Stock Analysis Report

Executive Summary

Oceania Healthcare Limited owns and operates various age care centers and retirement villages in New Zealand.


Trading at 38.7% below its fair value

Earnings are forecast to grow 19.87% per year

Earnings grew by 65.2% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk

Snowflake Analysis

Very undervalued with proven track record.

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's share price has been volatile over the past 3 months.

Market Performance

7 Day Return




NZ Healthcare


NZ Market

1 Year Return




NZ Healthcare


NZ Market

Return vs Industry: OCA underperformed the NZ Healthcare industry which returned -5% over the past year.

Return vs Market: OCA underperformed the NZ Market which returned -4.5% over the past year.

Shareholder returns

7 Day19.4%3.9%2.0%
30 Day-18.4%-19.5%-8.2%
90 Day-38.9%-27.7%-15.6%
1 Year-16.3%-20.0%-0.1%-2.7%1.0%-2.7%
3 Yearn/a23.5%14.2%33.5%16.8%
5 Yearn/a63.9%45.5%66.6%30.2%

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


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


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: OCA (NZ$0.71) is trading below our estimate of fair value (NZ$1.16)

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 (7.3x) compared to the Healthcare industry average (15.6x).

PE vs Market: OCA is good value based on its PE Ratio (7.3x) compared to the NZ market (15.8x).

Price to Earnings Growth Ratio

PEG Ratio: OCA is good value based on its PEG Ratio (0.4x)

Price to Book Ratio

PB vs Industry: OCA is good value based on its PB Ratio (0.7x) compared to the NZ Healthcare industry average (0.8x).

Next Steps

Future Growth

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


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: OCA's forecast earnings growth (19.9% per year) is above the savings rate (1.3%).

Earnings vs Market: OCA's earnings (19.9% per year) are forecast to grow faster than the NZ market (9.3% per year).

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

Revenue vs Market: OCA's revenue (17.3% per year) is forecast to grow faster than the NZ market (6.1% per year).

High Growth Revenue: OCA's revenue (17.3% 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 (6.8%).

Next Steps

Past Performance

How has Oceania Healthcare performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OCA has a large one-off gain of NZ$56.0M impacting its November 30 2019 financial results.

Growing Profit Margin: OCA's current net profit margins (30.9%) are higher than last year (19%).

Past Earnings Growth Analysis

Earnings Trend: OCA has become profitable over the past 5 years, growing earnings by 8.2% per year.

Accelerating Growth: OCA's earnings growth over the past year (65.2%) exceeds its 5-year average (8.2% per year).

Earnings vs Industry: OCA earnings growth over the past year (65.2%) exceeded the Healthcare industry -2.9%.

Return on Equity

High ROE: OCA's Return on Equity (9.5%) is considered low.

Next Steps

Financial Health

How is Oceania Healthcare's financial position?

Financial Position Analysis

Short Term Liabilities: OCA's short term assets (NZ$53.4M) exceed its short term liabilities (NZ$46.2M).

Long Term Liabilities: OCA's short term assets (NZ$53.4M) do not cover its long term liabilities (NZ$832.0M).

Debt to Equity History and Analysis

Debt Level: OCA's debt to equity ratio (46.9%) is considered high.

Reducing Debt: OCA's debt to equity ratio has reduced from 270.5% to 46.9% over the past 5 years.

Debt Coverage: OCA's debt is well covered by operating cash flow (34.2%).

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

Balance Sheet

Next Steps


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


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: OCA's dividend (6.62%) is higher than the bottom 25% of dividend payers in the NZ market (3.4%).

High Dividend: OCA's dividend (6.62%) is low compared to the top 25% of dividend payers in the NZ market (7.45%).

Stability and Growth of Payments

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

Growing Dividend: OCA's dividend payments have increased, but the company has only paid a dividend for 2 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.4%), OCA's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: OCA's dividends in 3 years are forecast to be covered by earnings (56.1% payout ratio).

Next Steps


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


Average board tenure


Earl Gasparich





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 ($USD467.61K) is about average for companies of similar size in the NZ market ($USD513.77K).

Compensation vs Earnings: Earl's compensation has increased by more than 20% in the past year.

Board Members

Elizabeth Coutts
Independent Chairperson5.42yrsNZ$180.00k0.20% NZ$874.0k
Patrick McCawe
Non-Executive Director3.17yrsNZ$90.00k0.041% NZ$177.5k
Alan Isaac
Independent Director4.5yrsNZ$110.00k0.046% NZ$200.0k
Dame Kerry Prendergast
Independent Director3.33yrsNZ$105.00k0.050% NZ$218.3k
Gregory Tomlinson
Non-Executive Director2.08yrsNZ$90.00k2.48% NZ$10.8m
Sally Evans
Independent Non-Executive Director2.08yrsNZ$97.50k0.0066% NZ$28.6k


Average Tenure

Experienced Board: OCA's board of directors are considered experienced (3.3 years average tenure).


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 not been meaningfully diluted in the past year.

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$436.573m
  • Shares outstanding: 614.89m
  • Website:

Number of Employees


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


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


Oceania Healthcare Limited owns and operates various age care centers and retirement villages in New Zealand. The company operates through Care Operations, Village Operations, and Other segments. It provides rest home, hospital, dementia, psychogeriatric, respite, and palliative/end of life care; and independent retirement village living at approximately 40 locations. The company was formerly known as Retirement Care (NZ) Limited and changed its name to Oceania Healthcare Limited on September 08, 2014. Oceania Healthcare Limited was founded in 2005 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 Analysis2020/04/09 11:16
End of Day Share Price2020/04/09 00:00
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.