NorthWest Healthcare Properties Real Estate Investment Trust (TSX:NWH.UN) - Share price, News & Analysis

NWH.UN fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	2/6
Dividends	3/6

NWH.UN Stock Overview

NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (NorthWest) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario.

Rewards

Trading at 57.4% below our estimate of its fair value

Earnings have grown 35.7% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of 41.6% per year for the next 3 years

Debt is not well covered by operating cash flow

Dividend of 6.14% is not well covered by earnings

Large one-off items impacting financial results

+ 1 more risk

NorthWest Healthcare Properties Real Estate Investment Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NorthWest Healthcare Properties Real Estate Investment Trust
Historical stock prices
Current Share Price	CA$13.04
52 Week High	CA$14.42
52 Week Low	CA$12.35
Beta	0.79
1 Month Change	-1.59%
3 Month Change	-4.82%
1 Year Change	0.46%
3 Year Change	8.58%
5 Year Change	21.53%
Change since IPO	47.18%

Shareholder Returns

	NWH.UN	CA REITs	CA Market
7D	0.8%	-0.08%	1.7%
1Y	0.5%	-0.2%	4.7%

Return vs Industry: NWH.UN matched the Canadian REITs industry which returned -0.2% over the past year.

Return vs Market: NWH.UN underperformed the Canadian Market which returned 4.7% over the past year.

Price Volatility

Is NWH.UN's price volatile compared to industry and market?
NWH.UN volatility
NWH.UN Average Weekly Movement	2.5%
REITs Industry Average Movement	3.5%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	17.0%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: NWH.UN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NWH.UN's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	n/a	Paul Dalla Lana	https://www.nwhreit.com

NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH UN) (NorthWest) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. As at September 30, 2020, the REIT provides investors with access to a portfolio of high quality international healthcare real estate infrastructure comprised of interests in a diversified portfolio of 190 income-producing properties and 15.4 million square feet of gross leasable area located throughout major markets in Canada, Brazil, Europe, Australia and New Zealand.

NorthWest Healthcare Properties Real Estate Investment Trust Fundamentals Summary

How do NorthWest Healthcare Properties Real Estate Investment Trust's earnings and revenue compare to its market cap?
NWH.UN fundamental statistics
Market Cap	CA$3.12b
Earnings (TTM)	CA$421.64m
Revenue (TTM)	CA$518.03m

7.3x

P/E Ratio

6.0x

P/S Ratio

Is NWH.UN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NWH.UN income statement (TTM)
Revenue	CA$518.03m
Cost of Revenue	CA$88.67m
Gross Profit	CA$429.37m
Other Expenses	CA$7.73m
Earnings	CA$421.64m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.78
Gross Margin	82.88%
Net Profit Margin	81.39%
Debt/Equity Ratio	85.1%

How did NWH.UN perform over the long term?

See historical performance and comparison

Dividends

6.1%

Current Dividend Yield

76%

Payout Ratio

Does NWH.UN pay a reliable dividends?

See NWH.UN dividend history and benchmarks

When do you need to buy NWH.UN by to receive an upcoming dividend?
NorthWest Healthcare Properties Real Estate Investment Trust dividend dates
Ex Dividend Date	May 30 2022
Dividend Pay Date	Jun 15 2022
Days until Ex dividend	2 days
Days until Dividend pay date	18 days

Does NWH.UN pay a reliable dividends?

See NWH.UN dividend history and benchmarks

Valuation

Is NorthWest Healthcare Properties Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NWH.UN (CA$13.04) is trading below our estimate of fair value (CA$30.65)

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

Price To Earnings Ratio

PE vs Industry: NWH.UN is poor value based on its Price-To-Earnings Ratio (7.3x) compared to the Canadian REITs industry average (5.5x).

PE vs Market: NWH.UN is good value based on its Price-To-Earnings Ratio (7.3x) compared to the Canadian market (11.5x).

Price to Earnings Growth Ratio

PEG Ratio: NWH.UN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: NWH.UN is overvalued based on its Price-To-Book Ratio (1.2x) compared to the CA REITs industry average (0.8x).

Future Growth

How is NorthWest Healthcare Properties Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-41.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWH.UN's earnings are forecast to decline over the next 3 years (-41.6% per year).

Earnings vs Market: NWH.UN's earnings are forecast to decline over the next 3 years (-41.6% per year).

High Growth Earnings: NWH.UN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NWH.UN's revenue is expected to decline over the next 3 years (-4.5% per year).

High Growth Revenue: NWH.UN's revenue is forecast to decline over the next 3 years (-4.5% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has NorthWest Healthcare Properties Real Estate Investment Trust performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

35.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NWH.UN has a large one-off gain of CA$528.4M impacting its March 31 2022 financial results.

Growing Profit Margin: NWH.UN's current net profit margins (81.4%) are higher than last year (59.4%).

Past Earnings Growth Analysis

Earnings Trend: NWH.UN's earnings have grown significantly by 35.7% per year over the past 5 years.

Accelerating Growth: NWH.UN's earnings growth over the past year (62.4%) exceeds its 5-year average (35.7% per year).

Earnings vs Industry: NWH.UN earnings growth over the past year (62.4%) underperformed the REITs industry 160.8%.

Return on Equity

High ROE: NWH.UN's Return on Equity (17.5%) is considered low.

Financial Health

How is NorthWest Healthcare Properties Real Estate Investment Trust's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NWH.UN's short term assets (CA$277.5M) do not cover its short term liabilities (CA$1.3B).

Long Term Liabilities: NWH.UN's short term assets (CA$277.5M) do not cover its long term liabilities (CA$2.5B).

Debt to Equity History and Analysis

Debt Level: NWH.UN's net debt to equity ratio (79.1%) is considered high.

Reducing Debt: NWH.UN's debt to equity ratio has reduced from 147.4% to 85.1% over the past 5 years.

Debt Coverage: NWH.UN's debt is not well covered by operating cash flow (4.5%).

Interest Coverage: NWH.UN's interest payments on its debt are well covered by EBIT (7.3x coverage).

Balance Sheet

Dividend

What is NorthWest Healthcare Properties Real Estate Investment Trust current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.14%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: NWH.UN's dividend (6.14%) is higher than the bottom 25% of dividend payers in the Canadian market (1.87%).

High Dividend: NWH.UN's dividend (6.14%) is in the top 25% of dividend payers in the Canadian market (4.94%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NWH.UN has been paying a dividend for less than 10 years.

Growing Dividend: NWH.UN has only been paying a dividend for 7 years, and since then payments have not increased.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (76.3%), NWH.UN's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (132.4%), NWH.UN's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure

CEO

Paul Dalla Lana (54 yo)

10yrs

Tenure

CA$2,773,813

Compensation

Mr. Paul Dalla Lana is the Founder of NorthWest Healthcare Properties Real Estate Investment Trust and serves as its Chief Executive Officer and Chairman. Mr. Dalla Lana is the Founder of NorthWest Value P...

CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD2.17M) is below average for companies of similar size in the Canadian market ($USD3.43M).

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

Leadership Team

Experienced Management: NWH.UN's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: NWH.UN's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31