LSE:MDC

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Mediclinic International

Market Cap

UK£2.3b

Last Updated

2021/06/23 10:36 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Undervalued with moderate growth potential.


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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MDC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.2%

MDC

-0.8%

GB Healthcare

-1.2%

GB Market


1 Year Return

23.2%

MDC

55.8%

GB Healthcare

17.8%

GB Market

Return vs Industry: MDC underperformed the UK Healthcare industry which returned 55.8% over the past year.

Return vs Market: MDC exceeded the UK Market which returned 17.8% over the past year.


Shareholder returns

MDCIndustryMarket
7 Day-3.2%-0.8%-1.2%
30 Day0.8%5.6%0.7%
90 Day7.5%20.4%6.6%
1 Year23.2%23.2%57.9%55.8%23.4%17.8%
3 Year-39.6%-41.5%6.3%1.6%14.2%1.2%
5 Year-69.4%-71.1%-17.6%-22.9%53.2%24.3%

Long-Term 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?

20.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MDC (£3.13) is trading below our estimate of fair value (£3.95)

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


Price To Earnings Ratio

PE vs Industry: MDC is good value based on its PE Ratio (33.9x) compared to the UK Healthcare industry average (37.4x).

PE vs Market: MDC is poor value based on its PE Ratio (33.9x) compared to the UK market (25.2x).


Price to Earnings Growth Ratio

PEG Ratio: MDC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: MDC is good value based on its PB Ratio (0.8x) compared to the GB Healthcare industry average (2.6x).


Future Growth

How is Mediclinic International forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

47.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDC's forecast earnings growth (47.2% per year) is above the savings rate (0.9%).

Earnings vs Market: MDC's earnings (47.2% per year) are forecast to grow faster than the UK market (17.3% per year).

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

Revenue vs Market: MDC's revenue (2.9% per year) is forecast to grow slower than the UK market (5.3% per year).

High Growth Revenue: MDC's revenue (2.9% 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 (6.5%).


Past Performance

How has Mediclinic International performed over the past 5 years?

-33.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDC has a large one-off gain of £37.0M impacting its March 31 2021 financial results.

Growing Profit Margin: MDC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MDC has become profitable over the past 5 years, growing earnings by -33.7% per year.

Accelerating Growth: MDC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MDC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (29.2%).


Return on Equity

High ROE: MDC's Return on Equity (2.7%) is considered low.


Financial Health

How is Mediclinic International's financial position?


Financial Position Analysis

Short Term Liabilities: MDC's short term assets (£1.2B) exceed its short term liabilities (£684.0M).

Long Term Liabilities: MDC's short term assets (£1.2B) do not cover its long term liabilities (£3.0B).


Debt to Equity History and Analysis

Debt Level: MDC's debt to equity ratio (60.2%) is considered high.

Reducing Debt: MDC's debt to equity ratio has increased from 52.1% to 60.2% over the past 5 years.

Debt Coverage: MDC's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: MDC's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Dividend

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

2.02%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MDC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MDC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MDC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MDC's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Ronnie van der Merwe (57 yo)

3yrs

Tenure

UK£1,285,000

Compensation

Dr. Carel Aron van der Merwe, also known as Ronnie, has been Executive Director of Mediclinic International plc since June 1, 2018. Dr. van der Merwe is Group Chief Executive Officer of Mediclinic Internat...


CEO Compensation Analysis

Compensation vs Market: Ronnie's total compensation ($USD1.79M) is about average for companies of similar size in the UK market ($USD1.65M).

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


Leadership Team

Experienced Management: MDC's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: MDC's board of directors are considered experienced (3.3 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

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£2.306b
  • Shares outstanding: 737.24m
  • Website: https://www.mediclinic.com

Number of Employees


Location

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

Listings


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 Analysis2021/06/23 10:36
End of Day Share Price2021/06/22 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.