Loading...

NMC Health

LSE:NMC
Snowflake Description

High growth potential with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NMC
LSE
£8B
Market Cap
  1. Home
  2. GB
  3. Healthcare
Company description

NMC Health Plc provides healthcare services in the United Arab Emirates, Spain, and internationally. The last earnings update was 198 days ago. More info.


Add to Portfolio Compare Print Invest
NMC Share Price and Events
Price Volatility
NMC
Industry
5yr Volatility vs Market

Value

 Is NMC Health 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 NMC Health 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 NMC Health.

LSE:NMC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.4%

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:NMC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 8.6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.28
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.277 (1 + (1- 19%) (13.72%))
0.307
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)
= 1.4% + (0.8 * 8.6%)
8.28%

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

The calculations below outline how an intrinsic value for NMC Health is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:NMC DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) -68.50 326.65 428.08 495.05 589.00
Source Analyst x2 Analyst x4 Analyst x4 Analyst x2 Analyst x1
Present Value
Discounted (@ 8.28%)
-63.26 278.61 337.20 360.14 395.72
Present value of next 5 years cash flows $1,308
LSE:NMC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $589 × (1 + 1.4%) ÷ (8.28% – 1.4%)
$8,678
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $8,678 ÷ (1 + 8.28%)5
$5,830
LSE:NMC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $1,308 + $5,830
$7,138
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,138 / 208
$34.28
LSE:NMC Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:NMC)
0.756
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $34.28 x 0.756
£25.91
Value per share (GBP) From above. £25.91
Current discount Discount to share price of £37.20
= -1 x (£37.20 - £25.91) / £25.91
-43.6%

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

  • The current share price of NMC Health is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 NMC Health's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NMC Health's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:NMC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in USD $0.91
LSE:NMC Share Price ** LSE (2018-07-17) in GBP £37.2
LSE:NMC Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.323 $49.22
United Kingdom of Great Britain and Northern Ireland Healthcare Industry PE Ratio Median Figure of 9 Publicly-Listed Healthcare Companies 53.73x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 882 Publicly-Listed Companies 17.07x

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

** Primary Listing of NMC Health.

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

= LSE:NMC Share Price ÷ EPS (both in USD)

= 49.22 ÷ 0.91

54.08x

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

  • NMC Health is overvalued based on earnings compared to the GB Healthcare industry average.
  • NMC Health is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does NMC Health's expected growth come at a high price?
Raw Data
LSE:NMC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 54.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
22%per year
United Kingdom of Great Britain and Northern Ireland Healthcare Industry PEG Ratio Median Figure of 8 Publicly-Listed Healthcare Companies 2.34x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 592 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 54.08x ÷ 22%

2.46x

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

  • NMC Health is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on NMC Health's assets?
Raw Data
LSE:NMC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in USD $5.33
LSE:NMC Share Price * LSE (2018-07-17) in GBP £37.2
LSE:NMC Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.323 $49.22
United Kingdom of Great Britain and Northern Ireland Healthcare Industry PB Ratio Median Figure of 15 Publicly-Listed Healthcare Companies 1.48x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,515 Publicly-Listed Companies 1.71x
LSE:NMC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:NMC Share Price ÷ Book Value per Share (both in USD)

= 49.22 ÷ 5.33

9.23x

* Primary Listing of NMC Health.

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

  • NMC Health is overvalued based on assets compared to the GB Healthcare industry average.
X
Value checks
We assess NMC Health'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. NMC Health has a total score of 0/6, 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.

