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

GXH fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	3/6

GXH Stock Overview

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

Rewards

Trading at 65.4% below our estimate of its fair value

Risk Analysis

Earnings have declined by 3.7% per year over past 5 years

Dividend of 4.88% is not well covered by earnings

Green Cross Health Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Green Cross Health
Historical stock prices
Current Share Price	NZ$1.23
52 Week High	NZ$1.50
52 Week Low	NZ$1.04
Beta	0.31
1 Month Change	-11.51%
3 Month Change	1.65%
1 Year Change	17.14%
3 Year Change	5.13%
5 Year Change	-46.52%
Change since IPO	156.25%

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...

Shareholder Returns

	GXH	NZ Consumer Retailing	NZ Market
7D	-3.9%	-4.2%	0.5%
1Y	17.1%	-5.0%	-13.4%

Return vs Industry: GXH exceeded the NZ Consumer Retailing industry which returned -5% over the past year.

Return vs Market: GXH exceeded the NZ Market which returned -13.4% over the past year.

Price Volatility

Is GXH's price volatile compared to industry and market?
GXH volatility
GXH Average Weekly Movement	4.9%
Consumer Retailing Industry Average Movement	4.2%
Market Average Movement	4.2%
10% most volatile stocks in NZ Market	7.2%
10% least volatile stocks in NZ Market	2.8%

Stable Share Price: GXH is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GXH's weekly volatility (5%) 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$176.08m
Earnings (TTM)	NZ$17.57m
Revenue (TTM)	NZ$603.17m

10.0x

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$603.17m
Cost of Revenue	NZ$541.39m
Gross Profit	NZ$61.77m
Other Expenses	NZ$44.21m
Earnings	NZ$17.57m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.12
Gross Margin	10.24%
Net Profit Margin	2.91%
Debt/Equity Ratio	16.4%

How did GXH perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

0%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GXH (NZ$1.23) is trading below our estimate of fair value (NZ$3.55)

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 (10x) compared to the Oceanic Consumer Retailing industry average (17x).

PE vs Market: GXH is good value based on its PE Ratio (10x) compared to the NZ market (17.3x).

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 (1.2x) 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?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-31.7%

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?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-3.7%

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 (2.7%).

Past Earnings Growth Analysis

Earnings Trend: GXH's earnings have declined by 3.7% per year over the past 5 years.

Accelerating Growth: GXH's earnings growth over the past year (14.6%) exceeds its 5-year average (-3.7% per year).

Earnings vs Industry: GXH earnings growth over the past year (14.6%) underperformed the Consumer Retailing industry 43.2%.

Return on Equity

High ROE: GXH's Return on Equity (14.3%) is considered low.

Financial Health

How is Green Cross Health's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GXH's short term assets (NZ$114.1M) do not cover its short term liabilities (NZ$119.3M).

Long Term Liabilities: GXH's short term assets (NZ$114.1M) exceed its long term liabilities (NZ$93.7M).

Debt to Equity History and Analysis

Debt Level: GXH has more cash than its total debt.

Reducing Debt: GXH's debt to equity ratio has reduced from 63% to 16.4% over the past 5 years.

Debt Coverage: GXH's debt is well covered by operating cash flow (188.4%).

Interest Coverage: GXH's interest payments on its debt are well covered by EBIT (6.1x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.88%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GXH's dividend (4.88%) is higher than the bottom 25% of dividend payers in the NZ market (3.1%).

High Dividend: GXH's dividend (4.88%) is low compared to the top 25% of dividend payers in the NZ market (5.65%).

Stability and Growth of Payments

Stable Dividend: GXH's dividend payments have been volatile in the past 10 years.

Growing Dividend: GXH's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: Unable to calculate sustainability of dividends as GXH has not reported any payouts.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (19.5%), GXH's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure

CEO

Rachael Newfield

3.33yrs

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 (3.8 years average tenure).

Board Members

Experienced Board: GXH's board of directors are considered experienced (7.6 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	2022/05/23 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/09/30
Annual Earnings	2021/03/31