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Market Cap

CA$724.6m

Last Updated

2021/05/16 00:17 UTC

Data Sources

Company Financials +

Executive Summary

Extendicare Inc., through its subsidiaries, provides care and services for seniors in Canada. More Details


Snowflake Analysis

Proven track record average dividend payer.

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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

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


Market Performance


7 Day Return

3.2%

EXE

-3.9%

CA Healthcare

-0.7%

CA Market


1 Year Return

41.4%

EXE

32.5%

CA Healthcare

39.3%

CA Market

Return vs Industry: EXE exceeded the Canadian Healthcare industry which returned 33.6% over the past year.

Return vs Market: EXE exceeded the Canadian Market which returned 39.2% over the past year.


Shareholder returns

EXEIndustryMarket
7 Day3.2%-3.9%-0.7%
30 Day3.3%-7.7%1.0%
90 Day26.0%-8.7%6.1%
1 Year53.0%41.4%35.1%32.5%43.8%39.3%
3 Year29.9%5.9%82.5%60.7%28.6%16.4%
5 Year28.3%-5.7%12.6%-14.1%58.6%34.7%

Long-Term 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?

14.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EXE (CA$8.09) is trading above our estimate of fair value (CA$5.59)

Significantly Below Fair Value: EXE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EXE is good value based on its PE Ratio (15x) compared to the Canadian Healthcare industry average (18.1x).

PE vs Market: EXE's PE Ratio (15x) is in line with the Canadian market.


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 (5.8x) compared to the CA Healthcare industry average (4.2x).


Future Growth

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

3.2%

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 (1.5%).

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 (3.2% per year) is forecast to grow slower than the Canadian market (6.3% per year).

High Growth Revenue: EXE's revenue (3.2% 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 EXE's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Extendicare performed over the past 5 years?

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXE has high quality earnings.

Growing Profit Margin: EXE's current net profit margins (4.1%) are higher than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: EXE's earnings have declined by 4.6% per year over the past 5 years.

Accelerating Growth: EXE's earnings growth over the past year (178%) exceeds its 5-year average (-4.6% per year).

Earnings vs Industry: EXE earnings growth over the past year (178%) exceeded the Healthcare industry 34.1%.


Return on Equity

High ROE: Whilst EXE's Return on Equity (38.67%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Extendicare's financial position?


Financial Position Analysis

Short Term Liabilities: EXE's short term assets (CA$268.9M) do not cover its short term liabilities (CA$277.9M).

Long Term Liabilities: EXE's short term assets (CA$268.9M) do not cover its long term liabilities (CA$527.4M).


Debt to Equity History and Analysis

Debt Level: EXE's debt to equity ratio (374.2%) is considered high.

Reducing Debt: EXE's debt to equity ratio has increased from 217.3% to 374.2% over the past 5 years.

Debt Coverage: EXE's debt is not well covered by operating cash flow (18.6%).

Interest Coverage: EXE's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Dividend

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

5.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EXE's dividend (5.93%) is higher than the bottom 25% of dividend payers in the Canadian market (1.53%).

High Dividend: EXE's dividend (5.93%) is in the top 25% of dividend payers in the Canadian market (4.53%)


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: At its current payout ratio (88.7%), EXE's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Michael Guerriere (56 yo)

2.58yrs

Tenure

CA$1,713,124

Compensation

Dr. Michael R. Guerriere, MD, MBA, has been the Chief Executive Officer and President at Extendicare Inc. since joined in October 22, 2018. Dr. Guerriere serves as Chairman and Chief Executive Officer of E...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.42M) is above average for companies of similar size in the Canadian market ($USD793.46K).

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


Leadership Team

Experienced Management: EXE's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: EXE's board of directors are considered experienced (4.7 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$724.561m
  • Shares outstanding: 89.56m
  • Website: https://www.extendicare.com

Number of Employees


Location

  • Extendicare Inc.
  • 3000 Steeles Avenue East
  • Suite 103
  • Markham
  • Ontario
  • L3R 4T9
  • Canada

Listings


Biography

Extendicare Inc., through its subsidiaries, provides care and services for seniors in Canada. The company offers long term care (LTC) services; retirement living services; and home health care services, su...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 00:17
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.