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. 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.
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
Looking at the Return On Assets, with a value of 3.69%, GHC is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
The Return On Equity of GHC (9.73%) is better than 64.00% of its industry peers.
GHC has a better Return On Invested Capital (6.56%) than 72.00% 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 5.77%.
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 76.00% of the companies in the same industry.
In the last couple of years the Profit Margin of GHC has declined.
The Operating Margin of GHC (9.50%) is better than 84.00% of its industry peers.
In the last couple of years the Operating Margin of GHC has declined.
With a Gross Margin value of 45.32%, GHC perfoms like the industry average, outperforming 56.00% of the companies in the same 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
GHC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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 1.92 indicates that GHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
GHC has a Altman-Z score (1.92) which is comparable to the rest of the 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 worse Debt to FCF ratio (17.13) than 72.00% 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 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 17.13 | ||
| Altman-Z | 1.92 |
ROIC/WACC1.01
WACC6.5%
2.3 Liquidity
A Current Ratio of 1.14 indicates that GHC should not have too much problems paying 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.
A Quick Ratio of 1.09 indicates that GHC should not have too much problems paying 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 -5.79%.
GHC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.81% yearly.
Looking at the last year, GHC shows a very strong growth in Revenue. The Revenue has grown by 21.83%.
Measured over the past years, GHC shows a quite strong growth in Revenue. The Revenue has been growing by 18.92% on average per year.
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.
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.
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 14.06, which indicates a correct valuation of GHC.
Based on the Price/Earnings ratio, GHC is valued a bit cheaper than 76.00% of the companies in the same industry.
GHC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
GHC is valuated correctly with a Price/Forward Earnings ratio of 15.22.
The rest of the industry has a similar Price/Forward Earnings ratio as GHC.
The average S&P500 Price/Forward Earnings ratio is at 21.90. GHC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 15.22 |
4.2 Price Multiples
GHC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GHC is cheaper than 76.00% 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 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.12 | ||
| EV/EBITDA | 7.1 |
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)4.08
PEG (5Y)1.59
EPS Next 2Y5.05%
EPS Next 3Y5.45%
5. Dividend
5.1 Amount
GHC has a Yearly Dividend Yield of 1.67%.
GHC's Dividend Yield is a higher than the industry average which is at 2.79.
Compared to the average S&P500 Dividend Yield of 2.42, GHC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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 (7/4/2025, 4:09:12 PM)
4.92
-0.05 (-1.01%)
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 Cap443.78M
Analysts84
Price Target6.63 (34.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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 | 14.06 | ||
| Fwd PE | 15.22 | ||
| P/S | 0.65 | ||
| P/FCF | 33.12 | ||
| P/OCF | 12.68 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.1 |
EPS(TTM)0.35
EY7.11%
EPS(NY)0.32
Fwd EY6.57%
FCF(TTM)0.15
FCFY3.02%
OCF(TTM)0.39
OCFY7.89%
SpS7.55
BVpS3.57
TBVpS-0.56
PEG (NY)4.08
PEG (5Y)1.59
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 | 1.92 |
F-Score7
WACC6.5%
ROIC/WACC1.01
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%