GAROFALO HEALTH CARE SPA (GHC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:GHC - IT0005345233 - Common Stock
5.39 EUR
-0.04 (-0.74%)
Overall GHC gets a fundamental rating of 4 out of 10. We evaluated GHC against 26 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of GHC get a neutral evaluation. Nothing too spectacular is happening here. GHC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- GHC had positive earnings in the past year.
- GHC had a positive operating cash flow in the past year.
- Each year in the past 5 years GHC has been profitable.
- In the past 5 years GHC always reported a positive cash flow from operatings.
1.2 Ratios
- GHC has a better Return On Assets (3.66%) than 66.67% of its industry peers.
- With a Return On Equity value of 9.57%, GHC perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
- GHC has a Return On Invested Capital of 6.52%. This is in the better half of the industry: GHC outperforms 66.67% of its industry peers.
- GHC had an Average Return On Invested Capital over the past 3 years of 4.41%. This is below the industry average of 6.45%.
- The last Return On Invested Capital (6.52%) for GHC is above the 3 year average (4.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 9.57% | ||
| ROIC | 6.52% |
ROA(3y)2.83%
ROA(5y)2.81%
ROE(3y)7.12%
ROE(5y)6.88%
ROIC(3y)4.41%
ROIC(5y)3.91%
1.3 Margins
- GHC has a better Profit Margin (4.62%) than 80.00% of its industry peers.
- In the last couple of years the Profit Margin of GHC has declined.
- With an excellent Operating Margin value of 9.37%, GHC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- In the last couple of years the Operating Margin of GHC has declined.
- GHC's Gross Margin of 44.90% is fine compared to the rest of the industry. GHC outperforms 63.33% of its industry peers.
- GHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.37% | ||
| PM (TTM) | 4.62% | ||
| GM | 44.9% |
OM growth 3Y-0.19%
OM growth 5Y-3.37%
PM growth 3Y-11.52%
PM growth 5Y-7.03%
GM growth 3Y0.36%
GM growth 5Y-1.06%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GHC is destroying value.
- Compared to 1 year ago, GHC has about the same amount of shares outstanding.
- Compared to 5 years ago, GHC has more shares outstanding
- Compared to 1 year ago, GHC has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.95 indicates that GHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 1.95, GHC perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
- GHC has a debt to FCF ratio of 70.49. This is a negative value and a sign of low solvency as GHC would need 70.49 years to pay back of all of its debts.
- The Debt to FCF ratio of GHC (70.49) is worse than 73.33% of its industry peers.
- A Debt/Equity ratio of 0.67 indicates that GHC is somewhat dependend on debt financing.
- The Debt to Equity ratio of GHC (0.67) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 70.49 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.99
WACC6.56%
2.3 Liquidity
- A Current Ratio of 1.16 indicates that GHC should not have too much problems paying its short term obligations.
- GHC's Current ratio of 1.16 is fine compared to the rest of the industry. GHC outperforms 63.33% of its industry peers.
- A Quick Ratio of 1.12 indicates that GHC should not have too much problems paying its short term obligations.
- GHC has a better Quick ratio (1.12) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- The earnings per share for GHC have decreased strongly by -12.11% in the last year.
- Measured over the past years, GHC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.81% on average per year.
- Looking at the last year, GHC shows a quite strong growth in Revenue. The Revenue has grown by 10.44% in the last year.
- GHC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.92% yearly.
EPS 1Y (TTM)-12.11%
EPS 3Y5.52%
EPS 5Y8.81%
EPS Q2Q%2.71%
Revenue 1Y (TTM)10.44%
Revenue growth 3Y18.48%
Revenue growth 5Y18.92%
Sales Q2Q%3.08%
3.2 Future
- Based on estimates for the next years, GHC will show a small growth in Earnings Per Share. The EPS will grow by 6.47% on average per year.
- GHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.51% yearly.
EPS Next Y3.45%
EPS Next 2Y5.05%
EPS Next 3Y6.47%
EPS Next 5YN/A
Revenue Next Year3.78%
Revenue Next 2Y4.6%
Revenue Next 3Y3.74%
Revenue Next 5Y1.51%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.97, which indicates a correct valuation of GHC.
- Based on the Price/Earnings ratio, GHC is valued a bit cheaper than 70.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of GHC to the average of the S&P500 Index (27.21), we can say GHC is valued slightly cheaper.
- A Price/Forward Earnings ratio of 16.68 indicates a correct valuation of GHC.
- The rest of the industry has a similar Price/Forward Earnings ratio as GHC.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. GHC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 16.68 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GHC indicates a rather cheap valuation: GHC is cheaper than 83.33% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, GHC is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 149.69 | ||
| EV/EBITDA | 7.42 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GHC does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of GHC may justify a higher PE ratio.
PEG (NY)4.34
PEG (5Y)1.7
EPS Next 2Y5.05%
EPS Next 3Y6.47%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.58%, GHC has a reasonable but not impressive dividend return.
- GHC's Dividend Yield is comparable with the industry average which is at 1.72.
- GHC's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y5.05%
EPS Next 3Y6.47%
GAROFALO HEALTH CARE SPA / GHC.MI FAQ
What is the ChartMill fundamental rating of GAROFALO HEALTH CARE SPA (GHC.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to GHC.MI.
What is the valuation status for GHC stock?
ChartMill assigns a valuation rating of 4 / 10 to GAROFALO HEALTH CARE SPA (GHC.MI). This can be considered as Fairly Valued.
How profitable is GAROFALO HEALTH CARE SPA (GHC.MI) stock?
GAROFALO HEALTH CARE SPA (GHC.MI) has a profitability rating of 6 / 10.
What is the financial health of GAROFALO HEALTH CARE SPA (GHC.MI) stock?
The financial health rating of GAROFALO HEALTH CARE SPA (GHC.MI) is 4 / 10.
What is the expected EPS growth for GAROFALO HEALTH CARE SPA (GHC.MI) stock?
The Earnings per Share (EPS) of GAROFALO HEALTH CARE SPA (GHC.MI) is expected to grow by 3.45% in the next year.