LSE:GHG

Stock Analysis Report

Executive Summary

Georgia Healthcare Group PLC, together with its subsidiaries, provides healthcare services in Georgia.

Rewards

Trading at 76.6% below its fair value

Earnings are forecast to grow 31.53% per year

Earnings grew by 3% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.8%

GHG

4.4%

GB Consumer Retailing

0.9%

GB Market


1 Year Return

-26.8%

GHG

9.7%

GB Consumer Retailing

8.7%

GB Market

Return vs Industry: GHG underperformed the UK Consumer Retailing industry which returned 9.7% over the past year.

Return vs Market: GHG underperformed the UK Market which returned 8.7% over the past year.


Shareholder returns

GHGIndustryMarket
7 Day-1.8%4.4%0.9%
30 Day-10.6%0.4%-0.5%
90 Day-20.3%0.4%0.9%
1 Year-26.4%-26.8%14.1%9.7%14.3%8.7%
3 Year-56.5%-56.7%7.5%-0.1%18.8%3.6%
5 Yearn/a44.0%30.2%42.6%9.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Georgia Healthcare Group 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: GHG (£1.61) is trading below our estimate of fair value (£6.88)

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


Price To Earnings Ratio

PE vs Industry: GHG is poor value based on its PE Ratio (24.2x) compared to the Consumer Retailing industry average (21.6x).

PE vs Market: GHG is poor value based on its PE Ratio (24.2x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: GHG is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: GHG is overvalued based on its PB Ratio (1.5x) compared to the GB Consumer Retailing industry average (1.4x).


Next Steps

Future Growth

How is Georgia Healthcare Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

31.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GHG's forecast earnings growth (31.5% per year) is above the savings rate (0.5%).

Earnings vs Market: GHG's earnings (31.5% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: GHG's revenue (8.2% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: GHG's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GHG's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has Georgia Healthcare Group performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GHG has high quality earnings.

Growing Profit Margin: GHG's current net profit margins (3.6%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: GHG's earnings have grown by 13.3% per year over the past 5 years.

Accelerating Growth: GHG's earnings growth over the past year (3%) is below its 5-year average (13.3% per year).

Earnings vs Industry: GHG earnings growth over the past year (3%) exceeded the Consumer Retailing industry -4.2%.


Return on Equity

High ROE: GHG's Return on Equity (8.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Georgia Healthcare Group's financial position?


Financial Position Analysis

Short Term Liabilities: GHG's short term assets (GEL377.9M) exceed its short term liabilities (GEL219.8M).

Long Term Liabilities: GHG's short term assets (GEL377.9M) do not cover its long term liabilities (GEL530.4M).


Debt to Equity History and Analysis

Debt Level: GHG's debt to equity ratio (65%) is considered high.

Reducing Debt: Insufficient data to determine if GHG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GHG's debt is well covered by operating cash flow (31.2%).

Interest Coverage: GHG's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: GHG's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

0.85%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%2.0%markettop25%5.2%industryaverage3.5%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: GHG's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.95%).

High Dividend: GHG's dividend (0.85%) is low compared to the top 25% of dividend payers in the UK market (5.19%).


Stability and Growth of Payments

Stable Dividend: GHG is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: GHG is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: GHG is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GHG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Georgia Healthcare Group's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Nick Gamkrelidze (39yo)

4.3yrs

Tenure

GEL1,024,388

Compensation

Mr. Nikoloz Gamkrelidze, also known as Nick, has been the Chief Executive Officer of Georgia Healthcare Group PLC since august 8, 2015. Mr. Gamkrelidze served as Group Chief Financial Officer and Deputy Ch ...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD1.02M) is above average for companies of similar size in the UK market ($USD645.87K).

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


Management Age and Tenure

4.5yrs

Average Tenure

Experienced Management: GHG's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

63yo

Average Age

Experienced Board: GHG's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellGEL13,00017 Jun 19
Giorgi Mindiashvili
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Hospitals
Shares5,000
Max PriceGEL2.60
SellGEL32,70722 May 19
Giorgi Mindiashvili
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Hospitals
Shares14,000
Max PriceGEL2.35
SellGEL30,82502 Apr 19
Giorgi Mindiashvili
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Hospitals
Shares15,186
Max PriceGEL2.05

Ownership Breakdown

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


Management Team

  • David Vakhtangishvili (41yo)

    Deputy CEO of Risks & IT

    • Tenure: 2.8yrs
    • Compensation: GEL370.97k
  • Irakli Gogia

    Deputy CEO of Finance & Operations

    • Tenure: 2.8yrs
    • Compensation: GEL371.49k
  • Nick Gamkrelidze (39yo)

    CEO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: GEL1.02m
  • Giorgi Mindiashvili

    Chief Operating Officer of Hospitals

    • Tenure: 4.8yrs
    • Compensation: GEL376.46k
  • Gia Khurtsidze

    Deputy Chief Executive Officer of Clinical

    • Tenure: 3.8yrs
  • Nino Kortua

    Chief Legal Officer

    • Tenure: 4.7yrs
  • Medea Chkhaidze

    Chief Human Resource Officer

    • Tenure: 4.7yrs
  • Manana Khurtsilava

    Head of Internal Audit

    • Tenure: 4.7yrs
  • Enrico Beridze

    Head of Business Development & Strategic Marketing

    • Tenure: 0yrs
  • Ketevan Kalandarishvili

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Tim Elsigood (65yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: GEL136.07k
  • Irakli Gilauri (43yo)

    Non-Executive Director

    • Tenure: 0yrs
  • Jacques Richier (64yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: GEL107.00k
  • David Morrison (66yo)

    Senior Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: GEL156.00k
  • Nick Gamkrelidze (39yo)

    CEO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: GEL1.02m
  • Ingeborg Øie (35yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: GEL120.95k
  • Mike Anderson (68yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: GEL107.00k
  • Bill Huyett (63yo)

    Independent Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: GEL119.99k
  • Fabian Stephan Blank (45yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: GEL60.67k

Company Information

Georgia Healthcare Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Georgia Healthcare Group PLC
  • Ticker: GHG
  • Exchange: LSE
  • Founded: 2015
  • Industry: Drug Retail
  • Sector: Consumer Retailing
  • Market Cap: UK£208.069m
  • Shares outstanding: 129.24m
  • Website: https://www.ghg.com.ge

Number of Employees


Location

  • Georgia Healthcare Group PLC
  • 84 Brook Street
  • London
  • Greater London
  • W1K 5EH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GHGLSE (London Stock Exchange)YesCommon SharesGBGBPNov 2015
GHGLBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBGBPNov 2015
1EBBST (Boerse-Stuttgart)YesCommon SharesDEEURNov 2015

Biography

Georgia Healthcare Group PLC, together with its subsidiaries, provides healthcare services in Georgia. It operates through Healthcare Services, Pharmacy and Distribution, and Medical Insurance segments. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 22:55
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.