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PHP

Primary Health Properties LSE:PHP Stock Report

Last Price

UK£1.35

Market Cap

UK£1.8b

7D

-4.1%

1Y

-14.0%

Updated

04 Jul, 2022

Data

Company Financials +
PHP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health2/6
Dividends5/6

PHP Stock Overview

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

Primary Health Properties Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Primary Health Properties
Historical stock prices
Current Share PriceUK£1.35
52 Week HighUK£1.70
52 Week LowUK£1.29
Beta0.11
1 Month Change-7.34%
3 Month Change-10.60%
1 Year Change-13.96%
3 Year Change-1.89%
5 Year Change20.81%
Change since IPO424.27%

Recent News & Updates

Shareholder Returns

PHPGB REITsGB Market
7D-4.1%-6.6%-1.1%
1Y-14.0%-11.9%-9.3%

Return vs Industry: PHP underperformed the UK REITs industry which returned -10.7% over the past year.

Return vs Market: PHP underperformed the UK Market which returned -9.7% over the past year.

Price Volatility

Is PHP's price volatile compared to industry and market?
PHP volatility
PHP Average Weekly Movement2.7%
REITs Industry Average Movement3.6%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.8%

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

Volatility Over Time: PHP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199562Harry Hymanhttps://www.phpgroup.co.uk

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.

Primary Health Properties Fundamentals Summary

How do Primary Health Properties's earnings and revenue compare to its market cap?
PHP fundamental statistics
Market CapUK£1.80b
Earnings (TTM)UK£140.10m
Revenue (TTM)UK£145.60m

12.8x

P/E Ratio

12.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PHP income statement (TTM)
RevenueUK£145.60m
Cost of RevenueUK£8.90m
Gross ProfitUK£136.70m
Other Expenses-UK£3.40m
EarningsUK£140.10m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)0.11
Gross Margin93.89%
Net Profit Margin96.22%
Debt/Equity Ratio85.1%

How did PHP perform over the long term?

See historical performance and comparison

Dividends

4.8%

Current Dividend Yield

53%

Payout Ratio

Does PHP pay a reliable dividends?

See PHP dividend history and benchmarks
When do you need to buy PHP by to receive an upcoming dividend?
Primary Health Properties dividend dates
Ex Dividend DateJul 07 2022
Dividend Pay DateAug 19 2022
Days until Ex dividend2 days
Days until Dividend pay date45 days

Does PHP pay a reliable dividends?

See PHP dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

PHP 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/Revenue20.9x
Enterprise Value/EBITDAn/a
PEG Ratio3.9x

Price to Earnings Ratio vs Peers

How does PHP's PE Ratio compare to its peers?

PHP PE Ratio vs Peers
The above table shows the PE ratio for PHP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.9x
AGR Assura
12.3x6.5%UK£1.9b
THRL Target Healthcare REIT
14.4x2.6%UK£671.1m
IHR Impact Healthcare REIT
14.1x19.4%UK£452.1m
LMP LondonMetric Property
3x-31.9%UK£2.2b
PHP Primary Health Properties
12.8x3.3%UK£1.8b

Price-To-Earnings vs Peers: PHP is expensive based on its Price-To-Earnings Ratio (12.8x) compared to the peer average (10.9x).


Price to Earnings Ratio vs Industry

How does PHP's PE Ratio compare vs other companies in the GB REITs Industry?

Price-To-Earnings vs Industry: PHP is expensive based on its Price-To-Earnings Ratio (12.8x) compared to the UK REITs industry average (7.6x)


Price to Earnings Ratio vs Fair Ratio

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

PHP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.8x
Fair PE Ratio16.6x

Price-To-Earnings vs Fair Ratio: PHP is good value based on its Price-To-Earnings Ratio (12.8x) compared to the estimated Fair Price-To-Earnings Ratio (16.6x).


Share Price vs Fair Value

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

Below Fair Value: PHP (£1.35) is trading below our estimate of fair value (£1.96)

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


Price to Earnings Growth Ratio

PEG Ratio: PHP is poor value based on its PEG Ratio (3.9x)


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Future Growth

How is Primary Health Properties forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHP's forecast earnings growth (3.3% per year) is above the savings rate (0.9%).

Earnings vs Market: PHP's earnings (3.3% per year) are forecast to grow slower than the UK market (11% per year).

High Growth Earnings: PHP's earnings are forecast to grow, but not significantly.

Revenue vs Market: PHP's revenue (2.2% per year) is forecast to grow slower than the UK market (4.2% per year).

High Growth Revenue: PHP's revenue (2.2% 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 (4.9%).


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Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PHP has a large one-off gain of £52.3M impacting its December 31 2021 financial results.

Growing Profit Margin: PHP's current net profit margins (96.2%) are higher than last year (80.6%).


Past Earnings Growth Analysis

Earnings Trend: PHP's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: PHP's earnings growth over the past year (25.1%) exceeds its 5-year average (14.5% per year).

Earnings vs Industry: PHP earnings growth over the past year (25.1%) underperformed the REITs industry 113.5%.


Return on Equity

High ROE: PHP's Return on Equity (9.3%) is considered low.


Discover strong past performing companies

Financial Health

How is Primary Health Properties's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PHP's short term assets (£51.7M) do not cover its short term liabilities (£70.5M).

Long Term Liabilities: PHP's short term assets (£51.7M) do not cover its long term liabilities (£1.3B).


Debt to Equity History and Analysis

Debt Level: PHP's net debt to equity ratio (82.8%) is considered high.

Reducing Debt: PHP's debt to equity ratio has reduced from 140.5% to 85.1% over the past 5 years.

Debt Coverage: PHP's debt is not well covered by operating cash flow (11%).

Interest Coverage: PHP's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.81%

Current Dividend Yield

Upcoming Dividend Payment

TodayJul 05 2022Ex Dividend DateJul 07 2022Dividend Pay DateAug 19 202243 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PHP's dividend (4.81%) is higher than the bottom 25% of dividend payers in the UK market (1.89%).

High Dividend: PHP's dividend (4.81%) is low compared to the top 25% of dividend payers in the UK market (5.29%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (53%), PHP's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (61.7%), PHP's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

1.5yrs

Average management tenure


CEO

Harry Hyman (66 yo)

1.5yrs

Tenure

UK£836,000

Compensation

Mr. Harry Abraham Hyman serves as Non-Executive Chairman at Tmt Acquisition Plc since March 25, 2021. He has been an Independent Non-Executive Chairman at Summit Properties Limited since September 2020. Mr...


CEO Compensation Analysis

Compensation vs Market: Harry's total compensation ($USD1.01M) is below average for companies of similar size in the UK market ($USD2.05M).

Compensation vs Earnings: Harry's compensation has increased by more than 20% in the past year.


Leadership Team

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


Board Members

Experienced Board: PHP's board of directors are considered experienced (4.9 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

Primary Health Properties PLC's 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
  • Implied Market Cap: UK£1.800b
  • Shares outstanding: 1.33b
  • Website: https://www.phpgroup.co.uk

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/04 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.