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GAROFALO HEALTH CARE SPA (GHC.MI) Stock Fundamental Analysis

BIT:GHC - Euronext Milan - IT0005345233 - Common Stock - Currency: EUR

4.97  +0.05 (+1.02%)

Fundamental Rating

5

GHC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 23 industry peers in the Health Care Providers & Services industry. While GHC has a great profitability rating, there are some minor concerns on its financial health. GHC has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

GHC had positive earnings in the past year.
In the past year GHC had a positive cash flow from operations.
In the past 5 years GHC has always been profitable.
In the past 5 years GHC always reported a positive cash flow from operatings.
GHC.MI Yearly Net Income VS EBIT VS OCF VS FCFGHC.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M

1.2 Ratios

GHC has a Return On Assets of 3.99%. This is in the better half of the industry: GHC outperforms 69.23% of its industry peers.
The Return On Equity of GHC (10.50%) is better than 61.54% of its industry peers.
GHC has a Return On Invested Capital of 7.27%. This is in the better half of the industry: GHC outperforms 76.92% 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 5.35%.
The 3 year average ROIC (4.32%) for GHC is below the current ROIC(7.27%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.99%
ROE 10.5%
ROIC 7.27%
ROA(3y)2.98%
ROA(5y)2.91%
ROE(3y)7.29%
ROE(5y)6.9%
ROIC(3y)4.32%
ROIC(5y)4.04%
GHC.MI Yearly ROA, ROE, ROICGHC.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

GHC's Profit Margin of 5.19% is amongst the best of the industry. GHC outperforms 84.62% of its industry peers.
In the last couple of years the Profit Margin of GHC has declined.
Looking at the Operating Margin, with a value of 10.62%, GHC belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of GHC has declined.
GHC's Gross Margin of 45.22% is fine compared to the rest of the industry. GHC outperforms 69.23% of its industry peers.
GHC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 10.62%
PM (TTM) 5.19%
GM 45.22%
OM growth 3Y14.2%
OM growth 5Y-3.72%
PM growth 3Y0.38%
PM growth 5Y-8.25%
GM growth 3Y-0.49%
GM growth 5Y-0.79%
GHC.MI Yearly Profit, Operating, Gross MarginsGHC.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GHC is creating some value.
Compared to 1 year ago, GHC has less shares outstanding
Compared to 5 years ago, GHC has more shares outstanding
Compared to 1 year ago, GHC has a worse debt to assets ratio.
GHC.MI Yearly Shares OutstandingGHC.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
GHC.MI Yearly Total Debt VS Total AssetsGHC.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

2.2 Solvency

An Altman-Z score of 2.06 indicates that GHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
GHC has a better Altman-Z score (2.06) than 65.38% of its industry peers.
The Debt to FCF ratio of GHC is 16.69, which is on the high side as it means it would take GHC, 16.69 years of fcf income to pay off all of its debts.
GHC has a worse Debt to FCF ratio (16.69) than 80.77% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that GHC is somewhat dependend on debt financing.
GHC's Debt to Equity ratio of 0.73 is fine compared to the rest of the industry. GHC outperforms 69.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF 16.69
Altman-Z 2.06
ROIC/WACC1.09
WACC6.64%
GHC.MI Yearly LT Debt VS Equity VS FCFGHC.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

2.3 Liquidity

GHC has a Current 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 Current ratio of GHC (1.12) is better than 73.08% of its industry peers.
GHC has a Quick Ratio of 1.07. This is a normal value and indicates that GHC is financially healthy and should not expect problems in meeting its short term obligations.
GHC's Quick ratio of 1.07 is fine compared to the rest of the industry. GHC outperforms 76.92% of its industry peers.
Industry RankSector Rank
Current Ratio 1.12
Quick Ratio 1.07
GHC.MI Yearly Current Assets VS Current LiabilitesGHC.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

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5

3. Growth

3.1 Past

GHC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.88%.
Measured over the past 5 years, GHC shows a small growth in Earnings Per Share. The EPS has been growing by 7.23% on average per year.
The Revenue has grown by 28.99% in the past year. This is a very strong growth!
Measured over the past years, GHC shows a quite strong growth in Revenue. The Revenue has been growing by 18.69% on average per year.
EPS 1Y (TTM)-4.88%
EPS 3Y17.61%
EPS 5Y7.23%
EPS Q2Q%-115.25%
Revenue 1Y (TTM)28.99%
Revenue growth 3Y20.41%
Revenue growth 5Y18.69%
Sales Q2Q%25%

