NZSE:SUM

Stock Analysis Report

Summerset Group Holdings

Executive Summary

Summerset Group Holdings Limited, together with its subsidiaries, builds, owns, and operates integrated retirement villages in New Zealand.


Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

How has Summerset Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SUM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

SUM

0.5%

NZ Healthcare

0.1%

NZ Market


1 Year Return

46.2%

SUM

34.2%

NZ Healthcare

22.3%

NZ Market

Return vs Industry: SUM exceeded the NZ Healthcare industry which returned 34.2% over the past year.

Return vs Market: SUM exceeded the NZ Market which returned 22.3% over the past year.


Shareholder returns

SUMIndustryMarket
7 Day1.1%0.5%0.1%
30 Day3.1%1.4%0.7%
90 Day26.3%15.4%8.0%
1 Year49.4%46.2%37.9%34.2%27.3%22.3%
3 Year92.3%81.4%73.5%60.3%61.5%40.5%
5 Year189.7%166.9%134.8%108.0%96.6%52.7%

Price Volatility Vs. Market

How volatile is Summerset Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Summerset Group Holdings undervalued compared to its fair value and its price relative to the market?

9.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUM (NZ$9.18) is trading above our estimate of fair value (NZ$3.75)

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


Price To Earnings Ratio

PE vs Industry: SUM is good value based on its PE Ratio (9.7x) compared to the Healthcare industry average (24.7x).

PE vs Market: SUM is good value based on its PE Ratio (9.7x) compared to the NZ market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: SUM is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: SUM is overvalued based on its PB Ratio (1.9x) compared to the NZ Healthcare industry average (1.2x).


Next Steps

Future Growth

How is Summerset Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUM's forecast earnings growth (12.3% per year) is above the savings rate (1.3%).

Earnings vs Market: SUM's earnings (12.3% per year) are forecast to grow faster than the NZ market (6.4% per year).

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

Revenue vs Market: SUM's revenue (13.4% per year) is forecast to grow faster than the NZ market (5.1% per year).

High Growth Revenue: SUM's revenue (13.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUM's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Summerset Group Holdings performed over the past 5 years?

31.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUM has a large one-off gain of NZ$202.9M impacting its June 30 2019 financial results.

Growing Profit Margin: SUM's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: SUM's earnings have grown significantly by 31.1% per year over the past 5 years.

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

Earnings vs Industry: SUM had negative earnings growth (-14.4%) over the past year, making it difficult to compare to the Healthcare industry average (-2.9%).


Return on Equity

High ROE: SUM's Return on Equity (20%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Summerset Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SUM's short term assets (NZ$52.8M) do not cover its short term liabilities (NZ$140.9M).

Long Term Liabilities: SUM's short term assets (NZ$52.8M) do not cover its long term liabilities (NZ$1.8B).


Debt to Equity History and Analysis

Debt Level: SUM's debt to equity ratio (49.6%) is considered high.

Reducing Debt: SUM's debt to equity ratio has increased from 44.6% to 49.6% over the past 5 years.

Debt Coverage: SUM's debt is well covered by operating cash flow (41.7%).

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


Balance Sheet

Inventory Level: SUM has a low level of unsold assets or inventory.

Debt Coverage by Assets: SUM's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Summerset Group Holdings's current dividend yield, its reliability and sustainability?

1.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SUM's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (2.85%).

High Dividend: SUM's dividend (1.44%) is low compared to the top 25% of dividend payers in the NZ market (5.59%).


Stability and Growth of Payments

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

Growing Dividend: SUM 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: SUM is not paying a notable dividend for the NZ market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SUM'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?

3.3yrs

Average management tenure


CEO

Julian Cook 0

5.8yrs

Tenure

Mr. Julian Cook has been Chief Executive Officer of Summerset Group Holdings Limited since April 7, 2014. Mr. Cook served as Chief Financial Officer of Summerset Group Holdings Limited from 2010 to April 2 ...


Leadership Team

NamePositionTenureCompensationOwnership
Julian Cook
Chief Executive Officer5.8yrsno data1% NZ$20.6m
John O'Sullivan
0yrsno datano data
Scott Scoullar
Deputy CEO & CFO5.9yrsno data0.20% NZ$4.1m
Eleanor Young
General Manager of Operations & Customer Experience4.1yrsno datano data
Robyn Heyman
Head of Legal & Company Secretary0.5yrsno datano data
Jenny Bridgen
Communications Manager0yrsno datano data
Fay French
General Manager of Sales2.5yrsno datano data
David Clegg
General Manager of Human Resources1.1yrsno datano data

3.3yrs

Average Tenure

Experienced Management: SUM's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Ogden
Non-Executive Independent Director9yrsNZ$101.75k0.17% NZ$3.6m
Anne Urlwin
Non-Executive Independent Director5.9yrsNZ$94.25k0.012% NZ$238.8k
Gráinne Troute
Non-Executive Independent Director3.4yrsNZ$89.00k0.011% NZ$229.6k
Marie Bismark
Non-Executive Independent Director6.4yrsNZ$89.00k0.010% NZ$214.8k
Robert Campbell
Independent Chairman0yrsNZ$171.75kno data
Andrew Wong
Non-Executive Independent Director2.9yrsNZ$81.50k0.0047% NZ$96.4k
Venasio-Lorenzo Crawley
Non-Executive Independent Director0yrsno datano data

5.9yrs

Average Tenure

Experienced Board: SUM's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Summerset Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Summerset Group Holdings Limited
  • Ticker: SUM
  • Exchange: NZSE
  • Founded: 1994
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: NZ$2.055b
  • Shares outstanding: 223.90m
  • Website: https://www.summerset.co.nz

Number of Employees


Location

  • Summerset Group Holdings Limited
  • Majestic Centre
  • Level 27
  • Wellington
  • 6011
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUMNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDNov 2011
SNZASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2011
SNZCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2011
SMGR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2011

Biography

Summerset Group Holdings Limited, together with its subsidiaries, builds, owns, and operates integrated retirement villages in New Zealand. It provides various independent living options, including villas, townhouses, apartments, and serviced apartments. The company also offers one-off, supported living, premium care, rest home care, hospital care, memory care, and respite and short term care services. It develops and operates 25 retirement villages; and provides living options and care services to approximately 5,000 residents. The company was founded in 1994 and is headquartered in Wellington, New Zealand. Summerset Group Holdings Limited is a subsidiary of New Zealand Central Securities Depository Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 10:39
End of Day Share Price2020/02/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.