OTCPK:HHCS.Y

Stock Analysis Report

Executive Summary

Healthscope Limited provides healthcare services in Australia and New Zealand.

Snowflake

Fundamentals

Limited growth with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

HHCS.Y

-0.04%

US Healthcare

-0.6%

US Market


1 Year Return

-5.5%

HHCS.Y

-9.1%

US Healthcare

0.6%

US Market

HHCS.Y underperformed the Healthcare industry which returned -4.5% over the past year.

HHCS.Y underperformed the Market in United States of America which returned 8% over the past year.


Share holder returns

HHCS.YIndustryMarket
7 Day0%-0.04%-0.6%
30 Day0%-0.5%2.2%
90 Dayn/a-1.6%1.1%
1 Year-3.5%-5.5%-7.7%-9.1%2.9%0.6%
3 Yearn/a29.6%24.3%44.6%35.2%
5 Yearn/a66.1%56.2%61.9%44.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Healthscope undervalued based on future cash flows and its price relative to the stock market?

60.03x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Healthscope's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Healthscope's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Healthscope is overvalued based on earnings compared to the US Healthcare industry average.

Healthscope is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Healthscope is poor value based on expected growth next year.


Price Based on Value of Assets

Healthscope is good value based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Healthscope expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Healthscope's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

Healthscope's earnings are expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

Healthscope's revenue growth is expected to exceed the United States of America market average.

Healthscope's earnings growth is positive but not above the United States of America market average.

Healthscope's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Healthscope is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Healthscope performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Healthscope has delivered over 20% year on year earnings growth in the past 5 years.

Healthscope's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Healthscope's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.


Return on Equity

Healthscope has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Healthscope used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Healthscope's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Healthscope's financial position?


Financial Position Analysis

Healthscope's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Healthscope's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Healthscope's level of debt (52%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (47% vs 52% today).

Debt is well covered by operating cash flow (20.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

3.28%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Healthscope's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).

Healthscope's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).

Whilst dividend payments have been stable, Healthscope has been paying a dividend for less than 10 years.

Dividend payments have increased, but Healthscope only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Gordon Ballantyne (53yo)

1.9yrs

Tenure

AU$3,217,857

Compensation

Mr. Gordon Scott Ballantyne, BSc (Hons), MAICD has been Chief Executive Officer and Managing Director of Healthscope Limited since May 15, 2017 and has been its Director since May 16, 2017. Mr. Ballantyne  ...


CEO Compensation Analysis

Gordon's remuneration is lower than average for companies of similar size in United States of America.

Gordon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.6yrs

Average Tenure

The tenure for the Healthscope management team is about average.


Board Age and Tenure

3.2yrs

Average Tenure

57yo

Average Age

The tenure for the Healthscope board of directors is about average.


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Gordon Ballantyne (53yo)

    MD, CEO & Director

    • Tenure: 1.9yrs
    • Compensation: AU$3.22m
  • David Shirer

    General Manager of Investor Relations

    • Tenure: 0yrs
  • Michael Sammells

    Chief Financial Officer

    • Tenure: 7.3yrs
    • Compensation: AU$1.49m
  • Ingrid Player (45yo)

    Group Executive of Legal

    • Tenure: 14.3yrs
  • Alan Lane

    Hospital State Manager of South Australia & ACHA CEO

    • Tenure: 0yrs
    • Compensation: AU$351.88k
  • Mark Briscoe

    General Manager of Operations

    • Tenure: 0yrs
    • Compensation: AU$569.18k
  • Cathy Jones

    National Manager of Quality & Compliance

    • Tenure: 0yrs
  • Katherine Paroz

    Group Executive of Human Resources

    • Tenure: 0yrs
  • Victoria Atkinson

    Chief Medical Officer

    • Tenure: 0.5yrs
  • Richard Herman

    Head of Assurance

    • Tenure: 0yrs

Board Members

  • Ziggy Switkowski (70yo)

    Independent Non Executive Director

    • Tenure: 3yrs
    • Compensation: AU$200.00k
  • Gordon Ballantyne (53yo)

    MD, CEO & Director

    • Tenure: 1.9yrs
    • Compensation: AU$3.22m
  • Paul O’Sullivan (57yo)

    Independent Non Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$180.00k
  • Tony Cipa (63yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$215.00k
  • Rupert H. Myer (59yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$215.00k
  • Jane McAloon (54yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: AU$180.00k
  • Paula Dwyer (57yo)

    Independent Non-Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: AU$485.00k
  • Michael Stanford

    Independent Non Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$47.12k

Company Information

Healthscope Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Healthscope Limited
  • Ticker: HHCS.Y
  • Exchange: OTCPK
  • Founded: 1985
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: AU$4.266b
  • Listing Market Cap: AU$3.006b
  • Shares outstanding: 1.74b
  • Website: https://www.healthscope.com.au

Number of Employees


Location

  • Healthscope Limited
  • 312 St Kilda Road
  • Level 1
  • Melbourne
  • Victoria
  • 3004
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2014
2H1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2014
HSOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2014
HSCP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2014
HHCS.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDFeb 2015

Biography

Healthscope Limited provides healthcare services in Australia and New Zealand. The company operates through Hospitals Australia and Pathology New Zealand segments. It operates 43 private hospitals, includi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/04/28 00:52
End of Day Share Price2019/01/29 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.