past year.


Shareholder returns

CRHIndustryMarket
7 Day2.8%-0.5%-0.4%
30 Day6.4%-1.1%0.8%
90 Day13.4%-3.4%1.7%
1 Year-10.9%-10.9%-2.5%-5.4%14.1%10.5%
3 Year-39.9%-39.9%-5.9%-18.4%16.1%5.6%
5 Year148.6%148.6%47.1%11.2%41.2%20.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CRH Medical 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: CRH (CA$4.35) is trading below our estimate of fair value (CA$20.01)

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


Price To Earnings Ratio

PE vs Industry: CRH is poor value based on its PE Ratio (56x) compared to the Healthcare industry average (40.3x).

PE vs Market: CRH is poor value based on its PE Ratio (56x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: CRH is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: CRH is overvalued based on its PB Ratio (3.1x) compared to the CA Healthcare industry average (2.4x).


Next Steps

Future Growth

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

52.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRH's forecast earnings growth (52.3% per year) is above the savings rate (1.4%).

Earnings vs Market: CRH's earnings (52.3% per year) are forecast to grow faster than the Canadian market (10.7% per year).

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

Revenue vs Market: CRH's revenue (8.4% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: CRH's revenue (8.4% 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 CRH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CRH Medical performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRH has high quality earnings.

Growing Profit Margin: CRH's current net profit margins (3.5%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: CRH's earnings have grown by 17.1% per year over the past 5 years.

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

Earnings vs Industry: CRH had negative earnings growth (-63.8%) over the past year, making it difficult to compare to the Healthcare industry average (-25.1%).


Return on Equity

High ROE: CRH's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CRH Medical's financial position?


Financial Position Analysis

Short Term Liabilities: CRH's short term assets ($28.1M) exceed its short term liabilities ($9.9M).

Long Term Liabilities: CRH's short term assets ($28.1M) do not cover its long term liabilities ($68.2M).


Debt to Equity History and Analysis

Debt Level: CRH's debt to equity ratio (57.6%) is considered high.

Reducing Debt: CRH's debt to equity ratio has increased from 5.1% to 57.6% over the past 5 years.

Debt Coverage: CRH's debt is well covered by operating cash flow (64.3%).

Interest Coverage: CRH's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: CRH's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is CRH Medical's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if CRH'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 CRH'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 CRH Medical's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Tushar Ramani (55yo)

0.7yrs

Tenure

0

Dr. Tushar Ramani, MD has been Chief Executive Officer and Director of CRH Medical Corporation since April 9, 2019. He is a 30 year veteran of the anesthesia industry. He has been President of TeamHealth A ...


Management Age and Tenure

3.4yrs

Average Tenure

55yo

Average Age

Experienced Management: CRH's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

13.6yrs

Average Tenure

64yo

Average Age

Experienced Board: CRH's board of directors are seasoned and experienced ( 13.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$136,69613 Dec 18
Ian Webb
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares29,620
Max PriceUS$4.62

Ownership Breakdown

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


Management Team

  • Richard Bear (56yo)

    CFO & Corporate Secretary

    • Tenure: 13.8yrs
    • Compensation: US$490.00k
  • Tushar Ramani (55yo)

    CEO & Director

    • Tenure: 0.7yrs
  • Jay Kreger (50yo)

    President of CRH Anesthesia Management

    • Tenure: 3.4yrs
    • Compensation: US$353.53k

Board Members

  • Tony Holler (67yo)

    Independent Chairman

    • Tenure: 14yrs
    • Compensation: US$152.49k
  • Todd Patrick (56yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$142.49k
  • Ian Webb (68yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$142.49k
  • Steven Wexner

    Member of Advisory Board

    • Tenure: 0yrs
  • Marvin Corman

    Member of Advisory Board

    • Tenure: 0yrs
  • Ian Cleator

    Member of The Advisory Board

    • Tenure: 0yrs
    • Compensation: US$20.08k
  • Tushar Ramani (55yo)

    CEO & Director

    • Tenure: 0.7yrs
  • Dave Johnson (64yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$121.49k

Company Information

CRH Medical Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CRH Medical Corporation
  • Ticker: CRH
  • Exchange: TSX
  • Founded: 2000
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: CA$302.532m
  • Shares outstanding: 71.52m
  • Website: https://investors.crhsystem.com

Number of Employees


Location

  • CRH Medical Corporation
  • World Trade Center
  • Suite 578
  • Vancouver
  • British Columbia
  • V6C 3E1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRHTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2003
CRHMAMEX (NYSE MKT LLC)YesCommon SharesUSUSDJul 2003

Biography

CRH Medical Corporation provides various products and services to gastroenterologists in the United States and Canada. It offers CRH O’Regan system, a single use, disposable, and hemorrhoid banding technol ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 00:01
End of Day Share Price2019/12/06 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.