Future Performance

 How is NMC Health expected to perform in the next 1 to 3 years based on estimates from 8 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
22%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NMC Health expected to grow at an attractive rate?
  • NMC Health's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • NMC Health's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • NMC Health'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:NMC Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:NMC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 22%
LSE:NMC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 13.2%
United Kingdom of Great Britain and Northern Ireland Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 22.6%
United Kingdom of Great Britain and Northern Ireland Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 9.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 9.6%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.6%

*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:NMC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:NMC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 3,218 745 663 3
2021-12-31 2,883 623 565 4
2020-12-31 2,600 513 444 7
2019-12-31 2,304 418 362 7
2018-12-31 1,972 315 296 8
LSE:NMC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2017-12-31 1,603 278 186
2017-09-30 1,511 234 172
2017-06-30 1,418 191 158
2017-03-31 1,319 184 145
2016-12-31 1,221 176 133
2016-09-30 1,143 155 119
2016-06-30 1,065 134 105
2016-03-31 973 109 94
2015-12-31 881 84 82
2015-09-30 802 79 79
2015-06-30 723 74 76
2015-03-31 684 80 76

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NMC Health's earnings are expected to grow significantly at over 20% yearly.
  • NMC Health's revenue is expected to grow by 13.2% 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:NMC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from NMC Health Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:NMC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 3.34 3.47 3.21 2.00
2021-12-31 2.73 2.90 2.47 3.00
2020-12-31 2.15 2.38 1.98 5.00
2019-12-31 1.75 1.93 1.62 5.00
2018-12-31 1.44 1.53 1.29 6.00
LSE:NMC Past Financials Data
Date (Data in USD Millions) EPS *
2017-12-31 0.91
2017-09-30 0.86
2017-06-30 0.81
2017-03-31 0.76
2016-12-31 0.71
2016-09-30 0.64
2016-06-30 0.57
2016-03-31 0.50
2015-12-31 0.44
2015-09-30 0.43
2015-06-30 0.41
2015-03-31 0.41

*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.
  • NMC Health is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess NMC Health'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.
NMC Health has a total score of 5/6, 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.

Past Performance

  How has NMC Health performed over the past 5 years?

  • NMC Health's last earnings update was 198 days ago.
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 NMC Health'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.
  • NMC Health has delivered over 20% year on year earnings growth in the past 5 years.
  • NMC Health's 1-year earnings growth exceeds its 5-year average (40.2% vs 22.4%)
  • NMC Health's earnings growth has exceeded the GB Healthcare industry average in the past year (40.2% vs -20%).
Earnings and Revenue History
NMC Health'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 NMC Health Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:NMC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2017-12-31 1,603.40 185.97 335.17
2017-09-30 1,510.52 172.01 318.54
2017-06-30 1,417.65 158.04 301.92
2017-03-31 1,319.24 145.37 284.91
2016-12-31 1,220.84 132.69 267.90
2016-09-30 1,143.15 118.82 249.79
2016-06-30 1,065.46 104.96 231.68
2016-03-31 973.16 93.59 211.46
2015-12-31 880.87 82.22 191.25
2015-09-30 802.12 79.04 174.54
2015-06-30 723.37 75.87 157.83
2015-03-31 683.65 76.22 147.51
2014-12-31 643.93 76.57 137.19
2014-09-30 618.02 76.63 132.62
2014-06-30 592.10 76.70 128.06
2014-03-31 571.49 72.43 123.81
2013-12-31 550.88 68.17 119.56
2013-09-30 538.02 65.89 115.49
2013-06-30 525.17 63.61 111.42
2013-03-31 507.61 61.25 108.24
2012-12-31 490.05 58.89 105.06
2012-09-30 476.14 53.25 98.46
2012-06-30 462.22 47.61 91.87
2012-03-31 452.99 45.30 85.36
2011-12-31 443.75 42.99 78.85

*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.
  • NMC Health has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • NMC Health used its assets more efficiently than the GB Healthcare industry average last year based on Return on Assets.
  • NMC Health's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess NMC Health'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.
NMC Health has a total score of 4/6, 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.

Health

 How is NMC Health'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 NMC Health's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NMC Health is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NMC Health's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NMC Health'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.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x 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 NMC Health Company Filings, last reported 6 months ago.

