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Netcare

OTCPK:NWKH.Y
Snowflake Description

6 star dividend payer and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NWKH.Y
OTCPK
ZAR24B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Netcare Limited operates private hospitals in South Africa, the United Kingdom, and Lesotho. The last earnings update was 34 days ago. More info.


Add to Portfolio Compare Print
  • Netcare has significant price volatility in the past 3 months.
NWKH.Y Share Price and Events
7 Day Returns
-21.4%
OTCPK:NWKH.Y
0.1%
US Healthcare
0.5%
US Market
1 Year Returns
-
OTCPK:NWKH.Y
-3.8%
US Healthcare
0.8%
US Market
NWKH.Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Netcare (NWKH.Y) -21.4% -21.4% - - - -51.2%
US Healthcare 0.1% 3.7% -1.6% -3.8% 23% 61.3%
US Market 0.5% 0.2% 1.1% 0.8% 37.4% 37.5%
1 Year Return vs Industry and Market
  • No trading data on NWKH.Y.
  • No trading data on NWKH.Y.
Price Volatility
NWKH.Y
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Netcare's competitors could be found in our database.

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Netcare to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Netcare.

OTCPK:NWKH.Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:NWKH.Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.638 (1 + (1- 28%) (31.14%))
0.853
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.853 * 5.96%)
7.81%

Discounted Cash Flow Calculation for OTCPK:NWKH.Y using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Netcare is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:NWKH.Y DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (ZAR, Millions) Source Present Value
Discounted (@ 7.81%)
2019 1,746.50 Analyst x2 1,619.91
2020 2,261.10 Analyst x3 1,945.19
2021 2,426.67 Analyst x3 1,936.30
2022 2,566.61 Est @ 5.77% 1,899.52
2023 2,691.24 Est @ 4.86% 1,847.39
2024 2,804.76 Est @ 4.22% 1,785.76
2025 2,910.55 Est @ 3.77% 1,718.79
2026 3,011.23 Est @ 3.46% 1,649.35
2027 3,108.80 Est @ 3.24% 1,579.37
2028 3,204.78 Est @ 3.09% 1,510.11
Present value of next 10 years cash flows ZAR17,491.70
OTCPK:NWKH.Y DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ZAR3,204.78 × (1 + 2.73%) ÷ (7.81% – 2.73%)
ZAR64,745.88
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ZAR64,745.88 ÷ (1 + 7.81%)10
ZAR30,508.70
OTCPK:NWKH.Y Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ZAR17,491.70 + ZAR30,508.70
ZAR48,000.40
Equity Value per Share
(ZAR)
= Total value / Shares Outstanding
= ZAR48,000.40 / 1,344.57
ZAR35.7
OTCPK:NWKH.Y Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:NWKH.Y represents 0.68324x of JSE:NTC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.68324x
Value per Share
(Listing Adjusted, USD)
= Value per Share (ZAR) x Listing Adjustment Factor
= ZAR 35.70 x 0.68324
$24.39
Value per share (USD) From above. $24.39
Current discount Discount to share price of $12.23
= -1 x ($12.23 - $24.39) / $24.39
49.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Netcare is available for.
Intrinsic value
50%
Share price is $12.23 vs Future cash flow value of $24.39
Current Discount Checks
For Netcare to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Netcare's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Netcare's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Netcare's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Netcare's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:NWKH.Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in ZAR ZAR1.57
JSE:NTC Share Price ** JSE (2019-06-13) in ZAR ZAR17.9
United States of America Healthcare Industry PE Ratio Median Figure of 57 Publicly-Listed Healthcare Companies 22.98x
United States of America Market PE Ratio Median Figure of 3,091 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Netcare.

