| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 4/6 |
| Dividends | 4/6 |
THRL Overview
Target Healthcare REIT provide a range of tailored funding solutions to support operators to increase the provision of modern, purpose-built care homes across the UK.
Target Healthcare REIT Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£1.18 |
| 52 Week High | UK£1.02 |
| 52 Week Low | UK£1.26 |
| Beta | 0.33 |
| 1 Month Change | 0.17% |
| 3 Month Change | 2.78% |
| 1 Year Change | 11.30% |
| 3 Year Change | 3.23% |
| 5 Year Change | 6.73% |
| Change since IPO | 15.32% |
Recent News & Updates
Shareholder Returns
| THRL | GB REITs | GB Market | |
|---|---|---|---|
| 7D | -0.7% | -0.6% | 0.6% |
| 1Y | 11.3% | 35.1% | 23.4% |
Return vs Industry: THRL underperformed the UK REITs industry which returned 35.1% over the past year.
Return vs Market: THRL underperformed the UK Market which returned 23.4% over the past year.
Price Volatility
| THRL volatility | |
|---|---|
| THRL Beta | 0.33 |
| Industry Beta | 0.84 |
| Market Beta | 1 |
Stable Share Price: THRL is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: THRL's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2013 | n/a | Kenneth MacKenzie | https://www.targethealthcarereit.co.uk |
Target Healthcare REIT provide a range of tailored funding solutions to support operators to increase the provision of modern, purpose-built care homes across the UK.
Target Healthcare REIT Fundamentals Summary
| THRL fundamental statistics | |
|---|---|
| Market Cap | UK£733.12m |
| Earnings (TTM) | UK£30.88m |
| Revenue (TTM) | UK£48.30m |
23.7x
P/E Ratio15.2x
P/S RatioIs THRL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| THRL income statement (TTM) | |
|---|---|
| Revenue | UK£48.30m |
| Cost of Revenue | UK£5.56m |
| Gross Profit | UK£42.74m |
| Expenses | UK£11.85m |
| Earnings | UK£30.88m |
Last Reported Earnings
Dec 31, 2020
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.05 |
| Gross Margin | 88.49% |
| Net Profit Margin | 63.94% |
| Debt/Equity Ratio | 32.3% |
How did THRL perform over the long term?
See historical performance and comparisonDividends
5.7%
Current Dividend Yield83%
Payout RatioValuation
Is Target Healthcare REIT undervalued compared to its fair value and its price relative to the market?
48.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: THRL (£1.18) is trading below our estimate of fair value (£2.3)
Significantly Below Fair Value: THRL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: THRL is poor value based on its PE Ratio (23.7x) compared to the UK REITs industry average (15.3x).
PE vs Market: THRL is poor value based on its PE Ratio (23.7x) compared to the UK market (23.4x).
Price to Earnings Growth Ratio
PEG Ratio: THRL is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: THRL is overvalued based on its PB Ratio (1.5x) compared to the GB REITs industry average (0.9x).
Future Growth
How is Target Healthcare REIT forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
25.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: THRL's forecast earnings growth (25.3% per year) is above the savings rate (0.9%).
Earnings vs Market: THRL's earnings (25.3% per year) are forecast to grow faster than the UK market (13.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: THRL's revenue (6.8% per year) is forecast to grow faster than the UK market (5.4% per year).
High Growth Revenue: THRL's revenue (6.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: THRL's Return on Equity is forecast to be low in 3 years time (5.4%).
Past Performance
How has Target Healthcare REIT performed over the past 5 years?
18.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: THRL has high quality earnings.
Growing Profit Margin: THRL's current net profit margins (63.9%) are lower than last year (80.8%).
Past Earnings Growth Analysis
Earnings Trend: THRL's earnings have grown by 18.8% per year over the past 5 years.
Accelerating Growth: THRL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: THRL had negative earnings growth (-2%) over the past year, making it difficult to compare to the REITs industry average (46.5%).
Return on Equity
High ROE: THRL's Return on Equity (6.2%) is considered low.
Financial Health
How is Target Healthcare REIT's financial position?
Financial Position Analysis
Short Term Liabilities: THRL's short term assets (£28.3M) exceed its short term liabilities (£14.0M).
Long Term Liabilities: THRL's short term assets (£28.3M) do not cover its long term liabilities (£166.7M).
Debt to Equity History and Analysis
Debt Level: THRL's debt to equity ratio (32.3%) is considered satisfactory.
Reducing Debt: THRL's debt to equity ratio has increased from 17.6% to 32.3% over the past 5 years.
Debt Coverage: THRL's debt is well covered by operating cash flow (23.1%).
Interest Coverage: THRL's interest payments on its debt are well covered by EBIT (8x coverage).
Balance Sheet
Dividend
What is Target Healthcare REIT current dividend yield, its reliability and sustainability?
5.69%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: THRL's dividend (5.69%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).
High Dividend: THRL's dividend (5.69%) is in the top 25% of dividend payers in the UK market (3.93%)
Stability and Growth of Payments
Stable Dividend: THRL has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: THRL's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (83.1%), THRL's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: THRL's dividends in 3 years are forecast to be covered by earnings (90.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.7yrs
Average management tenure
CEO
Kenneth MacKenzie (71 yo)
no data
Tenure
Mr. Kenneth Macangus MacKenzie, MA, CA serves as Founder & Chief Executive of Target Fund Managers Limited, the Investment Manager of Target Healthcare REIT plc. Mr. MacKenzie founded the Target Advisers L...
Leadership Team
Experienced Management: THRL's management team is seasoned and experienced (11.7 years average tenure).
Board Members
Experienced Board: THRL's board of directors are considered experienced (8.7 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.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 35.6%.
Top Shareholders
Company Information
Target Healthcare REIT PLC's employee growth, exchange listings and data sources
Key Information
- Name: Target Healthcare REIT PLC
- Ticker: THRL
- Exchange: LSE
- Founded: 2013
- Industry: Health Care REITs
- Sector: Real Estate
- Market Cap: UK£733.121m
- Shares outstanding: 620.24m
- Website: https://www.targethealthcarereit.co.uk
Location
- Target Healthcare REIT PLC
- Broadgate Tower
- Level 13
- London
- EC2A 2EW
- United Kingdom
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/25 17:55 |
| End of Day Share Price | 2021/09/24 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.