Green Cross Health (NZSE:GXH) - Share price, News & Analysis

GXH fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	0/6

GXH Overview

Green Cross Health Limited provides health support, care, and advice services to communities in New Zealand.

Rewards

Trading at 93.6% below our estimate of its fair value

Earnings grew by 24.2% over the past year

Risk Analysis

Earnings have declined by 5.1% per year over past 5 years

Price History & Performance

Summary of all time highs, changes and price drops for Green Cross Health
Historical stock prices
Current Share Price	NZ$1.28
52 Week High	NZ$1.02
52 Week Low	NZ$1.28
Beta	0.28
1 Month Change	10.35%
3 Month Change	8.48%
1 Year Change	24.27%
3 Year Change	-4.48%
5 Year Change	-52.59%
Change since IPO	166.67%

Recent News & Updates

May 04

Capital Allocation Trends At Green Cross Health (NZSE:GXH) Aren't Ideal

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Mar 14

Green Cross Health (NZSE:GXH) Share Prices Have Dropped 58% In The Last Five Years

The main aim of stock picking is to find the market-beating stocks. But even the best stock picker will only win with...

Feb 12

Is Green Cross Health Limited (NZSE:GXH) Popular Amongst Insiders?

The big shareholder groups in Green Cross Health Limited ( NZSE:GXH ) have power over the company. Large companies...

Jan 28

Has Green Cross Health (NZSE:GXH) Got What It Takes To Become A Multi-Bagger?

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'd want to identify a...

Shareholder Returns

	GXH	NZ Consumer Retailing	NZ Market
7D	4.1%	1.2%	-0.5%
1Y	24.3%	3.5%	2.2%

Return vs Industry: GXH exceeded the NZ Consumer Retailing industry which returned 3.5% over the past year.

Return vs Market: GXH exceeded the NZ Market which returned 2.2% over the past year.

Price Volatility

Is GXH's price volatile compared to industry and market?
GXH volatility
GXH Beta	0.28
Industry Beta	0.57
Market Beta	1

Stable Share Price: GXH is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GXH's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	5,700	Rachael Newfield	https://www.greencrosshealth.co.nz

Green Cross Health Limited provides health support, care, and advice services to communities in New Zealand. It operates in three segments: Pharmacy Services, Medical Services, and Community Health. The Pharmacy Services segment offers pharmacy services through stores, equity accounted investments, and franchise stores.

Green Cross Health Fundamentals Summary

How do Green Cross Health's earnings and revenue compare to its market cap?
GXH fundamental statistics
Market Cap	NZ$183.24m
Earnings (TTM)	NZ$16.75m
Revenue (TTM)	NZ$570.40m

10.9x

P/E Ratio

0.3x

P/S Ratio

Is GXH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GXH income statement (TTM)
Revenue	NZ$570.40m
Cost of Revenue	NZ$510.86m
Gross Profit	NZ$59.54m
Expenses	NZ$42.79m
Earnings	NZ$16.75m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.12
Gross Margin	10.44%
Net Profit Margin	2.94%
Debt/Equity Ratio	16.3%

How did GXH perform over the long term?

See historical performance and comparison

Valuation

Is Green Cross Health undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GXH (NZ$1.28) is trading below our estimate of fair value (NZ$20.09)

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

Price To Earnings Ratio

PE vs Industry: GXH is good value based on its PE Ratio (10.9x) compared to the Oceanic Consumer Retailing industry average (25.7x).

PE vs Market: GXH is good value based on its PE Ratio (10.9x) compared to the NZ market (22.5x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: GXH is good value based on its PB Ratio (1.3x) compared to the XO Consumer Retailing industry average (3.7x).

Future Growth

How is Green Cross Health forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.9%

Forecasted Consumer Retailing industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Green Cross Health has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Green Cross Health performed over the past 5 years?

-5.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GXH has high quality earnings.

Growing Profit Margin: GXH's current net profit margins (2.9%) are higher than last year (2.4%).

Past Earnings Growth Analysis

Earnings Trend: GXH's earnings have declined by 5.1% per year over the past 5 years.

Accelerating Growth: GXH's earnings growth over the past year (24.2%) exceeds its 5-year average (-5.1% per year).

Earnings vs Industry: GXH earnings growth over the past year (24.2%) exceeded the Consumer Retailing industry 13.2%.

Return on Equity

High ROE: GXH's Return on Equity (14.1%) is considered low.

Financial Health

How is Green Cross Health's financial position?

Financial Position Analysis

Short Term Liabilities: GXH's short term assets (NZ$108.5M) do not cover its short term liabilities (NZ$121.8M).

Long Term Liabilities: GXH's short term assets (NZ$108.5M) exceed its long term liabilities (NZ$93.5M).

Debt to Equity History and Analysis

Debt Level: GXH's debt to equity ratio (16.3%) is considered satisfactory.

Reducing Debt: GXH's debt to equity ratio has reduced from 76.8% to 16.3% over the past 5 years.

Debt Coverage: GXH's debt is well covered by operating cash flow (291%).

Interest Coverage: GXH's interest payments on its debt are well covered by EBIT (5.5x coverage).

Balance Sheet

Dividend

What is Green Cross Health current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Current Payout to Shareholders

Dividend Coverage: GXH is not paying a notable dividend for the NZ market.

Future Payout to Shareholders

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

Next Steps

Explore strong dividend paying companies in the Consumer Retailing industry.

Management

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

3.2yrs

Average management tenure

CEO

Rachael Newfield

2.75yrs

Tenure

Ms. Rachael Newfield has been the Group Chief Executive Officer of Green Cross Health Limited since January 2019.

Leadership Team

Experienced Management: GXH's management team is considered experienced (3.2 years average tenure).

Board Members

Experienced Board: GXH's board of directors are considered experienced (9.6 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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2021/10/17 06:02
End of Day Share Price	2021/10/15 00:00
Earnings	2021/03/31
Annual Earnings	2021/03/31

Market Cap

7D

1Y

Updated

Data