Extendicare

TSX:EXE

Snowflake Description

Second-rate dividend payer and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

EXE

TSX

CA$696M

Market Cap

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Last updated 2019/04/24 00:35

Company description

Extendicare Inc. provides care and services for seniors in Canada. The last earnings update was 55 days ago. More info.

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EXE Share Price and Events

7 Day Returns

5.4%

TSX:EXE

-0.6%

CA Healthcare

0.6%

CA Market

1 Year Returns

-6.4%

TSX:EXE

22.8%

CA Healthcare

3.4%

CA Market

EXE Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Extendicare (EXE)	5.4%	4.3%	7.4%	-6.4%	-16.1%	16.5%
CA Healthcare	-0.6%	-0.9%	6.7%	22.8%	-7.1%	27.3%
CA Market	0.6%	2.7%	8.3%	3.4%	15.7%	7.1%

1 Year Return vs Industry and Market

EXE underperformed the Healthcare industry which returned 22.8% over the past year.
EXE underperformed the Market in Canada which returned 3.4% over the past year.

Price Volatility

EXE

Industry

5yr Volatility vs Market

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Value

Is Extendicare undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of Extendicare to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Extendicare.

TSX:EXE Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 4 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	6.8%
Perpetual Growth Rate	10-Year CA Government Bond Rate	1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:EXE
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year CA Govt Bond Rate	1.9%
Equity Risk Premium	S&P Global	6%
Healthcare Unlevered Beta	Simply Wall St/ S&P Global	0.47
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.469 (1 + (1- 26.5%) (76.12%))	0.82
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	0.82
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 1.95% + (0.82 * 5.96%)	6.83%

Discounted Cash Flow Calculation for TSX:EXE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Extendicare is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:EXE DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (CAD, Millions)	Source	Present Value Discounted (@ 6.83%)
2019	25.70	Analyst x1	24.06
2020	60.70	Analyst x1	53.18
2021	95.41	Est @ 57.18%	78.24
2022	134.15	Est @ 40.61%	102.98
2023	173.07	Est @ 29.01%	124.36
2024	209.23	Est @ 20.89%	140.72
2025	241.05	Est @ 15.21%	151.75
2026	268.12	Est @ 11.23%	157.99
2027	290.76	Est @ 8.45%	160.37
2028	309.65	Est @ 6.5%	159.86
Present value of next 10 years cash flows			CA$1,153.52

TSX:EXE DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = CA$309.65 × (1 + 1.95%) ÷ (6.83% – 1.95%)	CA$6,458.79
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = CA$6,458.79 ÷ (1 + 6.83%)¹⁰	CA$3,334.51

TSX:EXE Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = CA$1,153.52 + CA$3,334.51	CA$4,488.03
Equity Value per Share (CAD)	= Total value / Shares Outstanding = CA$4,488.03 / 88.62	CA$50.65

TSX:EXE Discount to Share Price
	Calculation	Result
Value per share (CAD)	From above.	CA$50.65
Current discount	Discount to share price of CA$7.85 = -1 x (CA$7.85 - CA$50.65) / CA$50.65	84.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount

Amount off the current price Extendicare is available for.

^>50%

Share price is CA$7.85 vs Future cash flow value of CA$50.65

Current Discount Checks

For Extendicare to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.

Extendicare's share price is below the future cash flow value, and at a moderate discount (> 20%).
Extendicare's share price is below the future cash flow value, and at a substantial discount (> 40%).

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Extendicare's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Extendicare's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

TSX:EXE PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in CAD	CA$0.09
TSX:EXE Share Price **	TSX (2019-04-23) in CAD	CA$7.85
Canada Healthcare Industry PE Ratio	Median Figure of 7 Publicly-Listed Healthcare Companies	39.66x
Canada Market PE Ratio	Median Figure of 557 Publicly-Listed Companies	14.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Extendicare.

