NZSE:ARV

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Arvida Group Limited, together with its subsidiaries, owns, develops, and operates retirement villages and care facilities for the elderly in New Zealand. More Details


Snowflake Analysis

Undervalued with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ARV is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ARV's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

ARV

3.4%

NZ Healthcare

3.9%

NZ Market


1 Year Return

-4.9%

ARV

7.2%

NZ Healthcare

10.6%

NZ Market

Return vs Industry: ARV underperformed the NZ Healthcare industry which returned 7.2% over the past year.

Return vs Market: ARV underperformed the NZ Market which returned 10.6% over the past year.


Shareholder returns

ARVIndustryMarket
7 Day0.6%3.4%3.9%
30 Day-0.6%2.2%3.2%
90 Day-0.6%9.7%11.0%
1 Year-1.7%-4.9%9.6%7.2%14.7%10.6%
3 Year57.3%35.7%69.3%56.9%56.9%36.1%
5 Year148.0%90.2%53.4%32.9%112.7%61.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Arvida Group 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: ARV (NZ$1.75) is trading below our estimate of fair value (NZ$8.96)

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


Price To Earnings Ratio

PE vs Industry: ARV is good value based on its PE Ratio (24x) compared to the XO Healthcare industry average (32.5x).

PE vs Market: ARV is good value based on its PE Ratio (24x) compared to the NZ market (25.1x).


Price to Earnings Growth Ratio

PEG Ratio: ARV is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: ARV is good value based on its PB Ratio (1.3x) compared to the NZ Healthcare industry average (2.8x).


Next Steps

Future Growth

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

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARV's forecast earnings growth (23.4% per year) is above the savings rate (2.3%).

Earnings vs Market: ARV's earnings (23.4% per year) are forecast to grow faster than the NZ market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARV's revenue (11.1% per year) is forecast to grow faster than the NZ market (5.1% per year).

High Growth Revenue: ARV's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARV's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has Arvida Group performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARV has a large one-off gain of NZ$7.3M impacting its September 30 2020 financial results.

Growing Profit Margin: ARV's current net profit margins (23.2%) are lower than last year (46.9%).


Past Earnings Growth Analysis

Earnings Trend: ARV's earnings have grown by 14% per year over the past 5 years.

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

Earnings vs Industry: ARV had negative earnings growth (-46.2%) over the past year, making it difficult to compare to the Healthcare industry average (-16.1%).


Return on Equity

High ROE: ARV's Return on Equity (5.3%) is considered low.


Next Steps

Financial Health

How is Arvida Group's financial position?


Financial Position Analysis

Short Term Liabilities: ARV's short term assets (NZ$42.8M) exceed its short term liabilities (NZ$41.4M).

Long Term Liabilities: ARV's short term assets (NZ$42.8M) do not cover its long term liabilities (NZ$1.2B).


Debt to Equity History and Analysis

Debt Level: ARV's debt to equity ratio (48.7%) is considered high.

Reducing Debt: ARV's debt to equity ratio has increased from 4% to 48.7% over the past 5 years.

Debt Coverage: ARV's debt is well covered by operating cash flow (34.3%).

Interest Coverage: ARV's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is Arvida Group current dividend yield, its reliability and sustainability?

3.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARV's dividend (3.31%) is higher than the bottom 25% of dividend payers in the NZ market (2.24%).

High Dividend: ARV's dividend (3.31%) is low compared to the top 25% of dividend payers in the NZ market (4.1%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ARV has been paying a dividend for less than 10 years.

Growing Dividend: ARV's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.8%), ARV's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARV's dividends in 3 years are forecast to be covered by earnings (52.6% payout ratio).


Next Steps

Management

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

5.9yrs

Average board tenure


CEO

Bill McDonald

no data

Tenure

Mr. William Adam McDonald, also known as Bill, B.Bus, MAgribus serves as the Chief Executive Officer of Arvida Group Limited. Mr. McDonald joined Arvida as a consultant in September 2014. He is an experien...


Board Members

NamePositionTenureCompensationOwnership
Peter Wilson
Independent Chairman6.17yrsNZ$150.00k0.099%
NZ$ 935.2k
Anthony Beverley
Independent Director6.17yrsNZ$94.00k0.069%
NZ$ 652.4k
Susan Paterson
Independent Director5.67yrsNZ$82.00k0.035%
NZ$ 328.9k
Paul Ridley-Smith
Independent Director5.67yrsNZ$90.00k0.024%
NZ$ 230.8k
Susan Peterson
Independent Director0.17yrno datano data
Michael Ambrose
Independent Director7yrsNZ$82.00k0.34%
NZ$ 3.2m

5.9yrs

Average Tenure

Experienced Board: ARV's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ARV insiders have only sold shares 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

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


Key Information

  • Name: Arvida Group Limited
  • Ticker: ARV
  • Exchange: NZSE
  • Founded: 2014
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: NZ$943.929m
  • Shares outstanding: 542.49m
  • Website: https://www.arvida.co.nz

Number of Employees


Location

  • Arvida Group Limited
  • 39 Market Place
  • Level 1
  • Auckland
  • 1010
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARVNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDDec 2014

Biography

Arvida Group Limited, together with its subsidiaries, owns, develops, and operates retirement villages and care facilities for the elderly in New Zealand. As of March 31, 2020, it operated approximately 32...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/26 06:01
End of Day Share Price2021/01/26 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.