Netcare Limited, an investment holding company, provides healthcare services in South Africa and Lesotho.
Price History & Performance
|Historical stock prices|
|Current Share Price||R16.58|
|52 Week High||R11.30|
|52 Week Low||R17.38|
|1 Month Change||-2.87%|
|3 Month Change||8.51%|
|1 Year Change||27.25%|
|3 Year Change||-30.95%|
|5 Year Change||-53.16%|
|Change since IPO||1,174.45%|
Recent News & Updates
|NTC||ZA Healthcare||ZA Market|
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.
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
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
|NTC fundamental statistics|
Is NTC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|NTC income statement (TTM)|
|Cost of Revenue||R9.58b|
Last Reported Earnings
Mar 31, 2021
Next Earnings Date
|Earnings per share (EPS)||0.11|
|Net Profit Margin||0.80%|
How did NTC perform over the long term?See historical performance and comparison
Is Netcare undervalued compared to its fair value and its price relative to the market?
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).
How is Netcare forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
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%).
How has Netcare performed over the past 5 years?
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.
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).
What is Netcare current dividend yield, its reliability and sustainability?
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Richard Friedland (60 yo)
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.
Experienced Management: NTC's management team is considered experienced (4.2 years average tenure).
Experienced Board: NTC's board of directors are considered experienced (5.9 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Netcare Limited's employee growth, exchange listings and data sources
- 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
- Netcare Limited
- 76 Maude Street
- Corner West Street
- South Africa
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/18 21:38|
|End of Day Share Price||2021/10/18 00:00|
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.