TSX:EXE PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= TSX:EXE Share Price ÷ EPS (both in CAD) = 7.85 ÷ 0.09	85.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Extendicare is overvalued based on earnings compared to the CA Healthcare industry average.
Extendicare is overvalued based on earnings compared to the Canada market.

Price based on expected Growth

Does Extendicare's expected growth come at a high price?

Raw Data

TSX:EXE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	85.84x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts	-0.4%per year
North America Healthcare Industry PEG Ratio	Median Figure of 44 Publicly-Listed Healthcare Companies	1.4x
Canada Market PEG Ratio	Median Figure of 256 Publicly-Listed Companies	1.2x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Unable to calculate PEG ratio for Extendicare, we can't assess if its growth is good value.

Price based on value of assets

What value do investors place on Extendicare's assets?

Raw Data

TSX:EXE PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in CAD	CA$1.42
TSX:EXE Share Price *	TSX (2019-04-23) in CAD	CA$7.85
Canada Healthcare Industry PB Ratio	Median Figure of 20 Publicly-Listed Healthcare Companies	2.7x
Canada Market PB Ratio	Median Figure of 2,380 Publicly-Listed Companies	1.51x

TSX:EXE PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= TSX:EXE Share Price ÷ Book Value per Share (both in CAD) = 7.85 ÷ 1.42	5.51x

* Primary Listing of Extendicare.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Extendicare is overvalued based on assets compared to the CA Healthcare industry average.

Value checks

We assess Extendicare's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

No analysts cover Extendicare, future earnings growth has been estimated based on fundamentals.

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

-0.4%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Extendicare expected to grow at an attractive rate?

Extendicare's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.

Growth vs Market Checks

Extendicare's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
Extendicare's revenue growth is positive but not above the Canada market average.

Annual Growth Rates Comparison

Raw Data

TSX:EXE Future Growth Rates Data Sources
Data Point	Source	Value (per year)
TSX:EXE Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts	-0.4%
TSX:EXE Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts	1%
Canada Healthcare Industry Earnings Growth Rate	Market Cap Weighted Average	34%
Canada Healthcare Industry Revenue Growth Rate	Market Cap Weighted Average	17.5%
Canada Market Earnings Growth Rate	Market Cap Weighted Average	18.2%
Canada Market Revenue Growth Rate	Market Cap Weighted Average	7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

TSX:EXE Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (3 months ago)	See Below
Future Estimates	Average of up to 4 Analyst Estimates (S&P Global)	See Below

All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

TSX:EXE Future Estimates Data
Date (Data in CAD Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2020-12-31	1,142	80		4
2019-12-31	1,138	63		4

TSX:EXE Past Financials Data
Date (Data in CAD Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	1,120	39	8
2018-09-30	1,113	49	27
2018-06-30	1,106	52	26
2018-03-31	1,100	46	30
2017-12-31	1,097	47	32
2017-09-30	1,093	54	35
2017-06-30	1,088	33	38
2017-03-31	1,075	33	38
2016-12-31	1,061	0	31
2016-09-30	1,046	1	25
2016-06-30	1,032	-8	27
2016-03-31	1,005	11	21

*GAAP earnings excluding extraordinary items.

High Growth Checks

Extendicare's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Extendicare's revenue is expected to grow by 1% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

TSX:EXE Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (3 months ago)	See Below
Future Estimates	Average of up to 4 Analyst Estimates (S&P Global)	See Below

All data from Extendicare Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:EXE Future Estimates Data
Date (Data in CAD Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2020-12-31
2019-12-31

TSX:EXE Past Financials Data
Date (Data in CAD Millions)	EPS *
2018-12-31	0.09
2018-09-30	0.31
2018-06-30	0.30
2018-03-31	0.34
2017-12-31	0.36
2017-09-30	0.39
2017-06-30	0.43
2017-03-31	0.43
2016-12-31	0.36
2016-09-30	0.29
2016-06-30	0.30
2016-03-31	0.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Unable to establish if Extendicare will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Future performance checks

We assess Extendicare's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Extendicare has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

How has Extendicare performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Extendicare's growth in the last year to its industry (Healthcare).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Extendicare has delivered over 20% year on year earnings growth in the past 5 years.
Extendicare's 1-year earnings growth is negative, it can't be compared to the 5-year average.
Extendicare's 1-year earnings growth is negative, it can't be compared to the CA Healthcare industry average.

