OTCPK:SRRH.F

Stock Analysis Report

Executive Summary

Spire Healthcare Group plc, together with its subsidiaries, owns and operates private hospitals and clinics in the United Kingdom.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.

Risks

  • Spire Healthcare Group has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Spire Healthcare Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:SRRH.F

0.8%

US Healthcare

1.3%

US Market


1 Year Return

n/a

OTCPK:SRRH.F

-8.2%

US Healthcare

2.0%

US Market

No trading data on SRRH.F.

No trading data on SRRH.F.


Share holder returns

SRRH.FIndustryMarket
7 Day0%0.8%1.3%
30 Day0%-1.5%3.9%
90 Dayn/a-0.5%3.4%
1 Yearn/a-6.8%-8.2%4.2%2.0%
3 Yearn/a30.2%24.9%47.2%37.6%
5 Yearn/a63.6%53.9%60.5%42.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

28%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Spire Healthcare Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

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


Price Based on Earnings

Spire Healthcare Group is overvalued based on earnings compared to the US Healthcare industry average.

Spire Healthcare Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Spire Healthcare Group is poor value based on expected growth next year.


Price Based on Value of Assets

Spire Healthcare Group is good value based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Spire Healthcare Group expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Spire Healthcare Group's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

Spire Healthcare Group's earnings are expected to grow significantly at over 20% yearly.

Spire Healthcare Group's revenue growth is positive but not above the United States of America market average.

Spire Healthcare Group's earnings growth is expected to exceed the United States of America market average.

Spire Healthcare Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Spire Healthcare Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Spire Healthcare Group performed over the past 5 years?

7.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Spire Healthcare Group's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Spire Healthcare Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Spire Healthcare Group's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.


Return on Equity

Spire Healthcare Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Spire Healthcare Group used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Spire Healthcare Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Spire Healthcare Group's financial position?


Financial Position Analysis

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

Spire Healthcare Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Spire Healthcare Group's level of debt (41%) compared to net worth is high (greater than 40%).

Spire Healthcare Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

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 2.2x 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 0.4x debt.


Next Steps

Dividend

What is Spire Healthcare Group's current dividend yield, its reliability and sustainability?

3.10%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Spire Healthcare Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

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

Spire Healthcare Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Spire Healthcare Group only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Justin Ash 0

1.9yrs

Tenure

UK£732,400

Compensation

Mr. Justin J. Ash, BA (Hons), has been the Chief Executive Officer and Executive Director of Spire Healthcare Group Plc since October 30, 2017. Mr. Ash served as the Chief Executive Officer at Oasis Healt ...


CEO Compensation Analysis

Justin's remuneration is lower than average for companies of similar size in United States of America.

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


Management Age and Tenure

0.9yrs

Average Tenure

The average tenure for the Spire Healthcare Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.5yrs

Average Tenure

62yo

Average Age

The average tenure for the Spire Healthcare Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Spire Healthcare Group individual insiders in the past 3 months.


Recent Insider Transactions

BuyUK£60,69009 Aug 19
Justin Ash
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares49,554
Max PriceUK£1.22
BuyUK£59,47609 Aug 19
Garry Watts
EntityIndividual
Role
Chairman of the Board
Non Executive Chairman
Shares50,000
Max PriceUK£1.19
BuyUK£343,90505 Nov 18
Simon Rowlands
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares200,000
Max PriceUK£1.72
BuyUK£96,81701 Oct 18
Jitesh Sodha
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares50,500
Max PriceUK£1.92
BuyUK£19,43021 Sep 18
Adèle Anderson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares9,582
Max PriceUK£2.03

Ownership Breakdown


Management Team

  • Justin Ash

    CEO & Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£732.40k
  • Jitesh Sodha

    CFO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£417.00k
  • JJ de Gorter

    Chief Medical Officer

    • Tenure: 0.8yrs
  • Dan Toner (50yo)

    General Counsel & Group Company Secretary

    • Tenure: 12yrs
  • John Forrest

    Chief Operating Officer

    • Tenure: 0.9yrs
  • Mat Mason

    Head of Supply Chain & Purchasing (Central)

    • Tenure: 0yrs
  • Peter Corfield

    Chief Commercial Officer

    • Tenure: 1.7yrs
  • Philip Davies

    Deputy Company Secretary

    • Tenure: 0yrs
  • Cora McCallum

    Investor Relations Director

    • Tenure: 0yrs
  • Shelley Thomas

    Group Human Resurces Director

    • Tenure: 0.5yrs

Board Members

  • Simon Rowlands (62yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£50.00k
  • Tony Bourne (65yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£69.00k
  • Garry Watts (61yo)

    Non Executive Chairman

    • Tenure: 8.7yrs
    • Compensation: UK£529.50k
  • Martin Angle (69yo)

    Deputy Chairman & Senior Independent Director

    • Tenure: 0.3yrs
  • Justin Ash

    CEO & Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£732.40k
  • Jitesh Sodha

    CFO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£417.00k
  • Adèle Anderson (54yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: UK£66.20k
  • Dame Janet Husband (79yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£89.10k
  • Ronnie van der Merwe (56yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£30.30k
  • Jenny Kay

    Independent Non-Executive Director

    • Tenure: 0.3yrs

Company Information

Spire Healthcare Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spire Healthcare Group plc
  • Ticker: SRRH.F
  • Exchange: OTCPK
  • Founded: 2007
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: UK£501.437m
  • Listing Market Cap: UK£624.345m
  • Shares outstanding: 400.83m
  • Website: https://www.spirehealthcare.com

Number of Employees


Location

  • Spire Healthcare Group plc
  • 3 Dorset Rise
  • London
  • Greater London
  • EC4Y 8EN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPILSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2014
S00DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2014
SRRH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2014

Biography

Spire Healthcare Group plc, together with its subsidiaries, owns and operates private hospitals and clinics in the United Kingdom. It provides a range of integrated surgical, medical, and diagnostic servic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 00:29
End of Day Share Price2019/08/09 00:00
Earnings2018/12/31
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.