Oceania Healthcare
Market Cap
NZ$665.3m
Last Updated
2019/12/13 10:44 UTC
Data Sources
Company Financials +
Executive Summary
Oceania Healthcare Limited owns and operates various age care centers and retirement villages in New Zealand.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with moderate growth potential.
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
0%
OCA
1.2%
NZ Healthcare
0.2%
NZ Market
1 Year Return
-0.9%
OCA
26.1%
NZ Healthcare
21.5%
NZ Market
Return vs Industry: OCA underperformed the NZ Healthcare industry which returned 26.1% over the past year.
Return vs Market: OCA underperformed the NZ Market which returned 21.5% over the past year.
Shareholder returns
| OCA | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 1.2% | 0.2% |
| 30 Day | 3.8% | 6.3% | 2.4% |
| 90 Day | 6.9% | 13.8% | 3.3% |
| 1 Year | 3.7%-0.9% | 29.6%26.1% | 26.5%21.5% |
| 3 Year | n/a | 74.5%61.1% | 62.7%41.2% |
| 5 Year | n/a | 121.5%96.1% | 95.2%51.7% |
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
1 week ago | Simply Wall St
Is Oceania Healthcare Limited's (NZSE:OCA) 4.3% Dividend Worth Your Time?2 weeks ago | Simply Wall St
How Much Are Oceania Healthcare Limited (NZSE:OCA) Insiders Spending On Buying Shares?1 month ago | Simply Wall St
Volatility 101: Should Oceania Healthcare (NZSE:OCA) Shares Have Dropped 12%?Valuation
Is Oceania Healthcare undervalued compared to its fair value and its price relative to the market?
39.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OCA (NZ$1.09) is trading below our estimate of fair value (NZ$1.8)
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 (14.5x) compared to the Healthcare industry average (18x).
PE vs Market: OCA is good value based on its PE Ratio (14.5x) compared to the NZ market (20.1x).
Price to Earnings Growth Ratio
PEG Ratio: OCA is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: OCA is good value based on its PB Ratio (1.1x) compared to the NZ Healthcare industry average (1.1x).
Next Steps
Future Growth
How is Oceania Healthcare forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
18.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OCA's forecast earnings growth (18.9% per year) is above the savings rate (1.3%).
Earnings vs Market: OCA's earnings (18.9% 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 (5% per year) is forecast to grow faster than the NZ market (5% per year).
High Growth Revenue: OCA's revenue (5% 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 (7.8%).
Next Steps
Past Performance
How has Oceania Healthcare performed over the past 5 years?
26.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OCA has a large one-off gain of NZ$31.4M impacting its May 31 2019 financial results.
Growing Profit Margin: OCA's current net profit margins (24%) are lower than last year (41.9%).
Past Earnings Growth Analysis
Earnings Trend: OCA has become profitable over the past 5 years, growing earnings by 26.3% per year.
Accelerating Growth: OCA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: OCA had negative earnings growth (-41.1%) over the past year, making it difficult to compare to the Healthcare industry average (-14.4%).
Return on Equity
High ROE: OCA's Return on Equity (7.4%) 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$66.3M) do not cover its short term liabilities (NZ$80.9M).
Long Term Liabilities: OCA's short term assets (NZ$66.3M) do not cover its long term liabilities (NZ$708.6M).
Debt to Equity History and Analysis
Debt Level: OCA's debt to equity ratio (43.8%) is considered high.
Reducing Debt: OCA's debt to equity ratio has reduced from 439.5% to 43.8% over the past 5 years.
Debt Coverage: OCA's debt is well covered by operating cash flow (33.4%).
Interest Coverage: OCA's interest payments on its debt are well covered by EBIT (10.1x coverage).
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?
4.31%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: OCA's dividend (4.31%) is higher than the bottom 25% of dividend payers in the NZ market (2.95%).
High Dividend: OCA's dividend (4.31%) is low compared to the top 25% of dividend payers in the NZ market (5.54%).
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 (62.6%), 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 (55% payout ratio).
Next Steps
Management
What is the CEO of Oceania Healthcare's salary, the management and board of directors tenure and is there insider trading?
3.0yrs
Average board tenure
CEO
Earl Gasparich 0
5.9yrs
Tenure
NZ$781,147
Compensation
Mr. Earl Gasparich, BCom, LLB (Hons), FCA (Chartered Accountants New Zealand & Australia), has been the Chief Executive Officer at Oceania Healthcare Limited since 2014. Mr. Gasparich served as Chief Finan ...
CEO Compensation Analysis
Compensation vs Market: Earl's total compensation ($USD514.76K) is about average for companies of similar size in the NZ market ($USD643.16K).
Compensation vs Earnings: Earl's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Board Age and Tenure
3.0yrs
Average Tenure
Experienced Board: OCA's board of directors are considered experienced (3 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 20,000 |
| Max Price | NZ$1.02 |
| Entity | Company |
| Shares | 542,692 |
| Max Price | NZ$1.02 |
| Entity | Company |
| Shares | 800,000 |
| Max Price | NZ$1.02 |
| Entity | Individual |
| Role | Chairman of the Board Independent Chairperson |
| Shares | 50,000 |
| Max Price | NZ$1.02 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 40,000 |
| Max Price | NZ$1.04 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 20,000 |
| Max Price | NZ$1.10 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Matthew Ward
Chief Financial Officer
- Tenure: 10.9yrs
Earl Gasparich
Chief Executive Officer
- Tenure: 5.9yrs
- Compensation: NZ$781.15k
Jill Birch
General Manager of Sales
- Tenure: 0yrs
Anna Thorburn
General Counsel & Company Secretary
- Tenure: 0yrs
Board Members
Liz Coutts (60yo)
Independent Chairperson
- Tenure: 5.1yrs
- Compensation: NZ$180.00k
Patrick McCawe
Non-Executive Director
- Tenure: 2.8yrs
- Compensation: NZ$90.00k
Alan Isaac
Independent Director
- Tenure: 4.2yrs
- Compensation: NZ$110.00k
Dame Kerry Prendergast
Independent Director
- Tenure: 3yrs
- Compensation: NZ$105.00k
Greg Tomlinson
Non-Executive Director
- Tenure: 1.8yrs
- Compensation: NZ$90.00k
Hugh FitzSimons
Non-Executive Director
- Tenure: 7.2yrs
- Compensation: NZ$90.00k
Sally Evans (61yo)
Independent Non-Executive Director
- Tenure: 1.8yrs
- Compensation: NZ$97.50k
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$665.301m
- Shares outstanding: 610.37m
- Website: https://www.oceaniahealthcare.co.nz
Number of Employees
Location
- Oceania Healthcare Limited
- Affinity House
- 2 Hargreaves Street
- Auckland
- 1011
- New Zealand
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| OCA | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | May 2017 |
| OCA | NZSE (New Zealand Stock Exchange) | Yes | Ordinary Shares | NZ | NZD | May 2017 |
| OCA | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | May 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 provid ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/13 10:44 |
| End of Day Share Price | 2019/12/12 00:00 |
| Earnings | 2019/05/31 |
| Annual Earnings | 2019/05/31 |
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.