NMC Health
Market Cap
UK£3.3b
Last Updated
2020/01/19 21:29 UTC
Data Sources
Company Financials +
Executive Summary
NMC Health Plc provides healthcare services in the United Arab Emirates, the United Kingdom, Spain, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with reasonable growth potential.
Similar Companies
Share Price & News
How has NMC Health's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NMC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
15.4%
NMC
6.5%
GB Healthcare
1.4%
GB Market
1 Year Return
-43.5%
NMC
-4.6%
GB Healthcare
12.4%
GB Market
Return vs Industry: NMC underperformed the UK Healthcare industry which returned -6.6% over the past year.
Return vs Market: NMC underperformed the UK Market which returned 12.7% over the past year.
Shareholder returns
| NMC | Industry | Market | |
|---|---|---|---|
| 7 Day | 15.4% | 6.5% | 1.4% |
| 30 Day | 19.8% | 7.0% | 1.8% |
| 90 Day | -40.2% | -11.4% | 8.8% |
| 1 Year | -43.1%-43.5% | -3.1%-4.6% | 18.3%12.4% |
| 3 Year | -4.0%-5.6% | -19.9%-23.4% | 23.8%8.0% |
| 5 Year | 224.1%214.8% | 59.8%50.9% | 41.8%8.9% |
Price Volatility Vs. Market
How volatile is NMC Health's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Trade Alert: The Independent Non Executive Director Of NMC Health Plc (LON:NMC), Patrick Meade, Has Just Spent US$50k Buying Shares3 days ago | Simply Wall St
We Think NMC Health (LON:NMC) Can Stay On Top Of Its Debt2 weeks ago | Simply Wall St
What Is NMC Health's (LON:NMC) P/E Ratio After Its Share Price Tanked?Valuation
Is NMC Health undervalued compared to its fair value and its price relative to the market?
40.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NMC (£13.85) is trading below our estimate of fair value (£25.92)
Significantly Below Fair Value: NMC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NMC is good value based on its PE Ratio (13.9x) compared to the Healthcare industry average (24.1x).
PE vs Market: NMC is good value based on its PE Ratio (13.9x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: NMC is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: NMC is overvalued based on its PB Ratio (2.7x) compared to the GB Healthcare industry average (1.5x).
Next Steps
Future Growth
How is NMC Health forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
18.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NMC's forecast earnings growth (17.7% per year) is above the savings rate (0.5%).
Earnings vs Market: NMC's earnings (17.7% per year) are forecast to grow faster than the UK market (11.7% per year).
High Growth Earnings: NMC's earnings are forecast to grow, but not significantly.
Revenue vs Market: NMC's revenue (10.1% per year) is forecast to grow faster than the UK market (3.6% per year).
High Growth Revenue: NMC's revenue (10.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NMC's Return on Equity is forecast to be high in 3 years time (25.2%)
Next Steps
Past Performance
How has NMC Health performed over the past 5 years?
29.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NMC has high quality earnings.
Growing Profit Margin: NMC's current net profit margins (11.4%) are lower than last year (12.2%).
Past Earnings Growth Analysis
Earnings Trend: NMC's earnings have grown significantly by 29.3% per year over the past 5 years.
Accelerating Growth: NMC's earnings growth over the past year (25.9%) is below its 5-year average (29.3% per year).
Earnings vs Industry: NMC earnings growth over the past year (25.9%) exceeded the Healthcare industry 19.8%.
Return on Equity
High ROE: NMC's Return on Equity (16.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is NMC Health's financial position?
Financial Position Analysis
Short Term Liabilities: NMC's short term assets ($1.5B) exceed its short term liabilities ($887.7M).
Long Term Liabilities: NMC's short term assets ($1.5B) do not cover its long term liabilities ($2.4B).
Debt to Equity History and Analysis
Debt Level: NMC's debt to equity ratio (124.1%) is considered high.
Reducing Debt: NMC's debt to equity ratio has increased from 78.6% to 124.1% over the past 5 years.
Debt Coverage: NMC's debt is well covered by operating cash flow (27.6%).
Interest Coverage: NMC's interest payments on its debt are not well covered by EBIT (2.9x coverage).
Balance Sheet
Inventory Level: NMC has a high level of physical assets or inventory.
Debt Coverage by Assets: NMC's debt is not covered by short term assets (assets are 0.7x debt).
Next Steps
Dividend
What is NMC Health's current dividend yield, its reliability and sustainability?
1.08%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: NMC's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: NMC's dividend (1.21%) is low compared to the top 25% of dividend payers in the UK market (4.95%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, NMC has been paying a dividend for less than 10 years.
Growing Dividend: NMC's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (17.8%), NMC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NMC's dividends in 3 years are forecast to be well covered by earnings (18.4% payout ratio).