Earnings and Revenue History

Extendicare's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Extendicare Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:EXE Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions)	Revenue	Net Income *	G+A Expenses
2018-12-31	1,120.01	8.08	39.75
2018-09-30	1,112.61	27.44	35.49
2018-06-30	1,105.54	26.39	35.09
2018-03-31	1,099.90	30.33	35.40
2017-12-31	1,097.33	31.71	38.23
2017-09-30	1,092.79	34.66	39.67
2017-06-30	1,087.65	38.07	38.48
2017-03-31	1,075.23	37.85	37.30
2016-12-31	1,060.76	31.42	37.20
2016-09-30	1,046.49	25.43	37.51
2016-06-30	1,031.95	26.69	37.51
2016-03-31	1,004.89	20.97	38.17
2015-12-31	943.28	23.71	36.10
2015-09-30	893.53	24.42	32.57
2015-06-30	847.89	16.29	32.20
2015-03-31	814.64	14.12	32.55
2014-12-31	816.12	11.07	33.36
2014-09-30	-118.00	1.71	6.62
2014-06-30	182.70	4.24	16.44
2014-03-31	480.11	8.98	26.39
2013-12-31	783.81	10.17	36.54
2013-09-30	2,002.13	26.11	74.16
2013-06-30	1,992.02	15.42	74.41
2013-03-31	2,018.18	12.54	74.09
2012-12-31	2,037.41	27.62	74.14
2012-09-30	2,072.21	-6.20	85.23
2012-06-30	2,102.16	-36.80	76.07

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Extendicare has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Extendicare used its assets less efficiently than the CA Healthcare industry average last year based on Return on Assets.
Extendicare has improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Past performance checks

We assess Extendicare's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Extendicare has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

How is Extendicare's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Extendicare's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Extendicare's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Extendicare's long term commitments exceed its cash and other short term assets.

Balance sheet

This treemap shows a more detailed breakdown of Extendicare's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.3x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Extendicare Company Filings, last reported 3 months ago.

TSX:EXE Past Debt and Equity Data
Date (Data in CAD Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	125.99	529.49	65.89
2018-09-30	128.51	523.86	67.41
2018-06-30	129.42	519.18	64.82
2018-03-31	118.85	533.68	118.04
2017-12-31	128.96	536.07	128.16
2017-09-30	128.22	531.35	131.54
2017-06-30	135.00	533.80	136.95
2017-03-31	170.09	501.24	98.55
2016-12-31	174.76	503.57	101.58
2016-09-30	160.69	501.08	88.38
2016-06-30	160.76	446.51	38.61
2016-03-31	162.93	449.37	42.53
2015-12-31	172.13	454.07	103.62
2015-09-30	171.80	458.59	190.82
2015-06-30	-10.82	539.64	143.21
2015-03-31	1.48	466.92	40.16
2014-12-31	-2.50	472.03	35.50
2014-09-30	-7.18	1,199.74	127.46
2014-06-30	1.10	1,142.12	94.29
2014-03-31	38.73	1,180.17	112.61
2013-12-31	37.38	1,164.84	96.00
2013-09-30	47.55	1,160.93	104.59
2013-06-30	56.76	1,168.18	71.40
2013-03-31	51.19	1,143.66	71.08
2012-12-31	54.66	1,132.24	71.40
2012-09-30	51.48	1,200.66	171.44
2012-06-30	74.38	1,113.70	73.43

Extendicare's level of debt (420.3%) compared to net worth is high (greater than 40%).
The level of debt compared to net worth has been reduced over the past 5 years (3115.5% vs 420.3% today).
Debt is not well covered by operating cash flow (7.5%, less than 20% of total debt).
Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).

