NMC Health
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NMC Health Plc provides healthcare services in the United Arab Emirates, Spain, and internationally. The last earnings update was 198 days ago. More info.
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NMC Share Price and Events
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for NMC Health.
| 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.
| 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.
| 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 |
| 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 |
| 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 |
| 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.
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?
| 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.
| 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?
| 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 .
| 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?
| 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 |
| 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.
Value checks
We assess NMC Health's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check) 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!
Earnings growth vs Low Risk Savings
- 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
| 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
| 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 |
| 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 |
| 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.
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.
| 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 |
| 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.
Future performance checks
We assess NMC Health's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- 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)
- 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)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from NMC Health Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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).
Past performance checks
We assess NMC Health's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from NMC Health Company Filings, last reported 6 months ago.
| 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).
Financial health checks
We assess NMC Health's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) NMC Health has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
£2,000 of
NMC Health
shares you are expected to receive
£7
in your first year as a dividend.
Dividend Amount
- 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.
| 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.
| 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 |
| 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.
Income/ dividend checks
We assess NMC Health's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- The average tenure for the NMC Health management team is less than 2 years, this suggests a new team.
Management Team
Prasanth Manghat
CEO & Executive Director
$6M
43
1.3 yrs
Khalifa Butti Omeir Yousef
Executive Vice Chairman
$1M
39
Hani Buttikhi
Chief Investment Officer & Executive Director
$973K
1.1 yrs
Prashanth Shenoy
Chief Financial Officer
0.9 yrs
Michael Davis
Chief Operations Officer of Healthcare
0.9 yrs
Simon Watkins
Group Company Secretary
53
Chandrakumari Shetty
Group Medical Director
$230K
74
Nirman Shetty
Chief Operating Officer of Distribution
$101K
36
0.8 yrs
Board of Directors Tenure
Average tenure and age of the NMC Health board of directors in years:
- The tenure for the NMC Health board of directors is about average.
Board of Directors
Henry J. Tompkins
Joint Non-Executive Chairman
$228K
77
0.8 yrs
Bavaguthu Shetty
Joint Non-Executive Chairman
$4M
75
1.3 yrs
Prasanth Manghat
CEO & Executive Director
$6M
43
4.1 yrs
Khalifa Butti Omeir Yousef
Executive Vice Chairman
$1M
39
Hani Buttikhi
Chief Investment Officer & Executive Director
$973K
1.1 yrs
Clanwilliam Meade
Independent Non Executive Director
$108K
57
6.3 yrs
Jonathan Bomford
Senior Independent Non-Executive Director
$103K
69
Ayesha Abdullah
Independent Non-Executive Director
$103K
51
4.1 yrs
Abdulrahman Saddiq Basaddiq
Non-Executive Director
$98K
69
4.4 yrs
Salma Ali Saif Bin Hareb Almheiri
Independent Non-Executive Director
$93K
52
4.1 yrs
Who owns this company?
Management checks
We assess NMC Health's management by checking for:- 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)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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
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 - – Full articleNMC 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 - – Full articleIs 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 - – Full articleIs 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 - – Full articleHave 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 - – Full articleDoes 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 - – Full articleWhat 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 - – Full articleNMC 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 - – Full articleNMC 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 - – Full articleWhat 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 - – Full articleCompany 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
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.
