NZSE:RYM

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 20.28% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results



Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


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


Market Performance


7 Day Return

1.0%

RYM

1.5%

NZ Healthcare

0.3%

NZ Market


1 Year Return

50.8%

RYM

32.7%

NZ Healthcare

21.9%

NZ Market

Return vs Industry: RYM exceeded the NZ Healthcare industry which returned 32.7% over the past year.

Return vs Market: RYM exceeded the NZ Market which returned 21.9% over the past year.


Shareholder returns

RYMIndustryMarket
7 Day1.0%1.5%0.3%
30 Day3.8%0.8%-0.2%
90 Day19.7%14.2%7.2%
1 Year53.5%50.8%36.4%32.7%26.9%21.9%
3 Year103.3%92.1%73.2%60.0%60.1%39.2%
5 Year133.2%112.5%135.9%109.1%98.3%54.2%

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?

24.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RYM (NZ$17.04) is trading above our estimate of fair value (NZ$6.54)

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


Price To Earnings Ratio

PE vs Industry: RYM is poor value based on its PE Ratio (24.7x) compared to the Healthcare industry average (24.4x).

PE vs Market: RYM is poor value based on its PE Ratio (24.7x) compared to the NZ market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: RYM is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: RYM is overvalued based on its PB Ratio (3.7x) compared to the NZ Healthcare industry average (1.2x).


Next Steps

Future Growth

How is Ryman Healthcare forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RYM's forecast earnings growth (20.3% per year) is above the savings rate (1.3%).

Earnings vs Market: RYM's earnings (20.3% per year) are forecast to grow faster than the NZ market (6.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RYM's revenue (11.3% per year) is forecast to grow faster than the NZ market (5.1% 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 (12.1%).


Next Steps

Past Performance

How has Ryman Healthcare performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RYM has a large one-off gain of NZ$317.5M impacting its September 30 2019 financial results.

Growing Profit Margin: RYM's current net profit margins (85.7%) are lower than last year (97.5%).


Past Earnings Growth Analysis

Earnings Trend: RYM's earnings have grown by 7.8% 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 (-2.9%) over the past year, making it difficult to compare to the Healthcare industry average (-2.9%).


Return on Equity

High ROE: RYM's Return on Equity (15%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ryman Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: RYM's short term assets (NZ$343.8M) exceed its short term liabilities (NZ$184.4M).

Long Term Liabilities: RYM's short term assets (NZ$343.8M) do not cover its long term liabilities (NZ$4.8B).


Debt to Equity History and Analysis

Debt Level: RYM's debt to equity ratio (66.5%) is considered high.

Reducing Debt: RYM's debt to equity ratio has increased from 39.1% to 66.5% over the past 5 years.

Debt Coverage: RYM's debt is well covered by operating cash flow (28.8%).

Interest Coverage: RYM's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

1.33%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%2.9%markettop25%5.5%industryaverage1.9%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: RYM's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (2.87%).

High Dividend: RYM's dividend (1.33%) is low compared to the top 25% of dividend payers in the NZ market (5.53%).


Stability and Growth of Payments

Stable Dividend: RYM is not paying a notable dividend for the NZ market, therefore no need to check if payments are stable.

Growing Dividend: RYM is not paying a notable dividend for the NZ market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RYM is not paying a notable dividend for the NZ market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RYM's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Gordon MacLeod 0

2.6yrs

Tenure

NZ$1,228,753

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 ($USD785.30K) is below average for companies of similar size in the NZ market ($USD1.18M).

Compensation vs Earnings: Gordon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gordon MacLeod
CEO & Secretary2.6yrsNZ$1.23m0.13% NZ$11.3m
David Bennett
Chief Financial Officer2.7yrsno data0.026% NZ$2.2m
Cheyne Chalmers
Chief Operations Officer0.08yrsno datano data
Nicole Forster
Chief People & Technology Officer0yrsno data0.022% NZ$1.8m
Debbie Versey McClure
Chief Sales & Marketing Officer3.2yrsno data0.055% NZ$4.7m
Tom Brownrigg
Chief Construction Officer0yrsno data0.068% NZ$5.8m
Jeremy Moore
Chief Development Officer0.08yrsno data0.014% NZ$1.2m
Mary-Anne Stone
Head of Research & New Opportunities0.08yrsno datano data

1.3yrs

Average Tenure

Experienced Management: RYM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Kerr
Independent Chairman of the Board21.1yrsNZ$217.00k0.070% NZ$5.9m
Simon Challies
Advisor to the Board2.8yrsNZ$2.73mno data
George Savvides
Independent Non-Executive Director7.1yrsNZ$136.01k0.011% NZ$921.1k
Warren Bell
Deputy Chairman0yrsNZ$125.50k0.00030% NZ$25.4k
Jo Appleyard
Independent Non-Executive Director11.1yrsNZ$108.00k0.016% NZ$1.3m
Claire Higgins
Independent Non-Executive Director5.4yrsNZ$136.01k0.0025% NZ$215.4k
Paula Jeffs
Independent Director0.3yrsno datano data
Anthony Leighs
Independent Director1.3yrsNZ$62.75k0.0020% NZ$170.5k
Geoffrey Cumming
Director1.7yrsNZ$90.83kno data

4.1yrs

Average Tenure

Experienced Board: RYM's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RYM insiders have bought more shares than they have sold 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$8.481b
  • Shares outstanding: 497.74m
  • 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 and care options, such as independent townhouses and apartments, and serviced apartments, as well as a care center, which provides rest homes, hospitals, and dementia level care. The company’s villages also offer lounges and bar, indoor swimming pool and spa, gym, beauty salon, bowling green, library, Internet café, movie theatre, and other facilities. It owns and operates 36 retirement villages and serves 11,000 residents. The company was founded in 1984 and is based in Christchurch, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 10:35
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.