Raffles Medical Group (SGX:BSL) - Share price, News & Analysis

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

BSL (SGD1.13) is trading below our estimate of [[fair value]] (SGD1.42)

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

BSL Stock Overview

Raffles Medical Group Ltd provides integrated private healthcare services primarily in Singapore, Greater China, Vietnam, Cambodia, and Japan.

Rewards

Trading at 20.6% below our estimate of its fair value

Earnings grew by 27.7% over the past year

Risk Analysis

No risks detected for BSL from our risk checks.

Raffles Medical Group Competitors

Thomson Medical Group

SGX:A50

S$2.1b

ISEC Healthcare

Catalist:40T

S$171.7m

OUE Lippo Healthcare

Catalist:5WA

S$146.6m

Econ Healthcare (Asia)

Catalist:EHG

S$63.0m

Price History & Performance

Summary of all time highs, changes and price drops for Raffles Medical Group
Historical stock prices
Current Share Price	S$1.13
52 Week High	S$1.58
52 Week Low	S$1.10
Beta	0.78
1 Month Change	-1.74%
3 Month Change	-2.59%
1 Year Change	-0.88%
3 Year Change	8.65%
5 Year Change	-14.39%
Change since IPO	624.10%

Recent News & Updates

Jun 01

Raffles Medical Group (SGX:BSL) Has Some Way To Go To Become A Multi-Bagger

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst...

Shareholder Returns

	BSL	SG Healthcare	SG Market
7D	0.9%	-0.2%	0.4%
1Y	-0.9%	-8.2%	-1.8%

Return vs Industry: BSL exceeded the SG Healthcare industry which returned -8.4% over the past year.

Return vs Market: BSL exceeded the SG Market which returned -3.4% over the past year.

Price Volatility

Is BSL's price volatile compared to industry and market?
BSL volatility
BSL Average Weekly Movement	3.1%
Healthcare Industry Average Movement	4.8%
Market Average Movement	4.9%
10% most volatile stocks in SG Market	11.8%
10% least volatile stocks in SG Market	2.3%

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

Volatility Over Time: BSL's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1976	2,700	Choon Yong Loo	https://www.rafflesmedicalgroup.com

Raffles Medical Group Ltd provides integrated private healthcare services primarily in Singapore, Greater China, Vietnam, Cambodia, and Japan. The company operates through Healthcare Services, Hospital Services, and Investment Holdings segments. Its flagship hospital is the Raffles Hospital, a tertiary care hospital that offers cancer, children and women care, Chinese medicine, counselling, dental, dialysis, diabetes and endocrinology, ear, nose, throat, eye, fertility, heart, internal medicine, neuroscience, pain management, rehabilitation, orthopedic, skin and aesthetics, surgery, nuclear medicine, and urology services.

Raffles Medical Group Fundamentals Summary

How do Raffles Medical Group's earnings and revenue compare to its market cap?
BSL fundamental statistics
Market Cap	S$2.09b
Earnings (TTM)	S$84.17m
Revenue (TTM)	S$723.79m

24.9x

P/E Ratio

2.9x

P/S Ratio

Is BSL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BSL income statement (TTM)
Revenue	S$723.79m
Cost of Revenue	S$530.24m
Gross Profit	S$193.55m
Other Expenses	S$109.38m
Earnings	S$84.17m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.045
Gross Margin	26.74%
Net Profit Margin	11.63%
Debt/Equity Ratio	21.5%

How did BSL perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

40%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BSL 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
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BSL. This is calculated by dividing BSL's market cap by their current preferred multiple.
What is BSL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S$2.09b

BSL 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	2.9x
Enterprise Value/EBITDA	14.3x
PEG Ratio	39.5x

Price to Earnings Ratio vs Peers

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

BSL PE Ratio vs Peers

The above table shows the PE ratio for BSL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	79.1x
A50 Thomson Medical Group	112.9x	n/a	S$2.1b
40T ISEC Healthcare	22x	n/a	S$171.7m
5WA OUE Lippo Healthcare	1.3x	n/a	S$146.6m
EHG Econ Healthcare (Asia)	180.1x	68.7%	S$63.0m
BSL Raffles Medical Group	24.9x	0.6%	S$2.1b

Forward PE

Price-To-Earnings vs Peers: BSL is good value based on its Price-To-Earnings Ratio (24.9x) compared to the peer average (79.1x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: BSL is expensive based on its Price-To-Earnings Ratio (24.9x) compared to the SG Healthcare industry average (16x)

Price to Earnings Ratio vs Fair Ratio

What is BSL'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.

BSL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.9x
Fair PE Ratio	12x

Price-To-Earnings vs Fair Ratio: BSL is expensive based on its Price-To-Earnings Ratio (24.9x) compared to the estimated Fair Price-To-Earnings Ratio (12x).

Share Price vs Fair Value

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

Below Fair Value: BSL (SGD1.13) is trading below our estimate of fair value (SGD1.42)

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

Price to Earnings Growth Ratio

PEG Ratio: BSL is poor value based on its PEG Ratio (39.5x)

Discover undervalued companies

Future Growth

How is Raffles Medical Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

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

0.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSL's forecast earnings growth (0.6% per year) is below the savings rate (1.8%).

Earnings vs Market: BSL's earnings (0.6% per year) are forecast to grow slower than the SG market (12.6% per year).

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

Revenue vs Market: BSL's revenue (2.4% per year) is forecast to grow slower than the SG market (7.8% per year).

High Growth Revenue: BSL's revenue (2.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BSL's Return on Equity is forecast to be low in 3 years time (8.3%).

Discover growth companies

Past Performance

How has Raffles Medical Group 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

1.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BSL has high quality earnings.

Growing Profit Margin: BSL's current net profit margins (11.6%) are higher than last year (11.6%).

Past Earnings Growth Analysis

Earnings Trend: BSL's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: BSL's earnings growth over the past year (27.7%) exceeds its 5-year average (1.7% per year).

Earnings vs Industry: BSL earnings growth over the past year (27.7%) exceeded the Healthcare industry 12%.

Return on Equity

High ROE: BSL's Return on Equity (8.6%) is considered low.

Discover strong past performing companies

Financial Health

How is Raffles Medical Group'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: BSL's short term assets (SGD439.1M) exceed its short term liabilities (SGD416.6M).

Long Term Liabilities: BSL's short term assets (SGD439.1M) exceed its long term liabilities (SGD152.1M).

Debt to Equity History and Analysis

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

Reducing Debt: BSL's debt to equity ratio has increased from 4.8% to 21.5% over the past 5 years.

Debt Coverage: BSL's debt is well covered by operating cash flow (76.1%).

Interest Coverage: BSL's interest payments on its debt are well covered by EBIT (20.7x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Raffles Medical Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.59%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BSL's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.34%).

High Dividend: BSL's dividend (1.59%) is low compared to the top 25% of dividend payers in the SG market (6.22%).

Stability and Growth of Payments

Stable Dividend: BSL's dividend payments have been volatile in the past 10 years.

Growing Dividend: BSL's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.9%), BSL's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.1%), BSL's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.1yrs

Average management tenure

CEO

Choon Yong Loo (73 yo)

no data

Tenure

Dr. Choon Yong Loo co-founded Group Ltd in 1976. He served as its Non-Independent Executive Chairman at Raffles Medical Group Ltd since 1997 until January 01, 2022 and has been its Executive Chairman and E...

Leadership Team

Experienced Management: BSL's management team is considered experienced (2.1 years average tenure).

Board Members

Experienced Board: BSL's board of directors are considered experienced (4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31