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Medica Group

LSE:MGP
Snowflake Description

Outstanding track record with flawless balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MGP
LSE
£159M
Market Cap
  1. Home
  2. GB
  3. Healthcare
Company description

Medica Group Plc provides teleradiology reporting services to NHS trusts and other customers in the United Kingdom. The last earnings update was 84 days ago. More info.


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MGP Share Price and Events
7 Day Returns
-1.4%
LSE:MGP
1.5%
GB Healthcare
0.4%
GB Market
1 Year Returns
7.4%
LSE:MGP
-33.4%
GB Healthcare
-3.7%
GB Market
MGP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Medica Group (MGP) -1.4% -7.7% 10% 7.4% - -
GB Healthcare 1.5% -5.3% -2.8% -33.4% -16.7% 87.6%
GB Market 0.4% 0.3% 0.8% -3.7% 19% 3.4%
1 Year Return vs Industry and Market
  • MGP outperformed the Healthcare industry which returned -33.4% over the past year.
  • MGP outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -3.7% over the past year.
Price Volatility
MGP
Industry
5yr Volatility vs Market

MGP Value

 Is Medica Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Medica Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Medica Group.

LSE:MGP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:MGP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.638 (1 + (1- 19%) (7.5%))
0.783
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 6.65%)
6.55%

Discounted Cash Flow Calculation for LSE:MGP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Medica Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:MGP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.55%)
2019 7.00 Analyst x1 6.57
2020 11.00 Analyst x1 9.69
2021 12.00 Analyst x1 9.92
2022 12.00 Analyst x1 9.31
2023 13.00 Analyst x1 9.47
2024 13.50 Est @ 3.87% 9.23
2025 13.92 Est @ 3.08% 8.93
2026 14.27 Est @ 2.52% 8.59
2027 14.57 Est @ 2.13% 8.24
2028 14.85 Est @ 1.86% 7.87
Present value of next 10 years cash flows £87.82
LSE:MGP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £14.85 × (1 + 1.23%) ÷ (6.55% – 1.23%)
£282.48
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £282.48 ÷ (1 + 6.55%)10
£149.82
LSE:MGP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £87.82 + £149.82
£237.64
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £237.64 / 111.11
£2.14
LSE:MGP Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.14
Current discount Discount to share price of £1.43
= -1 x (£1.43 - £2.14) / £2.14
33.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Medica Group is available for.
Intrinsic value
33%
Share price is £1.43 vs Future cash flow value of £2.14
Current Discount Checks
For Medica Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Medica Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Medica Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Medica Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Medica Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:MGP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.07
LSE:MGP Share Price ** LSE (2019-06-17) in GBP £1.43
United Kingdom of Great Britain and Northern Ireland Healthcare Industry PE Ratio Median Figure of 11 Publicly-Listed Healthcare Companies 24.23x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Medica Group.

LSE:MGP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:MGP Share Price ÷ EPS (both in GBP)

= 1.43 ÷ 0.07

21.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medica Group is good value based on earnings compared to the GB Healthcare industry average.
  • Medica Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Medica Group's expected growth come at a high price?
Raw Data
LSE:MGP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.58x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
16.1%per year
United Kingdom of Great Britain and Northern Ireland Healthcare Industry PEG Ratio Median Figure of 9 Publicly-Listed Healthcare Companies 1.37x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 575 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:MGP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.58x ÷ 16.1%

1.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medica Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Medica Group's assets?
Raw Data
LSE:MGP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £0.27
LSE:MGP Share Price * LSE (2019-06-17) in GBP £1.43
United Kingdom of Great Britain and Northern Ireland Healthcare Industry PB Ratio Median Figure of 16 Publicly-Listed Healthcare Companies 1.28x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,371 Publicly-Listed Companies 1.48x
LSE:MGP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:MGP Share Price ÷ Book Value per Share (both in GBP)

= 1.43 ÷ 0.27

5.24x

* Primary Listing of Medica Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medica Group is overvalued based on assets compared to the GB Healthcare industry average.
X
Value checks
We assess Medica Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Medica Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MGP Future Performance

