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.

Risk Analysis

Does not have meaningful revenue (£31M)



Snowflake Analysis

Fair 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

Information is not available.


Market Performance


7 Day Return

-1.3%

THRL

2.8%

GB REITs

0.1%

GB Market


1 Year Return

-3.9%

THRL

18.5%

GB REITs

9.8%

GB Market

Information is not available.

Information is not available.


Shareholder returns

THRLIndustryMarket
7 Day-1.3%2.8%0.1%
30 Day-4.3%5.4%-0.2%
90 Day-6.0%13.5%2.0%
1 Year2.2%-3.9%23.8%18.5%15.5%9.8%
3 Year18.8%-0.2%32.7%14.1%20.1%4.8%
5 Year38.3%5.0%41.6%13.6%44.5%11.5%

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 poor value based on its PE Ratio (13x) compared to the REITs industry average (14.6x).

PE vs Market: THRL is good value based on its PE Ratio (13x) compared to the UK market (17.2x).


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 (12.4% 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

Information is not available.


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

Information is not available.

Information is not available.


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 -16.8%.


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Target Healthcare REIT'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

Information is not available.

Information is not available.


Financial Institutions Analysis

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

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

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

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

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

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


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

company6.0%marketbottom25%2.0%markettop25%5.2%industryaverage3.8%forecastin3Years6.1%

Current dividend yield vs market & industry

Notable Dividend: THRL's dividend (5.98%) is higher than the bottom 25% of dividend payers in the UK market (1.95%).

High Dividend: THRL's dividend (5.98%) is in the top 25% of dividend payers in the UK market (5.19%)


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

What is the CEO of Target Healthcare REIT's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Kenneth MacKenzie 0

0yrs

Tenure

0

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 ...


Management Age and Tenure

6.3yrs

Average Tenure

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


Board Age and Tenure

6.6yrs

Average Tenure

66yo

Average Age

Experienced Board: THRL's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Information is not available.


Management Team

  • Gordon Bland

    Finance Director

    • Tenure: 0yrs
  • Kenneth MacKenzie

    Chief Executive Officer

    • Tenure: 0yrs
  • John Flannelly

    Head of Investment - Target Advisers LLP

    • Tenure: 9.6yrs
  • Andrew Brown

    Head of Healthcare - Target Advisers LLP

    • Tenure: 9.6yrs
  • Donald Campbell

    Head of Tax

    • Tenure: 2.9yrs
  • Scott Steven

    Head of Asset Management

    • Tenure: 1.6yrs

Board Members

  • Tom Hutchison (77yo)

    Senior Independent Director

    • Tenure: 6.6yrs
    • Compensation: UK£30.00k
  • Craig Stewart (54yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£7.00k
  • Robert Naish (66yo)

    Independent Non-Executive Chairman

    • Tenure: 6.6yrs
    • Compensation: UK£40.00k
  • Gordon Coull

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: UK£35.00k
  • Hilary Jones

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£15.00k
  • June Andrews

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: UK£30.00k

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.