OTCPK:NMHL.Y

Stock Analysis Report

Executive Summary

NMC Health Plc provides healthcare services in the United Arab Emirates, the United Kingdom, Spain, and internationally.

Snowflake

Fundamentals

Reasonable growth potential with acceptable track record.

Risks

  • NMC Health has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

8.8%

OTCPK:NMHL.Y

1.3%

US Healthcare

1.2%

US Market


1 Year Return

-20.5%

OTCPK:NMHL.Y

-8.2%

US Healthcare

1.7%

US Market

NMHL.Y underperformed the Healthcare industry which returned -8.2% over the past year.

NMHL.Y underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

NMHL.YIndustryMarket
7 Day8.8%1.3%1.2%
30 Day69.7%-0.7%4.9%
90 Day28.3%0.01%3.7%
1 Year-20.0%-20.5%-6.8%-8.2%3.9%1.7%
3 Year129.8%126.0%30.1%24.9%47.2%37.7%
5 Yearn/a63.5%53.8%60.0%42.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

NMC Health's share price is below the future cash flow value, but not at a moderate discount (< 20%).

NMC Health's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

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


Price Based on Expected Growth

NMC Health is poor value based on expected growth next year.


Price Based on Value of Assets

NMC Health is overvalued based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

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

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

NMC Health's revenue is expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

NMC Health's earnings are expected to grow by 18.5% yearly, however this is not considered high growth (20% yearly).

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

NMC Health's earnings growth is expected to exceed the United States of America market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

NMC Health is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has NMC Health performed over the past 5 years?

29.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

NMC Health's 1-year earnings growth is less than its 5-year average (25.9% vs 29.3%)

NMC Health's earnings growth has exceeded the US Healthcare industry average in the past year (25.9% vs 5.6%).


Return on Equity

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


Return on Assets

NMC Health used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is NMC Health's financial position?


Financial Position Analysis

NMC Health is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

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


Debt to Equity History and Analysis

NMC Health's level of debt (124.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (78.6% vs 124.1% today).

Debt is well covered by operating cash flow (27.6%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

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

1.14%

Expected Dividend Yield


Dividend Yield and Payments Analysis

NMC Health's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

NMC Health's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

NMC Health is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

NMC Health is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of NMC Health's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.4x coverage).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Prasanth Manghat (44yo)

2.5yrs

Tenure

US$5,483,500

Compensation

Mr. Prasanth Manghat has been the Chief Executive Officer of NMC Health Plc since March 8, 2017. Mr. Manghat served as Deputy Chief Executive Officer of NMC Health Plc since January 1, 2015 until March 8,  ...


CEO Compensation Analysis

Prasanth's remuneration is about average for companies of similar size in United States of America.

Prasanth's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.1yrs

Average Tenure

44yo

Average Age

The tenure for the NMC Health management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

58yo

Average Age

The tenure for the NMC Health board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Simon Watkins (54yo)

    Group Company Secretary

    • Tenure: 0yrs
  • Asjad Yahya

    Investor Relations Officer

    • Tenure: 0yrs
  • Chandrakumari Shetty (75yo)

    Group Medical Director

    • Tenure: 0yrs
    • Compensation: US$230.13k
  • Nirman Shetty (37yo)

    Chief Operating Officer of Distribution

    • Tenure: 1.9yrs
    • Compensation: US$100.87k
  • Prasanth Manghat (44yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$5.48m
  • Khalifa Butti Omeir Yousef (40yo)

    Executive Vice Chairman

    • Tenure: 0yrs
    • Compensation: US$1.89m
  • Hani Buttikhi

    Chief Investment Officer & Executive Director

    • Tenure: 2.2yrs
    • Compensation: US$1.63m
  • Prashanth Shenoy

    Chief Financial Officer

    • Tenure: 2.1yrs
  • Michael Davis

    Chief Operations Officer of Healthcare

    • Tenure: 2.1yrs

Board Members

  • Henry J. Tompkins (78yo)

    Joint Non-Executive Chairman

    • Tenure: 1.9yrs
  • Salma Ali Saif Bin Hareb Almheiri (53yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
  • Bavaguthu Shetty (76yo)

    Joint Non-Executive Chairman

    • Tenure: 2.5yrs
  • Abdulrahman Saddiq Basaddiq (70yo)

    Non-Executive Director

    • Tenure: 5.6yrs
  • Prasanth Manghat (44yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$5.48m
  • Khalifa Butti Omeir Yousef (40yo)

    Executive Vice Chairman

    • Tenure: 0yrs
    • Compensation: US$1.89m
  • Clanwilliam Meade (58yo)

    Independent Non Executive Director

    • Tenure: 7.5yrs
  • Jonathan Bomford (70yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
  • Ayesha Abdullah (52yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
  • Hani Buttikhi

    Chief Investment Officer & Executive Director

    • Tenure: 2.2yrs
    • Compensation: US$1.63m

Company Information

NMC Health Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NMC Health Plc
  • Ticker: NMHL.Y
  • Exchange: OTCPK
  • Founded: 1975
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: UK£6.142b
  • Listing Market Cap: UK£7.648b
  • Shares outstanding: 208.77m
  • Website: https://nmc.ae

Number of Employees


Location

  • NMC Health Plc
  • Devonshire House
  • Level 1
  • London
  • Greater London
  • W1J 8AJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NMCLSE (London Stock Exchange)YesOrdinary SharesGBGBPApr 2012
NMCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPApr 2012
NMMC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2012
NMHL.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJul 2015

Biography

NMC Health Plc provides healthcare services in the United Arab Emirates, the United Kingdom, Spain, and internationally. The company operates through two segments, Healthcare, and Distribution & Services.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 01:15
End of Day Share Price2019/09/13 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.