OTCPK:LTGH.Y

Stock Analysis Report

Life Healthcare Group Holdings

Executive Summary

Life Healthcare Group Holdings Limited, together with its subsidiaries, operates private hospitals primarily in South Africa.

Snowflake

Fundamentals

Fair value second-rate dividend payer.

Share Price & News

How has Life Healthcare Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.4%

OTCPK:LTGH.Y

-1.2%

US Healthcare

-0.02%

US Market


1 Year Return

-12.6%

OTCPK:LTGH.Y

-9.4%

US Healthcare

1.6%

US Market

LTGH.Y underperformed the Healthcare industry which returned -8.4% over the past year.

LTGH.Y underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

LTGH.YIndustryMarket
7 Day3.4%-1.2%-0.02%
30 Day16.0%-2.2%2.7%
90 Day7.6%-1.5%1.4%
1 Year-10.3%-12.6%-8.0%-9.4%3.8%1.6%
3 Year-34.2%-37.5%28.7%23.5%45.2%35.8%
5 Year-50.7%-54.3%62.7%53.0%61.8%44.1%

Price Volatility Vs. Market

How volatile is Life Healthcare Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Life Healthcare Group Holdings undervalued based on future cash flows and its price relative to the stock market?

50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Life Healthcare Group Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Life Healthcare Group Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Life Healthcare Group Holdings is overvalued based on earnings compared to the US Healthcare industry average.

Life Healthcare Group Holdings is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Life Healthcare Group Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Life Healthcare Group Holdings is good value based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Life Healthcare Group Holdings expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Life Healthcare Group Holdings's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).

Life Healthcare Group Holdings's earnings are expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).

Life Healthcare Group Holdings's revenue growth is positive but not above the United States of America market average.

Life Healthcare Group Holdings's earnings growth is expected to exceed the United States of America market average.

Life Healthcare Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Life Healthcare Group Holdings performed over the past 5 years?

-18.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Life Healthcare Group Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

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

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


Return on Equity

Life Healthcare Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Life Healthcare Group Holdings used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Life Healthcare Group Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Life Healthcare Group Holdings's financial position?


Financial Position Analysis

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

Life Healthcare Group Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Life Healthcare Group Holdings's level of debt (99.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (32.4% vs 99.1% today).

Debt is well covered by operating cash flow (27.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

What is Life Healthcare Group Holdings's current dividend yield, its reliability and sustainability?

4.35%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Life Healthcare Group Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Life Healthcare Group Holdings's dividend is above the markets top 25% of dividend payers in United States of America (3.69%).

Life Healthcare Group Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Life Healthcare Group Holdings only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

What is the CEO of Life Healthcare Group Holdings's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

Shrey Viranna (43yo)

1.6yrs

Tenure

SAR9,384,500

Compensation

Dr. Shrey Viranna has been Group Chief Executive Officer and Executive Director of Life Healthcare Group Holdings Ltd. since February 01, 2018. Dr. Viranna served as Chief Executive Officer of Discovery Vi ...


CEO Compensation Analysis

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

Insufficient data for Shrey to compare compensation growth.


Management Age and Tenure

0.7yrs

Average Tenure

48yo

Average Age

The average tenure for the Life Healthcare Group Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.0yrs

Average Tenure

61.5yo

Average Age

The tenure for the Life Healthcare Group Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Adam Pyle (53yo)

    Group Strategy & Investor Relations Executive and CEO of South Africa

    • Tenure: 0yrs
    • Compensation: SAR4.26m
  • Guy Blomfield (51yo)

    Non-Executive Director of Life UK

    • Tenure: 1.3yrs
    • Compensation: SAR16.34m
  • Avanthi Parboosing

    Group Company Secretary

    • Tenure: 0.5yrs
  • Rajit Mehta (57yo)

    Managing Director of Max Healthcare

    • Tenure: 0yrs
  • Pieter van der Westhuizen (48yo)

    Group CFO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: SAR10.28m
  • Shrey Viranna (43yo)

    Group CEO & Executive Director

    • Tenure: 1.6yrs
    • Compensation: SAR9.38m
  • Francois Theron (48yo)

    Chief Financial Officer of SA

    • Tenure: 0yrs
  • Mark Chapman

    International CEO

    • Tenure: 0.7yrs
  • Tanya Little (36yo)

    Group Operations Executive

    • Tenure: 0.7yrs
  • Suren Govender

    Group Chief Digital Officer

    • Tenure: 0.5yrs

Board Members

  • Garth Solomon (53yo)

    Independent Non-Executive Director

    • Tenure: 14.7yrs
    • Compensation: SAR780.00k
  • Royden Vice (72yo)

    Independent Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: SAR719.00k
  • Mustaq Enus-Brey (65yo)

    Non-Executive Chairman

    • Tenure: 6.6yrs
    • Compensation: SAR1.12m
  • Peter Golesworthy (61yo)

    Lead Independent Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: SAR1.00m
  • Audrey Mothupi (48yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: SAR517.00k
  • Malefetsane Ngatane (65yo)

    Independent Non-Executive Director

    • Tenure: 12.2yrs
    • Compensation: SAR433.00k
  • Joel Netshitenzhe (62yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: SAR347.00k
  • Marian Jacobs (71yo)

    Independent Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: SAR406.00k
  • Pieter van der Westhuizen (48yo)

    Group CFO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: SAR10.28m
  • Shrey Viranna (43yo)

    Group CEO & Executive Director

    • Tenure: 1.6yrs
    • Compensation: SAR9.38m

Company Information

Life Healthcare Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Life Healthcare Group Holdings Limited
  • Ticker: LTGH.Y
  • Exchange: OTCPK
  • Founded: 1983
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: SAR35.181b
  • Listing Market Cap: SAR2.405b
  • Shares outstanding: 1.46b
  • Website: https://www.lifehealthcare.co.za

Number of Employees


Location

  • Life Healthcare Group Holdings Limited
  • Oxford Manor
  • 21 Chaplin Road
  • Illovo
  • Limpopo
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LHCJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJun 2010
LTGH.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMar 2013

Biography

Life Healthcare Group Holdings Limited, together with its subsidiaries, operates private hospitals primarily in South Africa. It operates through two divisions, Hospital and Healthcare Services. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 00:13
End of Day Share Price2019/09/18 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.