EXTENDICARE INC (EXE.CA) Stock Fundamental Analysis
TSX:EXE - Toronto Stock Exchange - CA30224T8639 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to EXE. EXE was compared to 17 industry peers in the Health Care Providers & Services industry. EXE scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on EXE. EXE also has an excellent dividend rating. These ratings would make EXE suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
EXE had positive earnings in the past year.
In the past year EXE had a positive cash flow from operations.
Each year in the past 5 years EXE has been profitable.
Each year in the past 5 years EXE had a positive operating cash flow.
1.2 Ratios
EXE has a Return On Assets of 8.78%. This is amongst the best in the industry. EXE outperforms 93.75% of its industry peers.
With an excellent Return On Equity value of 56.21%, EXE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 24.38%, EXE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EXE is in line with the industry average of 8.08%.
The 3 year average ROIC (6.89%) for EXE is below the current ROIC(24.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.78% | ||
| ROE | 56.21% | ||
| ROIC | 24.38% |
ROA(3y)5.08%
ROA(5y)4.81%
ROE(3y)39.67%
ROE(5y)37.21%
ROIC(3y)6.89%
ROIC(5y)7.53%
1.3 Margins
Looking at the Profit Margin, with a value of 4.48%, EXE belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Profit Margin of EXE has declined.
EXE has a Operating Margin of 7.02%. This is in the better half of the industry: EXE outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of EXE has declined.
EXE has a worse Gross Margin (13.37%) than 81.25% of its industry peers.
In the last couple of years the Gross Margin of EXE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.02% | ||
| PM (TTM) | 4.48% | ||
| GM | 13.37% |
OM growth 3Y-16.03%
OM growth 5Y-1.74%
PM growth 3Y-17.75%
PM growth 5Y-1.65%
GM growth 3Y-9.71%
GM growth 5Y-0.66%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EXE is creating value.
The number of shares outstanding for EXE has been reduced compared to 1 year ago.
EXE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EXE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.37 indicates that EXE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of EXE (2.37) is better than 75.00% of its industry peers.
EXE has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as EXE would need 3.34 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.34, EXE belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
A Debt/Equity ratio of 1.40 is on the high side and indicates that EXE has dependencies on debt financing.
With a Debt to Equity ratio value of 1.40, EXE perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 2.37 |
ROIC/WACC3.51
WACC6.95%
2.3 Liquidity
A Current Ratio of 0.62 indicates that EXE may have some problems paying its short term obligations.
With a Current ratio value of 0.62, EXE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
A Quick Ratio of 0.62 indicates that EXE may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, EXE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
EXE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 168.53%, which is quite impressive.
EXE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.56% yearly.
The Revenue has grown by 12.62% in the past year. This is quite good.
EXE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.10% yearly.
EPS 1Y (TTM)168.53%
EPS 3Y-9.53%
EPS 5Y4.56%
EPS Q2Q%38.18%
Revenue 1Y (TTM)12.62%
Revenue growth 3Y4.05%
Revenue growth 5Y3.1%
Sales Q2Q%11.33%
3.2 Future
EXE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.79% yearly.
The Revenue is expected to grow by 5.68% on average over the next years.
EPS Next Y135.82%
EPS Next 2Y46.26%
EPS Next 3Y32.54%
EPS Next 5Y29.79%
Revenue Next Year12.86%
Revenue Next 2Y8.76%
Revenue Next 3Y6.83%
Revenue Next 5Y5.68%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
EXE is valuated correctly with a Price/Earnings ratio of 16.84.
EXE's Price/Earnings ratio is rather cheap when compared to the industry. EXE is cheaper than 93.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.62, EXE is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.82, EXE is valued correctly.
93.75% of the companies in the same industry are more expensive than EXE, based on the Price/Forward Earnings ratio.
EXE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 15.82 |
4.2 Price Multiples
EXE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EXE is cheaper than 87.50% of the companies in the same industry.
EXE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EXE is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.91 | ||
| EV/EBITDA | 8.41 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EXE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as EXE's earnings are expected to grow with 32.54% in the coming years.
