LSE:PHP

Stock Analysis Report

Primary Health Properties

Executive Summary

Primary Health Properties (PHP) is the leading investor in modern healthcare properties in the UK & Ireland.


Snowflake Analysis

Established dividend payer with reasonable growth potential.


Similar Companies

Share Price & News

How has Primary Health Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PHP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

PHP

-4.2%

GB REITs

-2.2%

GB Market


1 Year Return

18.9%

PHP

-24.4%

GB REITs

-25.9%

GB Market

Return vs Industry: PHP exceeded the UK REITs industry which returned -22.5% over the past year.

Return vs Market: PHP exceeded the UK Market which returned -25.2% over the past year.


Shareholder returns

PHPIndustryMarket
7 Day-0.4%-4.2%-2.2%
30 Day-2.4%-26.5%-21.7%
90 Day-4.0%-32.1%-29.6%
1 Year23.7%18.9%-21.5%-24.4%-22.2%-25.9%
3 Year55.4%36.2%-12.0%-23.4%-16.1%-26.6%
5 Year91.3%52.3%-13.9%-30.0%-4.6%-26.2%

Price Volatility Vs. Market

How volatile is Primary Health Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Primary Health Properties undervalued compared to its fair value and its price relative to the market?

1.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PHP (£1.53) is trading below our estimate of fair value (£1.55)

Significantly Below Fair Value: PHP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PHP is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: PHP is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PHP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PHP is overvalued based on its PB Ratio (1.5x) compared to the GB REITs industry average (0.8x).


Next Steps

Future Growth

How is Primary Health Properties forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

55.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

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

High Growth Earnings: PHP's is expected to become profitable in the next 3 years.

Revenue vs Market: PHP's revenue (5% per year) is forecast to grow faster than the UK market (2.4% per year).

High Growth Revenue: PHP's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PHP's Return on Equity is forecast to be low in 3 years time (4.3%).


Next Steps

Past Performance

How has Primary Health Properties performed over the past 5 years?

-23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHP is currently unprofitable.

Growing Profit Margin: PHP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PHP is unprofitable, and losses have increased over the past 5 years at a rate of -23.9% per year.

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

Earnings vs Industry: PHP is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-21.6%).


Return on Equity

High ROE: PHP has a negative Return on Equity (-5.8%), as it is currently unprofitable.


Next Steps

Financial Health

How is Primary Health Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: PHP's debt is not covered by short term assets (assets are 0.1x debt).


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: PHP has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: PHP has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: PHP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if PHP has a sufficient allowance for bad loans.

Low Risk Liabilities: PHP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PHP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PHP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PHP has an appropriate level of bad loans.


Next Steps

Dividend

What is Primary Health Properties's current dividend yield, its reliability and sustainability?

3.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PHP's dividend (3.85%) is higher than the bottom 25% of dividend payers in the UK market (2.68%).

High Dividend: PHP's dividend (3.85%) is low compared to the top 25% of dividend payers in the UK market (7.57%).


Stability and Growth of Payments

Stable Dividend: PHP's dividends per share have been stable in the past 10 years.

Growing Dividend: PHP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.9%), PHP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PHP's dividends in 3 years are forecast to be covered by earnings (96.9% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Harry Hyman (63yo)

24.17s

Tenure

UK£47,125

Compensation

Mr. Harry Abraham Hyman is the Founder of Primary Health Properties PLC and serves as its Managing Director since February 5, 1996 and Director since February 1996. He serves as the Managing Director of Ne ...


Leadership Team

NamePositionTenureCompensationOwnership
Harry Hyman
Founder24.17yrsUK£47.13k0.046% £851.3k
Richard Howell
Finance Director & Director3.08yrsno data0.016% £304.6k
Chris Santer
Chief Investment Officer1.08yrsno datano data
Paul Wright
Company Secretary & Chief Legal Counsel3.58yrsno datano data
David Austin
Property Director & Head of Asset Management0.58yrno datano data
David Bateman
Director & Head of Investments1.25yrsno datano data
Andrew Birch
Head of Property Servicesno datano datano data
Michelle Whitfield
Head of Property Servicesno datano datano data
Dan Whitby
Group Financial Controller2yrsno datano data
Tim Walker-Arnott
Advisory Directorno datano datano data

2.0yrs

Average Tenure

Experienced Management: PHP's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Harry Hyman
Founder24.17yrsUK£47.13k0.046% £851.3k
Richard Howell
Finance Director & Director3.08yrsno data0.016% £304.6k
Helen Mahy
Independent Non-Executive Deputy Chairman & Senior Independent Director1.08yrsUK£47.96k0.0033% £61.9k
Steven Owen
Independent Non-Executive Chairman2yrsUK£137.38k0.0069% £129.4k
Peter William Cole
Independent Non-Executive Director1.92yrsUK£47.88k0.0062% £114.8k
Marie-Laure Duhot
Independent Non-executive Director1.08yrsUK£43.96k0.0019% £35.4k
Ian Krieger
Senior Independent Director2.17yrsUK£57.88k0.0083% £155.5k
Stephen Kell
Non-Executive Director2.17yrsUK£47.88k0.000010% £186.4

2.1yrs

Average Tenure

59yo

Average Age

Experienced Board: PHP's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: PHP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 54.1%.


Top Shareholders

Company Information

Primary Health Properties PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Primary Health Properties PLC
  • Ticker: PHP
  • Exchange: LSE
  • Founded: 1995
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Market Cap: UK£1.864b
  • Shares outstanding: 1.22b
  • Website: https://www.phpgroup.co.uk

Location

  • Primary Health Properties PLC
  • Greener House
  • 5th Floor
  • London
  • East Lothian
  • SW1Y 4RF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PHPLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 1996
PP51DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1996
PHPLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 1996

Biography

Primary Health Properties (PHP) is the leading investor in modern healthcare properties in the UK & Ireland. PHP is a UK based Real Estate Investment Trust (REIT) with a clear objective to create progressive returns to shareholders through a combination of earnings growth and capital appreciation. PHP achieve this by investing in healthcare real estate let on long-term leases, backed by a secure underlying covenant funded mostly by government bodies. The Group's portfolio comprises over 480 primary healthcare facilities, both completed and committed, the majority of which are GP surgeries, with other properties let to NHS organisations, pharmacies and dentists. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 23:19
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.