DB:29C

Stock Analysis Report

Executive Summary

Centric Health Corporation provides pharmacy and other healthcare services to patients and customers in Canada.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 29C's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.6%

29C

2.1%

DE Consumer Retailing

0.1%

DE Market


1 Year Return

-59.7%

29C

1.8%

DE Consumer Retailing

14.1%

DE Market

Return vs Industry: 29C underperformed the German Consumer Retailing industry which returned 1.8% over the past year.

Return vs Market: 29C underperformed the German Market which returned 14.1% over the past year.


Shareholder returns

29CIndustryMarket
7 Day5.6%2.1%0.1%
30 Day-2.1%2.0%0.2%
90 Day17.5%2.1%3.3%
1 Year-59.7%-59.7%5.9%1.8%17.6%14.1%
3 Year-83.7%-83.7%6.8%-3.9%14.8%4.8%
5 Year-56.9%-56.9%10.5%-6.4%22.2%5.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Centric Health undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Centric Health is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Centric Health has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of 29C’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Centric Health regulatory filings.
  • Explore potentially undervalued companies in the Consumer Retailing industry.

Future Growth

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

4.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 29C's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if 29C's earnings are forecast to grow faster than the German market

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

Revenue vs Market: 29C's revenue (4.4% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 29C's revenue (4.4% 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 29C's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Centric Health performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 29C is currently unprofitable.

Growing Profit Margin: 29C is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 29C is unprofitable, but has reduced losses over the past 5 years at a rate of 22% per year.

Accelerating Growth: Unable to compare 29C's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 29C is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (-0.7%).


Return on Equity

High ROE: 29C's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Centric Health's financial position?


Financial Position Analysis

Short Term Liabilities: 29C has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 29C has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 29C has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 29C's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 29C has a low level of unsold assets or inventory.

Debt Coverage by Assets: 29C has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 29C has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 29C has less than a year of cash runway if free cash flow continues to reduce at historical rates of -25.8% each year


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 29C's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 29C'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 29C's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 29C'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 29C's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

David Murphy 0

1.8yrs

Tenure

CA$647,481

Compensation

Mr. David Murphy has been the President at Cardinal Health Canada Inc. since April 2016. He has been the President and Chief Executive Officer at Centric Health Corporation since May 1, 2018. He has been a ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD488.30K) is about average for companies of similar size in the German market ($USD413.42K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Murphy
President1.8yrsCA$647.48k0.017% CA$5.4k
Andrew Mok
Chief Financial Officer1.3yrsCA$198.66k0.043% CA$13.5k
Paul Rakowski
VP, General Counsel & Corporate Secretary2.4yrsCA$281.20k0.017% CA$5.4k
Ryan Stempfle
VP & GM of Western Canada for the Specialty Pharmacy Division3.1yrsCA$234.67kno data
Nina Freier
Chief Human Resources Officer1.3yrsno datano data
Harold Becker
Head of Catastrophic Injury Assessment Field13.8yrsno datano data

2.1yrs

Average Tenure

Experienced Management: 29C's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Murphy
President1.8yrsCA$647.48k0.017% CA$5.4k
Matthew Hills
Independent Member of the Board of Directors0.6yrsno data0.034% CA$10.8k
Jack Shevel
Chairman Emeritus1.7yrsCA$279.08k5.96% CA$1.9m
Yazdi Bharucha
Independent Non-Executive Director7yrsCA$93.43k0.059% CA$18.6k
Darren Youngleson
Director10.7yrsCA$70.68k0.026% CA$8.1k
John Ewing
Independent Director0.9yrsno datano data
Kevin Dalton
Independent Chairman of the Board1.7yrsCA$120.44k0.047% CA$14.9k
Ralph Desando
Director0.3yrsno datano data
Lyle Oberg
Director0.3yrsno datano data

1.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 29C's board of directors are not considered experienced ( 1.7 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 3.7%.


Top Shareholders

Company Information

Centric Health Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Centric Health Corporation
  • Ticker: 29C
  • Exchange: DB
  • Founded: 2001
  • Industry: Drug Retail
  • Sector: Consumer Retailing
  • Market Cap: CA$45.279m
  • Listing Market Cap: CA$31.566m
  • Shares outstanding: 292.12m
  • Website: https://www.centrichealth.ca

Number of Employees


Location

  • Centric Health Corporation
  • 20 Eglinton Avenue West
  • Suite 2100
  • Toronto
  • Ontario
  • M4R 1K8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHHTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2003
CHHH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2003
29CDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2003

Biography

Centric Health Corporation provides pharmacy and other healthcare services to patients and customers in Canada. The company operates a network of pharmacy fulfilment centers that provide chronic medication and other specialty clinical pharmacy services for long term care and retirement communities, and assisted living facilities. It serves approximately 30,000 residents in 450 senior communities through a network of 15 fulfilment centers. The company was formerly known as Alegro Health Corp. and changed its name to Centric Health Corporation in August 2009. Centric Health Corporation was incorporated in 2001 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:33
End of Day Share Price2020/02/19 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.