LSE:NMC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2017-12-31 1,144.63 1,399.03 387.61
2017-09-30 1,144.63 1,399.03 387.61
2017-06-30 1,027.20 1,344.77 294.94
2017-03-31 1,027.20 1,344.77 294.94
2016-12-31 948.87 1,049.15 617.84
2016-09-30 948.87 1,049.15 617.84
2016-06-30 569.37 994.97 204.77
2016-03-31 569.37 994.97 204.77
2015-12-31 499.67 730.31 177.40
2015-09-30 499.67 730.31 177.40
2015-06-30 451.99 663.90 254.57
2015-03-31 451.99 663.90 254.57
2014-12-31 453.03 376.12 263.17
2014-09-30 453.03 376.12 263.17
2014-06-30 416.17 327.09 227.48
2014-03-31 416.17 327.09 227.48
2013-12-31 389.15 332.44 268.70
2013-09-30 389.15 332.44 268.70
2013-06-30 352.29 302.58 248.61
2013-03-31 352.29 302.58 248.61
2012-12-31 331.60 303.64 257.45
2012-09-30 331.60 303.64 257.45
2012-06-30 299.35 251.80 276.58
2012-03-31 299.35 251.80 276.58
2011-12-31 100.35 182.16 54.07
  • NMC Health's level of debt (122.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (91.5% vs 122.2% today).
  • Debt is not well covered by operating cash flow (19.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).
X
Financial health checks
We assess NMC Health'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. NMC Health has a total score of 3/6, 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.

Dividends

 What is NMC Health'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
0.35%
Current annual income from NMC Health dividends. Estimated to be 0.8% next year.
If you bought £2,000 of NMC Health shares you are expected to receive £7 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?
  • NMC Health's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.72%).
  • NMC Health's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (4.56%).
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:NMC 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 8 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 10 Stocks 0.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 744 Stocks 3.9%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 0.9%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.7%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

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

LSE:NMC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.65 2.00
2021-12-31 0.53 3.00
2020-12-31 0.44 8.00
2019-12-31 0.36 8.00
2018-12-31 0.27 9.00
LSE:NMC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-05-21 0.130 0.364
2018-03-07 0.130 0.374
2017-04-24 0.106 0.406
2016-04-29 0.062 0.449
2016-03-14 0.062 0.578
2015-05-20 0.054 0.660
2014-02-25 0.044 0.864
2013-02-26 0.041 1.202

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

  • NMC Health is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are stable.
  • NMC Health is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of NMC Health's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of NMC Health's dividends as it is not paying a notable for United Kingdom of Great Britain and Northern Ireland.
Future Payout to shareholders
  • No need to calculate the sustainability of NMC Health's dividends in 3 years as they are not expected to pay a notable for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess NMC Health's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - 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 NMC Health afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NMC Health has a total score of 0/6, see the detailed checks below.


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

Management

 What is the CEO of NMC Health'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
Prasanth Manghat, image provided by Google.
Prasanth Manghat
COMPENSATION $5,948,200
AGE 43
TENURE AS CEO 1.3 years
CEO Bio

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, 2017. Mr. Manghat served as the Chief Financial Officer of NMC Health Plc since 2011 until December 31, 2014. Mr. Manghat has 20 years’ experience in accounting, corporate finance, treasury and banking, including 14 years’ in NMC related businesses and financial reporting activities. He has been a part of the NMC Health Group for 11 years and spearheaded NMC Healthcare’s successful listing on the Premium Segment of the London Stock Exchange in April 2012, the first UAE-based company so to do, raising US$ 187 million. He worked as Credit & Operations Head with Kotak Mahindra Finance, one of the leading non-banking financial institutions in India. Mr. Manghat has been an Executive Director of NMC Health Plc since June 26, 2014. He has been acknowledged and recognised at many business and social forums. He is a Chartered Accountant. Mr. Manghat is a Fellow member of the Institute of Chartered Accountants of India (FCA) and a member of the Association of Chartered Certified Accountants in the UK. He is a Bachelor of Science from MG University, Kerala, India in 1995. He was honored with the “CFO of the Year” award in 2012 by ICAEW, Middle-East. He was also conferred with the prestigious award for “Excellence in Finance” by the Institute of Chartered Accountants of India, Abu Dhabi Chapter in November, 2012 and “Professional Excellence Award in the Healthcare Sector” by ICAI UAE (Dubai) Chapter in May 2013.