Financial health checks

We assess Extendicare's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

6.11%

Current annual income from Extendicare dividends. Estimated to be 6.11% next year.

If you bought CA$2,000 of Extendicare shares you are expected to receive CA$122 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Extendicare's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.05%).
Extendicare's dividend is above the markets top 25% of dividend payers in Canada (5.51%).

Upcoming dividend payment

Purchase Extendicare before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

TSX:EXE Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 4 Analyst Estimates (S&P Global)	See Below
North America Healthcare Industry Average Dividend Yield	Market Cap Weighted Average of 25 Stocks	1.6%
Canada Market Average Dividend Yield	Market Cap Weighted Average of 331 Stocks	3.5%
Canada Minimum Threshold Dividend Yield	10th Percentile	1.2%
Canada Bottom 25% Dividend Yield	25th Percentile	2.1%
Canada Top 25% Dividend Yield	75th Percentile	5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:EXE Future Dividends Estimate Data
Date (Data in CA$)	Dividend per Share (annual)	Avg. No. Analysts
2020-12-31	0.48	4.00
2019-12-31	0.48	4.00

TSX:EXE Past Annualized Dividends Data
Date (Data in CA$)	Dividend per share (annual)	Avg. Yield (%)
2019-04-15	0.480	6.386
2019-03-15	0.480	6.412
2019-02-15	0.480	6.481
2019-01-15	0.480	6.525
2018-12-14	0.480	7.431
2018-11-09	0.480	6.968
2018-10-15	0.480	6.474
2018-09-17	0.480	6.252
2018-08-10	0.480	5.795
2018-07-16	0.480	6.558
2018-06-15	0.480	6.583
2018-05-10	0.480	6.345
2018-04-16	0.480	5.770
2018-03-15	0.480	5.562
2018-02-15	0.480	5.633
2017-12-15	0.480	5.440
2017-11-09	0.480	5.207
2017-10-16	0.480	5.142
2017-09-15	0.480	5.161
2017-07-17	0.480	5.081
2017-06-15	0.480	4.719
2017-05-09	0.480	4.691
2017-04-17	0.480	4.739
2017-03-15	0.480	4.624
2017-02-15	0.480	4.580
2017-01-16	0.480	4.636
2016-12-15	0.480	4.812
2016-11-10	0.480	4.950
2016-10-17	0.480	5.163
2016-09-15	0.480	5.225
2016-08-11	0.480	5.558
2016-07-15	0.480	5.878
2016-06-15	0.480	5.899
2016-05-12	0.480	5.707
2016-04-15	0.480	5.163
2016-03-15	0.480	5.099
2016-02-16	0.480	5.256
2016-01-15	0.480	5.510
2015-12-15	0.480	5.242
2015-11-11	0.480	5.091
2015-10-15	0.480	5.508
2015-09-15	0.480	5.934
2015-07-15	0.480	5.836
2015-06-15	0.480	6.299
2015-05-07	0.480	6.470
2015-04-15	0.480	6.136
2015-03-16	0.480	6.429
2015-02-17	0.480	6.813
2015-01-15	0.480	7.093
2014-12-15	0.480	7.368
2014-10-15	0.480	6.725
2014-09-15	0.480	5.845
2014-08-11	0.480	5.639
2014-07-15	0.480	6.459
2014-06-16	0.480	6.574
2014-05-07	0.480	6.726
2014-04-15	0.480	7.134
2014-03-17	0.480	7.030
2014-02-18	0.480	6.800
2014-01-15	0.480	6.741
2013-12-16	0.480	7.035
2013-11-06	0.480	7.270
2013-10-15	0.480	7.301
2013-09-16	0.480	7.255
2013-08-08	0.480	7.315
2013-07-15	0.480	6.976
2013-06-17	0.480	7.232
2013-04-29	0.480	7.262
2013-04-15	0.840	10.552
2013-03-15	0.840	10.327
2013-02-15	0.840	10.535
2013-01-16	0.840	10.523
2012-12-17	0.840	10.707
2012-11-07	0.840	11.202
2012-10-15	0.840	10.291
2012-09-17	0.840	10.508
2012-08-13	0.840	10.598
2012-08-09	0.840	11.080
2012-05-08	0.840	10.827
2012-04-16	0.840	10.489
2012-03-15	0.840	10.847
2012-02-15	0.840	10.171
2012-01-16	0.840	9.840
2011-12-15	0.840	10.131
2011-11-08	0.840	11.672
2011-10-17	0.840	11.522
2011-09-15	0.840	11.866
2011-08-09	0.840	11.145
2011-07-15	0.840	8.973
2011-06-07	0.840	7.998
2011-05-16	0.840	7.147
2011-03-15	0.840	6.738
2011-02-15	0.840	7.845
2011-01-17	0.840	8.369
2010-12-15	0.840	9.138
2010-10-15	0.840	8.606
2010-09-15	0.840	8.483
2010-08-05	0.840	8.679
2010-07-15	0.840	9.475
2010-06-15	0.840	9.518
2010-05-06	0.840	9.531
2010-04-15	0.840	9.076
2010-03-15	0.840	7.987
2010-02-16	0.840	8.338
2010-01-15	0.840	8.995
2009-12-18	0.840	9.039
2009-11-04	0.840	10.872
2009-10-15	0.840	10.651
2009-09-15	0.840	10.766
2009-08-05	0.840	11.909
2009-07-15	0.840	14.742
2009-06-15	0.840	13.979
2009-05-06	0.840	14.051
2009-04-27	0.840	16.572

