GAROFALO HEALTH CARE SPA (GHC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:GHC - IT0005345233 - Common Stock
5.47 EUR
+0.01 (+0.18%)
Taking everything into account, GHC scores 4 out of 10 in our fundamental rating. GHC was compared to 26 industry peers in the Health Care Providers & Services industry. GHC has an average financial health and profitability rating. GHC has a decent growth rate and is not valued too expensively.
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.
- GHC had positive earnings in each of the past 5 years.
- GHC 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 3.66%, GHC is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
- GHC has a Return On Equity (9.57%) which is in line with its industry peers.
- GHC has a better Return On Invested Capital (6.52%) than 65.38% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GHC is below the industry average of 6.45%.
- The last Return On Invested Capital (6.52%) for GHC is above the 3 year average (4.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 9.57% | ||
| ROIC | 6.52% |
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
- GHC has a Profit Margin of 4.62%. This is in the better half of the industry: GHC outperforms 76.92% of its industry peers.
- GHC's Profit Margin has declined in the last couple of years.
- GHC has a better Operating Margin (9.37%) than 80.77% of its industry peers.
- GHC's Operating Margin has declined in the last couple of years.
- GHC has a better Gross Margin (44.90%) than 65.38% of its industry peers.
- GHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.37% | ||
| PM (TTM) | 4.62% | ||
| GM | 44.9% |
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 below the Cost of Capital (WACC), which means it is destroying value.
- GHC has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, GHC has more shares outstanding
- The debt/assets ratio for GHC has been reduced compared to a year ago.
2.2 Solvency
- GHC has an Altman-Z score of 1.96. This is not the best score and indicates that GHC is in the grey zone with still only limited risk for bankruptcy at the moment.
- GHC has a Altman-Z score (1.96) which is comparable to the rest of the industry.
- The Debt to FCF ratio of GHC is 70.49, which is on the high side as it means it would take GHC, 70.49 years of fcf income to pay off all of its debts.
- GHC has a Debt to FCF ratio of 70.49. This is amonst the worse of the industry: GHC underperforms 80.77% of its industry peers.
- A Debt/Equity ratio of 0.67 indicates that GHC is somewhat dependend on debt financing.
- GHC has a Debt to Equity ratio of 0.67. This is amongst the best in the industry. GHC outperforms 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 70.49 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.99
WACC6.57%
2.3 Liquidity
- A Current Ratio of 1.16 indicates that GHC should not have too much problems paying its short term obligations.
- GHC has a Current ratio of 1.16. This is in the better half of the industry: GHC outperforms 65.38% of its industry peers.
- GHC has a Quick Ratio of 1.12. 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 (1.12) is better than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- GHC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.11%.
- Measured over the past years, GHC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.81% on average per year.
- Looking at the last year, GHC shows a quite strong growth in Revenue. The Revenue has grown by 10.44% in the last year.
- The Revenue has been growing by 18.92% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.11%
EPS 3Y5.52%
EPS 5Y8.81%
EPS Q2Q%2.71%
Revenue 1Y (TTM)10.44%
Revenue growth 3Y18.48%
Revenue growth 5Y18.92%
Sales Q2Q%3.08%
3.2 Future
- The Earnings Per Share is expected to grow by 6.47% on average over the next years.
- GHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.51% yearly.
EPS Next Y3.45%
EPS Next 2Y5.05%
EPS Next 3Y6.47%
EPS Next 5YN/A
Revenue Next Year3.78%
Revenue Next 2Y4.6%
Revenue Next 3Y3.74%
Revenue Next 5Y1.51%
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.
- 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
- A Price/Earnings ratio of 15.19 indicates a correct valuation of GHC.
- Based on the Price/Earnings ratio, GHC is valued a bit cheaper than 69.23% of the companies in the same industry.
- When comparing the Price/Earnings ratio of GHC to the average of the S&P500 Index (28.87), we can say GHC is valued slightly cheaper.
- The Price/Forward Earnings ratio is 16.92, which indicates a correct valuation of GHC.
- 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 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 16.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GHC is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
- 80.77% of the companies in the same industry are cheaper than GHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 151.91 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of GHC may justify a higher PE ratio.
PEG (NY)4.41
PEG (5Y)1.72
EPS Next 2Y5.05%
EPS Next 3Y6.47%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.58%, GHC has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.72, GHC has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, GHC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y5.05%
EPS Next 3Y6.47%
GAROFALO HEALTH CARE SPA / GHC.MI FAQ
What is the ChartMill fundamental rating of GAROFALO HEALTH CARE SPA (GHC.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to GHC.MI.
What is the valuation status for GHC stock?
ChartMill assigns a valuation rating of 4 / 10 to GAROFALO HEALTH CARE SPA (GHC.MI). This can be considered as Fairly Valued.
How profitable is GAROFALO HEALTH CARE SPA (GHC.MI) stock?
GAROFALO HEALTH CARE SPA (GHC.MI) has a profitability rating of 6 / 10.
What is the financial health of GAROFALO HEALTH CARE SPA (GHC.MI) stock?
The financial health rating of GAROFALO HEALTH CARE SPA (GHC.MI) is 4 / 10.
What is the expected EPS growth for GAROFALO HEALTH CARE SPA (GHC.MI) stock?
The Earnings per Share (EPS) of GAROFALO HEALTH CARE SPA (GHC.MI) is expected to grow by 3.45% in the next year.