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NTC

NetcareJSE:NTC Stock Report

Market Cap

R22.1b

7D

2.0%

1Y

27.2%

Updated

18 Oct, 2021

Data

Company Financials +
NTC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health1/6
Dividends0/6

NTC Overview

Netcare Limited, an investment holding company, provides healthcare services in South Africa and Lesotho.

Price History & Performance

Summary of all time highs, changes and price drops for Netcare
Historical stock prices
Current Share PriceR16.58
52 Week HighR11.30
52 Week LowR17.38
Beta0.35
1 Month Change-2.87%
3 Month Change8.51%
1 Year Change27.25%
3 Year Change-30.95%
5 Year Change-53.16%
Change since IPO1,174.45%

Recent News & Updates

Shareholder Returns

NTCZA HealthcareZA Market
7D2.0%0.7%1.6%
1Y27.2%29.5%21.3%

Return vs Industry: NTC underperformed the ZA Healthcare industry which returned 29.5% over the past year.

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

Price Volatility

Is NTC's price volatile compared to industry and market?
NTC volatility
NTC Beta0.35
Industry Beta0.39
Market Beta1

Stable Share Price: NTC is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NTC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199620,370Richard Friedlandhttps://www.netcare.co.za

Netcare Limited, an investment holding company, provides healthcare services in South Africa and Lesotho. The company operates through Hospital and Emergency Services, and Primary Care segments. The Hospital and Emergency Services segment engages in the hospital and pharmacy operations.

Netcare Fundamentals Summary

How do Netcare's earnings and revenue compare to its market cap?
NTC fundamental statistics
Market CapR22.14b
Earnings (TTM)R146.00m
Revenue (TTM)R18.21b

151.7x

P/E Ratio

1.2x

P/S Ratio

Valuation

Is Netcare undervalued compared to its fair value and its price relative to the market?

48.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTC (ZAR16.58) is trading below our estimate of fair value (ZAR32.28)

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


Price To Earnings Ratio

PE vs Industry: NTC is poor value based on its PE Ratio (151.7x) compared to the African Healthcare industry average (32.3x).

PE vs Market: NTC is poor value based on its PE Ratio (151.7x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: NTC is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: NTC is good value based on its PB Ratio (2.3x) compared to the XF Healthcare industry average (2.7x).


Future Growth

How is Netcare forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

52.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTC's forecast earnings growth (52.6% per year) is above the savings rate (8.8%).

Earnings vs Market: NTC's earnings (52.6% per year) are forecast to grow faster than the ZA market (12.2% per year).

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

Revenue vs Market: NTC's revenue (9.4% per year) is forecast to grow faster than the ZA market (6.1% per year).

High Growth Revenue: NTC's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NTC's Return on Equity is forecast to be low in 3 years time (17.5%).


Past Performance

How has Netcare performed over the past 5 years?

-18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTC has a large one-off gain of ZAR282.0M impacting its March 31 2021 financial results.

Growing Profit Margin: NTC's current net profit margins (0.8%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: NTC's earnings have declined by 18.6% per year over the past 5 years.

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

Earnings vs Industry: NTC had negative earnings growth (-92.3%) over the past year, making it difficult to compare to the Healthcare industry average (4.5%).


Return on Equity

High ROE: NTC's Return on Equity (1.8%) is considered low.


Financial Health

How is Netcare's financial position?


Financial Position Analysis

Short Term Liabilities: NTC's short term assets (ZAR7.2B) exceed its short term liabilities (ZAR6.0B).

Long Term Liabilities: NTC's short term assets (ZAR7.2B) do not cover its long term liabilities (ZAR10.9B).


Debt to Equity History and Analysis

Debt Level: NTC's debt to equity ratio (83.1%) is considered high.

Reducing Debt: NTC's debt to equity ratio has increased from 54.8% to 83.1% over the past 5 years.

Debt Coverage: NTC's debt is not well covered by operating cash flow (3.7%).

Interest Coverage: NTC's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet


Dividend

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

5.68%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate NTC'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 NTC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NTC'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?

4.2yrs

Average management tenure


CEO

Richard Friedland (60 yo)

16.08yrs

Tenure

R15,247,000

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

Compensation vs Market: Richard's total compensation ($USD1.04M) is about average for companies of similar size in the ZA market ($USD922.82K).

Compensation vs Earnings: Richard's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: NTC's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: NTC's board of directors are considered experienced (5.9 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

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


Key Information

  • Name: Netcare Limited
  • Ticker: NTC
  • Exchange: JSE
  • Founded: 1996
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: R22.143b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 21:38
End of Day Share Price2021/10/18 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.