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SPI

Spire Healthcare Group LSE:SPI Stock Report

Last Price

UK£2.44

Market Cap

UK£984.9m

7D

2.1%

1Y

9.7%

Updated

08 Aug, 2022

Data

Company Financials +
SPI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health4/6
Dividends0/6

SPI Stock Overview

Spire Healthcare Group plc, together with its subsidiaries, owns and operates private hospitals and clinics.

Rewards

Trading at 56.1% below our estimate of its fair value

Earnings are forecast to grow 35.55% per year

Risk Analysis

No risks detected for SPI from our risk checks.

Spire Healthcare Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Spire Healthcare Group
Historical stock prices
Current Share PriceUK£2.44
52 Week HighUK£2.57
52 Week LowUK£2.01
Beta1.35
1 Month Change2.95%
3 Month Change17.59%
1 Year Change9.66%
3 Year Change146.71%
5 Year Change-27.36%
Change since IPO15.91%

Recent News & Updates

Shareholder Returns

SPIGB HealthcareGB Market
7D2.1%1.7%0.8%
1Y9.7%4.9%-6.4%

Return vs Industry: SPI exceeded the UK Healthcare industry which returned 5.6% over the past year.

Return vs Market: SPI exceeded the UK Market which returned -6.8% over the past year.

Price Volatility

Is SPI's price volatile compared to industry and market?
SPI volatility
SPI Average Weekly Movement3.7%
Healthcare Industry Average Movement4.9%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: SPI is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
200712,563Justin Ashhttps://www.spirehealthcare.com

Spire Healthcare Group plc, together with its subsidiaries, owns and operates private hospitals and clinics. It offers various treatments in the areas of allergy and infectious diseases, blood tests, bones and joints, bowel treatments, breast screening, cancer investigations and treatments, cosmetic surgery, cyst removal, and dental surgery, as well as ear, nose, and throat treatments. The company also provides eye surgery and treatments, family planning, gastroenterology, general medicine, general surgery, haematology, hand surgery, hip and knee treatment, and heart and kidney treatments.

Spire Healthcare Group Fundamentals Summary

How do Spire Healthcare Group's earnings and revenue compare to its market cap?
SPI fundamental statistics
Market CapUK£984.86m
Earnings (TTM)-UK£9.70m
Revenue (TTM)UK£1.11b

0.9x

P/S Ratio

-101.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPI income statement (TTM)
RevenueUK£1.11b
Cost of RevenueUK£615.00m
Gross ProfitUK£491.20m
Other ExpensesUK£500.90m
Earnings-UK£9.70m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 08, 2022

Earnings per share (EPS)-0.024
Gross Margin44.40%
Net Profit Margin-0.88%
Debt/Equity Ratio60.8%

How did SPI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SPI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SPI?

Other financial metrics that can be useful for relative valuation.

SPI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA13.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does SPI's PS Ratio compare to its peers?

SPI PS Ratio vs Peers
The above table shows the PS ratio for SPI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.4x
CTH CareTech Holdings
1.7x7.0%UK£843.2m
CVSG CVS Group
2.3x6.3%UK£1.2b
MDC Mediclinic International
1.1x4.3%UK£3.7b
MDMG MD Medical Group Investments
0.5xn/aUS$188.6m
SPI Spire Healthcare Group
0.9x4.4%UK£984.9m

Price-To-Sales vs Peers: SPI is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (1.4x).


Price to Earnings Ratio vs Industry

How does SPI's PE Ratio compare vs other companies in the European Healthcare Industry?

Price-To-Sales vs Industry: SPI is good value based on its Price-To-Sales Ratio (0.9x) compared to the UK Healthcare industry average (1.7x)


Price to Sales Ratio vs Fair Ratio

What is SPI's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SPI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio2.7x

Price-To-Sales vs Fair Ratio: SPI is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (2.7x).


Share Price vs Fair Value

What is the Fair Price of SPI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SPI (£2.44) is trading below our estimate of fair value (£5.56)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Spire Healthcare Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


35.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: SPI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SPI is expected to become profitable in the next 3 years.

Revenue vs Market: SPI's revenue (4.4% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: SPI's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPI's Return on Equity is forecast to be low in 3 years time (7.1%).


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Past Performance

How has Spire Healthcare Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-60.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SPI is currently unprofitable.

Growing Profit Margin: SPI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SPI is unprofitable, and losses have increased over the past 5 years at a rate of 60.1% per year.

Accelerating Growth: Unable to compare SPI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SPI is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (122.9%).


Return on Equity

High ROE: SPI has a negative Return on Equity (-1.26%), as it is currently unprofitable.


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Financial Health

How is Spire Healthcare Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SPI's short term assets (£346.8M) exceed its short term liabilities (£302.1M).

Long Term Liabilities: SPI's short term assets (£346.8M) do not cover its long term liabilities (£1.2B).


Debt to Equity History and Analysis

Debt Level: SPI's net debt to equity ratio (32%) is considered satisfactory.

Reducing Debt: SPI's debt to equity ratio has increased from 41% to 60.8% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SPI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SPI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 26.6% per year.


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Dividend

What is Spire Healthcare Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.32%

Forecast Dividend Yield

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: SPI is not paying a notable dividend for the UK market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SPI has not reported any payouts.


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Management

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

3.6yrs

Average management tenure


CEO

Justin Ash

4.83yrs

Tenure

UK£2,096,800

Compensation

Mr. Justin J. Ash, BA (Hons), has been the Chief Executive Officer and Executive Director of Spire Healthcare Group Plc since October 30, 2017. Mr. Ash served as the Chief Executive Officer at Oasis Health...


CEO Compensation Analysis

Compensation vs Market: Justin's total compensation ($USD2.54M) is above average for companies of similar size in the UK market ($USD1.35M).

Compensation vs Earnings: Justin's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: SPI's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: SPI's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SPI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Spire Healthcare Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: Spire Healthcare Group plc
  • Ticker: SPI
  • Exchange: LSE
  • Founded: 2007
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Implied Market Cap: UK£984.859m
  • Shares outstanding: 403.63m
  • Website: https://www.spirehealthcare.com

Number of Employees


Location

  • Spire Healthcare Group plc
  • 3 Dorset Rise
  • London
  • Greater London
  • EC4Y 8EN
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/08 00:00
End of Day Share Price2022/08/08 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.