LSE:THRL

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Good value with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.3%

THRL

11.6%

GB REITs

8.6%

GB Market


1 Year Return

-3.9%

THRL

-14.6%

GB REITs

-19.4%

GB Market

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

Return vs Market: THRL underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

THRLIndustryMarket
7 Day-1.3%11.6%8.6%
30 Day-4.3%-9.5%-3.5%
90 Day-6.0%-20.9%-23.0%
1 Year2.2%-3.9%-11.4%-14.6%-15.5%-19.4%
3 Year18.8%-0.2%-7.1%-14.2%-8.8%-19.9%
5 Year38.3%5.0%0.7%-18.1%4.2%-19.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Target Healthcare REIT undervalued compared to its fair value and its price relative to the market?

40.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: THRL (£1.1) is trading below our estimate of fair value (£1.85)

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


Price To Earnings Ratio

PE vs Industry: THRL is good value based on its PE Ratio (13x) compared to the REITs industry average (15.2x).

PE vs Market: THRL is good value based on its PE Ratio (13x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: THRL is overvalued based on its PB Ratio (1x) compared to the GB REITs industry average (1x).


Next Steps

Future Growth

How is Target Healthcare REIT forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THRL's forecast earnings growth (1.4% per year) is above the savings rate (1.2%).

Earnings vs Market: THRL's earnings (1.4% per year) are forecast to grow slower than the UK market (11.7% per year).

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

Revenue vs Market: THRL's revenue (15.1% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: THRL's revenue (15.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if THRL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Target Healthcare REIT performed over the past 5 years?

40.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THRL has a large one-off gain of £6.0M impacting its December 31 2018 financial results.

Growing Profit Margin: THRL's current net profit margins (91.8%) are higher than last year (85.7%).


Past Earnings Growth Analysis

Earnings Trend: THRL has become profitable over the past 5 years, growing earnings by 40.2% per year.

Accelerating Growth: THRL's earnings growth over the past year (25.7%) is below its 5-year average (40.2% per year).

Earnings vs Industry: THRL earnings growth over the past year (25.7%) exceeded the REITs industry -21.1%.


Return on Equity

High ROE: THRL's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Target Healthcare REIT's financial position?


Financial Position Analysis

Short Term Liabilities: THRL's short term assets (£34.9M) exceed its short term liabilities (£17.8M).

Long Term Liabilities: THRL's short term assets (£34.9M) do not cover its long term liabilities (£74.6M).


Debt to Equity History and Analysis

Debt Level: THRL's debt to equity ratio (16.9%) is considered satisfactory.

Reducing Debt: THRL's debt to equity ratio has increased from 0.07% to 16.9% over the past 5 years.

Debt Coverage: THRL's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: THRL's interest payments on its debt are well covered by EBIT (9.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Target Healthcare REIT's current dividend yield, its reliability and sustainability?

5.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: THRL's dividend (5.98%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: THRL's dividend (5.98%) is in the top 25% of dividend payers in the UK market (4.95%)


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (171.6%), THRL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: THRL's dividends in 3 years are forecast to be covered by earnings (98.3% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Kenneth MacKenzie

no data

Tenure

Mr. Kenneth Macangus MacKenzie, MA CA serves as Chief Executive of Target Advisers LLP. Mr. MacKenzie founded the Target Advisers LLP in 2010. He is a Chartered Accountant with 40 years of business leaders ...


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth MacKenzie
Chief Executive Officerno datano datano data
Gordon Bland
Finance Directorno datano datano data
John Flannelly
Head of Investment - Target Advisers LLP9.58yrsno datano data
Andrew Brown
Head of Healthcare - Target Advisers LLP9.58yrsno datano data
Donald Campbell
Head of Tax2.92yrsno datano data
Scott Steven
Head of Asset Management1.58yrsno datano data

6.3yrs

Average Tenure

Experienced Management: THRL's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Hutchison
Senior Independent Director6.58yrsUK£30.00k0.018% £77.0k
Craig Stewart
Independent Non-Executive Director1.58yrsUK£7.00kno data
Robert Naish
Independent Non-Executive Chairman6.58yrsUK£40.00k0.012% £49.5k
Gordon Coull
Independent Non-Executive Director6.58yrsUK£35.00k0.0092% £39.0k
Hilary Jones
Independent Non-Executive Director5.08yrsUK£15.00kno data
June Andrews
Independent Non-Executive Director6.58yrsUK£30.00kno data

6.6yrs

Average Tenure

66yo

Average Age

Experienced Board: THRL's board of directors are considered experienced (6.6 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: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

Target Healthcare REIT PLC's company bio, 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£423.598m
  • Shares outstanding: 385.09m
  • Website: https://www.targethealthcarereit.co.uk

Location

  • Target Healthcare REIT PLC
  • Ordnance House
  • 31 Pier Road
  • Saint Helier
  • JE4 8PW
  • Jersey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
THRLLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2013
THRLLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2013

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/07 21:43
End of Day Share Price2019/08/07 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.