OTCPK:NMHL.Y

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with imperfect balance sheet.


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

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


Market Performance


7 Day Return

-23.7%

NMHL.Y

1.6%

US Healthcare

1.0%

US Market


1 Year Return

-99.4%

NMHL.Y

15.9%

US Healthcare

13.6%

US Market

Return vs Industry: NMHL.Y underperformed the US Healthcare industry which returned 16.1% over the past year.

Return vs Market: NMHL.Y underperformed the US Market which returned 14.2% over the past year.


Shareholder returns

NMHL.YIndustryMarket
7 Day-23.7%1.6%1.0%
30 Day-15.2%-4.4%-0.4%
90 Day-39.3%1.1%8.9%
1 Year-99.4%-99.4%17.4%15.9%16.2%13.6%
3 Year-99.4%-99.4%29.1%23.4%40.2%30.8%
5 Yearn/a52.8%42.1%89.6%68.2%

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 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: NMHL.Y ($0.24) is trading below our estimate of fair value ($0.62)

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


Price To Earnings Ratio

PE vs Industry: NMHL.Y is good value based on its PE Ratio (8.3x) compared to the US Healthcare industry average (22.4x).

PE vs Market: NMHL.Y is good value based on its PE Ratio (8.3x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: NMHL.Y's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NMHL.Y is good value based on its PB Ratio (1.6x) compared to the US Healthcare industry average (2.9x).


Next Steps

Future Growth

How is NMC Health forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NMHL.Y's earnings are forecast to decline over the next 3 years (-1.5% per year).

Earnings vs Market: NMHL.Y's earnings are forecast to decline over the next 3 years (-1.5% per year).

High Growth Earnings: NMHL.Y's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NMHL.Y's revenue (7.9% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: NMHL.Y's revenue (7.9% 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 NMHL.Y's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NMC Health performed over the past 5 years?

25.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: NMHL.Y has high quality earnings.

Growing Profit Margin: NMHL.Y's current net profit margins (11.4%) are lower than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if NMHL.Y's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare NMHL.Y's past year earnings growth to its 5-year average.

Earnings vs Industry: NMHL.Y earnings growth over the past year (25.9%) underperformed the Healthcare industry 31.1%.


Return on Equity

High ROE: NMHL.Y's Return on Equity (16.3%) is considered low.


Next Steps

Financial Health

How is NMC Health's financial position?


Financial Position Analysis

Short Term Liabilities: NMHL.Y's short term assets ($1.5B) exceed its short term liabilities ($887.7M).

Long Term Liabilities: NMHL.Y's short term assets ($1.5B) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: NMHL.Y's debt to equity ratio (124.1%) is considered high.

Reducing Debt: NMHL.Y's debt to equity ratio has increased from 78.6% to 124.1% over the past 5 years.

Debt Coverage: NMHL.Y's debt is well covered by operating cash flow (27.6%).

Interest Coverage: NMHL.Y's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

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

2.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NMHL.Y's dividend (2.04%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: NMHL.Y's dividend (2.04%) is low compared to the top 25% of dividend payers in the US market (4.65%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NMHL.Y has been paying a dividend for less than 10 years.

Growing Dividend: NMHL.Y's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.8%), NMHL.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Michael Davis

0.58

Tenure

Mr. Michael Brenden Davis has been Chief Operations Officer of Healthcare at NMC Health Plc since August 2017 and Acting Chief Executive Officer since February 26, 2020. Mr. Davis has been a Director of Na ...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Davis
Acting CEO & COO0.58yrno data0.0041%
$ 91.5k
Vishal Sharma
Head of Technology Investments & Digital Strategyno datano datano data
Asjad Yahya
Head of Investor Relationsno datano datano data
John O'Connell
Chief Human Resources Officer0.25yrno datano data
Matthew Wilde
Chief Restructuring Officer0.50yrno datano data
Umesh Bhandary
President of Operations0.25yrno datano data
Helen King
Senior Vice President of Quality & Nursing0.25yrno datano data
Simon Watkins
Group Company Secretaryno datano datano data

0.3yrs

Average Tenure

Experienced Management: NMHL.Y's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christopher Hall
Non-Executive Director0.42yrno datano data
Myles Halley
Non-Executive Director0.42yrno datano data
Philip Gore-Randall
Non-Executive Director0.42yrno datano data
Eli Chahin
Non-Executive Director0.42yrno datano data

0.4yrs

Average Tenure

Experienced Board: NMHL.Y'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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: US$2.244b
  • Shares outstanding: 208.70m
  • 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
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 Analysis2020/09/18 06:08
End of Day Share Price2020/09/17 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.