ENXTPA:KORI

Stock Analysis Report

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Market Cap

€3.4b

Last Updated

2021/07/31 18:55 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.


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 is less volatile than 75% of French stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: KORI's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

KORI

0.9%

FR Healthcare

0.5%

FR Market


1 Year Return

-7.9%

KORI

-0.7%

FR Healthcare

39.7%

FR Market

Return vs Industry: KORI underperformed the French Healthcare industry which returned -0.7% over the past year.

Return vs Market: KORI underperformed the French Market which returned 40% over the past year.


Shareholder returns

KORIIndustryMarket
7 Day1.8%0.9%0.5%
30 Day0.7%-1.2%1.3%
90 Day-4.0%-0.5%5.5%
1 Year0.6%-7.9%2.2%-0.7%43.5%39.7%
3 Year21.1%9.0%0.1%-4.5%33.4%20.7%
5 Year17.7%1.8%38.3%28.1%87.2%58.1%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KORI (€32) is trading below our estimate of fair value (€77)

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


Price To Earnings Ratio

PE vs Industry: KORI is poor value based on its PE Ratio (52.7x) compared to the French Healthcare industry average (43.2x).

PE vs Market: KORI is poor value based on its PE Ratio (52.7x) compared to the French market (22x).


Price to Earnings Growth Ratio

PEG Ratio: KORI is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: KORI is good value based on its PB Ratio (1x) compared to the FR Healthcare industry average (2x).


Future Growth

How is Korian forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

37.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KORI's forecast earnings growth (37.1% per year) is above the savings rate (0.4%).

Earnings vs Market: KORI's earnings (37.1% per year) are forecast to grow faster than the French market (15.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KORI's revenue (7.3% per year) is forecast to grow faster than the French market (6.6% per year).

High Growth Revenue: KORI's revenue (7.3% 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 (6.8%).


Past Performance

How has Korian performed over the past 5 years?

-12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KORI has a large one-off loss of €54.8M impacting its June 30 2021 financial results.

Growing Profit Margin: KORI's current net profit margins (1.5%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: KORI's earnings have declined by 12.2% 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 (-17.6%) over the past year, making it difficult to compare to the Healthcare industry average (-17.6%).


Return on Equity

High ROE: KORI's Return on Equity (2.1%) is considered low.


Financial Health

How is Korian's financial position?


Financial Position Analysis

Short Term Liabilities: KORI's short term assets (€2.1B) do not cover its short term liabilities (€2.7B).

Long Term Liabilities: KORI's short term assets (€2.1B) do not cover its long term liabilities (€7.5B).


Debt to Equity History and Analysis

Debt Level: KORI's debt to equity ratio (115.8%) is considered high.

Reducing Debt: KORI's debt to equity ratio has increased from 93.3% to 115.8% over the past 5 years.

Debt Coverage: KORI's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: KORI's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Dividend

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

0.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KORI's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.29%).

High Dividend: KORI's dividend (0.94%) is low compared to the top 25% of dividend payers in the French market (3.87%).


Stability and Growth of Payments

Stable Dividend: KORI's dividend payments have been volatile in the past 10 years.

Growing Dividend: KORI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.4%), 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 (32.1% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Sophie Boissard (51 yo)

5.5yrs

Tenure

€1,243,618

Compensation

Ms. Sophie Boissard has been the Chief Executive Officer at Korian SA since January 26, 2016 and its Director since June 22, 2020. Ms. Boissard serves as an Executive in Railway Operator SNCF. She serves a...


CEO Compensation Analysis

Compensation vs Market: Sophie's total compensation ($USD1.48M) is about average for companies of similar size in the French market ($USD1.97M).

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


Leadership Team

Experienced Management: KORI's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: KORI's board of directors are not considered experienced ( 2 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 27.6%.


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: €3.377b
  • Shares outstanding: 105.54m
  • Website: https://www.korian.com

Number of Employees


Location

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

Listings


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, a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 18:55
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.