CareTech Holdings PLC provides social care and support services for children and adults in the United Kingdom. More Details
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.
7 Day Return
1 Year Return
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.
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
1 week ago | Simply Wall StIs It Worth Buying CareTech Holdings PLC (LON:CTH) For Its 2.3% Dividend Yield?
3 weeks ago | Simply Wall StHow Much Are CareTech Holdings PLC (LON:CTH) Insiders Taking Off The Table?
1 month ago | Simply Wall StDo Fundamentals Have Any Role To Play In Driving CareTech Holdings PLC's (LON:CTH) Stock Up Recently?
Is CareTech Holdings undervalued compared to its fair value and its price relative to the market?
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).
How is CareTech Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
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%).
How has CareTech Holdings performed over the past 5 years?
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.
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).
What is CareTech Holdings's current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Haroon Sheikh (64 yo)
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.
Experienced Management: CTH's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Experienced Board: CTH's board of directors are considered experienced (5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
CareTech Holdings PLC's company bio, employee growth, exchange listings and data sources
- 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
- CareTech Holdings PLC
- Metropolitan House
- 5th Floor
- Potters Bar
- EN6 1AG
- United Kingdom
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/15 20:06|
|End of Day Share Price||2021/05/14 00:00|
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.