LSE:SPI

Stock Analysis Report

Spire Healthcare Group

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Spire Healthcare Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SPI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.0%

SPI

-6.0%

GB Healthcare

-2.2%

GB Market


1 Year Return

-39.0%

SPI

-36.7%

GB Healthcare

-25.9%

GB Market

Return vs Industry: SPI underperformed the UK Healthcare industry which returned -34.7% over the past year.

Return vs Market: SPI underperformed the UK Market which returned -25.2% over the past year.


Shareholder returns

SPIIndustryMarket
7 Day12.0%-6.0%-2.2%
30 Day-25.5%-21.7%-21.7%
90 Day-42.2%-36.7%-29.6%
1 Year-37.0%-39.0%-35.7%-36.7%-22.2%-25.9%
3 Year-73.0%-74.7%-47.4%-49.6%-16.1%-26.6%
5 Year-75.9%-77.9%-16.7%-21.0%-4.6%-26.2%

Price Volatility Vs. Market

How volatile is Spire Healthcare Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Spire Healthcare Group undervalued compared to its fair value and its price relative to the market?

25.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPI (£0.82) is trading below our estimate of fair value (£1.1)

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


Price To Earnings Ratio

PE vs Industry: SPI is poor value based on its PE Ratio (45.8x) compared to the Healthcare industry average (15.2x).

PE vs Market: SPI is poor value based on its PE Ratio (45.8x) compared to the UK market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: SPI is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: SPI is good value based on its PB Ratio (0.4x) compared to the GB Healthcare industry average (1.2x).


Next Steps

Future Growth

How is Spire Healthcare Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

26.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPI's forecast earnings growth (26% per year) is above the savings rate (0.5%).

Earnings vs Market: SPI's earnings (26% per year) are forecast to grow faster than the UK market (15.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SPI's revenue (2.6% per year) is forecast to grow faster than the UK market (2.4% per year).

High Growth Revenue: SPI's revenue (2.6% 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 (2.1%).


Next Steps

Past Performance

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

-26.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPI has high quality earnings.

Growing Profit Margin: SPI's current net profit margins (0.7%) are lower than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: SPI's earnings have declined by -26.4% per year over the past 5 years.

Accelerating Growth: SPI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SPI had negative earnings growth (-36.3%) over the past year, making it difficult to compare to the Healthcare industry average (19.8%).


Return on Equity

High ROE: SPI's Return on Equity (0.8%) is considered low.


Next Steps

Financial Health

How is Spire Healthcare Group's financial position?


Financial Position Analysis

Short Term Liabilities: SPI's short term assets (£204.5M) exceed its short term liabilities (£198.0M).

Long Term Liabilities: SPI's short term assets (£204.5M) do not cover its long term liabilities (£1.1B).


Debt to Equity History and Analysis

Debt Level: SPI's debt to equity ratio (45%) is considered high.

Reducing Debt: SPI's debt to equity ratio has increased from 44.2% to 45% over the past 5 years.

Debt Coverage: SPI's debt is well covered by operating cash flow (47.6%).

Interest Coverage: SPI's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet

Inventory Level: SPI has a high level of physical assets or inventory.

Debt Coverage by Assets: SPI's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

4.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPI's dividend (4.62%) is higher than the bottom 25% of dividend payers in the UK market (2.68%).

High Dividend: SPI's dividend (4.62%) is low compared to the top 25% of dividend payers in the UK market (7.57%).


Stability and Growth of Payments

Stable Dividend: SPI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SPI's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (211.6%), SPI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SPI's dividends in 3 years are forecast to be well covered by earnings (42.3% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Justin Ash

2.5s

Tenure

UK£732,400

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 Healt ...


CEO Compensation Analysis

Compensation vs Market: Justin's total compensation ($USD896.76K) is about average for companies of similar size in the UK market ($USD1.01M).

Compensation vs Earnings: Justin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Justin Ash
CEO & Executive Director2.5yrsUK£732.40k0.098% £324.8k
Jitesh Sodha
CFO & Executive Director1.5yrsUK£417.00k0.013% £41.6k
John Forrest
Chief Operating Officer1.5yrsno datano data
Cora McCallum
Investor Relations Directorno datano datano data
Daniel Toner
General Counsel & Group Company Secretary12.58yrsno datano data
Shelley Thomas
Group Human Resurces Director1.08yrsno datano data
Jean-Jacques de Gorter
Chief Medical Officer1.42yrsno datano data
Mathew Mason
Head of Supply Chain & Purchasing (Central)no datano datano data
Peter Corfield
Chief Commercial Officer2.25yrsno datano data
Philip Davies
Deputy Company Secretaryno datano datano data

1.5yrs

Average Tenure

Experienced Management: SPI's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Justin Ash
CEO & Executive Director2.5yrsUK£732.40k0.098% £324.8k
Jitesh Sodha
CFO & Executive Director1.5yrsUK£417.00k0.013% £41.6k
Simon Rowlands
Non-Executive Director5.83yrsUK£50.00k0.13% £435.0k
Anthony Bourne
Independent Non-Executive Director5.83yrsUK£69.00k0.0030% £9.8k
Garry Watts
Non Executive Chairman9.25yrsUK£529.50k0.16% £537.9k
Martin Angle
Deputy Chairman & Senior Independent Director0.92yrno datano data
Adèle Anderson
Independent Non-Executive Director3.75yrsUK£66.20k0.0024% £7.9k
Dame Janet Husband
Independent Non-Executive Director5.83yrsUK£89.10k0.0026% £8.4k
Carel van der Merwe
Non-Executive Director1.92yrsUK£30.30kno data
Jenny Kay
Independent Non-Executive Director0.83yrno datano data

3.1yrs

Average Tenure

62yo

Average Age

Experienced Board: SPI's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 company bio, 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
  • Market Cap: UK£329.882m
  • Shares outstanding: 400.83m
  • Website: https://www.spirehealthcare.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPILSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2014
S00DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2014
SPIlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2014
SRRH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2014

Biography

Spire Healthcare Group plc, together with its subsidiaries, owns and operates private hospitals and clinics in the United Kingdom. It provides a range of integrated surgical, medical, and diagnostic services. The company offers various treatments in the areas of allergy and infectious diseases, blood tests, bones and joints, bowel treatments, breast screening and surgery, cancer investigations and treatments, cosmetic surgery, cyst removal, and dental surgery, as well as ear, nose, and throat treatments. It also provides eye surgery and treatments, family planning, foreign visa medical exams, gastroenterology, general medicine, general surgery, haematology, hand surgery, and heart and kidney treatments. In addition, the company offers treatments in the areas of men's health, neurosurgery and neurology, paediatrics, pain management, rehabilitation, sports, physiotherapy, podiatry, respiratory medicine, and rheumatology; and scans and investigations, skin treatments, spinal surgery and treatments, sports science, urology, vascular surgery, weight loss, and women's health. Further, it owns and operates Perform, a sports medicine, physiotherapy, and rehabilitation brand; and offers MRI/CT scanning, pathology, and consulting services. As of March 2, 2018, the company offered diagnostics, in-patient, daycase, and out-patient care services through 9 private hospitals, 11 clinics, and 1 Specialist Cancer Care Centre across England, Wales, and Scotland. Spire Healthcare Group plc was founded in 2007 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 22:52
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.