GAROFALO HEALTH CARE SPA (GHC.MI) Stock Fundamental Analysis
BIT:GHC - Euronext Milan - IT0005345233 - Common Stock - Currency: EUR
Overall GHC gets a fundamental rating of 5 out of 10. We evaluated GHC against 24 industry peers in the Health Care Providers & Services industry. GHC scores excellent on profitability, but there are some minor concerns on its financial health. GHC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GHC was profitable.
In the past year GHC had a positive cash flow from operations.
In the past 5 years GHC has always been profitable.
GHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.69%, GHC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
GHC has a Return On Equity of 9.73%. This is in the better half of the industry: GHC outperforms 62.50% of its industry peers.
GHC has a Return On Invested Capital of 6.56%. This is in the better half of the industry: GHC outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GHC is in line with the industry average of 5.60%.
The 3 year average ROIC (4.41%) for GHC is below the current ROIC(6.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 9.73% | ||
| ROIC | 6.56% |
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
With a decent Profit Margin value of 4.61%, GHC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
GHC's Profit Margin has declined in the last couple of years.
The Operating Margin of GHC (9.50%) is better than 87.50% of its industry peers.
In the last couple of years the Operating Margin of GHC has declined.
Looking at the Gross Margin, with a value of 45.32%, GHC is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
GHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 4.61% | ||
| GM | 45.32% |
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.
The number of shares outstanding for GHC remains at a similar level compared to 1 year ago.
The number of shares outstanding for GHC has been increased compared to 5 years ago.
The debt/assets ratio for GHC has been reduced compared to a year ago.
2.2 Solvency
GHC has an Altman-Z score of 1.94. This is not the best score and indicates that GHC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of GHC (1.94) is better than 66.67% of its industry peers.
The Debt to FCF ratio of GHC is 17.13, which is on the high side as it means it would take GHC, 17.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GHC (17.13) is worse than 70.83% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that GHC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, GHC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 17.13 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.97
WACC6.75%
2.3 Liquidity
A Current Ratio of 1.14 indicates that GHC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.14, GHC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
GHC has a Quick Ratio of 1.09. This is a normal value and indicates that GHC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.09, GHC is doing good in the industry, outperforming 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for GHC have decreased by -1.80% in the last year.
The Earnings Per Share has been growing by 8.81% on average over the past years. This is quite good.
The Revenue has grown by 29.42% in the past year. This is a very strong growth!
The Revenue has been growing by 18.92% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.8%
EPS 3Y5.52%
EPS 5Y8.81%
EPS Q2Q%-42.99%
Revenue 1Y (TTM)29.42%
Revenue growth 3Y18.48%
Revenue growth 5Y18.92%
Sales Q2Q%20.44%
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 5.45% 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 3Y5.45%
EPS Next 5YN/A
Revenue Next Year3.78%
Revenue Next 2Y2.78%
Revenue Next 3Y2.46%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.91 indicates a correct valuation of GHC.
GHC's Price/Earnings ratio is a bit cheaper when compared to the industry. GHC is cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 23.99. GHC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.23, the valuation of GHC can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GHC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.35. GHC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 17.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHC is valued a bit cheaper than 75.00% of the companies in the same industry.
GHC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. GHC is more expensive than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.13 | ||
| EV/EBITDA | 7.37 |
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.
GHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.33
PEG (5Y)1.69
EPS Next 2Y5.05%
EPS Next 3Y5.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, GHC has a reasonable but not impressive dividend return.
GHC's Dividend Yield is a higher than the industry average which is at 2.73.
GHC's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y5.05%
EPS Next 3Y5.45%
BIT:GHC (5/7/2025, 4:58:18 PM)
5.22
-0.02 (-0.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners21.38%
Inst Owner ChangeN/A
Ins Owners62.91%
Ins Owner ChangeN/A
Market Cap470.84M
Analysts84
Price Target6.63 (27.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.8%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 17.23 | ||
| P/S | 0.69 | ||
| P/FCF | 35.13 | ||
| P/OCF | 13.45 | ||
| P/B | 1.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.37 |
EPS(TTM)0.35
EY6.7%
EPS(NY)0.3
Fwd EY5.8%
FCF(TTM)0.15
FCFY2.85%
OCF(TTM)0.39
OCFY7.43%
SpS7.55
BVpS3.57
TBVpS-0.56
PEG (NY)4.33
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 9.73% | ||
| ROCE | 9.17% | ||
| ROIC | 6.56% | ||
| ROICexc | 6.87% | ||
| ROICexgc | 15.38% | ||
| OM | 9.5% | ||
| PM (TTM) | 4.61% | ||
| GM | 45.32% | ||
| FCFM | 1.97% |
ROA(3y)2.83%
ROA(5y)2.81%
ROE(3y)7.12%
ROE(5y)6.88%
ROIC(3y)4.41%
ROIC(5y)3.91%
ROICexc(3y)4.63%
ROICexc(5y)4.13%
ROICexgc(3y)10.78%
ROICexgc(5y)9.37%
ROCE(3y)6.5%
ROCE(5y)5.8%
ROICexcg growth 3Y7.97%
ROICexcg growth 5Y2.8%
ROICexc growth 3Y6.71%
ROICexc growth 5Y0.74%
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%
F-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 17.13 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 85.24% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | 6.58 | ||
| Cash Conversion | 38.88% | ||
| Profit Quality | 42.7% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.94 |
F-Score7
WACC6.75%
ROIC/WACC0.97
Cap/Depr(3y)82.25%
Cap/Depr(5y)102.09%
Cap/Sales(3y)4.73%
Cap/Sales(5y)5.79%
Profit Quality(3y)118.21%
Profit Quality(5y)101.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.8%
EPS 3Y5.52%
EPS 5Y8.81%
EPS Q2Q%-42.99%
EPS Next Y3.45%
EPS Next 2Y5.05%
EPS Next 3Y5.45%
EPS Next 5YN/A
Revenue 1Y (TTM)29.42%
Revenue growth 3Y18.48%
Revenue growth 5Y18.92%
Sales Q2Q%20.44%
Revenue Next Year3.78%
Revenue Next 2Y2.78%
Revenue Next 3Y2.46%
Revenue Next 5Y1.51%
EBIT growth 1Y7.42%
EBIT growth 3Y18.26%
EBIT growth 5Y14.91%
EBIT Next Year68.09%
EBIT Next 3Y22.03%
EBIT Next 5Y16.09%
FCF growth 1Y-59.21%
FCF growth 3Y4.79%
FCF growth 5Y6.69%
OCF growth 1Y-30.02%
OCF growth 3Y-1.23%
OCF growth 5Y13.09%