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CTH

CareTech HoldingsAIM:CTH Stock Report

Last Price

UK£5.61

Market Cap

UK£635.8m

7D

1.8%

1Y

10.0%

Updated

23 Jan, 2022

Data

Company Financials +
CTH fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance4/6
Financial Health4/6
Dividends5/6

CTH Stock Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for CareTech Holdings
Historical stock prices
Current Share PriceUK£5.61
52 Week HighUK£7.01
52 Week LowUK£4.85
Beta0.41
1 Month Change-2.94%
3 Month Change-9.95%
1 Year Change10.00%
3 Year Change62.61%
5 Year Change53.91%
Change since IPO231.95%

Recent News & Updates

Dec 09
CareTech Holdings (LON:CTH) Will Pay A Larger Dividend Than Last Year At UK£0.095

CareTech Holdings (LON:CTH) Will Pay A Larger Dividend Than Last Year At UK£0.095

The board of CareTech Holdings PLC ( LON:CTH ) has announced that it will be increasing its dividend on the 4th of May...

Sep 02
Do CareTech Holdings's (LON:CTH) Earnings Warrant Your Attention?

Do CareTech Holdings's (LON:CTH) Earnings Warrant Your Attention?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

CTHGB HealthcareGB Market
7D1.8%-1.3%-1.3%
1Y10.0%20.6%7.8%

Return vs Industry: CTH underperformed the UK Healthcare industry which returned 20.6% over the past year.

Return vs Market: CTH exceeded the UK Market which returned 7.8% over the past year.

Price Volatility

Is CTH's price volatile compared to industry and market?
CTH volatility
CTH Average Weekly Movement1.9%
Healthcare Industry Average Movement3.7%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

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.

About the Company

FoundedEmployeesCEOWebsite
199311,000Haroon Sheikhhttps://www.caretech-uk.com

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 Adult Services segment provides care and residential services for adults with learning disabilities, autistic spectrum and mental health disorders, physical disabilities, and brain injury.

CareTech Holdings Fundamentals Summary

How do CareTech Holdings's earnings and revenue compare to its market cap?
CTH fundamental statistics
Market CapUK£635.82m
Earnings (TTM)UK£31.91m
Revenue (TTM)UK£489.12m

19.9x

P/E Ratio

1.3x

P/S Ratio

Is CTH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CTH income statement (TTM)
RevenueUK£489.12m
Cost of RevenueUK£323.41m
Gross ProfitUK£165.71m
ExpensesUK£133.80m
EarningsUK£31.91m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.28
Gross Margin33.88%
Net Profit Margin6.52%
Debt/Equity Ratio83.9%

How did CTH perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

49%

Payout Ratio

Does CTH pay a reliable dividends?

See CTH dividend history and benchmarks
When do you need to buy CTH by to receive an upcoming dividend?
CareTech Holdings dividend dates
Ex Dividend DateMar 03 2022
Dividend Pay DateMay 04 2022
Days until Ex dividend37 days
Days until Dividend pay date99 days

Does CTH pay a reliable dividends?

See CTH dividend history and benchmarks

Valuation

Is CareTech Holdings 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: CTH (£5.61) is trading below our estimate of fair value (£11.23)

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 (19.9x) compared to the UK Healthcare industry average (20.4x).

PE vs Market: CTH is poor value based on its PE Ratio (19.9x) compared to the UK market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CTH is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: CTH is good value based on its PB Ratio (1.7x) compared to the GB Healthcare industry average (2.9x).


Future Growth

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

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTH's forecast earnings growth (15.1% per year) is above the savings rate (0.9%).

Earnings vs Market: CTH's earnings (15.1% per year) are forecast to grow faster than the UK market (12.1% per year).

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

Revenue vs Market: CTH's revenue (6.4% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: CTH'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: 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?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTH has high quality earnings.

Growing Profit Margin: CTH's current net profit margins (6.5%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: CTH's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: CTH's earnings growth over the past year (27%) exceeds its 5-year average (18.5% per year).

Earnings vs Industry: CTH earnings growth over the past year (27%) underperformed the Healthcare industry 88.1%.


Return on Equity

High ROE: CTH's Return on Equity (9.3%) is considered low.


Financial Health

How is CareTech Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CTH's short term assets (£140.6M) exceed its short term liabilities (£133.0M).

Long Term Liabilities: CTH's short term assets (£140.6M) do not cover its long term liabilities (£543.3M).


Debt to Equity History and Analysis

Debt Level: CTH's net debt to equity ratio (66.7%) is considered high.

Reducing Debt: CTH's debt to equity ratio has reduced from 101.1% to 83.9% over the past 5 years.

Debt Coverage: CTH's debt is well covered by operating cash flow (26.2%).

Interest Coverage: CTH's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Dividend

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

2.51%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 24 2022Ex Dividend DateMar 03 2022Dividend Pay DateMay 04 202262 days from Ex DividendBuy in the next 37 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CTH's dividend (2.51%) is higher than the bottom 25% of dividend payers in the UK market (1.41%).

High Dividend: CTH's dividend (2.51%) is low compared to the top 25% of dividend payers in the UK market (4.08%).


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 reasonably low payout ratio (49%), CTH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTH's dividends in 3 years are forecast to be well covered by earnings (32.9% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Haroon Sheikh (65 yo)

29yrs

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 ($USD1.32M) is about average for companies of similar size in the UK market ($USD1.08M).

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 considered experienced (4.2 years average tenure).


Board Members

Experienced Board: CTH's board of directors are considered experienced (8.8 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 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
  • Implied Market Cap: UK£635.817m
  • Shares outstanding: 113.34m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 18:48
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.