EXTENDICARE INC (EXE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:EXE - CA30224T8639 - Common Stock
22.21 CAD
-0.36 (-1.6%)
Overall EXE gets a fundamental rating of 6 out of 10. We evaluated EXE against 15 industry peers in the Health Care Providers & Services industry. EXE scores excellent on profitability, but there are some minor concerns on its financial health. EXE has a correct valuation and a medium growth rate.
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.
- EXE had positive earnings in each of the past 5 years.
- EXE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.41%, EXE belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
- EXE has a better Return On Equity (55.53%) than 93.33% of its industry peers.
- With an excellent Return On Invested Capital value of 18.54%, EXE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- EXE had an Average Return On Invested Capital over the past 3 years of 11.40%. This is above the industry average of 6.98%.
- The last Return On Invested Capital (18.54%) for EXE is above the 3 year average (11.40%), which is a sign of increasing profitability.
| 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
- With an excellent Profit Margin value of 5.72%, EXE belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of EXE has grown nicely.
- EXE has a better Operating Margin (8.22%) than 80.00% 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 80.00% 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.
- The number of shares outstanding for EXE has been increased compared to 1 year ago.
- Compared to 5 years ago, EXE has less shares outstanding
- EXE has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.32 indicates that EXE is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.32, EXE belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
- 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.
- EXE has a Debt to FCF ratio of 3.39. This is in the better half of the industry: EXE outperforms 80.00% 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.
- The Debt to Equity ratio of EXE (1.94) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 3.39 | ||
| Altman-Z | 3.32 |
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 of 0.81. This is comparable to the rest of the industry: EXE outperforms 53.33% of its industry peers.
- A Quick Ratio of 0.81 indicates that EXE may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.81, EXE is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 52.52% over the past year.
- EXE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.74% yearly.
- EXE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.59%.
- Measured over the past years, EXE shows a small growth in Revenue. The Revenue has been growing by 5.31% on average per year.
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
- The Earnings Per Share is expected to grow by 9.75% on average over the next years. This is quite good.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- With a Price/Earnings ratio of 21.36, EXE is valued on the expensive side.
- Based on the Price/Earnings ratio, EXE is valued a bit cheaper than 73.33% of the companies in the same industry.
- When comparing the Price/Earnings ratio of EXE to the average of the S&P500 Index (27.21), we can say EXE is valued slightly cheaper.
- The Price/Forward Earnings ratio is 18.99, which indicates a rather expensive current valuation of EXE.
- Based on the Price/Forward Earnings ratio, EXE is valued a bit cheaper than 73.33% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of EXE to the average of the S&P500 Index (24.26), we can say EXE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 18.99 |
4.2 Price Multiples
- 80.00% of the companies in the same industry are more expensive than EXE, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EXE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.67 | ||
| EV/EBITDA | 12.44 |
4.3 Compensation for Growth
- EXE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of EXE 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)0.63
PEG (5Y)0.94
EPS Next 2Y21.07%
EPS Next 3Y19.7%
5. Dividend
5.1 Amount
- EXE has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
- EXE's Dividend Yield is a higher than the industry average which is at 1.30.
- EXE's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
- The dividend of EXE has a limited annual growth rate of 2.79%.
- EXE has paid a dividend for at least 10 years, which is 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
- 45.22% of the earnings are spent on dividend by EXE. 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 5 / 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%.