OTCPK:NMMC.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

High growth potential with acceptable track record.


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

0%

NMMC.F

-0.08%

US Healthcare

1.3%

US Market


1 Year Return

-26.7%

NMMC.F

-10.6%

US Healthcare

5.9%

US Market

Return vs Industry: NMMC.F underperformed the US Healthcare industry which returned -10.6% over the past year.

Return vs Market: NMMC.F underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

NMMC.FIndustryMarket
7 Day0%-0.08%1.3%
30 Day-15.3%-4.1%-1.9%
90 Day0.6%-9.4%-1.8%
1 Year-26.7%-26.7%-9.2%-10.6%8.3%5.9%
3 Yearn/a28.9%23.7%45.6%36.2%
5 Yearn/a58.9%49.4%66.1%47.9%

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?

25.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: NMMC.F ($31) is trading below our estimate of fair value ($30.82)

Significantly Undervalued: NMMC.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NMMC.F is poor value based on its PE Ratio (25.3x) compared to the Healthcare industry average (19.9x).

PE vs Market: NMMC.F is poor value based on its PE Ratio (25.3x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: NMMC.F is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: NMMC.F is overvalued based on its PB Ratio (4.9x) compared to the US Healthcare industry average (2.4x).


Next Steps

Future Growth

How is NMC Health forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NMMC.F's forecast earnings growth (18.8% per year) is above the savings rate (2.7%).

Earnings vs Market: NMMC.F's earnings (18.8% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NMMC.F's revenue (10.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: NMMC.F's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NMMC.F's Return on Equity is forecast to be high in 3 years time (20.4%)


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

Earnings Trend: NMMC.F's earnings have grown significantly by 29.3% per year over the past 5 years.

Accelerating Growth: NMMC.F's earnings growth over the past year (25.9%) is below its 5-year average (29.3% per year).

Earnings vs Industry: NMMC.F earnings growth over the past year (25.9%) exceeded the Healthcare industry 5.3%.


Return on Equity

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


Return on Assets

ROA vs Industry: NMMC.F has a higher Return on Assets than the Healthcare industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is NMC Health's financial position?


Financial Position Analysis

Short Term Liabilities: NMMC.F's short term assets ($1.5B) exceeds its short term liabilities ($887.7M)

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: NMMC.F's 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?

0.67%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NMMC.F's dividend (0.67%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: NMMC.F's dividend (0.67%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: NMMC.F is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: NMMC.F is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NMMC.F is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NMMC.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Prasanth Manghat (44yo)

2.6yrs

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

Compensation vs. Market: Insufficient data to establish whether Prasanth's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Prasanth's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.2yrs

Average Tenure

44yo

Average Age

Experienced Management: NMMC.F's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

58yo

Average Age

Experienced Board: NMMC.F's board of directors are considered experienced (5.3 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

BuyUS$188,80627 Dec 18
Salma Ali Saif Bin Hareb Almheiri
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,500
Max PriceUS$34.33
BuyUS$62,46620 Dec 18
Michael Davis
EntityIndividual
Role
Senior Key Executive
Chief Operations Officer of Healthcare
Shares1,770
Max PriceUS$35.29
SellUS$62,46620 Dec 18
Henry J. Tompkins
EntityIndividual
Role
Chairman of the Board
Joint Non-Executive Chairman
Shares1,770
Max PriceUS$35.29
SellUS$91,98719 Dec 18
Henry J. Tompkins
EntityIndividual
Role
Chairman of the Board
Joint Non-Executive Chairman
Shares2,500
Max PriceUS$36.79
SellUS$21,82910 Dec 18
Henry J. Tompkins
EntityIndividual
Role
Chairman of the Board
Joint Non-Executive Chairman
Shares550
Max PriceUS$39.69
SellUS$33,42324 Oct 18
Henry J. Tompkins
EntityIndividual
Role
Chairman of the Board
Joint Non-Executive Chairman
Shares800
Max PriceUS$41.78

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: 2yrs
    • Compensation: US$100.87k
  • Prasanth Manghat (44yo)

    CEO & Executive Director

    • Tenure: 2.6yrs
    • 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: 2.3yrs
    • Compensation: US$1.63m
  • Prashanth Shenoy

    Chief Financial Officer

    • Tenure: 2.2yrs
  • Michael Davis

    Chief Operations Officer of Healthcare

    • Tenure: 2.2yrs

Board Members

  • Henry J. Tompkins (78yo)

    Joint Non-Executive Chairman

    • Tenure: 2yrs
  • Salma Ali Saif Bin Hareb Almheiri (53yo)

    Independent Non-Executive Director

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

    Joint Non-Executive Chairman

    • Tenure: 2.6yrs
  • Abdulrahman Saddiq Basaddiq (70yo)

    Non-Executive Director

    • Tenure: 5.7yrs
  • Prasanth Manghat (44yo)

    CEO & Executive Director

    • Tenure: 2.6yrs
    • 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: 7.6yrs
  • 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: 2.3yrs
    • 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: NMMC.F
  • Exchange: OTCPK
  • Founded: 1975
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: UK£5.442b
  • Listing Market Cap: UK£6.845b
  • Shares outstanding: 208.90m
  • 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 Analysis2019/10/15 00:43
End of Day Share Price2019/10/08 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.