NZSE:ABA

Stock Analysis Report

Abano Healthcare Group

Executive Summary

Abano Healthcare Group Limited provides healthcare services in Australasia.

Snowflake

Fundamentals

Good value average dividend payer.

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


Market Performance


7 Day Return

3.2%

ABA

-0.5%

NZ Healthcare

0.6%

NZ Market


1 Year Return

-37.6%

ABA

7.8%

NZ Healthcare

20.5%

NZ Market

Return vs Industry: ABA underperformed the NZ Healthcare industry which returned 7.8% over the past year.

Return vs Market: ABA underperformed the NZ Market which returned 20.5% over the past year.


Shareholder returns

ABAIndustryMarket
7 Day3.2%-0.5%0.6%
30 Day9.8%2.2%3.0%
90 Day9.1%4.7%2.2%
1 Year-34.3%-37.6%10.9%7.8%25.7%20.5%
3 Year-29.1%-40.7%49.6%38.1%55.8%35.4%
5 Year-8.8%-29.5%111.9%89.3%100.9%55.6%

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?

5.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABA (NZ$4.8) is trading below our estimate of fair value (NZ$5.07)

Significantly Below Fair Value: ABA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ABA is good value based on its PE Ratio (16.4x) compared to the Healthcare industry average (16.4x).

PE vs Market: ABA is good value based on its PE Ratio (16.4x) compared to the NZ market (19.6x).


Price to Earnings Growth Ratio

PEG Ratio: ABA is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ABA is good value based on its PB Ratio (0.8x) compared to the NZ Healthcare industry average (1.1x).


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?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABA's forecast earnings growth (10.4% per year) is above the savings rate (2.4%).

Earnings vs Market: ABA's earnings (10.4% per year) are forecast to grow faster than the NZ market (6.8% per year).

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

Revenue vs Market: ABA's revenue (3% per year) is forecast to grow slower than the NZ market (4.1% per year).

High Growth Revenue: ABA's revenue (3% 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 (6.6%).


Next Steps

Past Performance

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

11.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ABA's earnings have grown by 11% 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 (-26%) over the past year, making it difficult to compare to the Healthcare industry average (-16%).


Return on Equity

High ROE: ABA's Return on Equity (5%) is considered low.


Return on Assets

ROA vs Industry: ABA's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Abano Healthcare Group's financial position?


Financial Position Analysis

Short Term Liabilities: ABA's short term assets (NZ$24.8M) do not cover its short term liabilities (NZ$33.3M)

Long Term Liabilities: ABA's short term assets (24.8M) do not cover its long term liabilities (156.8M)


Debt to Equity History and Analysis

Debt Level: ABA's debt to equity ratio (94.4%) is considered high

Reducing Debt: ABA's debt to equity ratio has increased from 90.8% to 94.4% over the past 5 years.

Debt Coverage: ABA's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: ABA's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: ABA has a low level of unsold 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?

5.00%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%2.9%markettop25%5.5%industryaverage2.3%forecastin3Years5.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ABA's dividend (5%) is higher than the bottom 25% of dividend payers in the NZ market (2.93%).

High Dividend: ABA's dividend (5%) is low compared to the top 25% of dividend payers in the NZ market (5.5%).

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.1%), ABA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABA's dividends in 3 years are forecast to be covered by earnings (51.8% payout ratio).


Next Steps

Management

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

2.3yrs

Average board tenure


CEO

Richard Keys 0

3.9yrs

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 ($USD890.65K) is above average for companies of similar size in the NZ market ($USD116.01K).

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 Age and Tenure

2.3yrs

Average Tenure

Experienced Board: ABA's board of directors are not considered experienced ( 2.3 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

  • Richard Keys

    Chief Executive Officer

    • Tenure: 3.9yrs
    • Compensation: NZ$1.39m
  • Karen Wood

    Chief Executive Officer of Aotea Pathology

    • Tenure: 0yrs
  • David Rogers

    Chief Executive Officer of Insight+Ascot Radiology

    • Tenure: 0yrs
  • Andy Tapper

    Acting General Manager of Operations (NZ)

    • Tenure: 0yrs
  • Peter Radich

    Chief Information Officer

    • Tenure: 0yrs
  • Rhys Clark

    Chief Financial Officer

    • Tenure: 0yrs
  • Fred Calavassy

    Clinical Director

    • Tenure: 0yrs
  • Kerry Dunphy

    General Manager of Marketing

    • Tenure: 0yrs
  • Sophie Harmsworth

    General Manager of Strategy & Acquisition (Aus)

    • Tenure: 0yrs
  • Dennis Surlan

    Chief Operating Officer

    • Tenure: 0.9yrs

Board Members

  • Murray Boyte

    Independent Deputy Chairman

    • Tenure: 0yrs
    • Compensation: NZ$83.08k
  • Trevor Janes (74yo)

    Independent Director

    • Tenure: 14.1yrs
    • Compensation: NZ$108.53k
  • Pip Dunphy

    Independent Chairman of the Board

    • Tenure: 1yrs
    • Compensation: NZ$130.30k
  • Danny Chan

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: NZ$71.50k
  • Ginni Mansberg

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: NZ$71.50k
  • Tracy Batten

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: NZ$78.38k
  • Mike Allen

    Independent Director

    • Tenure: 0.6yrs
    • Compensation: NZ$17.88k

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$126.175m
  • Shares outstanding: 26.29m
  • 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 wor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 10:32
End of Day Share Price2019/10/21 00:00
Earnings2019/05/31
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.