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Dividends per share have been stable in the past 10 years.
Dividends per share have fallen over the past 10 years.

Current Payout to shareholders

What portion of Extendicare's earnings are paid to the shareholders as a dividend.

Dividends paid are not well covered by earnings (0.2x coverage).

Future Payout to shareholders

Dividends after 3 years are not well covered by earnings (0.7x coverage).

Income/ dividend checks

We assess Extendicare's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Extendicare afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Michael Guerriere

AGE	53
TENURE AS CEO	0.5 years

CEO Bio

Dr. Michael R. Guerriere, MD, MBA is Chief Executive Officer and President at Extendicare Inc. since October 22, 2018. He serves as Chief Medical Officer and Vice President of TELUS Health Solutions Inc. Prior to joining TELUS Health in 2011, Dr. Guerriere was Managing Partner of Courtyard Group Ltd. A respected strategist, he works with leading health care institutions on information management, clinical change, quality improvement and health care operations management. He has leveraged his extensive experience in clinical, technical and business settings to help leading health organizations achieve their goals and improve care for patients. He has also consulted for governments on health policy and strategy, particularly in the areas of hospital funding and integration of care delivery. Before starting Courtyard in 2002, he served ten years as an executive in university teaching hospitals, including as Executive Vice President and Chief Operating Officer at the University Health Network. Prior to joining TELUS, he served 10 years as an executive in academic hospitals and 11 years as an international health care consultant. He has been an Independent Director of MediSolution Ltd. since September 21, 2000 and Extendicare Incorporated since March 12, 2018. Dr. Guerriere is a frequent guest lecturer and contributor to the health management literature. He holds appointments as Assistant Professor in the Department of Health Administration at the Faculty of Medicine of the University of Toronto and Adjunct Associate Professor at the School of Health Information Sciences at the University of Victoria. He has served on numerous boards including Ryerson University where he served as Chair, MediSolution Ltd., Canada Health Infoway, Canadian Institute for Health Information and the Institute of Clinical Evaluative Sciences. In 2009, he was awarded an honorary doctorate from Ryerson University. Dr. Guerriere holds a degree in Medicine and specialty training in Internal Medicine from the University of Toronto. He received an MBA from the Kellogg Graduate School of Management at Northwestern University in Chicago.