OTCPK:NWKH.Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:NTC Share Price ÷ EPS (both in ZAR)

= 17.9 ÷ 1.57

11.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Netcare is good value based on earnings compared to the US Healthcare industry average.
  • Netcare is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Netcare's expected growth come at a high price?
Raw Data
OTCPK:NWKH.Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
9.2%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 43 Publicly-Listed Healthcare Companies 1.68x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

OTCPK:NWKH.Y PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.39x ÷ 9.2%

1.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Netcare is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Netcare's assets?
Raw Data
OTCPK:NWKH.Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in ZAR ZAR6.64
JSE:NTC Share Price * JSE (2019-06-13) in ZAR ZAR17.9
United States of America Healthcare Industry PB Ratio Median Figure of 93 Publicly-Listed Healthcare Companies 2.31x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
OTCPK:NWKH.Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:NTC Share Price ÷ Book Value per Share (both in ZAR)

= 17.9 ÷ 6.64

2.7x

* Primary Listing of Netcare.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Netcare is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess Netcare's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Netcare has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Netcare expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Netcare expected to grow at an attractive rate?
  • Netcare's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Netcare's earnings growth is positive but not above the United States of America market average.
  • Netcare's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:NWKH.Y Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:NWKH.Y Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 9.2%
OTCPK:NWKH.Y Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 6.2%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:NWKH.Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:NWKH.Y Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30
2022-09-30 26,766 1
2021-09-30 24,496 3,276 2,680 7
2020-09-30 23,021 3,031 2,413 8
2019-09-30 21,715 2,588 2,241 7
OTCPK:NWKH.Y Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-03-31 21,271 2,736 2,127
2018-12-31 20,994 2,610 1,631
2018-09-30 20,717 2,483 1,134
2018-06-30 20,295 2,469
2018-03-31 19,873 2,575 3,804
2017-12-31 19,494 2,548 4,258
2017-09-30 19,114 2,521 4,711
2017-03-31 28,122 3,315 1,375
2016-12-31 32,926 3,417 1,511
2016-09-30 37,729 3,519 1,646
2016-06-30 37,009 3,239 2,106

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Netcare's earnings are expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
  • Netcare's revenue is expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:NWKH.Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Netcare Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:NWKH.Y Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30
2022-09-30 1.98 1.98 1.98 1.00
2021-09-30 1.97 2.13 1.81 3.00
2020-09-30 1.75 1.95 1.60 4.00
2019-09-30 1.62 1.64 1.60 3.00
OTCPK:NWKH.Y Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-03-31 1.57
2018-12-31 1.20
2018-09-30 0.83
2018-06-30 1.81
2018-03-31 2.80
2017-12-31 3.13
2017-09-30 3.47
2017-03-31 1.01
2016-12-31 1.11
2016-09-30 1.22
2016-06-30 1.56

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Netcare is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Netcare's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Netcare has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Netcare performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Netcare's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Netcare's year on year earnings growth rate has been positive over the past 5 years.
  • Netcare's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Netcare's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.
Earnings and Revenue History
Netcare's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Netcare Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:NWKH.Y Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 21,271.00 2,127.00 7,739.00
2018-12-31 20,994.00 1,630.50 7,579.00
2018-09-30 20,717.00 1,134.00 7,419.00
2018-06-30 20,295.00 2,469.00 7,180.50
2018-03-31 19,873.00 3,804.00 6,934.00
2017-12-31 19,493.50 4,257.50 6,777.00
2017-09-30 19,114.00 4,711.00 6,620.00
2017-03-31 28,122.00 1,375.00 9,619.00
2016-12-31 32,925.50 1,510.50 11,244.50
2016-09-30 37,729.00 1,646.00 12,870.00
2016-06-30 37,008.50 2,106.00 12,713.00
2016-03-31 36,221.00 2,552.00 12,534.00
2015-12-31 34,966.00 2,479.00 12,084.00
2015-09-30 33,711.00 2,406.00 11,634.00
2015-06-30 33,193.50 2,338.00 11,278.50
2015-03-31 32,676.00 2,270.00 10,923.00
2014-12-31 32,229.50 2,186.00 10,797.50
2014-09-30 31,783.00 2,102.00 10,672.00
2014-06-30 30,716.50 1,974.50 10,425.00
2014-03-31 29,650.00 1,847.00 10,178.00
2013-12-31 28,516.00 3,443.50 9,660.00
2013-09-30 27,382.00 5,040.00 9,142.00
2013-06-30 26,702.00 2,012.00 8,509.50
2013-03-31 26,022.00 -1,016.00 7,877.00
2012-12-31 25,598.00 -2,735.00 7,490.00
2012-09-30 25,174.00 -4,454.00 7,103.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Netcare has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Netcare used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
  • Netcare has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Netcare's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Netcare has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Netcare's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Netcare's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Netcare is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Netcare's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Netcare's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Netcare Company Filings, last reported 2 months ago.

