DB:2MI

Stock Analysis Report

Executive Summary

Medica Group Plc provides teleradiology reporting services to NHS trusts, private hospital groups, and diagnostic imaging companies in the United Kingdom.

Rewards

Trading at 39.7% below its fair value

Earnings are forecast to grow 9.67% per year

Earnings grew by 8.4% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has Medica Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2MI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

2MI

-0.5%

DE Healthcare

0.1%

DE Market


1 Year Return

42.0%

2MI

5.1%

DE Healthcare

14.1%

DE Market

Return vs Industry: 2MI exceeded the German Healthcare industry which returned 5.1% over the past year.

Return vs Market: 2MI exceeded the German Market which returned 14.1% over the past year.


Shareholder returns

2MIIndustryMarket
7 Day1.9%-0.5%0.1%
30 Day6.0%3.7%0.2%
90 Day24.4%4.4%3.3%
1 Year44.4%42.0%7.0%5.1%17.6%14.1%
3 Yearn/a-21.3%-24.2%14.8%4.8%
5 Yearn/a11.2%5.1%22.2%5.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Medica Group undervalued compared to its fair value and its price relative to the market?

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2MI (€1.86) is trading below our estimate of fair value (€3.09)

Significantly Below Fair Value: 2MI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2MI is good value based on its PE Ratio (22.2x) compared to the Healthcare industry average (39.3x).

PE vs Market: 2MI is poor value based on its PE Ratio (22.2x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: 2MI is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: 2MI is overvalued based on its PB Ratio (5.2x) compared to the DE Healthcare industry average (1.5x).


Next Steps

Future Growth

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

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2MI's forecast earnings growth (9.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: 2MI's earnings (9.7% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: 2MI's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2MI's revenue (8.4% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 2MI's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2MI's Return on Equity is forecast to be high in 3 years time (24.7%)


Next Steps

Past Performance

How has Medica Group performed over the past 5 years?

42.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2MI has high quality earnings.

Growing Profit Margin: 2MI's current net profit margins (18.2%) are lower than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: 2MI has become profitable over the past 5 years, growing earnings by 42.9% per year.

Accelerating Growth: 2MI's earnings growth over the past year (8.4%) is below its 5-year average (42.9% per year).

Earnings vs Industry: 2MI earnings growth over the past year (8.4%) exceeded the Healthcare industry -6.8%.


Return on Equity

High ROE: 2MI's Return on Equity (23.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Medica Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2MI's short term assets (£22.1M) exceed its short term liabilities (£3.8M).

Long Term Liabilities: 2MI's short term assets (£22.1M) exceed its long term liabilities (£13.5M).


Debt to Equity History and Analysis

Debt Level: 2MI's debt to equity ratio (38.2%) is considered satisfactory.

Reducing Debt: 2MI's debt to equity ratio has reduced from 3447.1% to 38.2% over the past 5 years.

Debt Coverage: 2MI's debt is well covered by operating cash flow (61.8%).

Interest Coverage: 2MI's interest payments on its debt are well covered by EBIT (36.5x coverage).


Balance Sheet

Inventory Level: 2MI has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2MI's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

1.46%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.3%markettop25%3.6%industryaverage1.8%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: 2MI's dividend (1.46%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 2MI's dividend (1.46%) is low compared to the top 25% of dividend payers in the German market (3.57%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2MI has been paying a dividend for less than 10 years.

Growing Dividend: 2MI's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.9%), 2MI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2MI's dividends in 3 years are forecast to be well covered by earnings (28.4% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Healthcare industry.

Management

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

0.5yrs

Average management tenure


CEO

Stuart Quin 0

0.4yrs

Tenure

0

Dr. Stuart Quin, Ph.D., serves as Chief Executive Officer and Director of Medica Group Plc since September 1, 2019. Dr. Quin joins Medica from Synlab, where he was Head of Central and Eastern Europe, Middl ...


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Lee
CFO, Finance Director6.8yrsUK£155.40k0.46% £955.9k
Stephen Davies
Medical Director6.8yrsUK£222.00k1.39% £2.9m
Stuart Quin
CEO & Director0.4yrsno datano data
Sarah Burns
Chief Operating Officer0yrsno datano data
Marc O'Brien
Chief Technical Officer0yrsno datano data
Julie West
Head of Governance & Compliance0yrsno datano data
David Evans
Head of Functional Architect0yrsno datano data
Gary Thompsett
Head of Service Delivery0yrsno datano data
Ben Tromans
Head of Service Development & Deployments0yrsno datano data
Ian Edwards
Head of Information Security & Risk0.5yrsno datano data

0.5yrs

Average Tenure

Experienced Management: 2MI's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Anthony Lee
CFO, Finance Director6.8yrsUK£155.40k0.46% £955.9k
Stephen Davies
Medical Director6.8yrsUK£222.00k1.39% £2.9m
Stuart Quin
CEO & Director0.4yrsno datano data
Gordon Davis
Independent Chairman0yrsUK£100.00k0.033% £68.7k
Stephen Whittern
Senior Independent Non-Executive Director0yrsUK£60.00k0.033% £68.7k
Michael Bewick
Independent Non-Executive Director2.9yrsUK£50.00k0.010% £20.6k
Jo Easton
Independent Non-Executive Director0.8yrsno datano data

2.9yrs

Average Tenure

62yo

Average Age

Experienced Board: 2MI'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: 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Medica Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Medica Group Plc
  • Ticker: 2MI
  • Exchange: DB
  • Founded: 2013
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: UK£171.111m
  • Listing Market Cap: UK£206.040m
  • Shares outstanding: 111.11m
  • Website: https://www.medicagroup.co.uk

Number of Employees


Location

  • Medica Group Plc
  • One Priory Square
  • 6th Floor
  • Hastings
  • East Sussex
  • TN34 1EA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGPLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2017
MGPLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2017
2MIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2017

Biography

Medica Group Plc provides teleradiology reporting services to NHS trusts, private hospital groups, and diagnostic imaging companies in the United Kingdom. It offers routine teleradiology, radiographer plain film, NightHawk emergency computerised tomography (CT) and MR reporting, and routine cross sectional services. The company also provides audit services, such as cause for concern audit, departmental quality assurance, and ongoing CT, MR, plain film, and ultrasound audit services; and specialist services comprising multiparametric prostate magnetic resonance imaging, specialist cardiac reporting, CT colonoscopy, DXA reporting, nuclear medicine examination, and tailored cancer reporting. Medica Group Plc was incorporated in 2013 and is based in Hastings, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:44
End of Day Share Price2020/02/18 00:00
Earnings2019/06/30
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.