NZSE:OCA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with reasonable 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


Market Performance


7 Day Return

1.0%

NZSE:OCA

-1.3%

NZ Healthcare

-2.9%

NZ Market


1 Year Return

-10.4%

NZSE:OCA

-5.3%

NZ Healthcare

10.6%

NZ Market

OCA underperformed the Healthcare industry which returned -5.3% over the past year.

OCA underperformed the Market in New Zealand which returned 10.6% over the past year.


Share holder returns

OCAIndustryMarket
7 Day1.0%-1.3%-2.9%
30 Day0%1.5%0.7%
90 Day-1.9%9.2%4.7%
1 Year-6.3%-10.4%-2.7%-5.3%15.4%10.6%
3 Yearn/a34.1%23.7%46.6%27.0%
5 Yearn/a101.5%79.7%101.2%55.8%

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 based on future cash flows and its price relative to the stock market?

37%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Oceania Healthcare's share price is below the future cash flow value, and at a moderate discount (> 20%).

Oceania Healthcare's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Oceania Healthcare is good value based on earnings compared to the NZ Healthcare industry average.

Oceania Healthcare is good value based on earnings compared to the New Zealand market.


Price Based on Expected Growth

Oceania Healthcare is good value based on expected growth next year.


Price Based on Value of Assets

Oceania Healthcare is good value based on assets compared to the NZ Healthcare industry average.


Next Steps

Future Growth

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

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Oceania Healthcare's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

Oceania Healthcare's earnings are expected to grow significantly at over 20% yearly.

Oceania Healthcare's revenue growth is expected to exceed the New Zealand market average.

Oceania Healthcare's earnings growth is expected to exceed the New Zealand market average.

Oceania Healthcare's earnings growth is expected to exceed the low risk savings rate of 2.4%.


Earnings per Share Growth Estimates


Future Return on Equity

Oceania Healthcare is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Oceania Healthcare performed over the past 5 years?

26.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Oceania Healthcare has delivered over 20% year on year earnings growth in the past 5 years.

Oceania Healthcare's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Oceania Healthcare's 1-year earnings growth is negative, it can't be compared to the NZ Healthcare industry average.


Return on Equity

Oceania Healthcare has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Oceania Healthcare used its assets less efficiently than the NZ Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Oceania Healthcare's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Oceania Healthcare's financial position?


Financial Position Analysis

Oceania Healthcare's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Oceania Healthcare's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Oceania Healthcare's level of debt (43.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (439.5% vs 43.8% today).

Debt is well covered by operating cash flow (33.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.1x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.97%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Oceania Healthcare's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.07%).

Oceania Healthcare's dividend is below the markets top 25% of dividend payers in New Zealand (5.76%).

Whilst dividend payments have been stable, Oceania Healthcare has been paying a dividend for less than 10 years.

Dividend payments have increased, but Oceania Healthcare only paid a dividend in the past 2 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

What is the CEO of Oceania Healthcare's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average board tenure


CEO

Earl Gasparich 0

5.7yrs

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

Earl's remuneration is about average for companies of similar size in New Zealand.

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

2.8yrs

Average Tenure

The average tenure for the Oceania Healthcare board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Oceania Healthcare individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyNZ$20,40011 Sep 19
Alan Isaac
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceNZ$1.02
BuyNZ$553,54518 Aug 19
Tomlinson Group Investments Limited
EntityCompany
Shares542,692
Max PriceNZ$1.02
BuyNZ$819,99911 Aug 19
Tomlinson Group Investments Limited
EntityCompany
Shares800,000
Max PriceNZ$1.02
BuyNZ$51,10015 Apr 19
Elizabeth Coutts
EntityIndividual
Role
Chairman of the Board
Chairperson
Shares50,000
Max PriceNZ$1.02
BuyNZ$41,60013 Mar 19
Alan Isaac
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares40,000
Max PriceNZ$1.04
BuyNZ$22,00010 Mar 19
Sally Evans
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceNZ$1.10

Ownership Breakdown


Management Team

  • Matthew Ward

    Chief Financial Officer

    • Tenure: 10.7yrs
  • Earl Gasparich

    Chief Executive Officer

    • Tenure: 5.7yrs
    • 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)

    Chairperson

    • Tenure: 4.8yrs
    • Compensation: NZ$180.00k
  • Patrick McCawe

    Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: NZ$90.00k
  • Alan Isaac

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: NZ$110.00k
  • Dame Kerry Prendergast

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: NZ$105.00k
  • Greg Tomlinson

    Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: NZ$90.00k
  • Hugh FitzSimons

    Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: NZ$90.00k
  • Sally Evans (60yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • 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$621.550m
  • Shares outstanding: 609.36m
  • 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 provid ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 10:40
End of Day Share Price2019/09/13 00:00
Earnings2019/05/31
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.