NZSE:ABA

Stock Analysis Report

Abano Healthcare Group

Executive Summary

Abano Healthcare Group Limited provides healthcare services in Australasia.


Snowflake Analysis

Limited growth and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ABA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

ABA

1.5%

NZ Healthcare

0.3%

NZ Market


1 Year Return

-11.4%

ABA

32.7%

NZ Healthcare

21.9%

NZ Market

Return vs Industry: ABA underperformed the NZ Healthcare industry which returned 32.7% over the past year.

Return vs Market: ABA underperformed the NZ Market which returned 21.9% over the past year.


Shareholder returns

ABAIndustryMarket
7 Day1.1%1.5%0.3%
30 Day2.1%0.8%-0.2%
90 Day-0.7%14.2%7.2%
1 Year-9.3%-11.4%36.4%32.7%26.9%21.9%
3 Year-29.9%-40.1%73.2%60.0%60.1%39.2%
5 Year-14.6%-33.0%135.9%109.1%98.3%54.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

81.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABA (NZ$5.36) is trading above our estimate of fair value (NZ$5.3)

Significantly Below Fair Value: ABA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ABA is poor value based on its PE Ratio (81.5x) compared to the Healthcare industry average (24.4x).

PE vs Market: ABA is poor value based on its PE Ratio (81.5x) compared to the NZ market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: ABA is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: ABA is good value based on its PB Ratio (1x) compared to the NZ Healthcare industry average (1.2x).


Next Steps

Future Growth

How is Abano Healthcare Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABA's forecast earnings growth (17.9% per year) is above the savings rate (1.3%).

Earnings vs Market: ABA's earnings (17.9% per year) are forecast to grow faster than the NZ market (6.3% per year).

High Growth Earnings: ABA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABA's revenue (3.4% per year) is forecast to grow slower than the NZ market (5.1% per year).

High Growth Revenue: ABA's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABA's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Abano Healthcare Group performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABA has a large one-off loss of NZ$8.3M impacting its November 30 2019 financial results.

Growing Profit Margin: ABA's current net profit margins (0.6%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: ABA's earnings have declined by -9.2% per year over the past 5 years.

Accelerating Growth: ABA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ABA had negative earnings growth (-83.5%) over the past year, making it difficult to compare to the Healthcare industry average (-2.9%).


Return on Equity

High ROE: ABA's Return on Equity (1.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Abano Healthcare Group's financial position?


Financial Position Analysis

Short Term Liabilities: ABA's short term assets (NZ$27.1M) do not cover its short term liabilities (NZ$51.1M).

Long Term Liabilities: ABA's short term assets (NZ$27.1M) do not cover its long term liabilities (NZ$258.0M).


Debt to Equity History and Analysis

Debt Level: ABA's debt to equity ratio (97.3%) is considered high.

Reducing Debt: ABA's debt to equity ratio has increased from 95.2% to 97.3% over the past 5 years.

Debt Coverage: ABA's debt is well covered by operating cash flow (21.7%).

Interest Coverage: ABA's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: ABA's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

4.60%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.9%markettop25%5.5%industryaverage1.9%forecastin3Years4.6%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

1.5yrs

Average board tenure


CEO

Richard Keys 0

4.3yrs

Tenure

NZ$1,393,868

Compensation

Mr. Richard George Keys, BCom, CA has been Chief Executive Officer of Abano Healthcare Group Limited since November 2, 2015. Mr. Keys served as the Chief Financial Officer of Abano Healthcare Group Ltd. (f ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD890.82K) is above average for companies of similar size in the NZ market ($USD272.37K).

Compensation vs Earnings: Richard's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Murray Boyte
Independent Deputy Chairman0yrsNZ$83.08k0.065% NZ$91.0k
Philippa Dunphy
Independent Chairman of the Board1.3yrsNZ$130.30k0.11% NZ$152.6k
Ginni Mansberg
Independent Director3.5yrsNZ$71.50k0.039% NZ$55.0k
Tracy Batten
Independent Director1.8yrsNZ$78.38k0.020% NZ$27.9k
Michael Allen
Independent Director0.9yrsNZ$17.88kno data

1.5yrs

Average Tenure

Experienced Board: ABA's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


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.


Top Shareholders

Company Information

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


Key Information

  • Name: Abano Healthcare Group Limited
  • Ticker: ABA
  • Exchange: NZSE
  • Founded: 1961
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: NZ$140.873m
  • Shares outstanding: 26.28m
  • Website: https://www.abano.co.nz

Number of Employees


Location

  • Abano Healthcare Group Limited
  • AMP Centre
  • Level 11
  • Auckland
  • 1010
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABANZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1992

Biography

Abano Healthcare Group Limited provides healthcare services in Australasia. It operates through Dental New Zealand and Diagnostics Australia. The company offers a range of general and specialist dental works, including restorative and cosmetic dental services. It operates approximately 239 dental practices. The company was formerly known as ElderCare New Zealand Limited and changed its name to Abano Healthcare Group Limited in August 2003. Abano Healthcare Group Limited was incorporated in 1961 and is based in Auckland, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 10:35
End of Day Share Price2020/02/18 00:00
Earnings2019/11/30
Annual Earnings2019/05/31


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.