LSE:THRL

Stock Analysis Report

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Market Cap

UK£613.9m

Last Updated

2021/07/25 19:39 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


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 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.


Market Performance


7 Day Return

0.5%

THRL

1.7%

GB REITs

0.6%

GB Market


1 Year Return

13.2%

THRL

3.0%

GB REITs

18.9%

GB Market

Return vs Industry: THRL exceeded the UK REITs industry which returned 3% over the past year.

Return vs Market: THRL underperformed the UK Market which returned 18.9% over the past year.


Shareholder returns

THRLIndustryMarket
7 Day0.5%1.7%0.6%
30 Day4.3%3.5%-0.9%
90 Day2.0%6.0%1.0%
1 Year20.1%13.2%31.4%3.0%24.3%18.9%
3 Year26.5%6.2%7.3%8.8%12.1%-0.7%
5 Year43.2%6.9%23.6%17.9%40.8%13.7%

Long-Term 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?

38.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: THRL (£1.2) is trading below our estimate of fair value (£1.95)

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 (17.8x) compared to the UK REITs industry average (13.7x).

PE vs Market: THRL is good value based on its PE Ratio (17.8x) compared to the UK market (23.7x).


Price to Earnings Growth Ratio

PEG Ratio: THRL is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: THRL is overvalued based on its PB Ratio (1.1x) 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?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THRL's forecast earnings growth (21.6% per year) is above the savings rate (0.9%).

Earnings vs Market: THRL's earnings (21.6% per year) are forecast to grow faster than the UK market (16.8% per year).

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

Revenue vs Market: THRL's revenue (5.2% per year) is forecast to grow slower than the UK market (5.3% per year).

High Growth Revenue: THRL's revenue (5.2% 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?

5.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: THRL's dividend (5.6%) is higher than the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: THRL's dividend (5.6%) is in the top 25% of dividend payers in the UK market (4.03%)


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% payout ratio).


Next Steps

Management

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

11.5yrs

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 (11.5 years average tenure).


Board Members

Experienced Board: THRL's board of directors are considered experienced (8.5 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 11.8%.


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£613.850m
  • Shares outstanding: 511.54m
  • Website: https://www.targethealthcarereit.co.uk

Location

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

Listings


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 Analysis2021/07/25 19:39
End of Day Share Price2021/07/23 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.