OTCPK:EXET.F

Stock Analysis Report

Executive Summary

Extendicare Inc. provides care and services for seniors in Canada.

Snowflake

Fundamentals

Second-rate dividend payer with concerning outlook.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

EXET.F

5.8%

US Healthcare

1.8%

US Market


1 Year Return

29.1%

EXET.F

-6.5%

US Healthcare

7.3%

US Market

Return vs Industry: EXET.F exceeded the US Healthcare industry which returned -6.5% over the past year.

Return vs Market: EXET.F exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

EXET.FIndustryMarket
7 Day1.3%5.8%1.8%
30 Day11.6%2.5%-0.7%
90 Day10.0%-1.8%0.06%
1 Year37.4%29.1%-5.0%-6.5%9.7%7.3%
3 Year20.4%1.7%33.9%28.6%46.3%36.9%
5 Year33.8%0.4%65.6%55.8%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

153.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: EXET.F ($7.26) is trading above our estimate of fair value ($2.89)

Significantly Undervalued: EXET.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EXET.F is poor value based on its PE Ratio (153.6x) compared to the Healthcare industry average (20.4x).

PE vs Market: EXET.F is poor value based on its PE Ratio (153.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EXET.F is overvalued based on its PB Ratio (7.3x) compared to the US Healthcare industry average (2.5x).


Next Steps

Future Growth

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

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXET.F's forecast earnings growth (6.7% per year) is above the savings rate (2.7%).

Earnings vs Market: EXET.F's earnings (6.7% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: EXET.F's revenue (0.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: EXET.F's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Extendicare performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EXET.F's earnings have grown by 7.7% per year over the past 5 years.

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

Earnings vs Industry: EXET.F had negative earnings growth (-79.3%) over the past year, making it difficult to compare to the Healthcare industry average (5.3%).


Return on Equity

High ROE: EXET.F's Return on Equity (4.7%) is considered low.


Return on Assets

ROA vs Industry: EXET.F's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: EXET.F's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Extendicare's financial position?


Financial Position Analysis

Short Term Liabilities: EXET.F's short term assets (CA$174.3M) do not cover its short term liabilities (CA$229.7M)

Long Term Liabilities: EXET.F's short term assets (174.3M) do not cover its long term liabilities (552.9M)


Debt to Equity History and Analysis

Debt Level: EXET.F's debt to equity ratio (405.7%) is considered high

Reducing Debt: EXET.F's debt to equity ratio has reduced from 102598.1% to 405.7% over the past 5 years.

Debt Coverage: EXET.F's debt is not well covered by operating cash flow (5.7%).

Interest Coverage: EXET.F's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: EXET.F has a high level of physical assets or inventory.

Debt Coverage by Assets: EXET.F's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Extendicare's current dividend yield, its reliability and sustainability?

5.08%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Extendicare before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.1%marketbottom25%1.5%markettop25%3.7%industryaverage1.6%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EXET.F's dividend (5.08%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: EXET.F's dividend (5.08%) is in the top 25% of dividend payers in the US market (3.72%)

Stable Dividend: EXET.F's dividends per share have been stable in the past 10 years.

Growing Dividend: EXET.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (780.9%), EXET.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EXET.F's dividends in 3 years are not forecast to be well covered by earnings (123.7% payout ratio).


Next Steps

Management

What is the CEO of Extendicare's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Michael Guerriere (55yo)

1yrs

Tenure

CA$828,788

Compensation

Dr. Michael R. Guerriere, MD, MBA is Chief Executive Officer and President at Extendicare Inc. since October 22, 2018. He serves as Chief Medical Officer and Vice President of TELUS Health Solutions Inc. P ...


CEO Compensation Analysis

Compensation vs. Market: Michael has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: EXET.F's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

61yo

Average Age

Experienced Board: EXET.F's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$95,17315 Jul 19
Sandpiper Asset Management, Inc
EntityCompany
Shares15,000
Max PriceCA$6.34
BuyCA$576,47303 Jul 19
Sandpiper Asset Management, Inc
EntityCompany
Shares90,100
Max PriceCA$6.41
BuyCA$143,58720 May 19
David Bacon
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares23,875
Max PriceCA$6.02
BuyCA$71,45720 Dec 18
Alan Torrie
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares15,000
Max PriceCA$4.76
BuyCA$24,02120 Dec 18
Alan Hibben
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$4.80
BuyCA$20,24905 Dec 18
Alan Hibben
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceCA$5.08
BuyCA$18,91814 Nov 18
Alan Hibben
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceCA$5.41
BuyCA$83512 Nov 18
Jillian Fountain
EntityIndividual
Role
Head of Investor Relations
Vice President of Investor Relations
Shares150
Max PriceCA$5.57
BuyCA$55,67812 Nov 18
Michael Guerriere
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares10,000
Max PriceCA$5.57

Ownership Breakdown


Management Team

  • Jillian Fountain

    Vice President of Investor Relations

    • Tenure: 1.4yrs
    • Compensation: CA$342.59k
  • Michael Guerriere (55yo)

    CEO, President & Director

    • Tenure: 1yrs
    • Compensation: CA$828.79k
  • Elaine Everson

    Vice President of Corporate Development

    • Tenure: 0.5yrs
    • Compensation: CA$461.93k
  • David Bacon

    Senior VP & CFO

    • Tenure: 0.5yrs

Board Members

  • Alan Torrie (68yo)

    Independent Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: CA$252.00k
  • Alvin Libin (87yo)

    Honorary Director

    • Tenure: 3.8yrs
    • Compensation: CA$123.37k
  • Alan Hibben (66yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: CA$153.00k
  • Samir Manji (50yo)

    Independent Director

    • Tenure: 0.4yrs
  • Al Mawani (67yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: CA$173.03k
  • Michael Guerriere (55yo)

    CEO, President & Director

    • Tenure: 1yrs
    • Compensation: CA$828.79k
  • Donna Kingelin (63yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: CA$181.02k
  • Sandra Hanington (57yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: CA$163.00k
  • Margery Cunningham (59yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: CA$187.00k
  • Norma Beauchamp (58yo)

    Independent Director

    • Tenure: 0.4yrs

Company Information

Extendicare Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Extendicare Inc.
  • Ticker: EXET.F
  • Exchange: OTCPK
  • Founded: 1968
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: CA$839.364m
  • Listing Market Cap: CA$639.077m
  • Shares outstanding: 88.92m
  • Website: https://www.extendicare.com

Number of Employees


Location

  • Extendicare Inc.
  • 3000 Steeles Avenue East
  • Suite 700
  • Markham
  • Ontario
  • L3R 9W2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EXETSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1975
EXET.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1975
5XEDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1975
0S9ELSE (London Stock Exchange)YesCommon SharesGBCADJan 1975

Biography

Extendicare Inc. provides care and services for seniors in Canada. The company offers long term care services; retirement living services; and home health care services, such as nursing care, occupational, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:27
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.