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EXTENDICARE INC (EXE.CA) Stock Fundamental Analysis

TSX:EXE - Toronto Stock Exchange - CA30224T8639 - Common Stock - Currency: CAD

11.12  +0.28 (+2.58%)

Fundamental Rating

6

EXE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 17 industry peers in the Health Care Providers & Services industry. While EXE has a great profitability rating, there are some minor concerns on its financial health. EXE may be a bit undervalued, certainly considering the very reasonable score on growth Finally EXE also has an excellent dividend rating. These ratings could make EXE a good candidate for value and dividend investing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

EXE had positive earnings in the past year.
EXE had a positive operating cash flow in the past year.
Each year in the past 5 years EXE has been profitable.
EXE had a positive operating cash flow in each of the past 5 years.
EXE.CA Yearly Net Income VS EBIT VS OCF VS FCFEXE.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M

1.2 Ratios

The Return On Assets of EXE (8.78%) is better than 93.75% of its industry peers.
EXE's Return On Equity of 56.21% is amongst the best of the industry. EXE outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.38%, EXE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EXE is in line with the industry average of 8.08%.
The 3 year average ROIC (6.89%) for EXE is below the current ROIC(24.38%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.78%
ROE 56.21%
ROIC 24.38%
ROA(3y)5.08%
ROA(5y)4.81%
ROE(3y)39.67%
ROE(5y)37.21%
ROIC(3y)6.89%
ROIC(5y)7.53%
EXE.CA Yearly ROA, ROE, ROICEXE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80 100

1.3 Margins

The Profit Margin of EXE (4.48%) is better than 81.25% of its industry peers.
EXE's Profit Margin has declined in the last couple of years.
EXE has a Operating Margin of 7.02%. This is in the better half of the industry: EXE outperforms 75.00% of its industry peers.
EXE's Operating Margin has declined in the last couple of years.
EXE has a worse Gross Margin (13.37%) than 81.25% of its industry peers.
In the last couple of years the Gross Margin of EXE has remained more or less at the same level.
Industry RankSector Rank
OM 7.02%
PM (TTM) 4.48%
GM 13.37%
OM growth 3Y-16.03%
OM growth 5Y-1.74%
PM growth 3Y-17.75%
PM growth 5Y-1.65%
GM growth 3Y-9.71%
GM growth 5Y-0.66%
EXE.CA Yearly Profit, Operating, Gross MarginsEXE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EXE is creating value.
EXE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EXE has been reduced compared to 5 years ago.
The debt/assets ratio for EXE is higher compared to a year ago.
EXE.CA Yearly Shares OutstandingEXE.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
EXE.CA Yearly Total Debt VS Total AssetsEXE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

EXE has an Altman-Z score of 2.34. This is not the best score and indicates that EXE is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.34, EXE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
EXE has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as EXE would need 3.34 years to pay back of all of its debts.
EXE has a better Debt to FCF ratio (3.34) than 81.25% of its industry peers.
A Debt/Equity ratio of 1.40 is on the high side and indicates that EXE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.40, EXE perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.4
Debt/FCF 3.34
Altman-Z 2.34
ROIC/WACC3.57
WACC6.82%
EXE.CA Yearly LT Debt VS Equity VS FCFEXE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M 300M 400M

2.3 Liquidity

EXE has a Current Ratio of 0.62. This is a bad value and indicates that EXE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.62, EXE is doing worse than 62.50% of the companies in the same industry.
A Quick Ratio of 0.62 indicates that EXE may have some problems paying its short term obligations.
EXE's Quick ratio of 0.62 is on the low side compared to the rest of the industry. EXE is outperformed by 62.50% of its industry peers.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.62
EXE.CA Yearly Current Assets VS Current LiabilitesEXE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 168.53% over the past year.
Measured over the past 5 years, EXE shows a small growth in Earnings Per Share. The EPS has been growing by 4.56% on average per year.
The Revenue has grown by 12.62% in the past year. This is quite good.
Measured over the past years, EXE shows a small growth in Revenue. The Revenue has been growing by 3.10% on average per year.
EPS 1Y (TTM)168.53%
EPS 3Y-9.53%
EPS 5Y4.56%
EPS Q2Q%38.18%
Revenue 1Y (TTM)12.62%
Revenue growth 3Y4.05%
Revenue growth 5Y3.1%
Sales Q2Q%11.33%

3.2 Future

Based on estimates for the next years, EXE will show a very strong growth in Earnings Per Share. The EPS will grow by 29.79% on average per year.
EXE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.68% yearly.
EPS Next Y137.31%
EPS Next 2Y45.58%
EPS Next 3Y32.54%
EPS Next 5Y29.79%
Revenue Next Year12.94%
Revenue Next 2Y8.97%
Revenue Next 3Y6.69%
Revenue Next 5Y5.68%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
EXE.CA Yearly Revenue VS EstimatesEXE.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
EXE.CA Yearly EPS VS EstimatesEXE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1

8

4. Valuation

4.1 Price/Earnings Ratio

EXE is valuated correctly with a Price/Earnings ratio of 16.35.
93.75% of the companies in the same industry are more expensive than EXE, based on the Price/Earnings ratio.
EXE is valuated rather cheaply when we compare the Price/Earnings ratio to 30.43, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.51 indicates a correct valuation of EXE.
93.75% of the companies in the same industry are more expensive than EXE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, EXE is valued a bit cheaper.
Industry RankSector Rank
PE 16.35
Fwd PE 15.51
EXE.CA Price Earnings VS Forward Price EarningsEXE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, EXE is valued cheaper than 87.50% of the companies in the same industry.
EXE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EXE is cheaper than 81.25% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.63
EV/EBITDA 8.21
EXE.CA Per share dataEXE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

