OTCPK:NWKH.Y

Stock Analysis Report

Executive Summary

Netcare Limited operates private hospitals in South Africa, the United Kingdom, and Lesotho.

Rewards

Trading at 55.7% below its fair value

Risk Analysis

No risks detected for NWKH.Y from our risk checks.


Snowflake Analysis

6 star dividend payer and undervalued.

Share Price & News

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


Latest Share Price and Events

Information is not available.


Market Performance


7 Day Return

0%

NWKH.Y

-0.8%

US Healthcare

0.6%

US Market


1 Year Return

n/a

NWKH.Y

6.7%

US Healthcare

20.8%

US Market

Return vs Industry: Insufficient data to determine how NWKH.Y performed against the US Healthcare industry.

Return vs Market: Insufficient data to determine how NWKH.Y performed against the US Market.


Shareholder returns

NWKH.YIndustryMarket
7 Day0%-0.8%0.6%
30 Day0%5.6%2.5%
90 Day0%15.3%4.9%
1 Yearn/a8.6%6.7%23.5%20.8%
3 Yearn/a47.0%40.4%46.5%37.0%
5 Yearn/a63.4%52.2%64.6%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Netcare 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: NWKH.Y ($12.46) is trading below our estimate of fair value ($28.1)

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


Price To Earnings Ratio

PE vs Industry: NWKH.Y is good value based on its PE Ratio (10.4x) compared to the Healthcare industry average (21.8x).

PE vs Market: NWKH.Y is good value based on its PE Ratio (10.4x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: NWKH.Y is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: NWKH.Y is good value based on its PB Ratio (2.5x) compared to the US Healthcare industry average (2.6x).


Next Steps

Future Growth

How is Netcare forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWKH.Y's forecast earnings growth (7.5% per year) is above the savings rate (2.7%).

Earnings vs Market: NWKH.Y's earnings (7.5% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: NWKH.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: NWKH.Y's revenue (5.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: NWKH.Y's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NWKH.Y's Return on Equity is forecast to be high in 3 years time (22.3%)


Next Steps

Past Performance

How has Netcare performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Information is not available.

Information is not available.


Past Earnings Growth Analysis

Earnings Trend: NWKH.Y's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: NWKH.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NWKH.Y had negative earnings growth (-44.1%) over the past year, making it difficult to compare to the Healthcare industry average (6.2%).


Return on Equity

High ROE: NWKH.Y's Return on Equity (23%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Netcare's financial position?


Financial Position Analysis

Short Term Liabilities: NWKH.Y's short term assets (ZAR5.7B) exceed its short term liabilities (ZAR3.6B).

Long Term Liabilities: NWKH.Y's short term assets (ZAR5.7B) do not cover its long term liabilities (ZAR7.8B).


Debt to Equity History and Analysis

Debt Level: NWKH.Y's debt to equity ratio (77.6%) is considered high.

Reducing Debt: NWKH.Y's debt to equity ratio has increased from 66.2% to 77.6% over the past 5 years.

Debt Coverage: NWKH.Y's debt is well covered by operating cash flow (36.6%).

Interest Coverage: NWKH.Y's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet

Inventory Level: NWKH.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: NWKH.Y's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

6.35%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years7.1%

Current dividend yield vs market & industry

Notable Dividend: NWKH.Y's dividend (6.35%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: NWKH.Y's dividend (6.35%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: NWKH.Y's dividends per share have been stable in the past 10 years.

Growing Dividend: NWKH.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.1%), NWKH.Y's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NWKH.Y's dividends in 3 years are forecast to be covered by earnings (67.2% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Richard Friedland (58yo)

14yrs

Tenure

SAR18,889,000

Compensation

Dr. Richard Harold Friedland, BvSc, MBBCh, Dip Fin Man, MBA has been the Group Chief Executive Officer of Netcare Limited since September 1, 2005. Dr. Friedland has been an Executive Director at Netcare Li ...


CEO Compensation Analysis

Information is not available.

