NSEI:FORTIS

Stock Analysis Report

Executive Summary

Fortis Healthcare Limited owns, manages, and operates a network of multi-specialty hospitals and diagnostic centers in India and internationally.

Snowflake

Fundamentals

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

FORTIS

1.9%

IN Healthcare

3.9%

IN Market


1 Year Return

5.3%

FORTIS

8.3%

IN Healthcare

6.0%

IN Market

Return vs Industry: FORTIS underperformed the Indian Healthcare industry which returned 8.3% over the past year.

Return vs Market: FORTIS matched the Indian Market which returned 6% over the past year.


Shareholder returns

FORTISIndustryMarket
7 Day0.2%1.9%3.9%
30 Day9.7%6.0%7.8%
90 Day6.7%11.0%2.5%
1 Year5.3%5.3%8.8%8.3%8.2%6.0%
3 Year-22.0%-22.0%-8.1%-9.3%23.0%16.7%
5 Year18.0%18.0%33.2%30.9%43.5%30.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: FORTIS (₹138.25) is trading above our estimate of fair value (₹76.27)

Significantly Undervalued: FORTIS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FORTIS is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: FORTIS is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FORTIS is good value based on its PB Ratio (1.6x) compared to the IN Healthcare industry average (1.9x).


Next Steps

Future Growth

How is Fortis Healthcare forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

56.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FORTIS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FORTIS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FORTIS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FORTIS's revenue (9.2% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: FORTIS's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FORTIS's Return on Equity is forecast to be low in 3 years time (4.3%).


Next Steps

Past Performance

How has Fortis Healthcare performed over the past 5 years?

-39.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FORTIS is unprofitable, and losses have increased over the past 5 years at a rate of -39% per year.

Accelerating Growth: Unable to compare FORTIS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FORTIS is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (13.6%).


Return on Equity

High ROE: FORTIS has a negative Return on Equity (-1.31%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: FORTIS is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: FORTIS is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Fortis Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: FORTIS's short term assets (₹16.7B) do not cover its short term liabilities (₹35.9B)

Long Term Liabilities: FORTIS's short term assets (16.7B) exceeds its long term liabilities (12.5B)


Debt to Equity History and Analysis

Debt Level: FORTIS's debt to equity ratio (45.5%) is considered high

Reducing Debt: FORTIS's debt to equity ratio has increased from 33.4% to 45.5% over the past 5 years.


Balance Sheet

Inventory Level: FORTIS has a high level of physical assets or inventory.

Debt Coverage by Assets: FORTIS's debt is not covered by short term assets (assets are 0.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: FORTIS has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if FORTIS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

0.059%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.4%industryaverage0.7%forecastin3Years0.06%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate FORTIS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FORTIS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if FORTIS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FORTIS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FORTIS's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Fortis Healthcare has no CEO, or we have no data on them.


Management Age and Tenure

1.0yrs

Average Tenure

59yo

Average Age

Experienced Management: FORTIS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

0.9yrs

Average Tenure

54yo

Average Age

Experienced Board: FORTIS's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


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


Management Team

  • Daljit Singh (66yo)

    President

    • Tenure: 0yrs
  • Aditya Vij (61yo)

    Chief Information Officer

    • Tenure: 1yrs
  • Anoop Misra

    Director of Diabetes & Metabolism - Fortis Hospital and Chairman of Fortis C-Doc Healthcare Limited

    • Tenure: 8.8yrs
    • Compensation: ₹13.20m
  • Vivek Goyal

    Chief Financial Officer

    • Tenure: 0.5yrs
  • Ashish Bhatia (57yo)

    Chief Operating Officer

    • Tenure: 0yrs
  • Ajey Maharaj

    Head Corporate Communication

    • Tenure: 0yrs
  • Anurag Kalra

    Vice President of Investor Relations

    • Tenure: 7.8yrs
  • Sumit Goel

    Company Secretary & Compliance Officer

    • Tenure: 0yrs
    • Compensation: ₹4.53m
  • Varun Khanna

    Executive VP & Chief Commercial Officer

    • Tenure: 0yrs
  • Rajiv Puri (47yo)

    Chief Internal Auditor

    • Tenure: 0yrs

Board Members

  • Shirish Apte (66yo)

    Non-Executive Vice Chairman

    • Tenure: 0.8yrs
    • Compensation: ₹500.00k
  • Soon Teck Low (54yo)

    Non Executive Director

    • Tenure: 0.9yrs
    • Compensation: ₹800.00k
  • Indrajit Banerjee (63yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: ₹4.90m
  • Ravi Rajagopal (63yo)

    Independent Chairman

    • Tenure: 1.3yrs
    • Compensation: ₹4.50m
  • Suvalaxmi Chakraborty (53yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: ₹4.80m
  • Anoop Misra

    Director of Diabetes & Metabolism - Fortis Hospital and Chairman of Fortis C-Doc Healthcare Limited

    • Tenure: 8.8yrs
    • Compensation: ₹13.20m
  • Boon Kheng Chan (51yo)

    Non Executive Director

    • Tenure: 0.9yrs
    • Compensation: ₹1.00m
  • Ashok Seth

    Chairman of Fortis Escorts Heart Institute

    • Tenure: 0yrs
  • Chinta Bhagat (50yo)

    Non Executive Director

    • Tenure: 0.9yrs
    • Compensation: ₹700.00k
  • Kelvin Chi-Keon

    Non-Executive and Non-Independent Director

    • Tenure: 0.08yrs

Company Information

Fortis Healthcare Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fortis Healthcare Limited
  • Ticker: FORTIS
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: ₹104.297b
  • Shares outstanding: 754.96m
  • Website: https://www.fortishealthcare.com

Number of Employees


Location

  • Fortis Healthcare Limited
  • Tower A
  • Block-F
  • Gurugram
  • Haryana
  • 122001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532843BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2007
FORTISNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2007

Biography

Fortis Healthcare Limited owns, manages, and operates a network of multi-specialty hospitals and diagnostic centers in India and internationally. Its healthcare verticals comprise day care specialty, diagn ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:43
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.