LSE:THRL

Stock Analysis Report

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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 moderate growth potential.


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

0.5%

THRL

1.2%

GB REITs

1.1%

GB Market


1 Year Return

-2.1%

THRL

-7.1%

GB REITs

-11.5%

GB Market

Return vs Industry: THRL exceeded the UK REITs industry which returned -7.9% over the past year.

Return vs Market: THRL exceeded the UK Market which returned -12.4% over the past year.


Shareholder returns

THRLIndustryMarket
7 Day0.5%1.2%1.1%
30 Day4.9%2.4%0.6%
90 Day9.8%9.6%3.6%
1 Year2.4%-2.1%-4.2%-7.1%-7.9%-11.5%
3 Year8.2%-8.2%-2.1%-13.8%-5.1%-16.5%
5 Year30.9%-0.7%-6.3%-23.2%14.8%-10.6%

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?

11.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: THRL (£1.12) is trading below our estimate of fair value (£1.26)

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


Price To Earnings Ratio

PE vs Industry: THRL is good value based on its PE Ratio (14.4x) compared to the GB REITs industry average (15.7x).

PE vs Market: THRL is good value based on its PE Ratio (14.4x) compared to the UK market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: THRL is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: THRL is overvalued based on its PB Ratio (1x) compared to the GB REITs industry average (0.7x).


Next Steps

Future Growth

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

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THRL's forecast earnings growth (22.7% per year) is above the savings rate (1.2%).

Earnings vs Market: THRL's earnings (22.7% per year) are forecast to grow slower than the UK market (23% per year).

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

Revenue vs Market: THRL's revenue (10.4% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: THRL's revenue (10.4% 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 (5.6%).


Next Steps

Past Performance

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

27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THRL has high quality earnings.

Growing Profit Margin: THRL's current net profit margins (80.9%) are lower than last year (91.8%).


Past Earnings Growth Analysis

Earnings Trend: THRL's earnings have grown significantly by 27.1% per year over the past 5 years.

Accelerating Growth: THRL's earnings growth over the past year (11.8%) is below its 5-year average (27.1% per year).

Earnings vs Industry: THRL earnings growth over the past year (11.8%) exceeded the REITs industry -9%.


Return on Equity

High ROE: THRL's Return on Equity (6.4%) 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 (£58.7M) exceed its short term liabilities (£13.2M).

Long Term Liabilities: THRL's short term assets (£58.7M) do not cover its long term liabilities (£140.5M).


Debt to Equity History and Analysis

Debt Level: THRL's debt to equity ratio (27.1%) is considered satisfactory.

Reducing Debt: THRL's debt to equity ratio has increased from 23.6% to 27.1% over the past 5 years.

Debt Coverage: THRL's debt is not well covered by operating cash flow (5.8%).

Interest Coverage: THRL's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet


Next Steps

Dividend

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

5.96%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: THRL's dividend (5.96%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: THRL's dividend (5.96%) is in the top 25% of dividend payers in the UK market (5.37%)


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (342.6%), 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 (83.3% payout ratio).


Next Steps

Management

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

10.6yrs

Average management tenure


CEO

Kenneth MacKenzie (70 yo)

no data

Tenure

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


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth MacKenzie
Founder & Chief Executiveno datano datano data
Gordon Bland
Finance Directorno datano datano data
John Flannelly
Head of Investment10.58yrsno datano data
Andrew Brown
Head of Healthcare10.58yrsno datano data
Scott Steven
Head of Asset Management2.58yrsno datano data
Donald Cameron
Company Secretary & Director of Financial Reportingno datano datano data

10.6yrs

Average Tenure

Experienced Management: THRL's management team is seasoned and experienced (10.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Hutchison
Senior Independent Directorno dataUK£32.00k0.015%
£ 78.4k
Robert Naish
Independent Non-Executive Chairman7.58yrsUK£43.00k0.0098%
£ 50.4k
Gordon Coull
Independent Non-Executive Director7.58yrsUK£37.00k0.0077%
£ 39.7k
June Andrews
Independent Non-Executive Director7.58yrsUK£32.00kno data
Alison Fyfe
Independent Non-Executive Director0.25yrno datano data

7.6yrs

Average Tenure

67yo

Average Age

Experienced Board: THRL's board of directors are considered experienced (7.6 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: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.8%.


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£512.386m
  • Shares outstanding: 457.49m
  • Website: https://www.targethealthcarereit.co.uk

Location

  • Target Healthcare REIT PLC
  • Broadgate Tower
  • Level 13
  • London
  • EC2A 2EW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
THRLLSE (London Stock Exchange)YesNew Ordinary SharesGBGBPMar 2013
THRLLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary 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 Analysis2020/08/10 20:35
End of Day Share Price2020/08/10 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.