TSX:EXE

Stock Analysis Report

Executive Summary

Extendicare Inc. provides care and services for seniors in Canada.


Snowflake Analysis

Proven track record and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.2%

EXE

6.7%

CA Healthcare

6.4%

CA Market


1 Year Return

-26.4%

EXE

-41.2%

CA Healthcare

-25.5%

CA Market

Return vs Industry: EXE exceeded the Canadian Healthcare industry which returned -41.2% over the past year.

Return vs Market: EXE matched the Canadian Market which returned -25.5% over the past year.


Shareholder returns

EXEIndustryMarket
7 Day-1.2%6.7%6.4%
30 Day-28.4%-23.0%-22.6%
90 Day-35.0%-25.1%-26.8%
1 Year-22.5%-26.4%-39.7%-41.2%-23.2%-25.5%
3 Year-34.9%-45.0%-49.5%-55.5%-15.7%-23.5%
5 Year-2.1%-25.8%-20.4%-38.2%-3.1%-17.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Extendicare 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: EXE (CA$5.55) is trading below our estimate of fair value (CA$13)

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


Price To Earnings Ratio

PE vs Industry: EXE is poor value based on its PE Ratio (29x) compared to the Healthcare industry average (19x).

PE vs Market: EXE is poor value based on its PE Ratio (29x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EXE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EXE is overvalued based on its PB Ratio (4.3x) compared to the CA Healthcare industry average (1.8x).


Next Steps

Future Growth

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

-1.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if EXE's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if EXE'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: EXE's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: EXE's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Extendicare performed over the past 5 years?

-7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXE has high quality earnings.

Growing Profit Margin: EXE's current net profit margins (1.5%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: EXE's earnings have declined by -7.3% per year over the past 5 years.

Accelerating Growth: EXE's earnings growth over the past year (110.9%) exceeds its 5-year average (-7.3% per year).

Earnings vs Industry: EXE earnings growth over the past year (110.9%) exceeded the Healthcare industry 2.7%.


Return on Equity

High ROE: EXE's Return on Equity (14.8%) is considered low.


Next Steps

Financial Health

How is Extendicare's financial position?


Financial Position Analysis

Short Term Liabilities: EXE's short term assets (CA$183.9M) do not cover its short term liabilities (CA$275.9M).

Long Term Liabilities: EXE's short term assets (CA$183.9M) do not cover its long term liabilities (CA$497.5M).


Debt to Equity History and Analysis

Debt Level: EXE's debt to equity ratio (407.9%) is considered high.

Reducing Debt: EXE had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: EXE's debt is not well covered by operating cash flow (9.6%).

Interest Coverage: EXE's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: EXE has a high level of physical assets or inventory.

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


Next Steps

Dividend

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

8.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EXE's dividend (8.65%) is higher than the bottom 25% of dividend payers in the Canadian market (2.73%).

High Dividend: EXE's dividend (8.65%) is low compared to the top 25% of dividend payers in the Canadian market (8.76%).


Stability and Growth of Payments

Stable Dividend: EXE's dividends per share have been stable in the past 10 years.

Growing Dividend: EXE's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (251%), EXE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EXE's dividends in 3 years are not forecast to be well covered by earnings (106.7% payout ratio).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Michael Guerriere (55yo)

1.42s

Tenure

CA$828,788

Compensation

Dr. Michael R. Guerriere, MD, MBA, is Chief Executive Officer and President at Extendicare Inc. since October 22, 2018. Dr. Guerriere serves as Chairman and Chief Executive Officer of Extendicare Canada In ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD588.89K) is below average for companies of similar size in the Canadian market ($USD1.23M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Guerriere
CEO, President & Director1.42yrsCA$828.79k0.045% CA$222.0k
Jillian Fountain
Vice President of Investor Relations1.83yrsCA$342.59k0.022% CA$109.0k
Elaine Everson
Vice President of Corporate Development0.92yrCA$461.93k0.025% CA$124.3k
David Bacon
Senior VP & CFO0.92yrno data0.034% CA$166.5k
John Toffoletto
Senior VP0.33yrno data0.026% CA$129.2k
Leslie Sarauer
Senior VP & Chief Human Resources Officer0.083yrno data0.0089% CA$44.4k
Prakash Patel
Vice Presidentno datano datano data
Mark Trenholm
Vice Presidentno datano datano data

0.9yrs

Average Tenure

Experienced Management: EXE's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Guerriere
CEO, President & Director1.42yrsCA$828.79k0.045% CA$222.0k
Alan Torrie
Independent Chairman of the Board2.83yrsCA$252.00k0.039% CA$194.3k
Alvin Libin
Honorary Director4.17yrsCA$123.37kno data
Alan Hibben
Independent Director4.17yrsCA$153.00k0.033% CA$163.7k
Samir Manji
Independent Director0.83yrno datano data
Aladin Mawani
Independent Director2.25yrsCA$173.03k0.011% CA$55.5k
Donna Kingelin
Independent Director4.17yrsCA$181.02k0.0067% CA$33.3k
Sandra Hanington
Independent Director5.58yrsCA$163.00k0.0034% CA$16.7k
Margery Cunningham
Independent Director9.58yrsCA$187.00k0.0022% CA$11.1k
Norma Beauchamp
Independent Director0.83yrno data0.0036% CA$17.8k

3.5yrs

Average Tenure

61yo

Average Age

Experienced Board: EXE's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EXE 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

Extendicare Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Extendicare Inc.
  • Ticker: EXE
  • Exchange: TSX
  • Founded: 1968
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: CA$496.081m
  • Shares outstanding: 89.38m
  • Website: https://www.extendicare.com

Number of Employees


Location

  • Extendicare Inc.
  • 3000 Steeles Avenue East
  • Suite 700
  • Markham
  • Ontario
  • L3R 9W2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EXETSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1975
EXET.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1975
5XEDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1975
0S9ELSE (London Stock Exchange)YesCommon SharesGBCADJan 1975

Biography

Extendicare Inc. provides care and services for seniors in Canada. The company offers long term care services; retirement living services; and home health care services, such as nursing care, occupational, physical and speech therapy, and assistance with daily activities, as well as management and consulting services to third-party owners. It also provides third-party liability insurance products in the United States. As of February 28, 2019, it operated 120 senior care and retirement living centers, including 67 owned and 53 managed centers, as well as home health care operations under the Extendicare, Esprit Lifestyle, and ParaMed brands. Extendicare Inc. was founded in 1968 and is based in Markham, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 03:08
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.