SGX:BSL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Raffles Medical Group

Executive Summary

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

Rewards

Trading at 14% below our estimate of its fair value

Earnings are forecast to grow 5.66% per year

Risk Analysis

No risks detected for BSL from our risk checks.


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.5%

BSL

3.0%

SG Healthcare

-1.7%

SG Market


1 Year Return

-10.6%

BSL

-13.5%

SG Healthcare

-22.7%

SG Market

Return vs Industry: BSL exceeded the SG Healthcare industry which returned -13.5% over the past year.

Return vs Market: BSL exceeded the SG Market which returned -22.7% over the past year.


Shareholder returns

BSLIndustryMarket
7 Day-0.5%3.0%-1.7%
30 Day4.5%3.1%-1.8%
90 Day8.8%5.6%1.2%
1 Year-10.1%-10.6%-12.3%-13.5%-18.5%-22.7%
3 Year-23.7%-27.3%-32.0%-36.7%-13.9%-24.3%
5 Year-39.6%-44.1%-42.2%-48.1%-8.7%-25.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Raffles Medical Group undervalued compared to its fair value and its price relative to the market?

14.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BSL (SGD0.93) is trading below our estimate of fair value (SGD1.08)

Significantly Below Fair Value: BSL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BSL is poor value based on its PE Ratio (28x) compared to the SG Healthcare industry average (21.4x).

PE vs Market: BSL is poor value based on its PE Ratio (28x) compared to the SG market (12.1x).


Price to Earnings Growth Ratio

PEG Ratio: BSL is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: BSL's PB Ratio (2x) is in line with the SG Healthcare industry average.


Next Steps

Future Growth

How is Raffles Medical Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSL's forecast earnings growth (5.7% per year) is above the savings rate (2.2%).

Earnings vs Market: BSL's earnings (5.7% per year) are forecast to grow slower than the SG market (8.6% per year).

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

Revenue vs Market: BSL's revenue (9% per year) is forecast to grow faster than the SG market (4.2% per year).

High Growth Revenue: BSL's revenue (9% 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%).


Next Steps

Past Performance

How has Raffles Medical Group performed over the past 5 years?

-0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BSL has high quality earnings.

Growing Profit Margin: BSL's current net profit margins (11.5%) are lower than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: BSL's earnings have declined by 0.8% per year over the past 5 years.

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

Earnings vs Industry: BSL had negative earnings growth (-15.2%) over the past year, making it difficult to compare to the Healthcare industry average (4.2%).


Return on Equity

High ROE: BSL's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Raffles Medical Group's financial position?


Financial Position Analysis

Short Term Liabilities: BSL's short term assets (SGD246.0M) exceed its short term liabilities (SGD219.0M).

Long Term Liabilities: BSL's short term assets (SGD246.0M) exceed its long term liabilities (SGD209.0M).


Debt to Equity History and Analysis

Debt Level: BSL's debt to equity ratio (21%) is considered satisfactory.

Reducing Debt: BSL's debt to equity ratio has increased from 1.2% to 21% over the past 5 years.

Debt Coverage: BSL's debt is well covered by operating cash flow (61.9%).

Interest Coverage: BSL's interest payments on its debt are well covered by EBIT (303.4x coverage).


Balance Sheet


Next Steps

Dividend

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

2.69%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BSL's dividend (2.69%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.7%).

High Dividend: BSL's dividend (2.69%) is low compared to the top 25% of dividend payers in the SG market (6.07%).


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.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.2%), BSL's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BSL's dividends in 3 years are forecast to be covered by earnings (67.4% payout ratio).


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Choon Yong Loo (71yo)

no data

Tenure

Dr. Choon Yong Loo co-founded Raffles Medical Group Ltd in 1976 and has been its Executive Chairman since 1997. Dr. Loo serves as Chief Executive Officer at Raffles Medical Group Ltd. In the area of public ...


Leadership Team

NamePositionTenureCompensationOwnership
Qinghui Lu
Executive & Non-Independent Director2.42yrsno data0.0027% SGD45.9k
Choon Yong Loo
Executive Chairman & CEOno datano data10.37% SGD174.6m
Won Ng
Chief Financial Officer0.33yrno datano data
Kah Teo
Chief ?Information ?Officer2.5yrsno datano data
Magdalene Lee
Senior Manager of Corporate Communicationsno datano datano data
Pauline Chua
Director of Group Human Capital0.17yrno datano data
Yih Yong
General Manager of Raffles Medicalno datano datano data
Kimmy Goh
Group Financial Controller & Company Secretary13.5yrsno datano data
Kenneth Wu
General Manager of Raffles Hospitalno datano datano data
Walter Tan
Medical Director of Raffles Hospitalno datano datano data
Alfred Loh
Senior Clinical Director of Raffles Medicalno datano datano data
Ching Yang
Medical Director of Raffles Hospitalno datano datano data

0.3yrs

Average Tenure

54yo

Average Age

Experienced Management: BSL's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Qinghui Lu
Executive & Non-Independent Director2.42yrsno data0.0027% SGD45.9k
Choon Yong Loo
Executive Chairman & CEOno datano data10.37% SGD174.6m
Poh Tiong Koh
Non-Executive & Lead Independent Director6.5yrsno data0.034% SGD566.8k
Teik Lim Ang
Non-Executive & Independent Director5.25yrsno datano data
Soo Nan Tan
Non-Executive & Non-Independent Director20yrsno data0.25% SGD4.2m
Beng Geok Wee
Non-Executive & Independent Director19.67yrsno data0.19% SGD3.2m
Tse Ghow Lim
Non-Executive & Non-Independent Director5.75yrsno data0.013% SGD220.8k
Teck Koon Kee
Non-Executive & Independent Director8.5yrsno data0.017% SGD282.0k
Cheong Boon Png
Non-Executive & Independent Director1.75yrsno datano data
Siang Keat Lim
Non-Executive & Independent Director7.25yrsno data0.0082% SGD138.0k

6.9yrs

Average Tenure

65yo

Average Age

Experienced Board: BSL's board of directors are considered experienced (6.9 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

Raffles Medical Group Ltd's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Raffles Medical Group Ltd
  • 585 North Bridge Road
  • Raffles Hospital, No. 11-00
  • Singapore
  • 188770
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RAFL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 1997
BSLSGX (Singapore Exchange)YesOrdinary SharesSGSGDApr 1997

Biography

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. The company also offers emergency services, family medicine services, health screening, and various multi-disciplinary specialist clinic services. Raffles Medical Group Ltd was founded in 1976 and is based in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 12:44
End of Day Share Price2020/07/15 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.