DB:26E

Stock Analysis Report

Executive Summary

Estia Health Limited operates residential aged care homes in Australia.


Snowflake Analysis

Undervalued with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 26E's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.0%

26E

2.4%

DE Healthcare

-0.6%

DE Market


1 Year Return

-60.1%

26E

-24.1%

DE Healthcare

-20.9%

DE Market

Return vs Industry: 26E underperformed the German Healthcare industry which returned -24.1% over the past year.

Return vs Market: 26E underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

26EIndustryMarket
7 Day8.0%2.4%-0.6%
30 Day-33.8%-12.6%-18.6%
90 Day-54.7%-17.9%-26.2%
1 Year-57.7%-60.1%-22.7%-24.1%-18.6%-20.9%
3 Year-63.6%-69.3%-39.1%-41.3%-19.0%-25.8%
5 Year-78.4%-83.9%-29.1%-33.0%-21.2%-31.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Estia Health 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: 26E (€0.68) is trading below our estimate of fair value (€16.7)

Significantly Below Fair Value: 26E is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 26E is good value based on its PE Ratio (9.3x) compared to the Healthcare industry average (27.4x).

PE vs Market: 26E is good value based on its PE Ratio (9.3x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: 26E's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 26E is good value based on its PB Ratio (0.4x) compared to the DE Healthcare industry average (1.1x).


Next Steps

Future Growth

How is Estia Health forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 26E's earnings are forecast to decline over the next 3 years (-2.2% per year).

Earnings vs Market: 26E's earnings are forecast to decline over the next 3 years (-2.2% per year).

High Growth Earnings: 26E's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 26E's revenue (5% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: 26E's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 26E's Return on Equity is forecast to be low in 3 years time (3.9%).


Next Steps

Past Performance

How has Estia Health performed over the past 5 years?

36.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 26E has high quality earnings.

Growing Profit Margin: 26E's current net profit margins (5.6%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: 26E has become profitable over the past 5 years, growing earnings by 36.6% per year.

Accelerating Growth: 26E's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 26E had negative earnings growth (-17.8%) over the past year, making it difficult to compare to the Healthcare industry average (26%).


Return on Equity

High ROE: 26E's Return on Equity (4.6%) is considered low.


Next Steps

Financial Health

How is Estia Health's financial position?


Financial Position Analysis

Short Term Liabilities: 26E's short term assets (A$43.5M) do not cover its short term liabilities (A$950.4M).

Long Term Liabilities: 26E's short term assets (A$43.5M) do not cover its long term liabilities (A$291.8M).


Debt to Equity History and Analysis

Debt Level: 26E's debt to equity ratio (15.4%) is considered satisfactory.

Reducing Debt: 26E's debt to equity ratio has increased from 0.1% to 15.4% over the past 5 years.

Debt Coverage: 26E's debt is well covered by operating cash flow (86.7%).

Interest Coverage: 26E's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: 26E has a high level of physical assets or inventory.

Debt Coverage by Assets: 26E's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

12.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 26E's dividend (12.85%) is higher than the bottom 25% of dividend payers in the German market (1.71%).

High Dividend: 26E's dividend (12.85%) is in the top 25% of dividend payers in the German market (4.85%)


Stability and Growth of Payments

Stable Dividend: 26E has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 26E's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.7%), 26E's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 26E's dividends in 3 years are not forecast to be well covered by earnings (97.9% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Ian Thorley

1.42s

Tenure

AU$778,119

Compensation

Mr. Ian Thorley is Chief Executive Officer and Managing Director at Estia Health Limited since November 23, 2018. Mr. Thorley was the Chief Operating Officer of Estia Health Limited since October 24, 2016  ...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD467.59K) is below average for companies of similar size in the German market ($USD744.69K).

Compensation vs Earnings: Ian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ian Thorley
MD, CEO & Director1.42yrsAU$778.12k0.053% A$94.5k
Steve Lemlin
Chief Financial Officer3.17yrsAU$540.13k0.0063% A$11.3k
Sean Bilton
COO & Deputy CEO1.5yrsAU$760.06kno data
Fiona Caldwell
Chief Information Officer2.5yrsno datano data
Suzy Watson
General Counsel5.33yrsno datano data
Jane Murray
Chief People Officer2.75yrsno datano data
Mark Brandon
Chief Policy & Regulatory Officer3.33yrsno datano data
Damian Hiser
Chief Customer Officer2.5yrsno datano data
Leanne Laidler
Chief Quality & Risk Officer0.92yrno datano data
Leanne Ralph
Company Secretary1yrno datano data

2.5yrs

Average Tenure

Experienced Management: 26E's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ian Thorley
MD, CEO & Director1.42yrsAU$778.12k0.053% A$94.5k
Paul Foster
Non-Executive Director4.17yrsAU$135.00k0.0092% A$16.5k
Gary Weiss
Non-Executive Chairman4.25yrsAU$280.00k0.018% A$33.1k
Norah Barlow
Independent Director5.42yrsAU$1.16m0.050% A$88.7k
Helen Kurincic
Non-Executive Director2.75yrsAU$125.00k0.019% A$34.3k
Warwick Smith
Non-Executive Director2.92yrsAU$125.00k0.045% A$80.2k
Karen Lee Penrose
Independent Director1.5yrsAU$87.16k0.012% A$22.2k

2.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 26E's board of directors are not considered experienced ( 2.9 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: 26E 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

Estia Health Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Estia Health Limited
  • Ticker: 26E
  • Exchange: DB
  • Founded: 2005
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: AU$321.364m
  • Listing Market Cap: AU$178.999m
  • Shares outstanding: 261.27m
  • Website: https://www.estiahealth.com.au

Number of Employees


Location

  • Estia Health Limited
  • 227 Elizabeth Street
  • Level 9
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EHEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2014
EHECHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2014
26EDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2014

Biography

Estia Health Limited operates residential aged care homes in Australia. It has 69 homes that comprise 6,180 operating bed licenses in Victoria, South Australia, New South Wales, and Queensland. The company was founded in 2005 and is based in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 21:52
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.