3.2 Future

The Earnings Per Share is expected to grow by 8.27% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.02% on average over the next years.
EPS Next Y11.54%
EPS Next 2Y7.42%
EPS Next 3Y8.27%
EPS Next 5YN/A
Revenue Next Year30.14%
Revenue Next 2Y15.18%
Revenue Next 3Y10.61%
Revenue Next 5Y0.02%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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.
GHC.MI Yearly Revenue VS EstimatesGHC.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M 400M
GHC.MI Yearly EPS VS EstimatesGHC.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.1 0.2 0.3

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.08, GHC is valued correctly.
Based on the Price/Earnings ratio, GHC is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.35, GHC is valued rather cheaply.
With a Price/Forward Earnings ratio of 16.40, GHC is valued correctly.
GHC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, GHC is valued a bit cheaper.
Industry RankSector Rank
PE 13.08
Fwd PE 16.4
GHC.MI Price Earnings VS Forward Price EarningsGHC.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GHC indicates a rather expensive valuation: GHC more expensive than 84.62% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 32.21
EV/EBITDA 6.66
GHC.MI Per share dataGHC.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

GHC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.13
PEG (5Y)1.81
EPS Next 2Y7.42%
EPS Next 3Y8.27%

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0

5. Dividend

5.1 Amount

No dividends for GHC!.
Industry RankSector Rank
Dividend Yield N/A

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GAROFALO HEALTH CARE SPA

BIT:GHC (3/7/2025, 3:13:32 PM)

4.97

+0.05 (+1.02%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners21.38%
Inst Owner ChangeN/A
Ins Owners62.91%
Ins Owner ChangeN/A
Market Cap448.29M
Analysts84
Price Target6.63 (33.4%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
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)0%
Valuation
Industry RankSector Rank
PE 13.08
Fwd PE 16.4
P/S 0.7
P/FCF 32.21
P/OCF 13.7
P/B 1.41
P/tB N/A
EV/EBITDA 6.66
EPS(TTM)0.38
EY7.65%
EPS(NY)0.3
Fwd EY6.1%
FCF(TTM)0.15
FCFY3.1%
OCF(TTM)0.36
OCFY7.3%
SpS7.14
BVpS3.53
TBVpS-0.6
PEG (NY)1.13
PEG (5Y)1.81
Profitability
Industry RankSector Rank
ROA 3.99%
ROE 10.5%
ROCE 9.78%
ROIC 7.27%
ROICexc 7.67%
ROICexgc 17.26%
OM 10.62%
PM (TTM) 5.19%
GM 45.22%
FCFM 2.16%
ROA(3y)2.98%
ROA(5y)2.91%
ROE(3y)7.29%
ROE(5y)6.9%
ROIC(3y)4.32%
ROIC(5y)4.04%
ROICexc(3y)4.57%
ROICexc(5y)4.3%
ROICexgc(3y)10.57%
ROICexgc(5y)9.56%
ROCE(3y)6.21%
ROCE(5y)5.81%
ROICexcg growth 3Y22.43%
ROICexcg growth 5Y-4.05%
ROICexc growth 3Y15.51%
ROICexc growth 5Y-13.37%
OM growth 3Y14.2%
OM growth 5Y-3.72%
PM growth 3Y0.38%
PM growth 5Y-8.25%
GM growth 3Y-0.49%
GM growth 5Y-0.79%
F-Score5
Asset Turnover0.77
Health
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF 16.69
Debt/EBITDA 2.49
Cap/Depr 76.31%
Cap/Sales 2.92%
Interest Coverage 5.59
Cash Conversion 35.16%
Profit Quality 41.58%
Current Ratio 1.12
Quick Ratio 1.07
Altman-Z 2.06
F-Score5
WACC6.64%
ROIC/WACC1.09
Cap/Depr(3y)106.82%
Cap/Depr(5y)102.91%
Cap/Sales(3y)6.13%
Cap/Sales(5y)5.8%
Profit Quality(3y)118.23%
Profit Quality(5y)104.07%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.88%
EPS 3Y17.61%
EPS 5Y7.23%
EPS Q2Q%-115.25%
EPS Next Y11.54%
EPS Next 2Y7.42%
EPS Next 3Y8.27%
EPS Next 5YN/A
Revenue 1Y (TTM)28.99%
Revenue growth 3Y20.41%
Revenue growth 5Y18.69%
Sales Q2Q%25%
Revenue Next Year30.14%
Revenue Next 2Y15.18%
Revenue Next 3Y10.61%
Revenue Next 5Y0.02%
EBIT growth 1Y13.49%
EBIT growth 3Y37.51%
EBIT growth 5Y14.27%
EBIT Next Year93.06%
EBIT Next 3Y27.33%
EBIT Next 5Y13.47%
FCF growth 1Y-55.85%
FCF growth 3Y44.8%
FCF growth 5Y28.5%
OCF growth 1Y-29.78%
OCF growth 3Y29.62%
OCF growth 5Y21.98%