 How is Medica Group expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Medica Group expected to grow at an attractive rate?
  • Medica Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Medica Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Medica Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:MGP Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:MGP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 16.1%
LSE:MGP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 11.2%
United Kingdom of Great Britain and Northern Ireland Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 24.8%
United Kingdom of Great Britain and Northern Ireland Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 8.9%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:MGP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:MGP Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 69 15 1
2022-12-31 63 14 1
2021-12-31 57 13 12 3
2020-12-31 50 12 10 4
2019-12-31 45 11 8 4
LSE:MGP Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 39 10 7
2018-09-30 38 10 7
2018-06-30 37 10 7
2018-03-31 35 8 6
2017-12-31 34 6 4
2017-09-30 32 5 3
2017-06-30 31 5 2
2017-03-31 30 6 3
2016-12-31 29 7 3
2016-09-30 27 7 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Medica Group's earnings are expected to grow by 16.1% yearly, however this is not considered high growth (20% yearly).
  • Medica Group's revenue is expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:MGP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Medica Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:MGP Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.11 0.11 0.11 1.00
2020-12-31 0.09 0.09 0.09 1.00
2019-12-31 0.08 0.08 0.08 1.00
LSE:MGP Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.07
2018-09-30 0.07
2018-06-30 0.06
2018-03-31 0.05
2017-12-31 0.04
2017-09-30 0.03
2017-06-30 0.02
2017-03-31 0.03
2016-12-31 0.03
2016-09-30 0.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Medica Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Medica Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Medica Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MGP Past Performance

  How has Medica Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Medica Group's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Medica Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Medica Group's 1-year earnings growth exceeds its 5-year average (70% vs 45%)
  • Medica Group's earnings growth has exceeded the GB Healthcare industry average in the past year (70% vs -12.7%).
Earnings and Revenue History
Medica Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Medica Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:MGP Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 38.97 7.36 9.42
2018-09-30 37.78 7.23 8.04
2018-06-30 36.58 7.10 6.66
2018-03-31 35.15 5.71 6.29
2017-12-31 33.72 4.33 5.93
2017-09-30 32.26 3.06 5.65
2017-06-30 30.81 2.30 5.30
2017-03-31 29.67 2.81 5.14
2016-12-31 28.52 3.32 4.98
2016-09-30 27.01 2.64 4.92
2015-12-31 22.24 1.69 4.47
2014-12-31 17.91 -0.21 3.67
2013-12-31 14.29 -0.73 5.21

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Medica Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Medica Group used its assets more efficiently than the GB Healthcare industry average last year based on Return on Assets.
  • Medica Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Medica Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Medica Group has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MGP Health

 How is Medica Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Medica Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Medica Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Medica Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Medica Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Medica Group Company Filings, last reported 5 months ago.

LSE:MGP Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 30.34 11.91 12.59
2018-09-30 30.34 11.91 12.59
2018-06-30 27.29 11.90 9.37
2018-03-31 27.29 11.90 9.37
2017-12-31 24.90 11.90 6.91
2017-09-30 24.90 11.90 6.91
2017-06-30 21.92 11.91 3.39
2017-03-31 21.92 11.91 3.39
2016-12-31 6.31 26.78 4.71
2016-09-30 5.80 26.55 3.41
2015-12-31 2.99 27.52 2.09
2014-12-31 0.70 27.87 1.16
2013-12-31 0.97 29.82 2.51
  • Medica Group's level of debt (39.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (3076.2% vs 39.3% today).
  • Debt is well covered by operating cash flow (80.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 37x coverage).
X
Financial health checks
We assess Medica Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Medica Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MGP Dividends

 What is Medica Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.57%
Current annual income from Medica Group dividends. Estimated to be 1.99% next year.
If you bought £2,000 of Medica Group shares you are expected to receive £31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Medica Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Medica Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:MGP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 1.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:MGP Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.03 1.00
2022-12-31 0.03 1.00
2021-12-31 0.03 3.00
2020-12-31 0.03 3.00
2019-12-31 0.02 3.00
LSE:MGP Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-25 0.023 1.500
2018-04-25 0.022 1.655
2018-03-12 0.022 1.675
2017-09-18 0.011 0.585