CEO Compensation

Insufficient data for Michael to compare compensation growth.
Insufficient data for Michael to establish whether their remuneration is reasonable compared to companies of similar size in Canada.

Management Team Tenure

Average tenure of the Extendicare management team in years:

0.9

Average Tenure

The average tenure for the Extendicare management team is less than 2 years, this suggests a new team.

Management Team

Jillian Fountain

53

TENURE

0.5 yrs

David Bacon

TITLE

Senior VP & CFO

Brandon Parent

TITLE

VP, General Counsel & Corporate Secretary

TENURE

1.9 yrs

Board of Directors Tenure

Average tenure and age of the Extendicare board of directors in years:

3.3

Average Tenure

65.5

Average Age

The tenure for the Extendicare board of directors is about average.

Board of Directors

Alan Torrie

TITLE

Chairman of the Board

COMPENSATION

CA$175K

AGE

67

TENURE

Recent Insider Trading

No 3 month insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (CA$)	Value (CA$)
20. Dec 18	Buy	Alan Hibben	Individual	19. Dec 18	19. Dec 18	5,000	CA$6.45	CA$32,250
20. Dec 18	Buy	Alan Torrie	Individual	19. Dec 18	19. Dec 18	15,000	CA$6.40	CA$95,935
05. Dec 18	Buy	Alan Hibben	Individual	04. Dec 18	05. Dec 18	4,000	CA$6.79	CA$27,090
14. Nov 18	Buy	Alan Hibben	Individual	14. Nov 18	14. Nov 18	3,500	CA$7.16	CA$25,043
12. Nov 18	Buy	Michael Guerriere	Individual	12. Nov 18	12. Nov 18	10,000	CA$7.36	CA$73,623
12. Nov 18	Buy	Jillian Fountain	Individual	12. Nov 18	12. Nov 18	150	CA$7.36	CA$1,104
17. May 18	Buy	Timothy Lukenda	Individual	17. May 18	17. May 18	10,000	CA$7.69	CA$76,900
15. May 18	Buy	Alan Hibben	Individual	15. May 18	15. May 18	1,900	CA$7.46	CA$14,174
15. May 18	Buy	Jillian Fountain	Individual	15. May 18	15. May 18	350	CA$7.59	CA$2,656

Management checks

We assess Extendicare's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Investors Who Bought Extendicare (TSE:EXE) Shares Three Years Ago Are Now Down 17%

(TSE:EXE) share price up 10% in a single quarter. … In fact, the share price is down 17% in the last three years, falling well short of the market return. … During the three years that the share price fell, Extendicare's earnings per share (EPS) dropped by 30% each year.

Simply Wall St - 1 week ago – Full article

Is Extendicare Inc.'s (TSE:EXE) 21% Better Than Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every CA$1 worth of equity in the company, it was able to earn CA$0.21. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - 1 month ago – Full article

Could The Extendicare Inc. (TSE:EXE) Ownership Structure Tell Us Something Useful?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Companies that have been privatized tend to have low insider ownership. … Taking a look at the our data on the ownership groups (below), it's seems that

Simply Wall St - 2 months ago – Full article

Have Insiders Been Buying Extendicare Inc. (TSE:EXE) Shares?

Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So shareholders might well want to know whether insiders have been buying or selling shares in Extendicare Inc. … It's quite normal to see company insiders, such as board members, trading in company stock, from time to time.

Simply Wall St - 3 months ago – Full article

Extendicare Inc. (TSE:EXE) Is Trading At A 20.72% Discount

I am going to run you through how I calculated the intrinsic value of Extendicare Inc. … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St - 3 months ago – Full article

What Do You Get For Owning Extendicare Inc (TSE:EXE)?

and want a simplistic look at the return on Extendicare Inc (TSE:EXE) stock. … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Thus, to understand how your money can grow by investing in Extendicare, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St - 4 months ago – Full article

Boasting A 20% Return On Equity, Is Extendicare Inc (TSE:EXE) A Top Quality Stock?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.20 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - 5 months ago – Full article

Is Extendicare Inc's (TSE:EXE) CEO Incentives Align With Yours?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Tim Lukenda's Compensation Compare With Similar Sized Companies. … As you can see, Tim Lukenda is paid more than the median CEO pay at companies of a similar size, in the same market

Simply Wall St - 6 months ago – Full article

Should You Be Tempted To Sell Extendicare Inc (TSE:EXE) Because Of Its PE Ratio?