PEG (NY)0.12
PEG (5Y)3.7
EPS Next 2Y46.26%
EPS Next 3Y32.54%
5. Dividend
5.1 Amount
EXE has a Yearly Dividend Yield of 4.16%, which is a nice return.
Compared to an average industry Dividend Yield of 3.87, EXE pays a better dividend. On top of this EXE pays more dividend than 87.50% of the companies listed in the same industry.
EXE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
5.2 History
The dividend of EXE has a limited annual growth rate of 2.65%.
EXE has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of EXE decreased in the last 3 years.
Dividend Growth(5Y)2.65%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
EXE pays out 62.60% of its income as dividend. This is not a sustainable payout ratio.
EXE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.6%
EPS Next 2Y46.26%
EPS Next 3Y32.54%
TSX:EXE (2/21/2025, 7:00:00 PM)
11.45
-0.08 (-0.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners20.16%
Inst Owner ChangeN/A
Ins Owners14.21%
Ins Owner ChangeN/A
Market Cap955.73M
Analysts72.5
Price Target11.63 (1.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend0.48
Dividend Growth(5Y)2.65%
DP62.6%
Div Incr Years0
Div Non Decr Years2
Ex-Date
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)3.64%
PT rev (3m)17.93%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.25%
EPS NY rev (3m)16.18%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 15.82 | ||
| P/S | 0.67 | ||
| P/FCF | 9.91 | ||
| P/OCF | 6.59 | ||
| P/B | 8.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.41 |
EPS(TTM)0.68
EY5.94%
EPS(NY)0.72
Fwd EY6.32%
FCF(TTM)1.16
FCFY10.09%
OCF(TTM)1.74
OCFY15.19%
SpS17.07
BVpS1.36
TBVpS-0.12
PEG (NY)0.12
PEG (5Y)3.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.78% | ||
| ROE | 56.21% | ||
| ROCE | 32.14% | ||
| ROIC | 24.38% | ||
| ROICexc | 48.35% | ||
| ROICexgc | 228.57% | ||
| OM | 7.02% | ||
| PM (TTM) | 4.48% | ||
| GM | 13.37% | ||
| FCFM | 6.77% |
ROA(3y)5.08%
ROA(5y)4.81%
ROE(3y)39.67%
ROE(5y)37.21%
ROIC(3y)6.89%
ROIC(5y)7.53%
ROICexc(3y)8.66%
ROICexc(5y)9.58%
ROICexgc(3y)12.13%
ROICexgc(5y)12.59%
ROCE(3y)9.09%
ROCE(5y)9.93%
ROICexcg growth 3Y3.92%
ROICexcg growth 5Y17.05%
ROICexc growth 3Y-3.27%
ROICexc growth 5Y11.65%
OM growth 3Y-16.03%
OM growth 5Y-1.74%
PM growth 3Y-17.75%
PM growth 5Y-1.65%
GM growth 3Y-9.71%
GM growth 5Y-0.66%
F-Score7
Asset Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 145.31% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 9.55 | ||
| Cash Conversion | 108.7% | ||
| Profit Quality | 150.9% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 2.37 |
F-Score7
WACC6.95%
ROIC/WACC3.51
Cap/Depr(3y)299.41%
Cap/Depr(5y)213.47%
Cap/Sales(3y)8.06%
Cap/Sales(5y)6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)168.53%
EPS 3Y-9.53%
EPS 5Y4.56%
EPS Q2Q%38.18%
EPS Next Y135.82%
EPS Next 2Y46.26%
EPS Next 3Y32.54%
EPS Next 5Y29.79%
Revenue 1Y (TTM)12.62%
Revenue growth 3Y4.05%
Revenue growth 5Y3.1%
Sales Q2Q%11.33%
Revenue Next Year12.86%
Revenue Next 2Y8.76%
Revenue Next 3Y6.83%
Revenue Next 5Y5.68%
EBIT growth 1Y124.99%
EBIT growth 3Y-12.63%
EBIT growth 5Y1.31%
EBIT Next Year116.64%
EBIT Next 3Y30.86%
EBIT Next 5Y25.58%
FCF growth 1Y640.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y66.81%
OCF growth 3Y-42.31%
OCF growth 5Y-10.03%