CEO Compensation
  • Prasanth's compensation has increased by more than 20% in the past year.
  • Prasanth's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the NMC Health management team in years:

0.9
Average Tenure
43
Average Age
  • The average tenure for the NMC Health management team is less than 2 years, this suggests a new team.
Management Team

Prasanth Manghat

TITLE
CEO & Executive Director
COMPENSATION
$6M
AGE
43
TENURE
1.3 yrs

Khalifa Butti Omeir Yousef

TITLE
Executive Vice Chairman
COMPENSATION
$1M
AGE
39

Hani Buttikhi

TITLE
Chief Investment Officer & Executive Director
COMPENSATION
$973K
TENURE
1.1 yrs

Prashanth Shenoy

TITLE
Chief Financial Officer
TENURE
0.9 yrs

Michael Davis

TITLE
Chief Operations Officer of Healthcare
TENURE
0.9 yrs

Simon Watkins

TITLE
Group Company Secretary
AGE
53

Chandrakumari Shetty

TITLE
Group Medical Director
COMPENSATION
$230K
AGE
74

Nirman Shetty

TITLE
Chief Operating Officer of Distribution
COMPENSATION
$101K
AGE
36
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the NMC Health board of directors in years:

4.1
Average Tenure
57
Average Age
  • The tenure for the NMC Health board of directors is about average.
Board of Directors

Henry J. Tompkins

TITLE
Joint Non-Executive Chairman
COMPENSATION
$228K
AGE
77
TENURE
0.8 yrs

Bavaguthu Shetty

TITLE
Joint Non-Executive Chairman
COMPENSATION
$4M
AGE
75
TENURE
1.3 yrs

Prasanth Manghat

TITLE
CEO & Executive Director
COMPENSATION
$6M
AGE
43
TENURE
4.1 yrs

Khalifa Butti Omeir Yousef

TITLE
Executive Vice Chairman
COMPENSATION
$1M
AGE
39

Hani Buttikhi

TITLE
Chief Investment Officer & Executive Director
COMPENSATION
$973K
TENURE
1.1 yrs

Clanwilliam Meade

TITLE
Independent Non Executive Director
COMPENSATION
$108K
AGE
57
TENURE
6.3 yrs

Jonathan Bomford

TITLE
Senior Independent Non-Executive Director
COMPENSATION
$103K
AGE
69

Ayesha Abdullah

TITLE
Independent Non-Executive Director
COMPENSATION
$103K
AGE
51
TENURE
4.1 yrs

Abdulrahman Saddiq Basaddiq

TITLE
Non-Executive Director
COMPENSATION
$98K
AGE
69
TENURE
4.4 yrs

Salma Ali Saif Bin Hareb Almheiri

TITLE
Independent Non-Executive Director
COMPENSATION
$93K
AGE
52
TENURE
4.1 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess NMC Health's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of 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. NMC Health 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.

News

External News
Loading...
Simply Wall St News

NMC Health Plc (LON:NMC): What Can We Expect From Future Profit Margins?

As analysts forecast … NMC Health Plc (LON:NMC) to … earnings growth of 22.01% annualised

Simply Wall St -

NMC Health Plc (LON:NMC): Time For A Financial Health Check

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as NMC Health Plc (LON:NMC), with a market cap of UK£7.37b, often get neglected by retail investors. … Today we will look at NMC’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis.

Simply Wall St -

Is Analysts' Sentiment For NMC Health Plc's (LON:NMC) Justified?

There's no stopping the NMC Health Plc (LON:NMC) growth train, with analysts forecasting high top-line growth in the near future. … I will touched on some key aspects you should know on a high level, around its financials and growth prospects going forward

Simply Wall St -

Is NMC Health Plc (LON:NMC) Undervalued After Accounting For Its Future Growth?

