GAROFALO HEALTH CARE SPA (GHC.MI) Stock Fundamental Analysis
BIT:GHC - Euronext Milan - IT0005345233 - Common Stock - Currency: EUR
Taking everything into account, GHC scores 4 out of 10 in our fundamental rating. GHC was compared to 25 industry peers in the Health Care Providers & Services industry. GHC has an average financial health and profitability rating. GHC has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years GHC has been profitable.
Each year in the past 5 years GHC had a positive operating cash flow.
1.2 Ratios
GHC has a better Return On Assets (3.69%) than 76.00% of its industry peers.
GHC has a Return On Equity of 9.73%. This is in the better half of the industry: GHC outperforms 64.00% of its industry peers.
With a decent Return On Invested Capital value of 6.56%, GHC is doing good in the industry, outperforming 72.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GHC is in line with the industry average of 5.78%.
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
Looking at the Profit Margin, with a value of 4.61%, GHC is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
In the last couple of years the Profit Margin of GHC has declined.
GHC has a better Operating Margin (9.50%) than 88.00% of its industry peers.
In the last couple of years the Operating Margin of GHC has declined.
GHC has a Gross Margin (45.32%) which is comparable to the rest of the 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
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
GHC has a better debt/assets ratio than last year.
2.2 Solvency
GHC has an Altman-Z score of 1.93. 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.
With a Altman-Z score value of 1.93, GHC perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
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 Debt to FCF ratio of 17.13. This is amonst the worse of the industry: GHC underperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that GHC is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.70, GHC is doing good in the industry, outperforming 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 17.13 | ||
| Altman-Z | 1.93 |
ROIC/WACC1.02
WACC6.46%
2.3 Liquidity
A Current Ratio of 1.14 indicates that GHC should not have too much problems paying its short term obligations.
The Current ratio of GHC (1.14) is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.09, GHC is in the better half of the industry, outperforming 68.00% 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 -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.
Looking at the last year, GHC shows a very strong growth in Revenue. 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
GHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.45% yearly.
The Revenue is expected to grow by 1.51% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 14.57, the valuation of GHC can be described as correct.
Based on the Price/Earnings ratio, GHC is valued a bit cheaper than 64.00% of the companies in the same industry.
GHC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.78, GHC is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as GHC.
When comparing the Price/Forward Earnings ratio of GHC to the average of the S&P500 Index (37.64), we can say GHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 15.78 |
4.2 Price Multiples
76.00% of the companies in the same industry are more expensive than GHC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GHC is valued more expensive than 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.33 | ||
| EV/EBITDA | 7.23 |
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)4.23
PEG (5Y)1.65
EPS Next 2Y5.05%
EPS Next 3Y5.45%
5. Dividend
5.1 Amount
GHC has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
GHC's Dividend Yield is comparable with the industry average which is at 2.87.
GHC's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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 (7/24/2025, 7:00:00 PM)
5.1
-0.1 (-1.92%)
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 Cap460.02M
Analysts84
Price Target6.63 (30%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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)0%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 15.78 | ||
| P/S | 0.68 | ||
| P/FCF | 34.33 | ||
| P/OCF | 13.15 | ||
| P/B | 1.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.23 |
EPS(TTM)0.35
EY6.86%
EPS(NY)0.32
Fwd EY6.34%
FCF(TTM)0.15
FCFY2.91%
OCF(TTM)0.39
OCFY7.61%
SpS7.55
BVpS3.57
TBVpS-0.56
PEG (NY)4.23
PEG (5Y)1.65
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 | 1.93 |
F-Score7
WACC6.46%
ROIC/WACC1.02
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 2Y5.05%
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%