NZSE:OCA

Stock Analysis Report

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Executive Summary

Oceania Healthcare Limited owns and operates various aged care centers and retirement villages in New Zealand. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OCA is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: OCA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0%

OCA

1.4%

NZ Healthcare

1.3%

NZ Market


1 Year Return

20.2%

OCA

7.0%

NZ Healthcare

8.7%

NZ Market

Return vs Industry: OCA exceeded the NZ Healthcare industry which returned 7% over the past year.

Return vs Market: OCA exceeded the NZ Market which returned 8.7% over the past year.


Shareholder returns

OCAIndustryMarket
7 Day0%1.4%1.3%
30 Day-3.0%1.8%5.3%
90 Day26.0%8.5%7.2%
1 Year24.0%20.2%9.3%7.0%12.7%8.7%
3 Year52.5%35.1%52.2%41.7%49.5%30.6%
5 Yearn/a102.9%80.2%103.7%55.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

32.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OCA (NZ$1.31) is trading below our estimate of fair value (NZ$1.93)

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


Price To Earnings Ratio

PE vs Industry: OCA is unprofitable, so we can't compare its PE Ratio to the XO Healthcare industry average.

PE vs Market: OCA is unprofitable, so we can't compare its PE Ratio to the NZ market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OCA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OCA is good value based on its PB Ratio (1.4x) compared to the NZ Healthcare industry average (1.8x).


Next Steps

Future Growth

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

49.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OCA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.6%).

Earnings vs Market: OCA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OCA's is expected to become profitable in the next 3 years.

Revenue vs Market: OCA's revenue (9.1% per year) is forecast to grow faster than the NZ market (5.6% per year).

High Growth Revenue: OCA's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OCA's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Oceania Healthcare performed over the past 5 years?

-6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OCA is currently unprofitable.

Growing Profit Margin: OCA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OCA is unprofitable, and losses have increased over the past 5 years at a rate of 6.7% per year.

Accelerating Growth: Unable to compare OCA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OCA is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (-16.1%).


Return on Equity

High ROE: OCA has a negative Return on Equity (-2.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is Oceania Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: OCA's short term assets (NZ$59.3M) do not cover its short term liabilities (NZ$556.0M).

Long Term Liabilities: OCA's short term assets (NZ$59.3M) do not cover its long term liabilities (NZ$397.5M).


Debt to Equity History and Analysis

Debt Level: OCA's debt to equity ratio (56.4%) is considered high.

Reducing Debt: OCA's debt to equity ratio has reduced from 190.3% to 56.4% over the past 5 years.

Debt Coverage: OCA's debt is well covered by operating cash flow (29.6%).

Interest Coverage: Insufficient data to determine if OCA's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Oceania Healthcare current dividend yield, its reliability and sustainability?

2.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OCA's dividend (2.67%) is higher than the bottom 25% of dividend payers in the NZ market (2.6%).

High Dividend: OCA's dividend (2.67%) is low compared to the top 25% of dividend payers in the NZ market (4.53%).


Stability and Growth of Payments

Stable Dividend: OCA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: OCA has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: OCA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: OCA's dividends in 3 years are forecast to be covered by earnings (51% payout ratio).


Next Steps

Management

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

3.9yrs

Average board tenure


CEO

Earl Gasparich

6.92yrs

Tenure

NZ$637,029

Compensation

Mr. Earl Gasparich, BCom, LLB (Hons), FCA (Chartered Accountants New Zealand & Australia), has been the Chief Executive Officer at Oceania Healthcare Limited since 2014. Mr. Gasparich served as Chief Finan...


CEO Compensation Analysis

Compensation vs Market: Earl's total compensation ($USD449.94K) is about average for companies of similar size in the NZ market ($USD627.33K).

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


Board Members

NamePositionTenureCompensationOwnership
Elizabeth Coutts
Independent Chairperson6.08yrsNZ$180.00k0.21%
NZ$ 1.7m
Patrick McCawe
Independent Director3.83yrsNZ$90.00k0.040%
NZ$ 325.0k
Alan Isaac
Independent Director5.17yrsNZ$110.00k0.046%
NZ$ 369.0k
Dame Kerry Prendergast
Independent Director4yrsNZ$105.00k0.050%
NZ$ 403.0k
Gregory Tomlinson
Independent Director2.75yrsNZ$90.00k0%
NZ$ 0
Sally Evans
Independent Director2.75yrsNZ$97.50k0.010%
NZ$ 84.1k

3.9yrs

Average Tenure

Experienced Board: OCA's board of directors are considered experienced (3.9 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 been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Oceania Healthcare Limited
  • Ticker: OCA
  • Exchange: NZSE
  • Founded: 2005
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: NZ$810.128m
  • Shares outstanding: 623.18m
  • Website: https://www.oceaniahealthcare.co.nz

Number of Employees


Location

  • Oceania Healthcare Limited
  • Affinity House
  • 2 Hargreaves Street
  • Auckland
  • 1011
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OCAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2017
OCANZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDMay 2017
OCACHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2017

Biography

Oceania Healthcare Limited owns and operates various aged care centers and retirement villages in New Zealand. The company operates through three segments: Care Operations, Village Operations, and Other. I...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 06:01
End of Day Share Price2020/12/02 00:00
Earnings2020/05/31
Annual Earnings2020/05/31


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.