Growth expectations for NMC Health Plc (LON:NMC) are high, but many investors are starting to ask whether its last close at £35.66 can still be rationalized by the future potential. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … What can we expect from NMC Health in the future.

Simply Wall St -

Have Investors Priced In NMC Health Plc's (LON:NMC) Growth?

NMC Health Plc (LSE:NMC) is considered a high-growth stock, but its last closing price of £37.74 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … But, since NMC Health is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … A PE ratio of 55.36x and expected year-on-year earnings growth of 21.17% give NMC Health a quite high PEG ratio of 2.61x.

Simply Wall St -

Does NMC Health Plc's (LON:NMC) Past Performance Indicate A Stronger Future?

After reading NMC Health Plc's (LSE:NMC) latest earnings update (31 December 2017), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … Check out our latest analysis for NMC Health How NMC fared against its long-term earnings performance and its industry For the most up-to-date info, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … This means whatever recent headwind the industry is facing, the impact on NMC Health has been softer relative to its peers.What does this mean?

Simply Wall St -

What Does NMC Health Plc's (LON:NMC) Share Price Indicate?

This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … NMC’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St -

NMC Health Plc (LON:NMC) Delivered A Better ROE Than The Industry, Here’s Why

Check out our latest analysis for NMC Health Breaking down Return on Equity Return on Equity (ROE) weighs NMC Health’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of NMC Health’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity LSE:NMC Last Perf Apr 9th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.

Simply Wall St -

NMC Health Plc (LON:NMC): Good Growth, Poor Health

Net income is expected to reach US$296.98M in the upcoming year, outpacing the industry average growth rate of 58.06%. … NMC has managed its cash well at a current level of US$387.61M. … With 207.99 million shares, that's a UK£7.11B market cap - which is too high, even for a company that has a 5-year cumulative average growth rate (CAGR) of 26.32% (source: analyst consensus).

Simply Wall St -

What You Must Know About NMC Health Plc's (LON:NMC) Financial Strength

On top of this, NMC has produced cash from operations of US$277.51M during the same period of time, resulting in an operating cash to total debt ratio of 19.84%, indicating that NMC’s current level of operating cash is not high enough to cover debt. … Looking at NMC’s most recent US$703.76M liabilities, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.6x. … Next Steps: NMC’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.

Simply Wall St -

Company Info

Map
Description

NMC Health Plc provides healthcare services in the United Arab Emirates, Spain, and internationally. The company operates through two businesses, NMC Healthcare and NMC Trading. It owns and manages approximately 135 healthcare facilities that include hospitals, medical centers, long term care facilities, day surgery centers, fertility centers, and home health services providers. The company has developed specialized verticals covering multi-specialty care, maternity and fertility, long-term and home care, operations and management, and distribution services. It is also involved in the distribution of pharmaceutical products, medical equipment, medical consumables and devices, education and office supplies, veterinary products, cosmetics, IT products, and rehab supplies, as well as consumer products, including personal care, food and beverages, household care, and home improvement products. The company was founded in 1975 and is based in London, the United Kingdom.

Details
Name: NMC Health Plc
NMC
Exchange: LSE
Founded: 1975
£7,703,795,345
208,210,685
Website: http://www.nmchealth.com
Address: NMC Health Plc
Devonshire House,
Level 1,
London,
Greater London, W1J 8AJ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE NMC Ordinary Shares London Stock Exchange GB GBP 02. Apr 2012
OTCPK NMMC.F Ordinary Shares Pink Sheets LLC US USD 02. Apr 2012
BATS-CHIXE NMCL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Apr 2012
OTCPK NMHL.Y UNSPONSORED ADR Pink Sheets LLC US USD 08. Jul 2015
Number of employees
Current staff
Staff numbers
13,739
NMC Health employees.
Industry
Healthcare Facilities
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/07/17 19:43
End of day share price update: 2018/07/17 00:00
Last estimates confirmation: 2018/07/05
Last earnings update: 2017/12/31
Last annual earnings update: 2017/12/31


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.