Shifa International Hospitals (KASE:SHFA) - Share price, News & Analysis

Q: What is the Fair Price of SHFA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SHFA (PKR182.4) is trading above our estimate of [[fair value]] (PKR21.77)

SHFA fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	5/6
Financial Health	5/6
Dividends	0/6

SHFA Stock Overview

Shifa International Hospitals Limited establishes and runs medical centers and hospitals in Pakistan.

Rewards

Price-To-Earnings ratio (9.6x) is below the Healthcare industry average (18.6x)

Earnings grew by 7016.3% over the past year

Risk Analysis

Does not have a meaningful market cap (PKR12B)

Shifa International Hospitals Competitors

IBL HealthCare

KASE:IBLHL

PK₨3.0b

Alexandria New Medical Center

CASE:AMES

ج.م1.1b

Nozha International Hospital

CASE:NINH

ج.م791.0m

Radius Residential Care

NZSE:RAD

NZ$98.3m

Price History & Performance

Summary of all time highs, changes and price drops for Shifa International Hospitals
Historical stock prices
Current Share Price	PK₨182.40
52 Week High	PK₨215.69
52 Week Low	PK₨165.66
Beta	0.95
1 Month Change	1.33%
3 Month Change	1.84%
1 Year Change	-16.94%
3 Year Change	-3.41%
5 Year Change	-41.86%
Change since IPO	3,053.36%

Shareholder Returns

	SHFA	PK Healthcare	PK Market
7D	4.2%	0.9%	3.7%
1Y	-16.9%	-21.2%	-16.3%

Return vs Industry: SHFA exceeded the PK Healthcare industry which returned -21.8% over the past year.

Return vs Market: SHFA matched the PK Market which returned -16.2% over the past year.

Price Volatility

Is SHFA's price volatile compared to industry and market?
SHFA volatility
SHFA Average Weekly Movement	2.2%
Healthcare Industry Average Movement	5.2%
Market Average Movement	5.4%
10% most volatile stocks in PK Market	8.0%
10% least volatile stocks in PK Market	3.4%

Stable Share Price: SHFA is less volatile than 75% of PK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SHFA's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	5,047	Manzoor ul Qazi	https://www.shifa.com.pk

Shifa International Hospitals Limited establishes and runs medical centers and hospitals in Pakistan. The company offers medical, surgical, clinical, and lab services for referred inpatients and outpatients. It also operates pharmacies and lab collection points; and provides cafeteria services.

Shifa International Hospitals Fundamentals Summary

How do Shifa International Hospitals's earnings and revenue compare to its market cap?
SHFA fundamental statistics
Market Cap	PK₨11.53b
Earnings (TTM)	PK₨1.20b
Revenue (TTM)	PK₨15.76b

9.6x

P/E Ratio

0.7x

P/S Ratio

Is SHFA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SHFA income statement (TTM)
Revenue	PK₨15.76b
Cost of Revenue	PK₨12.71b
Gross Profit	PK₨3.05b
Other Expenses	PK₨1.85b
Earnings	PK₨1.20b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	19.05
Gross Margin	19.35%
Net Profit Margin	7.64%
Debt/Equity Ratio	35.3%

How did SHFA perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

n/a

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SHFA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SHFA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SHFA. This is calculated by dividing SHFA's market cap by their current preferred multiple.
What is SHFA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	PK₨11.53b

SHFA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does SHFA's PE Ratio compare to its peers?

SHFA PE Ratio vs Peers

The above table shows the PE ratio for SHFA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	25.3x
IBLHL IBL HealthCare	8.7x	n/a	PK₨3.0b
AMES Alexandria New Medical Center	43.1x	n/a	ج.م1.1b
NINH Nozha International Hospital	12.4x	n/a	ج.م791.0m
RAD Radius Residential Care	37.3x	n/a	NZ$98.3m
SHFA Shifa International Hospitals	9.6x	n/a	PK₨11.5b

Price-To-Earnings vs Peers: SHFA is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (25.3x).

Price to Earnings Ratio vs Industry

How does SHFA's PE Ratio compare vs other companies in the Asian Healthcare Industry?

Price-To-Earnings vs Industry: SHFA is good value based on its Price-To-Earnings Ratio (9.6x) compared to the Asian Healthcare industry average (18.6x)

Price to Earnings Ratio vs Fair Ratio

What is SHFA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SHFA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SHFA's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of SHFA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SHFA (PKR182.4) is trading above our estimate of fair value (PKR21.77)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Future Growth

How is Shifa International Hospitals forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.8%

Forecasted Healthcare industry annual growth in earnings

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SHFA's forecast earnings growth is above the savings rate (10.5%).

Earnings vs Market: Insufficient data to determine if SHFA's earnings are forecast to grow faster than the PK market

High Growth Earnings: Insufficient data to determine if SHFA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if SHFA's revenue is forecast to grow faster than the PK market.

High Growth Revenue: Insufficient data to determine if SHFA's revenue is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if SHFA's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Shifa International Hospitals performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

4.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SHFA has high quality earnings.

Growing Profit Margin: SHFA's current net profit margins (7.6%) are higher than last year (0.1%).

Past Earnings Growth Analysis

Earnings Trend: SHFA's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: SHFA's earnings growth over the past year (7016.3%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: SHFA earnings growth over the past year (7016.3%) exceeded the Healthcare industry 25.5%.

Return on Equity

High ROE: SHFA's Return on Equity (11.4%) is considered low.

Discover strong past performing companies

Financial Health

How is Shifa International Hospitals's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SHFA's short term assets (PKR7.3B) exceed its short term liabilities (PKR5.0B).

Long Term Liabilities: SHFA's short term assets (PKR7.3B) exceed its long term liabilities (PKR2.4B).

Debt to Equity History and Analysis

Debt Level: SHFA has more cash than its total debt.

Reducing Debt: SHFA's debt to equity ratio has increased from 14% to 35.3% over the past 5 years.

Debt Coverage: SHFA's debt is well covered by operating cash flow (40%).

Interest Coverage: SHFA's interest payments on its debt are well covered by EBIT (6.4x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Shifa International Hospitals's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.64%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SHFA's dividend (1.64%) isn’t notable compared to the bottom 25% of dividend payers in the PK market (3.8%).

High Dividend: SHFA's dividend (1.64%) is low compared to the top 25% of dividend payers in the PK market (10.99%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: SHFA is not paying a notable dividend for the PK market.

Discover strong dividend paying companies

Management

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

7.3yrs

Average board tenure

CEO

Manzoor ul Qazi

10.83yrs

Tenure

Dr. Manzoor ul Haq Qazi has been the Chief Executive Officer of Shifa International Hospitals Limited since October 10, 2011 and served as its President since October 7, 2011. Dr. Qazi served as Medical Di...

Board Members

Experienced Board: SHFA's board of directors are considered experienced (7.3 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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/09 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30