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


Management Age and Tenure

2.3yrs

Average Tenure

53yo

Average Age

Experienced Management: NWKH.Y's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

11.2yrs

Average Tenure

63yo

Average Age

Experienced Board: NWKH.Y's board of directors are seasoned and experienced ( 11.2 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.


Ownership Breakdown

Information is not available.


Management Team

  • Richard Friedland (58yo)

    Group CEO & Executive Director

    • Tenure: 14yrs
    • Compensation: SAR18.89m
  • Jacques du Plessis (55yo)

    Managing Director of Hospitals

    • Tenure: 0yrs
    • Compensation: SAR7.76m
  • Noeleen Phillipson (51yo)

    Director of Cancer

    • Tenure: 2.3yrs
    • Compensation: SAR4.57m
  • Lynelle Bagwandeen (44yo)

    Group Company Secretary & General Counsel

    • Tenure: 0yrs
  • Keith Gibson (49yo)

    Group CFO & Executive Director

    • Tenure: 7.8yrs
    • Compensation: SAR8.62m
  • Travis Dewing (45yo)

    Chief Information Officer

    • Tenure: 0yrs
  • Stefan Andrejczuk (73yo)

    Chief Operating Officer

    • Tenure: 2.8yrs
  • Karen Prins (58yo)

    Chief Executive Officer of General Healthcare Group

    • Tenure: 1.9yrs
    • Compensation: SAR483.64k
  • Craig Grindell (48yo)

    Managing Director of Netcare 911

    • Tenure: 2.3yrs
    • Compensation: SAR3.95m
  • Billyy van der Merwe (58yo)

    Managing Director of Primary Care

    • Tenure: 2.1yrs
    • Compensation: SAR5.35m

Board Members

  • Azar P. Jammine (70yo)

    Independent Non-Executive Director

    • Tenure: 20.8yrs
    • Compensation: SAR1.23m
  • Richard Friedland (58yo)

    Group CEO & Executive Director

    • Tenure: 14yrs
    • Compensation: SAR18.89m
  • Norman Weltman (71yo)

    Independent Non-Executive Director

    • Tenure: 19.8yrs
    • Compensation: SAR1.31m
  • Kgomotso Moroka (65yo)

    Independent Non-Executive Director

    • Tenure: 13.2yrs
    • Compensation: SAR996.00k
  • Peter Gershon (72yo)

    Chairman of General Healthcare Group - United Kingdom

    • Tenure: 0yrs
  • Martin Kuscus (63yo)

    Independent Non-Executive Director

    • Tenure: 11.2yrs
    • Compensation: SAR1.18m
  • Thevendrie Brewer (47yo)

    Chairperson & Lead Director

    • Tenure: 1.4yrs
    • Compensation: SAR1.81m
  • Keith Gibson (49yo)

    Group CFO & Executive Director

    • Tenure: 7.8yrs
    • Compensation: SAR8.62m
  • Bukelwa Bulo (41yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: SAR1.10m
  • Mark Bower (63yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: SAR1.20m

Company Information

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


Key Information

  • Name: Netcare Limited
  • Ticker: NWKH.Y
  • Exchange: OTCPK
  • Founded: 1996
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: SAR22.024b
  • Listing Market Cap: SAR1.467b
  • Shares outstanding: 1.34b
  • Website: https://www.netcare.co.za

Number of Employees


Location

  • Netcare Limited
  • 76 Maude Street
  • Corner West Street
  • Sandton
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTCJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARDec 1996
NH7BST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 1996
NTCPJSE (The Johannesburg Securities Exchange)NON-RED NON-PART NON-CNV PREF ZAR0.50ZAZARJul 2006
NWKH.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJan 2010

Biography

Netcare Limited operates private hospitals in South Africa, the United Kingdom, and Lesotho. It provides hospital, healthcare, and renal care networks, as well as emergency medical services. The company al ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/26 00:35
End of Day Share Price2019/06/28 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.