NZSE:OCA

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

OCA

1.0%

NZ Healthcare

-0.007%

NZ Market


1 Year Return

12.2%

OCA

35.0%

NZ Healthcare

20.2%

NZ Market

Return vs Industry: OCA underperformed the NZ Healthcare industry which returned 35% over the past year.

Return vs Market: OCA underperformed the NZ Market which returned 20.2% over the past year.


Shareholder returns

OCAIndustryMarket
7 Day-3.2%1.0%-0.007%
30 Day-8.4%0.4%-0.8%
90 Day11.1%15.1%6.5%
1 Year17.3%12.2%38.6%35.0%25.0%20.2%
3 Yearn/a73.7%60.5%59.8%39.1%
5 Yearn/a133.8%107.1%94.6%51.3%

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?

12.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OCA (NZ$1.2) is trading above our estimate of fair value (NZ$1.08)

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


Price To Earnings Ratio

PE vs Industry: OCA is good value based on its PE Ratio (12.3x) compared to the Healthcare industry average (24.2x).

PE vs Market: OCA is good value based on its PE Ratio (12.3x) compared to the NZ market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: OCA is good value based on its PEG Ratio (0.6x)


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 (1.2x).


Next Steps

Future Growth

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

19.9%

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 (7.9% 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 (5.5% 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?

8.2%

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.


Return on Assets


Return on Capital Employed


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

Inventory Level: OCA has a high level of physical assets or inventory.

Debt Coverage by Assets: OCA's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

3.92%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%2.9%markettop25%5.5%industryaverage1.9%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: OCA's dividend (3.92%) is higher than the bottom 25% of dividend payers in the NZ market (2.86%).

High Dividend: OCA's dividend (3.92%) is low compared to the top 25% of dividend payers in the NZ market (5.52%).


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

Management

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

3.1yrs

Average board tenure


CEO

Earl Gasparich 0

6.1yrs

Tenure

NZ$781,147

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 ($USD495.90K) is about average for companies of similar size in the NZ market ($USD585.43K).

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


Board Members

NamePositionTenureCompensationOwnership
Elizabeth Coutts
Independent Chairperson5.3yrsNZ$180.00k0.19% NZ$1.4m
Patrick McCawe
Non-Executive Director3yrsNZ$90.00k0.041% NZ$302.5k
Alan Isaac
Independent Director4.3yrsNZ$110.00k0.040% NZ$300.6k
Dame Kerry Prendergast
Independent Director3.2yrsNZ$105.00k0.049% NZ$367.2k
Gregory Tomlinson
Non-Executive Director1.9yrsNZ$90.00k2.27% NZ$16.9m
Sally Evans
Independent Non-Executive Director1.9yrsNZ$97.50k0.0064% NZ$48.0k

3.1yrs

Average Tenure

Experienced Board: OCA's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OCA 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

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$745.094m
  • Shares outstanding: 615.78m
  • 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 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 Analysis2020/02/25 10:56
End of Day Share Price2020/02/25 00:00
Earnings2019/11/30
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.