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Market Cap

UK£619.7m

Last Updated

2021/05/15 20:06 UTC

Data Sources

Company Financials +

Executive Summary

CareTech Holdings PLC provides social care and support services for children and adults in the United Kingdom. More Details


Snowflake Analysis

Undervalued with solid track record and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CTH is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: CTH's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-1.6%

CTH

2.2%

GB Healthcare

-1.2%

GB Market


1 Year Return

38.8%

CTH

59.2%

GB Healthcare

27.6%

GB Market

Return vs Industry: CTH underperformed the UK Healthcare industry which returned 59.5% over the past year.

Return vs Market: CTH exceeded the UK Market which returned 27.6% over the past year.


Shareholder returns

CTHIndustryMarket
7 Day-1.6%2.2%-1.2%
30 Day1.3%6.2%0.6%
90 Day5.2%13.7%5.3%
1 Year42.4%38.8%61.4%59.2%33.1%27.6%
3 Year48.0%36.1%-11.5%-15.9%11.1%-1.6%
5 Year155.4%122.8%-14.3%-20.4%48.7%20.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTH (£5.47) is trading below our estimate of fair value (£7.88)

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


Price To Earnings Ratio

PE vs Industry: CTH is good value based on its PE Ratio (23.9x) compared to the UK Healthcare industry average (40.9x).

PE vs Market: CTH is good value based on its PE Ratio (23.9x) compared to the UK market (25.6x).


Price to Earnings Growth Ratio

PEG Ratio: CTH is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: CTH is good value based on its PB Ratio (1.8x) compared to the GB Healthcare industry average (2.1x).


Future Growth

How is CareTech Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTH's forecast earnings growth (22.5% per year) is above the savings rate (0.9%).

Earnings vs Market: CTH's earnings (22.5% per year) are forecast to grow faster than the UK market (17.6% per year).

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

Revenue vs Market: CTH's revenue (6.6% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: CTH's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTH's Return on Equity is forecast to be low in 3 years time (13.3%).


Past Performance

How has CareTech Holdings performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTH has high quality earnings.

Growing Profit Margin: CTH's current net profit margins (5.8%) are higher than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: CTH's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: CTH's earnings growth over the past year (27.3%) exceeds its 5-year average (8.3% per year).

Earnings vs Industry: CTH earnings growth over the past year (27.3%) exceeded the Healthcare industry 1.3%.


Return on Equity

High ROE: CTH's Return on Equity (7.4%) is considered low.


Financial Health

How is CareTech Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CTH's short term assets (£107.3M) do not cover its short term liabilities (£107.9M).

Long Term Liabilities: CTH's short term assets (£107.3M) do not cover its long term liabilities (£494.8M).


Debt to Equity History and Analysis

Debt Level: CTH's debt to equity ratio (87.6%) is considered high.

Reducing Debt: CTH's debt to equity ratio has reduced from 115.6% to 87.6% over the past 5 years.

Debt Coverage: CTH's debt is well covered by operating cash flow (26.5%).

Interest Coverage: CTH's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Dividend

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

2.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTH's dividend (2.33%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: CTH's dividend (2.33%) is low compared to the top 25% of dividend payers in the UK market (4.09%).


Stability and Growth of Payments

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

Growing Dividend: CTH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.7%), CTH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTH's dividends in 3 years are forecast to be well covered by earnings (29.5% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Haroon Sheikh (64 yo)

28.33yrs

Tenure

UK£971,000

Compensation

Mr. Haroon Sheikh, B.Sc., is a Co-Founder and a Director of CareTech Holdings PLC and has been its Group Chief Executive Officer since 1993. He is Co-Founder, Chief Executive Officer, and Director at CareT...


CEO Compensation Analysis

Compensation vs Market: Haroon's total compensation ($USD1.37M) is above average for companies of similar size in the UK market ($USD955.48K).

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


Leadership Team

Experienced Management: CTH's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: CTH'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

CareTech Holdings PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CareTech Holdings PLC
  • Ticker: CTH
  • Exchange: AIM
  • Founded: 1993
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: UK£619.747m
  • Shares outstanding: 113.30m
  • Website: https://www.caretech-uk.com

Number of Employees


Location

  • CareTech Holdings PLC
  • Metropolitan House
  • 5th Floor
  • Potters Bar
  • Hertfordshire
  • EN6 1AG
  • United Kingdom

Listings


Biography

CareTech Holdings PLC provides social care and support services for children and adults in the United Kingdom. It operates in three segments: Adults Services, Children’s Services, and Foster Care. The Adul...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/15 20:06
End of Day Share Price2021/05/14 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.