EXTENDICARE INC (EXE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EXE - CA30224T8639 - Common Stock
23.1 CAD
+0.35 (+1.54%)
Overall EXE gets a fundamental rating of 6 out of 10. We evaluated EXE against 14 industry peers in the Health Care Providers & Services industry. EXE has an excellent profitability rating, but there are some minor concerns on its financial health. EXE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year EXE was profitable.
- In the past year EXE had a positive cash flow from operations.
- Each year in the past 5 years EXE has been profitable.
- EXE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 10.41%, EXE belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- EXE's Return On Equity of 55.53% is amongst the best of the industry. EXE outperforms 92.86% of its industry peers.
- EXE has a Return On Invested Capital of 18.54%. This is amongst the best in the industry. EXE outperforms 100.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EXE is above the industry average of 7.74%.
- The 3 year average ROIC (11.40%) for EXE is below the current ROIC(18.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 55.53% | ||
| ROIC | 18.54% |
ROA(3y)8.13%
ROA(5y)6.26%
ROE(3y)56.07%
ROE(5y)44.35%
ROIC(3y)11.4%
ROIC(5y)10.15%
1.3 Margins
- Looking at the Profit Margin, with a value of 5.72%, EXE belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- EXE's Profit Margin has improved in the last couple of years.
- EXE's Operating Margin of 8.22% is fine compared to the rest of the industry. EXE outperforms 78.57% of its industry peers.
- EXE's Operating Margin has improved in the last couple of years.
- The Gross Margin of EXE (14.15%) is worse than 78.57% of its industry peers.
- EXE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.22% | ||
| PM (TTM) | 5.72% | ||
| GM | 14.15% |
OM growth 3Y21.21%
OM growth 5Y10.26%
PM growth 3Y73.29%
PM growth 5Y15.22%
GM growth 3Y6.44%
GM growth 5Y3.11%
2. Health
2.1 Basic Checks
- EXE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, EXE has more shares outstanding
- EXE has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for EXE has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.36 indicates that EXE is not in any danger for bankruptcy at the moment.
- EXE has a Altman-Z score of 3.36. This is amongst the best in the industry. EXE outperforms 85.71% of its industry peers.
- EXE has a debt to FCF ratio of 3.39. This is a good value and a sign of high solvency as EXE would need 3.39 years to pay back of all of its debts.
- The Debt to FCF ratio of EXE (3.39) is better than 78.57% of its industry peers.
- A Debt/Equity ratio of 1.94 is on the high side and indicates that EXE has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.94, EXE is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 3.39 | ||
| Altman-Z | 3.36 |
ROIC/WACC2.38
WACC7.78%
2.3 Liquidity
- A Current Ratio of 0.81 indicates that EXE may have some problems paying its short term obligations.
- EXE has a Current ratio (0.81) which is comparable to the rest of the industry.
- EXE has a Quick Ratio of 0.81. This is a bad value and indicates that EXE is not financially healthy enough and could expect problems in meeting its short term obligations.
- EXE has a Quick ratio of 0.81. This is in the better half of the industry: EXE outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
- EXE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.52%, which is quite impressive.
- The Earnings Per Share has been growing by 22.74% on average over the past years. This is a very strong growth
- Looking at the last year, EXE shows a quite strong growth in Revenue. The Revenue has grown by 11.59% in the last year.
- EXE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.31% yearly.
EPS 1Y (TTM)52.52%
EPS 3Y92.12%
EPS 5Y22.74%
EPS Q2Q%65.04%
Revenue 1Y (TTM)11.59%
Revenue growth 3Y7.91%
Revenue growth 5Y5.31%
Sales Q2Q%22.62%
3.2 Future
- EXE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.75% yearly.
- EXE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.83% yearly.
EPS Next Y33.67%
EPS Next 2Y21.07%
EPS Next 3Y19.7%
EPS Next 5Y9.75%
Revenue Next Year15.35%
Revenue Next 2Y25.35%
Revenue Next 3Y18.26%
Revenue Next 5Y10.83%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- EXE is valuated rather expensively with a Price/Earnings ratio of 22.21.
- Based on the Price/Earnings ratio, EXE is valued a bit cheaper than 78.57% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. EXE is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 19.75, which indicates a rather expensive current valuation of EXE.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EXE indicates a somewhat cheap valuation: EXE is cheaper than 78.57% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of EXE to the average of the S&P500 Index (25.95), we can say EXE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 19.75 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXE indicates a somewhat cheap valuation: EXE is cheaper than 78.57% of the companies listed in the same industry.
- EXE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EXE is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.42 | ||
| EV/EBITDA | 12.71 |
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 an outstanding 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 19.70% in the coming years.
PEG (NY)0.66
PEG (5Y)0.98
EPS Next 2Y21.07%
EPS Next 3Y19.7%
5. Dividend
5.1 Amount
- EXE has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.31, EXE pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, EXE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
- The dividend of EXE has a limited annual growth rate of 2.79%.
- EXE has been paying a dividend for at least 10 years, so it has a reliable track record.
- EXE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.79%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
- EXE pays out 45.22% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of EXE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.22%
EPS Next 2Y21.07%
EPS Next 3Y19.7%
EXTENDICARE INC / EXE.CA FAQ
What is the fundamental rating for EXE stock?
ChartMill assigns a fundamental rating of 6 / 10 to EXE.CA.
What is the valuation status for EXE stock?
ChartMill assigns a valuation rating of 6 / 10 to EXTENDICARE INC (EXE.CA). This can be considered as Fairly Valued.
What is the profitability of EXE stock?
EXTENDICARE INC (EXE.CA) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for EXE stock?
The Earnings per Share (EPS) of EXTENDICARE INC (EXE.CA) is expected to grow by 33.67% in the next year.
Is the dividend of EXTENDICARE INC sustainable?
The dividend rating of EXTENDICARE INC (EXE.CA) is 6 / 10 and the dividend payout ratio is 45.22%.