LSE:MDC

Stock Analysis Report

Mediclinic International

Executive Summary

Mediclinic International plc, together with its subsidiaries, operates private hospitals.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Mediclinic International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MDC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

MDC

-1.2%

GB Healthcare

-0.5%

GB Market


1 Year Return

5.1%

MDC

-13.6%

GB Healthcare

3.7%

GB Market

Return vs Industry: MDC exceeded the UK Healthcare industry which returned -13.6% over the past year.

Return vs Market: MDC exceeded the UK Market which returned 3.7% over the past year.


Shareholder returns

MDCIndustryMarket
7 Day-0.7%-1.2%-0.5%
30 Day8.0%-4.5%1.4%
90 Day20.6%13.3%3.1%
1 Year7.7%5.1%-12.3%-13.6%9.2%3.7%
3 Year-46.6%-49.2%-6.9%-10.8%23.5%7.8%
5 Yearn/a99.4%88.0%34.4%3.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mediclinic International undervalued compared to its fair value and its price relative to the market?

28.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MDC (£3.76) is trading below our estimate of fair value (£5.27)

Significantly Below Fair Value: MDC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MDC is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: MDC is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MDC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MDC is good value based on its PB Ratio (0.9x) compared to the GB Healthcare industry average (1.5x).


Next Steps

Future Growth

How is Mediclinic International forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

40.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: MDC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MDC's is expected to become profitable in the next 3 years.

Revenue vs Market: MDC's revenue (4% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: MDC's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MDC's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has Mediclinic International performed over the past 5 years?

-56.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDC has large one-off items impacting its financial results.

Growing Profit Margin: MDC's current net profit margins (-5.2%) are higher than last year (-17.1%).


Past Earnings Growth Analysis

Earnings Trend: MDC is unprofitable, and losses have increased over the past 5 years at a rate of -56.8% per year.

Accelerating Growth: Unable to compare MDC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MDC is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (8.3%).


Return on Equity

High ROE: MDC has a negative Return on Equity (-3.98%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mediclinic International's financial position?


Financial Position Analysis

Short Term Liabilities: MDC's short term assets (£1.1B) exceeds its short term liabilities (£586.0M)

Long Term Liabilities: MDC's short term assets (1.1B) do not cover its long term liabilities (2.6B)


Debt to Equity History and Analysis

Debt Level: MDC's debt to equity ratio (60.7%) is considered high

Reducing Debt: MDC's debt to equity ratio has reduced from 119.5% to 60.7% over the past 5 years.

Debt Coverage: MDC's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: MDC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: MDC's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Mediclinic International's current dividend yield, its reliability and sustainability?

2.10%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.9%markettop25%5.3%industryaverage1.6%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: MDC's dividend (2.1%) is higher than the bottom 25% of dividend payers in the UK market (1.94%).

High Dividend: MDC's dividend (2.1%) is low compared to the top 25% of dividend payers in the UK market (5.33%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MDC has been paying a dividend for less than 10 years.

Growing Dividend: MDC has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: MDC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: MDC's dividends in 3 years are forecast to be well covered by earnings (28.1% payout ratio).


Next Steps

Management

What is the CEO of Mediclinic International's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Ronnie van der Merwe (56yo)

1.4yrs

Tenure

UK£689,400

Compensation

Dr. Carel Aron van der Merwe, also known as Ronnie, has been Chief Executive Officer and Executive Director of Mediclinic International plc since June 1, 2018 and served as its Chief Clinical Officer. Dr.  ...


CEO Compensation Analysis

Compensation vs Market: Ronnie's total compensation ($USD886.87K) is below average for companies of similar size in the UK market ($USD2.25M).

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


Management Age and Tenure

2.3yrs

Average Tenure

54yo

Average Age

Experienced Management: MDC's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: MDC's board of directors are considered experienced (3.5 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

BuyUK£35,80512 Jul 19
Carel van der Merwe
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares11,000
Max PriceUK£3.26
BuyUK£9,19618 Jun 19
Petrus Myburgh
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Executive Director
Shares3,000
Max PriceUK£3.07

Ownership Breakdown

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


Management Team

  • Gert Hattingh (54yo)

    Chief Corporate Services Officer

    • Tenure: 3.8yrs
    • Compensation: UK£4.32m
  • Biren Valodia

    Chief Marketing Officer of Medi-Clinic Southern Africa

    • Tenure: 0yrs
  • Clara Findlay

    Chief Legal Officer of Mediclinic Southern Africa

    • Tenure: 0yrs
  • Wimpie Aucamp

    Chief Operating Officer of Medi-Clinic for Southern Africa

    • Tenure: 0yrs
  • Magnus Oetiker (47yo)

    Chief Human Resources & Corporate Development Officer

    • Tenure: 0.4yrs
  • Dirk Le Roux (59yo)

    Chief Information Officer

    • Tenure: 0yrs
    • Compensation: UK£2.40m
  • Petrus Myburgh (44yo)

    Group CFO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£527.00k
  • Greg Wyk

    Chief Human Resources Officer of Mediclinic Southern Africa

    • Tenure: 0yrs
  • James Arnold

    Head of Investor Relations

    • Tenure: 0yrs
  • Ronnie van der Merwe (56yo)

    CEO & Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£689.40k

Board Members

  • J. Grieve (67yo)

    Senior Independent Director

    • Tenure: 0.3yrs
    • Compensation: UK£81.00k
  • Danie Meintjes (63yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£748.00k
  • Edwin de la Harpe Hertzog (69yo)

    Non-Executive Chairman

    • Tenure: 3.8yrs
    • Compensation: UK£288.00k
  • Jannie Durand (52yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£82.00k
  • Muhadditha Al-Hashimi

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: UK£73.00k
  • Trevor Petersen (63yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£98.00k
  • Felicity A. Harvey

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: UK£78.00k
  • Petrus Myburgh (44yo)

    Group CFO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£527.00k
  • Seamus Keating (55yo)

    Independent Non-Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£90.00k
  • Ronnie van der Merwe (56yo)

    CEO & Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£689.40k

Company Information

Mediclinic International plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mediclinic International plc
  • Ticker: MDC
  • Exchange: LSE
  • Founded: 1983
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: UK£2.773b
  • Shares outstanding: 737.21m
  • Website: https://www.mediclinic.com

Number of Employees


Location

  • Mediclinic International plc
  • 25 Du Toit Street
  • Stellenbosch
  • Western Cape
  • 7600
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDCLSE (London Stock Exchange)YesOrdinary SharesGBGBPFeb 2016
MO4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2016
MDCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPFeb 2016
MEIJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARFeb 2016
MEPNMSE (Namibian Stock Exchange)YesOrdinary SharesNAZARFeb 2016

Biography

Mediclinic International plc, together with its subsidiaries, operates private hospitals. The company offers acute care, specialist-orientated, and multidisciplinary healthcare services under the Mediclini ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 21:24
End of Day Share Price2019/11/11 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.