DB:LDZA

Stock Analysis Report

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Executive Summary

Aspen Pharmacare Holdings Limited, together with its subsidiaries, manufactures and supplies specialty and branded pharmaceutical products worldwide.


Snowflake Analysis

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

How has Aspen Pharmacare Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

LDZA

-1.3%

DE Pharmaceuticals

0.7%

DE Market


1 Year Return

12.9%

LDZA

16.0%

DE Pharmaceuticals

3.9%

DE Market

Return vs Industry: LDZA underperformed the German Pharmaceuticals industry which returned 14% over the past year.

Return vs Market: LDZA exceeded the German Market which returned 3% over the past year.


Shareholder returns

LDZAIndustryMarket
7 Day-0.7%-1.3%0.7%
30 Day-2.0%-1.6%1.4%
90 Day41.9%12.7%17.3%
1 Year12.9%12.9%19.8%16.0%6.2%3.9%
3 Year-59.6%-60.8%29.7%14.6%1.8%-6.2%
5 Year-70.9%-72.2%23.8%2.4%9.3%-5.4%

Price Volatility Vs. Market

How volatile is Aspen Pharmacare Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Aspen Pharmacare Holdings undervalued compared to its fair value and its price relative to the market?

37.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LDZA (€7.45) is trading above our estimate of fair value (€7.23)

Significantly Below Fair Value: LDZA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LDZA is poor value based on its PE Ratio (37.1x) compared to the DE Pharmaceuticals industry average (23.5x).

PE vs Market: LDZA is poor value based on its PE Ratio (37.1x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: LDZA is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: LDZA is good value based on its PB Ratio (1.2x) compared to the DE Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

How is Aspen Pharmacare Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LDZA's forecast earnings growth (9.5% per year) is above the savings rate (0.2%).

Earnings vs Market: LDZA's earnings (9.5% per year) are forecast to grow slower than the German market (22.4% per year).

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

Revenue vs Market: LDZA's revenue (1.9% per year) is forecast to grow slower than the German market (6% per year).

High Growth Revenue: LDZA's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LDZA's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Aspen Pharmacare Holdings performed over the past 5 years?

-11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LDZA has a large one-off loss of ZAR4.4B impacting its December 31 2019 financial results.

Growing Profit Margin: LDZA's current net profit margins (4.4%) are lower than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: LDZA's earnings have declined by -11.7% per year over the past 5 years.

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

Earnings vs Industry: LDZA had negative earnings growth (-64.3%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (15.8%).


Return on Equity

High ROE: LDZA's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is Aspen Pharmacare Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LDZA's short term assets (ZAR38.0B) exceed its short term liabilities (ZAR22.7B).

Long Term Liabilities: LDZA's short term assets (ZAR38.0B) do not cover its long term liabilities (ZAR39.0B).


Debt to Equity History and Analysis

Debt Level: LDZA's debt to equity ratio (77.4%) is considered high.

Reducing Debt: LDZA's debt to equity ratio has reduced from 128.4% to 77.4% over the past 5 years.

Debt Coverage: LDZA's debt is not well covered by operating cash flow (15.9%).

Interest Coverage: LDZA's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Aspen Pharmacare Holdings's current dividend yield, its reliability and sustainability?

1.60%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate LDZA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LDZA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LDZA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LDZA is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LDZA'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?

6.7yrs

Average management tenure


CEO

Stephen Saad (56yo)

20.5yrs

Tenure

R13,894,000

Compensation

Mr. Stephen Bradley Saad, BCom, CA(SA), has been the Group Chief Executive Officer of Aspen Pharmacare Holdings Limited since 2000. Mr. Saad served as a Joint Chief Executive of Aspen Pharmacare Holdings L ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD828.90K) is below average for companies of similar size in the German market ($USD2.59M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Saad
Group CEO & Executive Director20.5yrsR13.89m4% ZAR136.3m
Michael Attridge
Deputy Group Chief Executive21.5yrsR11.47m3.41% ZAR116.3m
Sean Capazorio
Group Finance Officer21.5yrsno datano data
Lorraine Hill
Group Operating Officer6.67yrsno datano data
Riaan Verster
Company Secretaryno datano datano data
Stavros Nicolaou
Group Senior Executive of Strategic Trade21.5yrsno datano data
Carnie van der Linde
Group Commercial Head4.17yrsno datano data
Trevor Ziman
Chief Executive Officer of Asia Pacific6.5yrsno datano data
Samer Kassem
Chief Executive Officer of Aspen Global Incorporated3.33yrsno datano data
Luresha Chetty
Corporate Affairs & Investor Relations Executiveno datano datano data

6.7yrs

Average Tenure

53yo

Average Age

Experienced Management: LDZA's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Saad
Group CEO & Executive Director20.5yrsR13.89m4% ZAR136.3m
Michael Attridge
Deputy Group Chief Executive21.5yrsR11.47m3.41% ZAR116.3m
Ben Kruger
Lead Independent Non-Executive Director0.75yrR88.00k0.0030% ZAR100.9k
Christopher Mortimer
Non-Executive Director21.5yrsR308.00k0.042% ZAR1.4m
Sindiswa Zilwa
Independent Non-Executive Director13.83yrsR701.00kno data
Kuseni Dlamini
Independent Non-Executive Chairman4.58yrsR1.16mno data
Babalwa Ngonyama
Independent Non-Executive Director4.25yrsR761.00kno data
David Redfern
Non-Executive Director5.42yrsR267.00k0.0010% ZAR35.5k
Linda de Beer
Independent Non-Executive Director2yrsR608.00kno data
Themba Mkhwanazi
Independent Non-Executive Director1.25yrsR56.00kno data

5.0yrs

Average Tenure

53.5yo

Average Age

Experienced Board: LDZA's board of directors are considered experienced (5 years average tenure).


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

Aspen Pharmacare Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aspen Pharmacare Holdings Limited
  • Ticker: LDZA
  • Exchange: DB
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: R64.669b
  • Listing Market Cap: R3.410b
  • Shares outstanding: 455.80m
  • Website: https://www.aspenpharma.com

Number of Employees


Location

  • Aspen Pharmacare Holdings Limited
  • Aspen Place
  • 9 Rydall Vale Park
  • Durban
  • KwaZulu-Natal
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APNJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARFeb 1995
LDZADB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 1995
APNH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 1995
APNH.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2009
LDZUDB (Deutsche Boerse AG)ADRDEEURJan 2009

Biography

Aspen Pharmacare Holdings Limited, together with its subsidiaries, manufactures and supplies specialty and branded pharmaceutical products worldwide. The company offers various oral solid dose, liquids, semi-solids, steriles, biologicals, and active pharmaceutical ingredients. It also provides various therapeutic products, including general anaesthetics and muscle relaxants; and injectable anticoagulants comprising orgaran for the treatment of HIT and heparin based products under the Thrombosis brand. In addition, the company offers oncology, endocrinology, and women’s health products, as well as nutritional infant milks. Aspen Pharmacare Holdings Limited is headquartered in Durban, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 21:11
End of Day Share Price2020/07/10 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.