NZSE:MET

Stock Analysis Report

Executive Summary

Metlifecare Limited develops, owns, and operates retirement villages in New Zealand.


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MET's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.1%

MET

1.5%

NZ Healthcare

0.3%

NZ Market


1 Year Return

33.0%

MET

32.7%

NZ Healthcare

21.9%

NZ Market

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

Return vs Market: MET exceeded the NZ Market which returned 21.9% over the past year.


Shareholder returns

METIndustryMarket
7 Day0.1%1.5%0.3%
30 Day0.7%0.8%-0.2%
90 Day19.5%14.2%7.2%
1 Year36.2%33.0%36.4%32.7%26.9%21.9%
3 Year33.2%26.2%73.2%60.0%60.1%39.2%
5 Year56.5%45.3%135.9%109.1%98.3%54.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Metlifecare undervalued compared to its fair value and its price relative to the market?

37.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MET (NZ$6.93) is trading above our estimate of fair value (NZ$3)

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


Price To Earnings Ratio

PE vs Industry: MET is poor value based on its PE Ratio (37.6x) compared to the Healthcare industry average (24.4x).

PE vs Market: MET is poor value based on its PE Ratio (37.6x) compared to the NZ market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: MET is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Metlifecare forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MET's forecast earnings growth (26.3% per year) is above the savings rate (1.3%).

Earnings vs Market: MET's earnings (26.3% per year) are forecast to grow faster than the NZ market (6.3% per year).

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

Revenue vs Market: MET's revenue (6.9% per year) is forecast to grow faster than the NZ market (5.1% per year).

High Growth Revenue: MET's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MET's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has Metlifecare performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MET has a large one-off gain of NZ$40.2M impacting its June 30 2019 financial results.

Growing Profit Margin: MET's current net profit margins (31.6%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: MET's earnings have declined by -2.3% per year over the past 5 years.

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

Earnings vs Industry: MET had negative earnings growth (-68%) over the past year, making it difficult to compare to the Healthcare industry average (-2.9%).


Return on Equity

High ROE: MET's Return on Equity (2.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Metlifecare's financial position?


Financial Position Analysis

Short Term Liabilities: MET's short term assets (NZ$26.9M) do not cover its short term liabilities (NZ$166.6M).

Long Term Liabilities: MET's short term assets (NZ$26.9M) do not cover its long term liabilities (NZ$1.9B).


Debt to Equity History and Analysis

Debt Level: MET's debt to equity ratio (18.8%) is considered satisfactory.

Reducing Debt: MET's debt to equity ratio has increased from 5.3% to 18.8% over the past 5 years.

Debt Coverage: MET's debt is well covered by operating cash flow (43%).

Interest Coverage: MET's interest payments on its debt are not well covered by EBIT (1x coverage).


Balance Sheet

Inventory Level: MET has a low level of unsold assets or inventory.

Debt Coverage by Assets: MET's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Metlifecare's current dividend yield, its reliability and sustainability?

1.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MET's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (2.87%).

High Dividend: MET's dividend (1.59%) is low compared to the top 25% of dividend payers in the NZ market (5.53%).


Stability and Growth of Payments

Stable Dividend: MET is not paying a notable dividend for the NZ market, therefore no need to check if payments are stable.

Growing Dividend: MET is not paying a notable dividend for the NZ market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MET'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?

3.1yrs

Average management tenure


CEO

Glen Sowry 0

3.8yrs

Tenure

NZ$1,080,816

Compensation

Mr. Glen R. Sowry, INSEAD AMP, has been the Chief Executive Officer of Metlifecare Limited since April 2016. Mr. Sowry served as the Chief Executive Officer of Housing New Zealand Corporation since January ...


CEO Compensation Analysis

Compensation vs Market: Glen's total compensation ($USD690.75K) is about average for companies of similar size in the NZ market ($USD655.47K).

Compensation vs Earnings: Glen's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Glen Sowry
Chief Executive Officer3.8yrsNZ$1.08m0.0047% NZ$69.3k
Richard Thomson
Chief Financial Officer2.4yrsno datano data
Richard Callander
General Manager of Operations5.1yrsno datano data
Julie Garlick
General Manager of Marketing3.1yrsno datano data
Sandra King
General Manager of Sales0.6yrsno datano data

3.1yrs

Average Tenure

Experienced Management: MET's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Binns
Independent Director2.5yrsNZ$92.50k0.0070% NZ$104.0k
Alistair Ryan
Independent Director7.5yrsNZ$97.50k0.0065% NZ$96.3k
Kimmitt Ellis
Independent Chairman of the Board5.4yrsNZ$165.00k0.12% NZ$1.8m
Roderick Snodgrass
Independent Director2.5yrsNZ$87.50k0.0033% NZ$48.5k
Christopher Aiken
Independent Director7.5yrsNZ$95.00k0.014% NZ$201.3k
Noeline Whitehead
Non Executive Director6.7yrsNZ$87.50k0.0019% NZ$27.7k
Carolyn Steele
Non-Independent & Non-Executive Director6.2yrsNZ$92.50kno data

6.2yrs

Average Tenure

Experienced Board: MET's board of directors are considered experienced (6.2 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.


Top Shareholders

Company Information

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


Key Information

  • Name: Metlifecare Limited
  • Ticker: MET
  • Exchange: NZSE
  • Founded: 1984
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: NZ$1.475b
  • Shares outstanding: 212.78m
  • Website: https://www.metlifecare.co.nz

Location

  • Metlifecare Limited
  • 20 Kent Street
  • Level 4
  • Auckland
  • 1023
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
METNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1995

Biography

Metlifecare Limited develops, owns, and operates retirement villages in New Zealand. The company offers independent living homes, care apartments, and care beds and suites. It owns and operates 25 villages. The company was founded in 1984 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 10:32
End of Day Share Price2020/02/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.