EXE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EXE may justify a higher PE ratio.
A more expensive valuation may be justified as EXE's earnings are expected to grow with 32.54% in the coming years.
PEG (NY)0.12
PEG (5Y)3.59
EPS Next 2Y45.58%
EPS Next 3Y32.54%

7

5. Dividend

5.1 Amount

EXE has a Yearly Dividend Yield of 4.43%, which is a nice return.
EXE's Dividend Yield is rather good when compared to the industry average which is at 3.97. EXE pays more dividend than 87.50% of the companies in the same industry.
EXE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 4.43%

5.2 History

The dividend of EXE has a limited annual growth rate of 2.65%.
EXE has paid a dividend for at least 10 years, which is a reliable track record.
EXE has decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.65%
Div Incr Years0
Div Non Decr Years2
EXE.CA Yearly Dividends per shareEXE.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

62.60% of the earnings are spent on dividend by EXE. This is not a sustainable payout ratio.
The dividend of EXE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.6%
EPS Next 2Y45.58%
EPS Next 3Y32.54%
EXE.CA Yearly Income VS Free CF VS DividendEXE.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M
EXE.CA Dividend Payout.EXE.CA Dividend Payout, showing the Payout Ratio.EXE.CA Dividend Payout.PayoutRetained Earnings

EXTENDICARE INC

TSX:EXE (2/14/2025, 7:00:00 PM)

11.12

+0.28 (+2.58%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)11-12 2024-11-12
Earnings (Next)02-27 2025-02-27/amc
Inst Owners19.04%
Inst Owner ChangeN/A
Ins Owners14.26%
Ins Owner ChangeN/A
Market Cap928.19M
Analysts72.5
Price Target11.22 (0.9%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.43%
Yearly Dividend0.48
Dividend Growth(5Y)2.65%
DP62.6%
Div Incr Years0
Div Non Decr Years2
Ex-Date01-31 2025-01-31 (0.04)
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)13.79%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.62%
EPS NY rev (3m)16.91%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.28%
Valuation
Industry RankSector Rank
PE 16.35
Fwd PE 15.51
P/S 0.65
P/FCF 9.63
P/OCF 6.4
P/B 8.16
P/tB N/A
EV/EBITDA 8.21
EPS(TTM)0.68
EY6.12%
EPS(NY)0.72
Fwd EY6.45%
FCF(TTM)1.16
FCFY10.39%
OCF(TTM)1.74
OCFY15.64%
SpS17.07
BVpS1.36
TBVpS-0.12
PEG (NY)0.12
PEG (5Y)3.59
Profitability
Industry RankSector Rank
ROA 8.78%
ROE 56.21%
ROCE 32.14%
ROIC 24.38%
ROICexc 48.35%
ROICexgc 228.57%
OM 7.02%
PM (TTM) 4.48%
GM 13.37%
FCFM 6.77%
ROA(3y)5.08%
ROA(5y)4.81%
ROE(3y)39.67%
ROE(5y)37.21%
ROIC(3y)6.89%
ROIC(5y)7.53%
ROICexc(3y)8.66%
ROICexc(5y)9.58%
ROICexgc(3y)12.13%
ROICexgc(5y)12.59%
ROCE(3y)9.09%
ROCE(5y)9.93%
ROICexcg growth 3Y3.92%
ROICexcg growth 5Y17.05%
ROICexc growth 3Y-3.27%
ROICexc growth 5Y11.65%
OM growth 3Y-16.03%
OM growth 5Y-1.74%
PM growth 3Y-17.75%
PM growth 5Y-1.65%
GM growth 3Y-9.71%
GM growth 5Y-0.66%
F-Score7
Asset Turnover1.96
Health
Industry RankSector Rank
Debt/Equity 1.4
Debt/FCF 3.34
Debt/EBITDA 1.19
Cap/Depr 145.31%
Cap/Sales 3.42%
Interest Coverage 9.55
Cash Conversion 108.7%
Profit Quality 150.9%
Current Ratio 0.62
Quick Ratio 0.62
Altman-Z 2.34
F-Score7
WACC6.82%
ROIC/WACC3.57
Cap/Depr(3y)299.41%
Cap/Depr(5y)213.47%
Cap/Sales(3y)8.06%
Cap/Sales(5y)6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)168.53%
EPS 3Y-9.53%
EPS 5Y4.56%
EPS Q2Q%38.18%
EPS Next Y137.31%
EPS Next 2Y45.58%
EPS Next 3Y32.54%
EPS Next 5Y29.79%
Revenue 1Y (TTM)12.62%
Revenue growth 3Y4.05%
Revenue growth 5Y3.1%
Sales Q2Q%11.33%
Revenue Next Year12.94%
Revenue Next 2Y8.97%
Revenue Next 3Y6.69%
Revenue Next 5Y5.68%
EBIT growth 1Y124.99%
EBIT growth 3Y-12.63%
EBIT growth 5Y1.31%
EBIT Next Year116.64%
EBIT Next 3Y30.86%
EBIT Next 5Y25.58%
FCF growth 1Y640.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y66.81%
OCF growth 3Y-42.31%
OCF growth 5Y-10.03%