NZSE:GXH

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with adequate balance sheet.

Share Price & News

How has Green Cross Health's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.0%

GXH

0.2%

NZ Consumer Retailing

1.1%

NZ Market


1 Year Return

-28.4%

GXH

12.1%

NZ Consumer Retailing

19.1%

NZ Market

Return vs Industry: GXH underperformed the NZ Consumer Retailing industry which returned 12.1% over the past year.

Return vs Market: GXH underperformed the NZ Market which returned 19.1% over the past year.


Shareholder returns

GXHIndustryMarket
7 Day-5.0%0.2%1.1%
30 Day-12.7%0.4%2.7%
90 Day-17.9%4.2%1.9%
1 Year-23.2%-28.4%15.1%12.1%24.3%19.1%
3 Year-58.5%-64.4%35.3%25.4%55.8%35.5%
5 Year-28.3%-46.7%53.6%35.3%101.8%56.4%

Price Volatility Vs. Market

How volatile is Green Cross Health's share price compared to the market and industry in the last 5 years?


Simply Wall St News

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$0.96) is trading below our estimate of fair value (NZ$2.37)

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 (8.5x) compared to the Consumer Retailing industry average (20.9x).

PE vs Market: GXH is good value based on its PE Ratio (8.5x) compared to the NZ market (18.7x).


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 (1.1x) compared to the XX Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

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

9.5%

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.


Next Steps

Past Performance

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

2.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GXH's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: GXH's earnings growth over the past year (3.2%) exceeds its 5-year average (2.5% per year).

Earnings vs Industry: GXH earnings growth over the past year (3.2%) underperformed the Consumer Retailing industry 3.4%.


Return on Equity

High ROE: GXH's Return on Equity (15%) is considered low.


Return on Assets

ROA vs Industry: GXH has a higher Return on Assets than the Consumer Retailing industry average last year.


Return on Capital Employed

ROCE Improving: GXH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Green Cross Health's financial position?


Financial Position Analysis

Short Term Liabilities: GXH's short term assets (NZ$85.5M) do not cover its short term liabilities (NZ$107.3M)

Long Term Liabilities: GXH's short term assets (85.5M) exceeds its long term liabilities (23.6M)


Debt to Equity History and Analysis

Debt Level: GXH's debt to equity ratio (36.7%) is considered satisfactory

Reducing Debt: GXH's debt to equity ratio has increased from 10.4% to 36.7% over the past 5 years.

Debt Coverage: GXH's debt is well covered by operating cash flow (60%).

Interest Coverage: GXH's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: GXH's debt is covered by short term assets (assets are 1.741320x debt).


Next Steps

Dividend

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

7.29%

Current Dividend Yield


Dividend Yield vs Market

company7.3%marketbottom25%3.0%markettop25%5.6%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GXH's dividend (7.29%) is higher than the bottom 25% of dividend payers in the NZ market (3%).

High Dividend: GXH's dividend (7.29%) is in the top 25% of dividend payers in the NZ market (5.56%)

Stable Dividend: GXH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GXH's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.2%), GXH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Green Cross Health's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Rachael Newfield 0

0.8yrs

Tenure

0

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


Management Age and Tenure

1.6yrs

Average Tenure

Experienced Management: GXH's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

4.8yrs

Average Tenure

Experienced Board: GXH's board of directors are considered experienced (4.8 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


Management Team

  • Jim Greenwood

    Company Secretary

    • Tenure: 0yrs
  • Grant Bai

    Chief Executive Officer of Pharmacy & Medical

    • Tenure: 6yrs
  • Alison Van Wyk

    Chief Executive Officer of Community Health Division

    • Tenure: 0yrs
  • Steve Browning

    COO & CFO

    • Tenure: 0yrs
  • Mark Smith

    Chief Information Officer

    • Tenure: 1.6yrs
  • Rachael Newfield

    Group Chief Executive Officer

    • Tenure: 0.8yrs

Board Members

  • Peter Merton

    Chairman

    • Tenure: 0yrs
    • Compensation: NZ$85.00k
  • Tony Edwards

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: NZ$60.00k
  • John Bolland

    Non-Executive Director

    • Tenure: 11yrs
    • Compensation: NZ$35.00k
  • John Bagnall

    Non-Executive Director

    • Tenure: 12.2yrs
    • Compensation: NZ$35.00k
  • Ken Orr

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: NZ$65.00k
  • Peter Williams

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: NZ$35.00k
  • Carolyn Steele

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: NZ$70.00k
  • M. Millard

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: NZ$60.00k

Company Information

Green Cross Health Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Green Cross Health Limited
  • Ticker: GXH
  • Exchange: NZSE
  • Founded: 1999
  • Industry: Drug Retail
  • Sector: Consumer Retailing
  • Market Cap: NZ$138.858m
  • Shares outstanding: 143.15m
  • Website: https://www.greencrosshealth.co.nz

Number of Employees


Location

  • Green Cross Health Limited
  • Building B
  • Ground Floor
  • Auckland
  • 1051
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GXHNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDOct 2009
PRCX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2009

Biography

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 Ph ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:35
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
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.