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 4 out of 10. We evaluated GHC against 25 industry peers in the Health Care Providers & Services industry. GHC has an average financial health and profitability rating. GHC is quite expensive at the moment. It does show 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.
In the past 5 years GHC has always been profitable.
Each year in the past 5 years GHC had a positive operating cash flow.
1.2 Ratios
GHC has a Return On Assets of 3.69%. This is in the better half of the industry: GHC outperforms 64.00% of its industry peers.
GHC's Return On Equity of 9.73% is in line compared to the rest of the industry. GHC outperforms 56.00% 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 68.00% 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 6.33%.
The last Return On Invested Capital (6.56%) for GHC is above the 3 year average (4.41%), which is a sign of increasing profitability.
| 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
The Profit Margin of GHC (4.61%) is better than 64.00% of its industry peers.
In the last couple of years the Profit Margin of GHC has declined.
GHC has a better Operating Margin (9.50%) than 80.00% of its industry peers.
GHC's Operating Margin has declined in the last couple of years.
The Gross Margin of GHC (45.32%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GHC has remained more or less at the same level.
| 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.
Compared to 1 year ago, GHC has about the same amount of shares outstanding.
GHC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GHC has been reduced compared to a year ago.
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.
GHC's Altman-Z score of 1.95 is in line compared to the rest of the industry. GHC outperforms 60.00% of its industry peers.
GHC has a debt to FCF ratio of 17.13. This is a negative value and a sign of low solvency as GHC would need 17.13 years to pay back of all of its debts.
GHC has a worse Debt to FCF ratio (17.13) than 76.00% of its industry peers.
GHC has a Debt/Equity ratio of 0.70. This is a neutral value indicating GHC is somewhat dependend on debt financing.
GHC has a better Debt to Equity ratio (0.70) than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 17.13 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.97
WACC6.76%
2.3 Liquidity
GHC has a Current Ratio of 1.14. This is a normal value and indicates that GHC is financially healthy and should not expect problems in meeting its short term obligations.
GHC's Current ratio of 1.14 is in line compared to the rest of the industry. GHC outperforms 60.00% of its industry peers.
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 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
GHC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.80%.
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!
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)-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
GHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.45% yearly.
Based on estimates for the next years, GHC will show a small growth in Revenue. The Revenue will grow by 1.51% on average per year.
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
The Price/Earnings ratio is 15.06, which indicates a correct valuation of GHC.
GHC's Price/Earnings ratio is a bit cheaper when compared to the industry. GHC is cheaper than 68.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.20, GHC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.39, GHC is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as GHC.
GHC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 17.39 |
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 a bit more expensive than the industry average as 72.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.47 | ||
| EV/EBITDA | 7.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.37
PEG (5Y)1.71
EPS Next 2Y5.05%
EPS Next 3Y5.45%
5. Dividend
5.1 Amount
GHC has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.77, GHC pays a bit more dividend than its industry peers.
GHC's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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 (5/29/2025, 7:00:00 PM)
5.27
-0.15 (-2.77%)
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 Cap475.35M
Analysts84
Price Target6.63 (25.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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 | 15.06 | ||
| Fwd PE | 17.39 | ||
| P/S | 0.7 | ||
| P/FCF | 35.47 | ||
| P/OCF | 13.58 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.4 |
EPS(TTM)0.35
EY6.64%
EPS(NY)0.3
Fwd EY5.75%
FCF(TTM)0.15
FCFY2.82%
OCF(TTM)0.39
OCFY7.36%
SpS7.55
BVpS3.57
TBVpS-0.56
PEG (NY)4.37
PEG (5Y)1.71
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 | 1.95 |
F-Score7
WACC6.76%
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 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%