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … See our latest analysis for Extendicare

Simply Wall St - 7 months ago – Full article

Only 2 Days Left To Cash In On Extendicare Inc (TSE:EXE) Dividend, Is It Worth Buying?

On the 15 August 2018, Extendicare Inc (TSE:EXE) will be paying shareholders an upcoming dividend amount of CA$0.04 per share. … 5 questions I ask before picking a dividend stock? … Is it the top 25% annual dividend yield payer?

Simply Wall St - 8 months ago – Full article

Company Info

Description

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.

Details

Name:	Extendicare Inc.
Ticker:	EXE
Exchange:	TSX
Founded:	1968
Market Cap:	CA$695,628,048
Shares outstanding:	88,615,038
Website:	http://www.extendicare.com
Address:	Extendicare Inc. 3000 Steeles Avenue East, Suite 700, Markham, Ontario, L3R 9W2, Canada

Listings

Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
TSX	EXE	Common Shares	The Toronto Stock Exchange	CA	CAD	06. Jan 1975
OTCPK	EXET.F	Common Shares	Pink Sheets LLC	US	USD	06. Jan 1975
DB	5XE	Common Shares	Deutsche Boerse AG	DE	EUR	06. Jan 1975
LSE	0S9E	Common Shares	London Stock Exchange	GB	CAD	06. Jan 1975

Number of employees

Current staff

23,000

Extendicare employees.

Industry

Industry:	Health Care Facilities
Sector:	Healthcare

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/04/24 00:35
End of day share price update:	2019/04/23 00:00
Last estimates confirmation:	2019/04/16
Last earnings filing:	2019/02/28
Last earnings reported:	2018/12/31
Last annual earnings reported:	2018/12/31

All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2019, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2019)

Extendicare

EXE Share Price and Events

7 Day Returns

1 Year Returns

EXE Shareholder Return

1 Year Return vs Industry and Market

Price Volatility

Related Companies

Chartwell Retirement Residences

Sienna Senior Living

Medical Facilities

Value

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Current Discount

Current Discount Checks

PRICE RELATIVE TO MARKET

Price based on past earnings

Price based on expected Growth

Price based on value of assets

Value checks

Future Performance

Earnings growth vs Low Risk Savings

Growth vs Market Checks

Annual Growth Rates Comparison

Analysts growth expectations

High Growth Checks

Past and Future Earnings per Share

Performance in 3 years

Future performance checks

Past Performance

Past earnings growth

Past Earnings growth analysis

Earnings and Revenue History

Performance last year

Past performance checks

Health

Net Worth

Balance sheet

Assets

Liabilities and shares

Historical Debt

Financial health checks

Dividends

Annual Dividend Income

Dividend Amount

Upcoming dividend payment

Annualized Historical and Future Dividends

Current Payout to shareholders

Future Payout to shareholders

Income/ dividend checks

Management

CEO

CEO Bio

CEO Compensation

Management Team Tenure

Management Team

Jillian Fountain

Vice President of Investor Relations

CA$330K

0.9 yrs

Elaine Everson

Vice President of Corporate Development

CA$567K

Michael Guerriere

CEO, President & Director

53

0.5 yrs

David Bacon

Senior VP & CFO

Brandon Parent

VP, General Counsel & Corporate Secretary

1.9 yrs

Board of Directors Tenure

Board of Directors

Alan Torrie

Chairman of the Board

CA$175K

67

1.9 yrs

Michael Guerriere