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Medica Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Medica Group only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Medica Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
X
Income/ dividend checks
We assess Medica Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Medica Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Medica Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MGP Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Graham
COMPENSATION £204,637,000
AGE 54
TENURE AS CEO 7.9 years
CEO Bio

Mr. John Michael Graham has been the Chief Executive Officer at Medica Group PLC since July 2011. Mr. Graham ensures that Medica delivers excellent service to its clients. He also ensures that the business continues to invest in its current market leading services with a clear focus for growth in existing and new initiatives. He joined Medica In July 2011. Mr. Graham has wealth of experience from his previous healthcare role as Managing Director of Allied Respiratory, a subsidiary of Allied Healthcare group where he turned a loss making business into a successful company before leading the sale of Allied Respiratory to Air Liquide. He subsequently remained with Air Liquide, managing the stand alone Allied Respiratory business and then leading the integration of their UK acquisitions. Prior to his time with Allied Respiratory, he held various chief executive and senior operational positions on boards of both public and private companies in sectors including consumer products, manufacturing and distribution. He served as Managing Director at Ronson plc since 2000 and has proven ability in both restructuring and business development. Mr. Graham served with Ronson Group of companies for over thirteen years originally being Operations Director of the Newcastle based Ronson business. Mr. Graham was responsible for the successful restructuring of operations, specifically the sale or closure of non-core businesses and for the reorganisation of the supply and distribution functions in the ongoing business. He has been a Director at Medica Group PLC since May 01, 2013. He served as a Director of Ronson Plc from May 13, 1999 to October 2003.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Medica Group management team in years:

6.1
Average Tenure
48
Average Age
  • The average tenure for the Medica Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Graham

TITLE
CEO & Director
COMPENSATION
£205M
AGE
54
TENURE
7.9 yrs

Tony Lee

TITLE
CFO, Finance Director
COMPENSATION
£131M
AGE
42

Stephen Davies

TITLE
Medical Director
COMPENSATION
£202M
AGE
61
TENURE
6.1 yrs

Kevin Terrins

TITLE
Business Development Director
COMPENSATION
£18M
AGE
41
TENURE
6.1 yrs

Sarah Burns

TITLE
Chief Operating Officer

Marc O’Brien

TITLE
Chief Technical Officer

Julie West

TITLE
Head of Governance & Compliance

Paul Cornell

TITLE
Head of Marketing

David Evans

TITLE
Head of Functional Architect

Gary Thompsett

TITLE
Head of Service Delivery
Board of Directors Tenure

Average tenure and age of the Medica Group board of directors in years:

6.1
Average Tenure
57.5
Average Age
  • The tenure for the Medica Group board of directors is about average.
Board of Directors

Gordon Davis

TITLE
Independent Chairman
COMPENSATION
£75K
AGE
62

John Graham

TITLE
CEO & Director
COMPENSATION
£205M
AGE
54
TENURE
6.1 yrs

Tony Lee

TITLE
CFO, Finance Director
COMPENSATION
£131M
AGE
42
TENURE
6.1 yrs

Stephen Davies

TITLE
Medical Director
COMPENSATION
£202M
AGE
61
TENURE
6.1 yrs

Steve Whittern

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£45K
AGE
43

Mike Bewick

TITLE
Independent Non-Executive Director
COMPENSATION
£38K
AGE
61
TENURE
2.3 yrs

Jo Easton

TITLE
Independent Non-Executive Director
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • Medica Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
03. May 19 Sell John Graham Individual 02. May 19 02. May 19 -1,100,000 £1.48 £-1,628,000
21. Sep 18 Sell John Graham Individual 21. Sep 18 21. Sep 18 -1,350,000 £1.57 £-2,114,370
X
Management checks
We assess Medica Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Medica Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MGP News

