NZSE:RYM

Stock Analysis Report

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Executive Summary

Ryman Healthcare Limited develops, owns, and operates integrated retirement villages, rest homes, and hospitals for the elderly in New Zealand and Australia. More Details


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Ryman Healthcare's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RYM is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RYM's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

RYM

-1.8%

NZ Healthcare

-2.9%

NZ Market


1 Year Return

-7.6%

RYM

3.3%

NZ Healthcare

6.1%

NZ Market

Return vs Industry: RYM underperformed the NZ Healthcare industry which returned 3.3% over the past year.

Return vs Market: RYM underperformed the NZ Market which returned 6.1% over the past year.


Shareholder returns

RYMIndustryMarket
7 Day1.3%-1.8%-2.9%
30 Day3.7%0.5%2.0%
90 Day4.8%6.3%5.7%
1 Year-6.1%-7.6%5.6%3.3%10.0%6.1%
3 Year46.4%39.0%59.5%47.7%50.9%30.9%
5 Year110.0%91.8%130.5%103.1%105.3%55.4%

Long-Term Price Volatility Vs. Market

How volatile is Ryman Healthcare's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

26.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RYM (NZ$15.25) is trading above our estimate of fair value (NZ$6.55)

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


Price To Earnings Ratio

PE vs Industry: RYM is good value based on its PE Ratio (26.4x) compared to the XO Healthcare industry average (31.4x).

PE vs Market: RYM is poor value based on its PE Ratio (26.4x) compared to the NZ market (25.1x).


Price to Earnings Growth Ratio

PEG Ratio: RYM is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: RYM is overvalued based on its PB Ratio (3.1x) compared to the NZ Healthcare industry average (2.4x).


Next Steps

Future Growth

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

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RYM's forecast earnings growth (12% per year) is above the savings rate (2.3%).

Earnings vs Market: RYM's earnings (12% per year) are forecast to grow faster than the NZ market (11.9% per year).

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

Revenue vs Market: RYM's revenue (11.3% per year) is forecast to grow faster than the NZ market (5% per year).

High Growth Revenue: RYM's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RYM's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Ryman Healthcare performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RYM has a large one-off gain of NZ$165.5M impacting its September 30 2020 financial results.

Growing Profit Margin: RYM's current net profit margins (66%) are lower than last year (85.5%).


Past Earnings Growth Analysis

Earnings Trend: RYM's earnings have declined by 1.3% per year over the past 5 years.

Accelerating Growth: RYM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RYM had negative earnings growth (-16.1%) over the past year, making it difficult to compare to the Healthcare industry average (-16.1%).


Return on Equity

High ROE: RYM's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Ryman Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: RYM's short term assets (NZ$514.2M) exceed its short term liabilities (NZ$234.4M).

Long Term Liabilities: RYM's short term assets (NZ$514.2M) do not cover its long term liabilities (NZ$5.6B).


Debt to Equity History and Analysis

Debt Level: RYM's debt to equity ratio (87.7%) is considered high.

Reducing Debt: RYM's debt to equity ratio has increased from 42.2% to 87.7% over the past 5 years.

Debt Coverage: RYM's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: RYM's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RYM's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (2.39%).

High Dividend: RYM's dividend (1.59%) is low compared to the top 25% of dividend payers in the NZ market (4.11%).


Stability and Growth of Payments

Stable Dividend: RYM's dividends per share have been stable in the past 10 years.

Growing Dividend: RYM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.2%), RYM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RYM's dividends in 3 years are forecast to be covered by earnings (50% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Gordon MacLeod

3.5yrs

Tenure

NZ$1,356,641

Compensation

Mr. Gordon MacLeod has been the Chief Executive Officer since July 1, 2017 of Ryman Healthcare Limited since October 26, 2006 and serves as its Secretary and served as its Deputy Chief Executive and Chief ...


CEO Compensation Analysis

Compensation vs Market: Gordon's total compensation ($USD964.41K) is about average for companies of similar size in the NZ market ($USD1.20M).

Compensation vs Earnings: Gordon's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gordon MacLeod
CEO & Secretary3.5yrsNZ$1.36m0.14%
NZ$ 10.0m
David Bennett
Chief Financial Officer3.58yrsno data0.031%
NZ$ 2.3m
Cheyne Chalmers
Chief Operations Officer1yrno data0.0085%
NZ$ 622.7k
Rick Davies
Head of Technology & Innovation0.25yrno datano data
Michelle Perkins
Investor Relations Managerno datano datano data
Mary-Anne Stone
Acting Chief of Sales & Marketing Officer1yrno data0.0048%
NZ$ 349.9k
Andrew Crerar
Head of People & Culture0.25yrno datano data
Jeremy Moore
Chief Development Officer1yrno data0.018%
NZ$ 1.3m
David King
Corporate Affairs Managerno datano datano data

1.0yrs

Average Tenure

Experienced Management: RYM's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Kerr
Independent Chairman of the Board22yrsNZ$222.00k0.072%
NZ$ 5.3m
Simon Challies
Advisor to the Board3.67yrsNZ$2.73mno data
George Savvides
Independent Non-Executive Director8yrsNZ$136.25k0.011%
NZ$ 796.6k
Warren Bell
Independent Deputy Chairmanno dataNZ$128.50k0.00030%
NZ$ 22.0k
Jo Appleyard
Independent Non-Executive Director12yrsNZ$110.50k0.016%
NZ$ 1.2m
Claire Higgins
Independent Non-Executive Director6.33yrsNZ$136.25k0.0031%
NZ$ 227.4k
Paula Jeffs
Independent Director1.17yrsNZ$38.68kno data
Anthony Leighs
Independent Director2.25yrsNZ$128.50k0.0020%
NZ$ 147.4k
Geoffrey Cumming
Director2.58yrsNZ$110.50kno data

5.0yrs

Average Tenure

Experienced Board: RYM's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RYM 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

Ryman Healthcare Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ryman Healthcare Limited
  • Ticker: RYM
  • Exchange: NZSE
  • Founded: 1984
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: NZ$7.335b
  • Shares outstanding: 497.29m
  • Website: https://www.rymanhealthcare.co.nz

Number of Employees


Location

  • Ryman Healthcare Limited
  • Airport Business Park
  • 92 Russley Road
  • Christchurch
  • 8042
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RYMNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJun 1999
RHCG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1999
RH7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1999
RYHT.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2011

Biography

Ryman Healthcare Limited develops, owns, and operates integrated retirement villages, rest homes, and hospitals for the elderly in New Zealand and Australia. Its villages offer a range of retirement living...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 06:02
End of Day Share Price2021/01/20 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.