OTCPK:NWKH.Y Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 9,621.00 7,495.00 1,313.00
2018-12-31 9,621.00 7,495.00 1,313.00
2018-09-30 10,415.00 6,176.00 1,371.00
2018-06-30 10,415.00 6,176.00 1,371.00
2018-03-31 9,840.00 6,401.00 819.00
2017-12-31 9,840.00 6,401.00 819.00
2017-09-30 8,862.00 8,916.00 2,532.00
2017-03-31 13,935.00 8,287.00 1,641.00
2016-12-31 13,935.00 8,287.00 1,641.00
2016-09-30 13,009.00 7,523.00 1,980.00
2016-06-30 13,009.00 7,523.00 1,980.00
2016-03-31 15,017.00 8,222.00 1,501.00
2015-12-31 15,017.00 8,222.00 1,501.00
2015-09-30 14,281.00 8,341.00 2,551.00
2015-06-30 14,281.00 8,341.00 2,551.00
2015-03-31 12,450.00 7,647.00 2,092.00
2014-12-31 12,450.00 7,647.00 2,092.00
2014-09-30 12,172.00 6,684.00 1,712.00
2014-06-30 12,172.00 6,684.00 1,712.00
2014-03-31 11,237.00 7,675.00 2,107.00
2013-12-31 11,237.00 7,675.00 2,107.00
2013-09-30 10,415.00 6,552.00 1,620.00
2013-06-30 10,415.00 6,552.00 1,620.00
2013-03-31 8,979.00 7,835.00 2,257.00
2012-12-31 8,979.00 7,835.00 2,257.00
2012-09-30 -1,020.00 36,806.00 2,906.00
  • Netcare's level of debt (77.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (68.1% vs 77.9% today).
  • Debt is well covered by operating cash flow (36.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.9x coverage).
X
Financial health checks
We assess Netcare's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Netcare has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.81%
Current annual income from Netcare dividends. Estimated to be 6.62% next year.
If you bought $2,000 of Netcare shares you are expected to receive $116 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Netcare's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Netcare's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:NWKH.Y Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:NWKH.Y Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2023-09-30
2022-09-30 1.30 1.00
2021-09-30 1.23 10.00
2020-09-30 1.19 11.00
2019-09-30 1.12 11.00
OTCPK:NWKH.Y Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2018-12-18 1.040 4.425
2018-11-19 1.040 4.030
2017-12-11 0.950 3.581
2017-11-20 0.950 4.239
2016-11-21 0.950 3.516
2016-11-17 0.950 2.749
2015-12-21 0.920 2.764
2015-11-23 0.920 2.679
2014-12-19 0.800 2.045
2014-11-24 0.800 2.190
2014-05-19 0.725 2.331
2013-11-18 0.675 2.835
2012-11-19 0.528 2.458
2011-11-14 0.530 3.480
2010-11-15 0.465 3.254
2009-11-23 0.380 2.835
2009-11-20 0.380 3.134

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Netcare's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess Netcare's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Netcare afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Netcare has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard Friedland
COMPENSATION ZAR18,889,000
AGE 57
TENURE AS CEO 13.8 years
CEO Bio

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 Limited since May 15, 1997. He serves as Executive Director of Clindeb Investments Limited. He served as the Chief Executive Officer of International Division at Netcare Limited from 2002 to August 2005 and served as its Chief Operating Officer since 1997. He established Netcare UK. He practiced as a Veterinary Surgeon in South Africa and the United Kingdom. He joined Medicross in 1995 and was its Operations Director, responsible for overall operations and establishing the medical centres on a national basis. Dr. Friedland joined Netcare in early 1997 to lead the transformation and re-engineering of the business.

