NZSE:OCA

Stock Analysis Report

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Market Cap

NZ$1.0b

Last Updated

2021/08/05 15:53 UTC

Data Sources

Company Financials +

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 +/- 3% a week.

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


Market Performance


7 Day Return

-1.3%

OCA

1.4%

NZ Healthcare

0.7%

NZ Market


1 Year Return

42.7%

OCA

28.6%

NZ Healthcare

9.1%

NZ Market

Return vs Industry: OCA exceeded the NZ Healthcare industry which returned 28.6% over the past year.

Return vs Market: OCA exceeded the NZ Market which returned 9.1% over the past year.


Shareholder returns

OCAIndustryMarket
7 Day-1.3%1.4%0.7%
30 Day-2.0%-0.7%-0.3%
90 Day7.3%1.4%-0.7%
1 Year46.0%42.7%31.4%28.6%11.8%9.1%
3 Year45.0%31.3%41.0%31.0%40.3%23.1%
5 Yearn/a41.8%23.4%70.7%31.4%

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?

37.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OCA (NZ$1.47) is trading below our estimate of fair value (NZ$2.36)

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


Price To Earnings Ratio

PE vs Industry: OCA is good value based on its PE Ratio (8.9x) compared to the NZ Healthcare industry average (14.4x).

PE vs Market: OCA is good value based on its PE Ratio (8.9x) compared to the NZ market (21.9x).


Price to Earnings Growth Ratio

PEG Ratio: OCA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: OCA is good value based on its PB Ratio (1.2x) compared to the NZ Healthcare industry average (2.4x).


Future Growth

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

-1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OCA's earnings are forecast to decline over the next 3 years (-1.5% per year).

Earnings vs Market: OCA's earnings are forecast to decline over the next 3 years (-1.5% per year).

High Growth Earnings: OCA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OCA's revenue (9.2% per year) is forecast to grow faster than the NZ market (5.4% per year).

High Growth Revenue: OCA's revenue (9.2% 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 (9.3%).


Past Performance

How has Oceania Healthcare performed over the past 5 years?

-16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OCA has a large one-off gain of NZ$102.8M impacting its March 31 2021 financial results.

Growing Profit Margin: OCA's current net profit margins (48.2%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: OCA's earnings have declined by 16.7% per year over the past 5 years.

Accelerating Growth: OCA's earnings growth over the past year (884%) exceeds its 5-year average (-16.7% per year).

Earnings vs Industry: OCA earnings growth over the past year (884%) exceeded the Healthcare industry 45.9%.


Return on Equity

High ROE: OCA's Return on Equity (12.3%) is considered low.


Financial Health

How is Oceania Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: OCA's short term assets (NZ$127.6M) do not cover its short term liabilities (NZ$646.5M).

Long Term Liabilities: OCA's short term assets (NZ$127.6M) do not cover its long term liabilities (NZ$402.0M).


Debt to Equity History and Analysis

Debt Level: OCA's debt to equity ratio (39.8%) is considered satisfactory.

Reducing Debt: OCA's debt to equity ratio has reduced from 134.8% to 39.8% over the past 5 years.

Debt Coverage: OCA's debt is well covered by operating cash flow (34.6%).

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


Balance Sheet


Dividend

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

2.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OCA's dividend (2.31%) is higher than the bottom 25% of dividend payers in the NZ market (2.27%).

High Dividend: OCA's dividend (2.31%) is low compared to the top 25% of dividend payers in the NZ market (4.48%).


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 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.7%), OCA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OCA's dividends in 3 years are forecast to be covered by earnings (53.4% payout ratio).


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Brent Pattison

0.42

Tenure

NZ$424,327

Compensation

Mr. Brent Pattison has been Chief Executive Officer of Oceania Healthcare Limited since March 22, 2021 and had been its Chief Financial Officer since January 2020 until May 13, 2021. He served as an Acting...


CEO Compensation Analysis

Compensation vs Market: Brent's total compensation ($USD298.72K) is below average for companies of similar size in the NZ market ($USD657.66K).

Compensation vs Earnings: Insufficient data to compare Brent's compensation with company performance.


Leadership Team

Experienced Management: OCA's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: OCA's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OCA insiders have sold more shares than they have bought 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 14.8%.


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$1.037b
  • Shares outstanding: 705.71m
  • Website: https://www.oceaniahealthcare.co.nz

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/05 15:53
End of Day Share Price2021/08/05 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.