GAROFALO HEALTH CARE SPA (GHC.MI) Stock Fundamental Analysis
BIT:GHC - IT0005345233 - Common Stock
4.84 EUR
+0.02 (+0.52%)
We assign a fundamental rating of 4 out of 10 to GHC. GHC was compared to 28 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 is not valued too expensively and it also shows a decent 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.
GHC had positive earnings in each of the past 5 years.
Each year in the past 5 years GHC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GHC (3.69%) is better than 64.29% of its industry peers.
GHC's Return On Equity of 9.73% is fine compared to the rest of the industry. GHC outperforms 60.71% of its industry peers.
GHC has a better Return On Invested Capital (6.56%) than 64.29% 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 6.48%.
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
GHC has a better Profit Margin (4.61%) than 67.86% of its industry peers.
GHC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.50%, GHC is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of GHC has declined.
GHC has a Gross Margin of 45.32%. This is in the better half of the industry: GHC outperforms 60.71% of its industry peers.
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
GHC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GHC has about the same amout of shares outstanding than it did 1 year ago.
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
GHC has an Altman-Z score of 1.90. 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.
GHC has a Altman-Z score of 1.90. This is comparable to the rest of the industry: GHC outperforms 57.14% 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.
GHC has a worse Debt to FCF ratio (17.13) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that GHC is somewhat dependend on debt financing.
GHC has a Debt to Equity ratio of 0.70. This is in the better half of the industry: GHC outperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 17.13 | ||
| Altman-Z | 1.9 |
ROIC/WACC1.03
WACC6.4%
2.3 Liquidity
A Current Ratio of 1.14 indicates that GHC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, GHC perfoms like the industry average, outperforming 53.57% 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.
The Quick ratio of GHC (1.09) is better than 75.00% of its industry peers.
| 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 -5.79% 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.
GHC shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.83%.
The Revenue has been growing by 18.92% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.79%
EPS 3Y5.52%
EPS 5Y8.81%
EPS Q2Q%0.53%
Revenue 1Y (TTM)21.83%
Revenue growth 3Y18.48%
Revenue growth 5Y18.92%
Sales Q2Q%1.86%
3.2 Future
The Earnings Per Share is expected to grow by 5.45% on average over the next years.
The Revenue is expected to grow by 1.51% on average over the next years.
EPS Next Y3.45%
EPS Next 2Y6.67%
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
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.83, which indicates a correct valuation of GHC.
Based on the Price/Earnings ratio, GHC is valued a bit cheaper than 75.00% of the companies in the same industry.
GHC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.52, the valuation of GHC can be described as correct.
Based on the Price/Forward Earnings ratio, GHC is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.48, GHC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.83 | ||
| Fwd PE | 14.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GHC indicates a somewhat cheap valuation: GHC is cheaper than 78.57% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GHC indicates a slightly more expensive valuation: GHC is more expensive than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.58 | ||
| EV/EBITDA | 6.97 |
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)4.01
PEG (5Y)1.57
EPS Next 2Y6.67%
EPS Next 3Y5.45%
5. Dividend
5.1 Amount
GHC has a Yearly Dividend Yield of 1.77%.
GHC's Dividend Yield is a higher than the industry average which is at 2.70.
GHC's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y6.67%
EPS Next 3Y5.45%
BIT:GHC (9/2/2025, 7:00:00 PM)
4.84
+0.02 (+0.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners12.02%
Inst Owner ChangeN/A
Ins Owners62.9%
Ins Owner ChangeN/A
Market Cap436.57M
Analysts84
Price Target6.73 (39.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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)1.54%
PT rev (3m)1.54%
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)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.83 | ||
| Fwd PE | 14.52 | ||
| P/S | 0.64 | ||
| P/FCF | 32.58 | ||
| P/OCF | 12.48 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.97 |
EPS(TTM)0.35
EY7.23%
EPS(NY)0.33
Fwd EY6.89%
FCF(TTM)0.15
FCFY3.07%
OCF(TTM)0.39
OCFY8.02%
SpS7.55
BVpS3.57
TBVpS-0.56
PEG (NY)4.01
PEG (5Y)1.57
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 | 1.9 |
F-Score7
WACC6.4%
ROIC/WACC1.03
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)-5.79%
EPS 3Y5.52%
EPS 5Y8.81%
EPS Q2Q%0.53%
EPS Next Y3.45%
EPS Next 2Y6.67%
EPS Next 3Y5.45%
EPS Next 5YN/A
Revenue 1Y (TTM)21.83%
Revenue growth 3Y18.48%
Revenue growth 5Y18.92%
Sales Q2Q%1.86%
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 Year67.89%
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%