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LHC

Life Healthcare Group HoldingsJSE:LHC Stock Report

Market Cap

R33.8b

7D

1.1%

1Y

45.1%

Updated

17 Oct, 2021

Data

Company Financials +
LHC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends0/6

LHC Overview

Life Healthcare Group Holdings Limited, together with its subsidiaries, operates private hospitals in South Africa, Poland, the United Kingdom, rest of Europe, and Internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Life Healthcare Group Holdings
Historical stock prices
Current Share PriceR23.25
52 Week HighR15.00
52 Week LowR28.20
Beta0.45
1 Month Change-6.44%
3 Month Change-0.85%
1 Year Change45.13%
3 Year Change-3.61%
5 Year Change-36.80%
Change since IPO72.22%

Recent News & Updates

Aug 16
Life Healthcare Group Holdings (JSE:LHC) Is Reinvesting At Lower Rates Of Return

Life Healthcare Group Holdings (JSE:LHC) Is Reinvesting At Lower Rates Of Return

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to...

Jul 20
We Think Life Healthcare Group Holdings (JSE:LHC) Is Taking Some Risk With Its Debt

We Think Life Healthcare Group Holdings (JSE:LHC) Is Taking Some Risk With Its Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

LHCZA HealthcareZA Market
7D1.1%0.7%1.6%
1Y45.1%29.5%21.3%

Return vs Industry: LHC exceeded the ZA Healthcare industry which returned 28.9% over the past year.

Return vs Market: LHC exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is LHC's price volatile compared to industry and market?
LHC volatility
LHC Beta0.45
Industry Beta0.39
Market Beta1

Stable Share Price: LHC is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: LHC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1983n/aPeter Wharton-Hoodhttps://www.lifehealthcare.co.za

Life Healthcare Group Holdings Limited, together with its subsidiaries, operates private hospitals in South Africa, Poland, the United Kingdom, rest of Europe, and Internationally. It operates through two segments, Hospitals and Complementary Services; and Healthcare Services. The company provides range of acute hospitals and complementary services; Life Esidimeni services, such as chronic mental healthcare, frail care rehabilitation, step-down care, correctional services, primary healthcare and substance abuse recovery programs; and life employee health solutions, including on-site occupational and primary healthcare services and employee wellness programs.

Life Healthcare Group Holdings Fundamentals Summary

How do Life Healthcare Group Holdings's earnings and revenue compare to its market cap?
LHC fundamental statistics
Market CapR33.80b
Earnings (TTM)-R170.00m
Revenue (TTM)R26.06b

1.3x

P/S Ratio

-198.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LHC income statement (TTM)
RevenueR26.06b
Cost of RevenueR18.88b
Gross ProfitR7.19b
ExpensesR7.36b
Earnings-R170.00m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 18, 2021

Earnings per share (EPS)-0.12
Gross Margin27.57%
Net Profit Margin-0.65%
Debt/Equity Ratio74.6%

How did LHC perform over the long term?

See historical performance and comparison

Valuation

Is Life Healthcare Group Holdings undervalued compared to its fair value and its price relative to the market?

25.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LHC (ZAR23.25) is trading below our estimate of fair value (ZAR31.38)

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


Price To Earnings Ratio

PE vs Industry: LHC is unprofitable, so we can't compare its PE Ratio to the African Healthcare industry average.

PE vs Market: LHC is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LHC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LHC is good value based on its PB Ratio (2x) compared to the XF Healthcare industry average (2.7x).


Future Growth

How is Life Healthcare Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

46.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LHC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (8.8%).

Earnings vs Market: LHC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LHC's is expected to become profitable in the next 3 years.

Revenue vs Market: LHC's revenue (8.4% per year) is forecast to grow faster than the ZA market (6.1% per year).

High Growth Revenue: LHC's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LHC's Return on Equity is forecast to be low in 3 years time (13.2%).


Past Performance

How has Life Healthcare Group Holdings performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LHC is currently unprofitable.

Growing Profit Margin: LHC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LHC is unprofitable, and losses have increased over the past 5 years at a rate of 7.2% per year.

Accelerating Growth: Unable to compare LHC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LHC is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (4.5%).


Return on Equity

High ROE: LHC has a negative Return on Equity (-0.88%), as it is currently unprofitable.


Financial Health

How is Life Healthcare Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LHC's short term assets (ZAR7.0B) do not cover its short term liabilities (ZAR9.1B).

Long Term Liabilities: LHC's short term assets (ZAR7.0B) do not cover its long term liabilities (ZAR11.2B).


Debt to Equity History and Analysis

Debt Level: LHC's debt to equity ratio (74.6%) is considered high.

Reducing Debt: LHC's debt to equity ratio has reduced from 101.4% to 74.6% over the past 5 years.

Debt Coverage: LHC's debt is well covered by operating cash flow (30.3%).

Interest Coverage: LHC's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Dividend

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

4.98%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LHC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LHC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LHC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LHC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LHC is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Peter Wharton-Hood (55 yo)

1.08yrs

Tenure

R7,729,000

Compensation

Mr. Peter G. Wharton-Hood, (BCom (Hons) (Wits), CA(SA), AMP (Harvard)), serves as the Group Chief Executive Officer at Life Healthcare Group Holdings since September 1, 2020 and also serves as its Executiv...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD528.57K) is below average for companies of similar size in the ZA market ($USD922.82K).

Compensation vs Earnings: Insufficient data to compare Peter's compensation with company performance.


Leadership Team

Experienced Management: LHC's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: LHC's board of directors are considered experienced (7.8 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Life Healthcare Group Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Life Healthcare Group Holdings Limited
  • Ticker: LHC
  • Exchange: JSE
  • Founded: 1983
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: R33.799b
  • Shares outstanding: 1.45b
  • Website: https://www.lifehealthcare.co.za

Number of Employees


Location

  • Life Healthcare Group Holdings Limited
  • Oxford Parks
  • Building 2
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 17:05
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.