ENXTPA:KORI

Stock Analysis Report

Executive Summary

Korian provides integrated health and care services for the elderly in France, Germany, Belgium, Italy, Spain, and the Netherlands.

Rewards

PE ratio (30.1x) is below the Healthcare industry average (34.8x)

Earnings are forecast to grow 16.19% per year

Risk Analysis

Has a high level of debt

Profit margins (3.4%) are lower than last year (5.6%)



Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.9%

KORI

2.3%

FR Healthcare

1.0%

FR Market


1 Year Return

30.4%

KORI

21.1%

FR Healthcare

17.2%

FR Market

Return vs Industry: KORI exceeded the French Healthcare industry which returned 21.1% over the past year.

Return vs Market: KORI exceeded the French Market which returned 17.2% over the past year.


Shareholder returns

KORIIndustryMarket
7 Day1.9%2.3%1.0%
30 Day4.2%4.8%-0.3%
90 Day11.7%10.2%3.3%
1 Year32.6%30.4%24.0%21.1%21.3%17.2%
3 Year75.6%65.9%54.0%47.6%43.9%30.3%
5 Year48.7%34.7%81.7%69.1%56.4%34.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KORI (€43.96) is trading above our estimate of fair value (€8.41)

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


Price To Earnings Ratio

PE vs Industry: KORI is good value based on its PE Ratio (30.1x) compared to the Healthcare industry average (34.8x).

PE vs Market: KORI is poor value based on its PE Ratio (30.1x) compared to the French market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: KORI is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: KORI is good value based on its PB Ratio (1.5x) compared to the FR Healthcare industry average (2.6x).


Next Steps

Future Growth

How is Korian forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KORI's forecast earnings growth (16.2% per year) is above the savings rate (-0.1%).

Earnings vs Market: KORI's earnings (16.2% per year) are forecast to grow faster than the French market (13.4% per year).

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

Revenue vs Market: KORI's revenue (6.4% per year) is forecast to grow faster than the French market (4.5% per year).

High Growth Revenue: KORI's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KORI's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has Korian performed over the past 5 years?

22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KORI has high quality earnings.

Growing Profit Margin: KORI's current net profit margins (3.4%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: KORI's earnings have grown significantly by 22.6% per year over the past 5 years.

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

Earnings vs Industry: KORI had negative earnings growth (-33.9%) over the past year, making it difficult to compare to the Healthcare industry average (-13.4%).


Return on Equity

High ROE: KORI's Return on Equity (4.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Korian's financial position?


Financial Position Analysis

Short Term Liabilities: KORI's short term assets (€895.1M) do not cover its short term liabilities (€1.7B).

Long Term Liabilities: KORI's short term assets (€895.1M) do not cover its long term liabilities (€6.5B).


Debt to Equity History and Analysis

Debt Level: KORI's debt to equity ratio (111.3%) is considered high.

Reducing Debt: KORI's debt to equity ratio has increased from 64% to 111.3% over the past 5 years.

Debt Coverage: KORI's debt is well covered by operating cash flow (21.9%).

Interest Coverage: KORI's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: KORI's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

1.36%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.5%markettop25%4.5%industryaverage1.6%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: KORI's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.53%).

High Dividend: KORI's dividend (1.36%) is low compared to the top 25% of dividend payers in the French market (4.5%).


Stability and Growth of Payments

Stable Dividend: KORI's dividends per share have been stable in the past 10 years.

Growing Dividend: KORI's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.1%), KORI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KORI's dividends in 3 years are forecast to be well covered by earnings (37.4% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Sophie Boissard (49yo)

4.1yrs

Tenure

€1,002,516

Compensation

Mrs. Sophie Boissard has been the Chief Executive Officer at Korian SA since January 26, 2016. Mrs. Boissard serves as an Executive in Railway Operator SNCF. She serves as Managing Director of SNCF Immobil ...


CEO Compensation Analysis

Compensation vs Market: Sophie's total compensation ($USD1.09M) is below average for companies of similar size in the French market ($USD1.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sophie Boissard
Chief Executive Officer4.1yrs€1.00m0.016% 575.5k
Philippe Garin
Chief Financial Officer1.8yrsno datano data
Philippe Lonné
Chief Information Officer0yrsno datano data
Sarah Mingham
Vice President of Investor Relations & Financing0yrsno datano data
Caroline de Jessey
Group Chief Communication Officer2.1yrsno datano data
Nathalie Lundqvist
Director of Group Strategy0yrsno datano data
Rémi Boyer
Group Chief Human Resources & CSR Officer3.4yrsno datano data
Bruno Marie
Chairman of the Medidep Management Board13.4yrsno datano data
Philippe Denormandie
Deputy Chief Executive Officer0yrs€59.22kno data
Claude Malhuret
Head of Ethical Development Department0yrsno datano data

3.4yrs

Average Tenure

52yo

Average Age

Experienced Management: KORI's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jean-Pierre Duprieu
Independent Director3.7yrs€57.81k0.0019% 70.2k
Jérôme Grivet
Director5.9yrs€26.32kno data
Guy de Panafieu
Board Observer2.7yrs€25.00k0.0018% 66.9k
Catherine Soubie
Independent Director5.9yrs€64.68k0.0083% 303.2k
Anne Lalou
Independent Director5.9yrs€46.36k0.0014% 52.0k
Alexandre Gagnon-Kugler
Director1.5yrs€11.89kno data
Françoise Jacqueline Debrus
Director5.9yrs€26.61k0.0016% 57.1k
Christian Chautard
Chairman4.9yrs€345.00k0.0015% 54.5k
Markus Müschenich
Independent Director2.7yrs€56.97k0.000090% 3.3k
Hafida Cola
Employee Representative Director4.1yrs€11.55kno data

4.5yrs

Average Tenure

57.5yo

Average Age

Experienced Board: KORI's board of directors are considered experienced (4.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Korian's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Korian
  • Ticker: KORI
  • Exchange: ENXTPA
  • Founded: 2001
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: €3.636b
  • Shares outstanding: 82.70m
  • Website: https://www.korian.com/fr

Number of Employees


Location

  • Korian
  • 21-25 rue Balzac
  • Paris
  • Ile-de-France
  • 75008
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KORIENXTPA (Euronext Paris)YesCommon StockFREURNov 2006
KO2DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2006
0OPSLSE (London Stock Exchange)YesCommon StockGBEURNov 2006
KORIPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURNov 2006

Biography

Korian provides integrated health and care services for the elderly in France, Germany, Belgium, Italy, Spain, and the Netherlands. The company operates long-term care nursing homes, specialized clinics, and assisted living and shared senior housing facilities, as well as offers homecare and hospital-at-home services. As of April 24, 2019, it operated 843 facilities with 80,992 beds. The company was formerly known as Korian-Medica S.A. and changed its name to Korian in July 2015. Korian was founded in 2001 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 21:10
End of Day Share Price2020/02/14 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.