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

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

M (RON19.56) is trading below our estimate of [[fair value]] (RON54.53)

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

M Stock Overview

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

Rewards

Trading at 64.1% below our estimate of its fair value

Revenue is forecast to grow 6.29% per year

Earnings have grown 65.5% per year over the past 5 years

Risk Analysis

Has a high level of debt

Med Life Competitors

Integral Diagnostics

ASX:IDX

AU$778.3m

Elan

TSE:6099

JP¥69.8b

Instituto Hermes Pardini

BOVESPA:PARD3

R$2.5b

Vijaya Diagnostic Centre

NSEI:VIJAYA

₹38.8b

Price History & Performance

Summary of all time highs, changes and price drops for Med Life
Historical stock prices
Current Share Price	RON19.56
52 Week High	RON26.00
52 Week Low	RON15.70
Beta	0.90
1 Month Change	0.83%
3 Month Change	8.67%
1 Year Change	17.83%
3 Year Change	264.47%
5 Year Change	220.66%
Change since IPO	351.39%

Recent News & Updates

May 05

Returns Are Gaining Momentum At Med Life (BVB:M)

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

Shareholder Returns

	M	RO Healthcare	RO Market
7D	1.5%	-0.1%	0.4%
1Y	17.8%	-31.1%	9.5%

Return vs Industry: M exceeded the RO Healthcare industry which returned -31.1% over the past year.

Return vs Market: M exceeded the RO Market which returned 9.5% over the past year.

Price Volatility

Is M's price volatile compared to industry and market?
M volatility
M Average Weekly Movement	3.6%
Healthcare Industry Average Movement	4.7%
Market Average Movement	3.8%
10% most volatile stocks in RO Market	6.6%
10% least volatile stocks in RO Market	2.7%

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	5,093	Mihail Marcu	https://www.medlife.ro

Med Life S.A. operates as a private healthcare provider in Romania. Its Corporate business line offers health prevention packages to corporate clients, which cover regular check-ups and access to diagnostic services. The company's Clinics business line provides services through hyper clinics for clinical examinations and imaging services, as well as clinics that offer a range of treatments from general practitioner services to specialists.

Med Life Fundamentals Summary

How do Med Life's earnings and revenue compare to its market cap?
M fundamental statistics
Market Cap	RON2.57b
Earnings (TTM)	RON97.92m
Revenue (TTM)	RON1.52b

26.3x

P/E Ratio

1.7x

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	RON1.52b
Cost of Revenue	RON736.40m
Gross Profit	RON783.29m
Other Expenses	RON685.36m
Earnings	RON97.92m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 26, 2022

Earnings per share (EPS)	0.74
Gross Margin	51.54%
Net Profit Margin	6.44%
Debt/Equity Ratio	148.0%

How did M perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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 M?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for M. This is calculated by dividing M's market cap by their current preferred multiple.
What is M's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RON2.57b

M 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	2.2x
Enterprise Value/EBITDA	14.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

M PE Ratio vs Peers

The above table shows the PE ratio for M vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	23.2x
IDX Integral Diagnostics	36.1x	25.0%	AU$778.3m
6099 Elan	34.5x	15.1%	JP¥69.8b
PARD3 Instituto Hermes Pardini	10.9x	0.7%	R$2.5b
VIJAYA Vijaya Diagnostic Centre	35.3x	10.1%	₹38.8b
M Med Life	26.3x	n/a	RON2.6b

Price-To-Earnings vs Peers: M is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the peer average (23.2x).

Price to Earnings Ratio vs Industry

How does M's PE Ratio compare vs other companies in the European Healthcare Industry?

Price-To-Earnings vs Industry: M is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the European Healthcare industry average (15.8x)

Price to Earnings Ratio vs Fair Ratio

What is M'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.

M PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	26.3x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: M (RON19.56) is trading below our estimate of fair value (RON54.53)

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

Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is Med Life forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

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

6.3%

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 (1.1%).

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 M's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: M's revenue (6.3% per year) is forecast to grow faster than the RO market (4.2% per year).

High Growth Revenue: M's revenue (6.3% 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 (29%)

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Past Performance

How has Med Life performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

65.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: M has high quality earnings.

Growing Profit Margin: M's current net profit margins (6.4%) are lower than last year (7.2%).

Past Earnings Growth Analysis

Earnings Trend: M has become profitable over the past 5 years, growing earnings by 65.5% per year.

Accelerating Growth: M's earnings growth over the past year (17.6%) is below its 5-year average (65.5% per year).

Earnings vs Industry: M earnings growth over the past year (17.6%) underperformed the Healthcare industry 26.6%.

Return on Equity

High ROE: Whilst M's Return on Equity (25.48%) is high, this metric is skewed due to their high level of debt.

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Financial Health

How is Med Life's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: M's short term assets (RON436.7M) do not cover its short term liabilities (RON478.2M).

Long Term Liabilities: M's short term assets (RON436.7M) do not cover its long term liabilities (RON711.6M).

Debt to Equity History and Analysis

Debt Level: M's net debt to equity ratio (113.1%) is considered high.

Reducing Debt: M's debt to equity ratio has reduced from 238.3% to 148% over the past 5 years.

Debt Coverage: M's debt is well covered by operating cash flow (33.8%).

Interest Coverage: M's interest payments on its debt are well covered by EBIT (5.7x coverage).

Balance Sheet

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Dividend

What is Med Life 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

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.

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: Unable to calculate sustainability of dividends as M has not reported any payouts.

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Management

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

5.7yrs

Average management tenure

CEO

Mihail Marcu (52 yo)

5.67yrs

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 seasoned and experienced (5.7 years average tenure).

Board Members

Experienced Board: M's board of directors are seasoned and experienced ( 14.6 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	2022/08/06 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31