Simply Wall St News

An Intrinsic Calculation For Medica Group Plc (LON:MGP) Suggests It's 32% Undervalued

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (£, Millions) £7.00 £11.00 £12.00 £12.00 £13.00 £13.50 £13.92 £14.27 £14.57 £14.85 Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Analyst x1 Analyst x1 Est @ 3.87% Est @ 3.08% Est @ 2.52% Est @ 2.13% Est @ 1.86% Present Value (£, Millions) Discounted @ 6.55% £6.57 £9.69 £9.92 £9.31 £9.47 £9.23 £8.93 £8.59 £8.24 £7.87 Present Value of 10-year Cash Flow (PVCF)= £87.82m "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.5%. … LSE:MGP Intrinsic value, June 17th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Medica Group Plc (LON:MGP) Is An Attractive Dividend Stock - Here's Why

Dividend paying companies with growing earnings can be highly rewarding in the long term. … It's good to see Medica Group has been growing its earnings per share at 58% a year over the past 5 years. … Conclusion To summarise, shareholders should always check that Medica Group's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Does Medica Group Plc's (LON:MGP) Stock Price Account For Its Growth?

Help shape the future of investing tools and you could win a $250 gift card! … Medica Group Plc (LON:MGP) is considered a high-growth stock, but its last closing price of £1.4825 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … One reason why investors are attracted to MGP is the high growth potential in the near future

Simply Wall St -

Should You Be Worried About Insider Transactions At Medica Group Plc (LON:MGP)?

So we'll take a look at whether insiders have been buying or selling shares in Medica Group Plc (LON:MGP). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price

Simply Wall St -

Medica Group Plc (LON:MGP): Are Analysts Bullish?

In December 2018, Medica Group Plc (LON:MGP) released its most recent earnings announcement, whicha … showed

Simply Wall St -

Should You Like Medica Group Plc’s (LON:MGP) High Return On Capital Employed?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Investors Who Bought Medica Group (LON:MGP) Shares A Year Ago Are Now Down 13%

For example, the Medica Group Plc (LON:MGP) share price is down 13% in the last year. … In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … During the unfortunate twelve months during which the Medica Group share price fell, it actually saw its earnings per share (EPS) improve by 186%.

Simply Wall St -

These Factors Make Medica Group Plc (LON:MGP) An Interesting Investment

Medica Group Plc (LON:MGP) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of MGP, it

Simply Wall St -

Should We Be Delighted With Medica Group Plc's (LON:MGP) ROE Of 26%?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Medica Group has a return on equity of 26% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

An Intrinsic Calculation For Medica Group Plc (LON:MGP) Shows It's 30.23% Undervalued

Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

MGP Company Info

Description

Medica Group Plc provides teleradiology reporting services to NHS trusts and other customers in the United Kingdom. It offers same day routine teleradiology, radiographer plain film, NightHawk emergency CT and MR reporting, Dayhawk fast daytime, and CT colonography reporting services. The company also provides audit services, such as cause for concern audit, departmental quality assurance, and ongoing CT, MR, plain film, and ultrasound audit services; and specialist services. Medica Group Plc was incorporated in 2013 and is based in Hastings, the United Kingdom.

Details
Name: Medica Group Plc
MGP
Exchange: LSE
Founded: 2013
£158,888,893
111,111,114
Website: http://www.medicagroup.co.uk
Address: Medica Group Plc
Havelock Place,
Fifth Floor,
Hastings,
East Sussex, TN34 1BG,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE MGP Ordinary Shares London Stock Exchange GB GBP 21. Mar 2017
DB 2MI Ordinary Shares Deutsche Boerse AG DE EUR 21. Mar 2017
BATS-CHIXE MGPL Ordinary Shares BATS 'Chi-X Europe' GB GBP 21. Mar 2017
Number of employees
Current staff
Staff numbers
100
Medica Group employees.
Industry
Health Care Services
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 22:28
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/05/20
Last earnings filing: 2019/03/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.