DB:V6H

Stock Analysis Report

Executive Summary

Virtus Health Limited provides various healthcare services in New South Wales, Queensland, Victoria, Tasmania, Denmark, the United Kingdom, Ireland, and Singapore.

Snowflake

Fundamentals

Undervalued average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

10.6%

V6H

2.8%

DE Healthcare

2.4%

DE Market


1 Year Return

-12.0%

V6H

-18.6%

DE Healthcare

4.9%

DE Market

Return vs Industry: V6H exceeded the German Healthcare industry which returned -18.6% over the past year.

Return vs Market: V6H underperformed the German Market which returned 4.9% over the past year.


Shareholder returns

V6HIndustryMarket
7 Day10.6%2.8%2.4%
30 Day5.1%-1.6%2.3%
90 Day-10.1%-6.0%2.7%
1 Year-6.7%-12.0%-17.2%-18.6%8.2%4.9%
3 Year-38.3%-46.9%-27.7%-30.3%18.3%8.0%
5 Year-35.5%-49.1%16.4%9.9%44.2%24.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Virtus 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: V6H (€2.72) is trading below our estimate of fair value (€5.56)

Significantly Below Fair Value: V6H is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: V6H is good value based on its PE Ratio (12.6x) compared to the Healthcare industry average (28.1x).

PE vs Market: V6H is good value based on its PE Ratio (12.6x) compared to the German market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: V6H is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: V6H is good value based on its PB Ratio (1.3x) compared to the DE Healthcare industry average (1.4x).


Next Steps

Future Growth

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

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: V6H's forecast earnings growth (2.4% per year) is above the savings rate (0.2%).

Earnings vs Market: V6H's earnings (2.4% per year) are forecast to grow slower than the German market (12.8% per year).

High Growth Earnings: V6H's earnings are forecast to grow, but not significantly.

Revenue vs Market: V6H's revenue (2.9% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: V6H's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: V6H's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has Virtus Health performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: V6H's earnings have declined by -1.3% per year over the past 5 years.

Accelerating Growth: V6H's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: V6H had negative earnings growth (-7.6%) over the past year, making it difficult to compare to the Healthcare industry average (12.6%).


Return on Equity

High ROE: V6H's Return on Equity (9.8%) is considered low.


Return on Assets

ROA vs Industry: V6H has a higher Return on Assets than the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: V6H's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Virtus Health's financial position?


Financial Position Analysis

Short Term Liabilities: V6H's short term assets (A$37.8M) do not cover its short term liabilities (A$57.1M)

Long Term Liabilities: V6H's short term assets (37.8M) do not cover its long term liabilities (192.6M)


Debt to Equity History and Analysis

Debt Level: V6H's debt to equity ratio (60.8%) is considered high

Reducing Debt: V6H's debt to equity ratio has increased from 58.2% to 60.8% over the past 5 years.

Debt Coverage: V6H's debt is well covered by operating cash flow (21.4%).

Interest Coverage: V6H's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: V6H has a low level of unsold assets or inventory.

Debt Coverage by Assets: V6H's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

5.37%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years5.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: V6H's dividend (5.37%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: V6H's dividend (5.37%) is in the top 25% of dividend payers in the German market (3.79%)

Stable Dividend: V6H has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: V6H has only been paying a dividend for 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.9%), V6H's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: V6H's dividends in 3 years are forecast to be covered by earnings (62.7% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Sue Channon (62yo)

8.9yrs

Tenure

AU$625,278

Compensation

Ms. Susan Channon, also known as Sue, has been the Chief Executive Officer at Virtus Health Limited since November 2010 and serves as its Managing Director. Ms. Channon served as the Chief Executive Office ...


CEO Compensation Analysis

Compensation vs. Market: Sue's total compensation ($USD429.27K) is about average for companies of similar size in the German market ($USD535.87K).

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


Management Age and Tenure

2.8yrs

Average Tenure

60yo

Average Age

Experienced Management: V6H's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

62yo

Average Age

Experienced Board: V6H's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: V6H insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Max PriceAU$2.42
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BuyAU$2,347,73415 Apr 19
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Ownership Breakdown


Management Team

  • Raju Narayan (52yo)

    Managing Director of Singapore

    • Tenure: 4yrs
  • Lyndon Hale (62yo)

    Medical Director of Victoria & Executive Director

    • Tenure: 6.4yrs
    • Compensation: AU$170.27k
  • Glenn Powers (59yo)

    CFO & Company Secretary

    • Tenure: 11.2yrs
    • Compensation: AU$435.88k
  • Sue Channon (62yo)

    CEO, MD & Director

    • Tenure: 8.9yrs
    • Compensation: AU$625.28k
  • Steve Zappia (60yo)

    Managing Director of Queensland & Virtus Health Diagnostics

    • Tenure: 0yrs
    • Compensation: AU$319.11k
  • Jade Phelan

    Managing Director of Victoria & Tasmania

    • Tenure: 2.8yrs
    • Compensation: AU$296.37k
  • Richard Banks

    Managing Director of Europe

    • Tenure: 2.2yrs
    • Compensation: AU$318.61k
  • Ann Tan

    Medical Director of Singapore

    • Tenure: 0.8yrs
  • Dean Cleary

    Chief Information Officer

    • Tenure: 1yrs
    • Compensation: AU$474.62k

Board Members

  • Peter Macourt

    Chairman of the Board

    • Tenure: 6.4yrs
    • Compensation: AU$148.70k
  • Michael Stanford

    Independent Non-Executive Director

    • Tenure: 0.08yrs
  • Lyndon Hale (62yo)

    Medical Director of Victoria & Executive Director

    • Tenure: 6.4yrs
    • Compensation: AU$170.27k
  • Sue Channon (62yo)

    CEO, MD & Director

    • Tenure: 8.9yrs
    • Compensation: AU$625.28k
  • Sonia Petering (49yo)

    Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: AU$99.65k
  • Shane Solomon

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$71.75k
  • Tony Walsh

    Executive Chairman of Ireland

    • Tenure: 0yrs
    • Compensation: AU$48.59k
  • Greg Couttas

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: AU$100.17k

Company Information

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


Key Information

  • Name: Virtus Health Limited
  • Ticker: V6H
  • Exchange: DB
  • Founded: 2008
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: AU$358.687m
  • Listing Market Cap: AU$221.034m
  • Shares outstanding: 80.24m
  • Website: https://www.virtushealth.com.au

Number of Employees


Location

  • Virtus Health Limited
  • 176 Pacific Highway
  • Level 3
  • Greenwich
  • New South Wales
  • 2065
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2013
V6HDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2013
VRTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2013

Biography

Virtus Health Limited provides various healthcare services in New South Wales, Queensland, Victoria, Tasmania, Denmark, the United Kingdom, Ireland, and Singapore. It operates through two segments, Healthc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:27
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.