CEO Compensation
  • Richard's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Richard's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Netcare management team in years:

2.1
Average Tenure
52
Average Age
  • The tenure for the Netcare management team is about average.
Management Team

Richard Friedland

TITLE
Group CEO & Executive Director
COMPENSATION
ZAR19M
AGE
57
TENURE
13.8 yrs

Keith Gibson

TITLE
Group CFO & Executive Director
COMPENSATION
ZAR9M
AGE
48
TENURE
7.6 yrs

Jacques du Plessis

TITLE
Managing Director of Hospitals
COMPENSATION
ZAR8M
AGE
54

Craig Grindell

TITLE
Managing Director of Netcare 911
COMPENSATION
ZAR4M
AGE
47
TENURE
2.1 yrs

Billyy van der Merwe

TITLE
Managing Director of Primary Care
COMPENSATION
ZAR5M
AGE
57
TENURE
1.8 yrs

Karen Prins

TITLE
Chief Executive Officer of General Healthcare Group
COMPENSATION
ZAR484K
AGE
57
TENURE
1.7 yrs

Noeleen Phillipson

TITLE
Director of Cancer
COMPENSATION
ZAR5M
AGE
50
TENURE
2.1 yrs

Stefan Andrejczuk

TITLE
Chief Operating Officer
AGE
72
TENURE
2.5 yrs

Travis Dewing

TITLE
Chief Information Officer
AGE
44

Lynelle Bagwandeen

TITLE
Group Company Secretary & General Counsel
AGE
43
Board of Directors Tenure

Average tenure and age of the Netcare board of directors in years:

10.9
Average Tenure
62
Average Age
  • The average tenure for the Netcare board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Thevendrie Brewer

TITLE
Chairperson & Lead Director
COMPENSATION
ZAR2M
AGE
46
TENURE
1.2 yrs

Richard Friedland

TITLE
Group CEO & Executive Director
COMPENSATION
ZAR19M
AGE
57
TENURE
22.1 yrs

Keith Gibson

TITLE
Group CFO & Executive Director
COMPENSATION
ZAR9M
AGE
48
TENURE
7.6 yrs

Peter Gershon

TITLE
Chairman of General Healthcare Group - United Kingdom
AGE
71

Azar P. Jammine

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
69
TENURE
20.5 yrs

Norman Weltman

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
70
TENURE
19.6 yrs

Kgomotso Moroka

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR996K
AGE
64
TENURE
12.9 yrs

Martin Kuscus

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
62
TENURE
10.9 yrs

Mark Bower

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
62
TENURE
3.6 yrs

Bukelwa Bulo

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
40
TENURE
3.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Netcare's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Netcare has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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 also offers occupational health and employee wellness services; and medical management services at commercial, industrial, construction, and mining sites. In addition, it operates primary care facilities for group medical practices, which provides access to general practitioners and dentists, radiology, pathology, pharmacy, physiotherapy, and day clinics. Further, the company provides dialysis services to patients with compromised kidney function; and engages in financing activities. The company operates through a network of 116 hospitals and 87 retail pharmacies. Netcare Limited was incorporated in 1996 and is headquartered in Sandton, South Africa.

Details
Name: Netcare Limited
NWKH.Y
Exchange: OTCPK
Founded: 1996
ZAR1,627,461,803
1,344,574,392
Website: http://www.netcare.co.za
Address: Netcare Limited
76 Maude Street,
Corner West Street,
Sandton,
Gauteng, 2196,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE NTC Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 05. Dec 1996
BST NH7 Ordinary Shares Boerse-Stuttgart DE EUR 05. Dec 1996
OTCPK NWKH.Y UNSPONSORED ADR Pink Sheets LLC US USD 15. Jan 2010
JSE NTCP NON-RED NON-PART NON-CNV PREF ZAR0.50 The Johannesburg Securities Exchange ZA ZAR 12. Jul 2006
Number of employees
Current staff
Staff numbers
22,165
Netcare employees.
Industry
Health Care Facilities
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 00:19
End of day share price update: 2019/06/13 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/05/13
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.