Next Steps
Management
What is the CEO of NMC Health's salary, the management and board of directors tenure and is there insider trading?
2.4yrs
Average management tenure
CEO
Prasanth Manghat (44yo)
2.8yrs
Tenure
US$5,483,500
Compensation
Mr. Prasanth Manghat has been the Chief Executive Officer of NMC Health Plc since March 8, 2017. Mr. Manghat served as Deputy Chief Executive Officer of NMC Health Plc since January 1, 2015 until March 8, ...
CEO Compensation Analysis
Compensation vs Market: Prasanth's total compensation ($USD5.48M) is above average for companies of similar size in the UK market ($USD2.25M).
Compensation vs Earnings: Prasanth's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.4yrs
Average Tenure
44yo
Average Age
Experienced Management: NMC's management team is considered experienced (2.4 years average tenure).
Board Age and Tenure
5.6yrs
Average Tenure
58yo
Average Age
Experienced Board: NMC's board of directors are considered experienced (5.6 years average tenure).
Insider Trading
Insider Buying: NMC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non Executive Director |
| Shares | 3,640 |
| Max Price | UK£13.78 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non Executive Director |
| Shares | 2,900 |
| Max Price | UK£17.20 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non Executive Director |
| Shares | 1,700 |
| Max Price | UK£14.50 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Simon Watkins (54yo)
Group Company Secretary
Asjad Yahya
Investor Relations Officer
Chandrakumari Shetty (75yo)
Group Medical Director
- Compensation: US$230.13k
Nirman Shetty (37yo)
Chief Operating Officer of Distribution
- Tenure: 2.3yrs
- Compensation: US$100.87k
Prasanth Manghat (44yo)
CEO & Executive Director
- Tenure: 2.8yrs
- Compensation: US$5.48m
Khaleefa Butti Omair Yousif Al Muhairi (40yo)
Executive Vice Chairman
- Compensation: US$1.89m
Hani Buttikhi
Chief Investment Officer & Executive Director
- Tenure: 2.5yrs
- Compensation: US$1.63m
Prashanth Shenoy
Chief Financial Officer
- Tenure: 2.4yrs
Michael Davis
Chief Operations Officer of Healthcare
- Tenure: 2.4yrs
Vishal Sharma
Head of Technology Investments & Digital Strategy
Board Members
Henry J. Tompkins (78yo)
Joint Non-Executive Chairman
- Tenure: 2.3yrs
Salma Ali Saif Bin Hareb Almheiri (53yo)
Independent Non-Executive Director
- Tenure: 5.6yrs
Bavaguthu Shetty (76yo)
Joint Non-Executive Chairman
- Tenure: 2.8yrs
Abdulrahman Saddiq Basaddiq (70yo)
Non-Executive Director
- Tenure: 5.9yrs
Prasanth Manghat (44yo)
CEO & Executive Director
- Tenure: 2.8yrs
- Compensation: US$5.48m
Khaleefa Butti Omair Yousif Al Muhairi (40yo)
Executive Vice Chairman
- Compensation: US$1.89m
Clanwilliam Meade (58yo)
Independent Non Executive Director
- Tenure: 7.8yrs
Jonathan Bomford (70yo)
Senior Independent Non-Executive Director
Ayesha Abdullah (52yo)
Independent Non-Executive Director
- Tenure: 5.6yrs
Hani Buttikhi
Chief Investment Officer & Executive Director
- Tenure: 2.5yrs
- Compensation: US$1.63m
Company Information
NMC Health Plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: NMC Health Plc
- Ticker: NMC
- Exchange: LSE
- Founded: 1975
- Industry: Health Care Facilities
- Sector: Healthcare
- Market Cap: UK£3.251b
- Shares outstanding: 208.70m
- Website: https://nmc.ae
Number of Employees
Location
- NMC Health Plc
- Devonshire House
- Level 1
- London
- Greater London
- W1J 8AJ
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NMC | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Apr 2012 |
| NMCL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Apr 2012 |
| NMMC.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Apr 2012 |
| NMHL.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Jul 2015 |
Biography
NMC Health Plc provides healthcare services in the United Arab Emirates, the United Kingdom, Spain, and internationally. The company operates through two segments, Healthcare, and Distribution & Services. It owns and manages approximately 200 healthcare facilities, including hospitals, medical centers, long term care facilities, day surgery centers, fertility clinics, and home health services providers. The company offers medical services comprising diagnostic, and in and outpatient services, as well as research and medical services in the field of gynecology, obstetrics, and human reproduction; and management services in respect of hospitals, as well as retails pharmaceutical goods. It also trades in pharmaceutical goods, medical equipment, cosmetics, and food products. NMC Health Plc was founded in 1975 and is based in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/19 21:29 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.