Med Life (BVB:M) - Share price, News & Analysis

M fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	5/6
Financial Health	3/6
Dividends	0/6

M Overview

Med Life S.A. operates as a private healthcare provider in Romania.

Rewards

Trading at 51.5% below our estimate of its fair value

Revenue is forecast to grow 8.1% per year

Earnings grew by 607.3% over the past year

Risk Analysis

Has a high level of debt

Med Life Competitors

Medicover

OM:MCOV B

kr37.5b

Price History & Performance

Summary of all time highs, changes and price drops for Med Life
Historical stock prices
Current Share Price	RON19.85
52 Week High	RON6.33
52 Week Low	RON20.20
Beta	0.84
1 Month Change	16.08%
3 Month Change	16.42%
1 Year Change	211.78%
3 Year Change	341.11%
5 Year Change	n/a
Change since IPO	358.08%

Recent News & Updates

Aug 31

Does Med Life (BVB:M) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Jun 10

Med Life's (BVB:M) Returns On Capital Are Heading Higher

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

May 26

Here's Why We Think Med Life (BVB:M) Is Well Worth Watching

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	M	RO Healthcare	RO Market
7D	-0.5%	0.9%	-0.7%
1Y	211.8%	9.6%	42.4%

Return vs Industry: M exceeded the RO Healthcare industry which returned 9.6% over the past year.

Return vs Market: M exceeded the RO Market which returned 42.4% over the past year.

Price Volatility

Is M's price volatile compared to industry and market?
M volatility
M Beta	0.84
Industry Beta	0.97
Market Beta	1

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

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

About the Company

Founded	Employees	CEO	Website
1996	4,658	Mihail Marcu	https://www.medlife.ro

Med Life S.A. operates as a private healthcare provider in Romania. It operates through six business lines: Corporate, Clinics, Laboratories, Hospitals, Pharmacies, and Stomatology. The Corporate business line offers health prevention packages to corporate clients, which cover regular check-ups and access to diagnostic services.

Med Life Fundamentals Summary

How do Med Life's earnings and revenue compare to its market cap?
M fundamental statistics
Market Cap	RON2.61b
Earnings (TTM)	RON110.95m
Revenue (TTM)	RON1.30b

23.5x

P/E Ratio

2.0x

P/S Ratio

Is M overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
M income statement (TTM)
Revenue	RON1.30b
Cost of Revenue	RON539.32m
Gross Profit	RON755.68m
Expenses	RON644.73m
Earnings	RON110.95m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.84
Gross Margin	58.35%
Net Profit Margin	8.57%
Debt/Equity Ratio	149.6%

How did M perform over the long term?

See historical performance and comparison

Valuation

Is Med Life undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: M (RON19.85) is trading below our estimate of fair value (RON40.96)

Significantly Below Fair Value: M is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: M is poor value based on its PE Ratio (23.5x) compared to the European Healthcare industry average (23.2x).

PE vs Market: M is poor value based on its PE Ratio (23.5x) compared to the RO market (14.3x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate M's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: M is overvalued based on its PB Ratio (8.6x) compared to the XE Healthcare industry average (2.3x).

Future Growth

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

8.1%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if M's forecast earnings growth is above the savings rate (1.2%).

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

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

Revenue vs Market: M's revenue (8.1% per year) is forecast to grow faster than the RO market (5.4% per year).

High Growth Revenue: M's revenue (8.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: M's Return on Equity is forecast to be high in 3 years time (23%)

Past Performance

How has Med Life performed over the past 5 years?

76.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: M has high quality earnings.

Growing Profit Margin: M's current net profit margins (8.6%) are higher than last year (1.6%).

Past Earnings Growth Analysis

Earnings Trend: M's earnings have grown significantly by 76% per year over the past 5 years.

Accelerating Growth: M's earnings growth over the past year (607.3%) exceeds its 5-year average (76% per year).

Earnings vs Industry: M earnings growth over the past year (607.3%) exceeded the Healthcare industry 40.8%.

Return on Equity

High ROE: Whilst M's Return on Equity (36.41%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is Med Life's financial position?

Financial Position Analysis

Short Term Liabilities: M's short term assets (RON347.8M) do not cover its short term liabilities (RON355.2M).

Long Term Liabilities: M's short term assets (RON347.8M) do not cover its long term liabilities (RON573.1M).

Debt to Equity History and Analysis

Debt Level: M's debt to equity ratio (149.6%) is considered high.

Reducing Debt: M's debt to equity ratio has reduced from 215.2% to 149.6% over the past 5 years.

Debt Coverage: M's debt is well covered by operating cash flow (33.4%).

Interest Coverage: M's interest payments on its debt are well covered by EBIT (7.6x coverage).

Balance Sheet

Dividend

What is Med Life current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

Notable Dividend: Unable to evaluate M's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate M's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if M's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if M's dividend payments have been increasing.

Current Payout to Shareholders

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

Future Payout to Shareholders

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

Next Steps

Explore strong dividend paying companies in the Healthcare industry.

Management

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

4.8yrs

Average management tenure

CEO

Mihail Marcu (51 yo)

4.83yrs

Tenure

Mr. Mihail Marcu serves as Chief Executive Officer at S.C. Med Life S.A. since December 2016. Mr. Marcu served as the Chief Executive Officer of MedLife between January 2004 until August 2006 and vice pres...

Leadership Team

Experienced Management: M's management team is considered experienced (4.8 years average tenure).

Board Members

Experienced Board: M's board of directors are seasoned and experienced ( 13.8 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	2021/10/16 16:45
End of Day Share Price	2021/10/15 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data