AMEX:CRHM

Stock Analysis Report

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Executive Summary

CRH Medical Corporation provides anesthesia services for patients undergoing endoscopic procedures in the United States and Canada.


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CRHM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.8%

CRHM

1.7%

US Healthcare

0.5%

US Market


1 Year Return

-13.4%

CRHM

20.1%

US Healthcare

18.7%

US Market

Return vs Industry: CRHM underperformed the US Healthcare industry which returned 21.1% over the past year.

Return vs Market: CRHM underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

CRHMIndustryMarket
7 Day15.8%1.7%0.5%
30 Day19.3%4.7%4.9%
90 Day54.4%8.3%19.8%
1 Year-13.4%-13.4%21.7%20.1%21.2%18.7%
3 Year6.9%6.9%38.1%32.0%46.2%36.8%
5 Year1.7%1.7%52.7%42.0%85.3%65.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is CRH Medical 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: CRHM ($2.78) is trading below our estimate of fair value ($6.28)

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


Price To Earnings Ratio

PE vs Industry: CRHM is unprofitable, so we can't compare its PE Ratio to the US Healthcare industry average.

PE vs Market: CRHM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CRHM is good value based on its PB Ratio (2.8x) compared to the US Healthcare industry average (3.1x).


Next Steps

Future Growth

How is CRH Medical forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

101.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRHM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: CRHM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CRHM's is expected to become profitable in the next 3 years.

Revenue vs Market: CRHM's revenue (19.1% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: CRHM's revenue (19.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has CRH Medical performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRHM is currently unprofitable.

Growing Profit Margin: CRHM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CRHM is unprofitable, and losses have increased over the past 5 years at a rate of 7.2% per year.

Accelerating Growth: Unable to compare CRHM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CRHM is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (21.8%).


Return on Equity

High ROE: CRHM has a negative Return on Equity (-1.16%), as it is currently unprofitable.


Next Steps

Financial Health

How is CRH Medical's financial position?


Financial Position Analysis

Short Term Liabilities: CRHM's short term assets ($25.5M) exceed its short term liabilities ($10.3M).

Long Term Liabilities: CRHM's short term assets ($25.5M) do not cover its long term liabilities ($66.0M).


Debt to Equity History and Analysis

Debt Level: CRHM's debt to equity ratio (55.9%) is considered high.

Reducing Debt: CRHM's debt to equity ratio has reduced from 92.5% to 55.9% over the past 5 years.

Debt Coverage: CRHM's debt is well covered by operating cash flow (60.9%).

Interest Coverage: Insufficient data to determine if CRHM's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CRHM'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 CRHM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CRHM'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 CRHM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Tushar Ramani (56 yo)

1.33yrs

Tenure

US$4,385,538

Compensation

Dr. Tushar Ramani, MD has been Chief Executive Officer of CRH Medical Corporation since April 8, 2019 and has been its Chairman since March 19, 2020 and Director since April 9, 2019. Mr. Ramani is a 30 yea ...


CEO Compensation Analysis

Compensation vs Market: Tushar's total compensation ($USD4.39M) is above average for companies of similar size in the US market ($USD1.27M).

Compensation vs Earnings: Insufficient data to compare Tushar's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Tushar Ramani
Chairman & CEO1.33yrsUS$4.39mno data
Richard Bear
CFO & Corporate Secretary14.42yrsUS$876.47k0.49%
$ 903.3k
James Kreger
President of CRH Anesthesia Management4.08yrsUS$614.81k0.054%
$ 98.5k
Tom Sanders
Vice President of Commercial Developmentno datano datano data

4.1yrs

Average Tenure

56yo

Average Age

Experienced Management: CRHM's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tushar Ramani
Chairman & CEO1.33yrsUS$4.39mno data
Todd Patrick
Independent Director14.25yrsUS$109.02k0.69%
$ 1.3m
Ian Webb
Independent Lead Director0.42yrUS$159.02k0.26%
$ 475.4k
Brian Griffin
Independent Director0.33yrno datano data
Steven Wexner
Member of Advisory Boardno datano datano data
Marvin Corman
Member of Advisory Boardno datano datano data
Ian Cleator
Member of The Advisory Boardno dataUS$20.08kno data
David Johnson
Independent Director10.17yrsUS$87.27k0.59%
$ 1.1m

0.4yrs

Average Tenure

61yo

Average Age

Experienced Board: CRHM's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CRHM 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

CRH Medical Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CRH Medical Corporation
  • Ticker: CRHM
  • Exchange: AMEX
  • Founded: 2000
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: CA$241.888m
  • Listing Market Cap: CA$183.125m
  • Shares outstanding: 71.56m
  • Website: https://www.crhmedcorp.com

Number of Employees


Location

  • CRH Medical Corporation
  • World Trade Center
  • Suite 619
  • Vancouver
  • British Columbia
  • V6C 3E1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRHTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 2003
CRHMAMEX (NYSE MKT LLC)YesCommon SharesUSUSDJul 2003
5C4DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2003

Biography

CRH Medical Corporation provides anesthesia services for patients undergoing endoscopic procedures in the United States and Canada. It offers CRH O’Regan system, a single use, disposable, and hemorrhoid ba ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 00:54
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
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.