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

BIT:GHC - Borsa Italiana Milan - IT0005345233 - Common Stock - Currency: EUR

5.34  0 (0%)

Fundamental Rating

5

GHC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 25 industry peers in the Health Care Providers & Services industry. GHC scores excellent on profitability, but there are concerns on its financial health. GHC is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

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.
In the past 5 years GHC has always been profitable.
Each year in the past 5 years GHC had a positive operating cash flow.
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

With a decent Return On Assets value of 4.33%, GHC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
GHC has a better Return On Equity (11.36%) than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.46%, GHC is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GHC is in line with the industry average of 5.68%.
The last Return On Invested Capital (8.46%) for GHC is above the 3 year average (4.32%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.33%
ROE 11.36%
ROIC 8.46%
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

With an excellent Profit Margin value of 5.81%, GHC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
GHC's Profit Margin has declined in the last couple of years.
GHC has a Operating Margin of 11.36%. This is in the better half of the industry: GHC outperforms 79.17% of its industry peers.
In the last couple of years the Operating Margin of GHC has declined.
GHC has a better Gross Margin (45.50%) than 62.50% of its industry peers.
In the last couple of years the Gross Margin of GHC has remained more or less at the same level.
Industry RankSector Rank
OM 11.36%
PM (TTM) 5.81%
GM 45.5%
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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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GHC is still creating some value.
GHC has less shares outstanding than it did 1 year ago.
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 1.83 indicates that GHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GHC (1.83) is comparable to the rest of the industry.
GHC has a debt to FCF ratio of 7.32. This is a slightly negative value and a sign of low solvency as GHC would need 7.32 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.32, GHC is in line with its industry, outperforming 41.67% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that GHC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, GHC belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 7.32
Altman-Z 1.83
ROIC/WACC1.31
WACC6.47%
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 0.75. This is a bad value and indicates that GHC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of GHC (0.75) is worse than 62.50% of its industry peers.
GHC has a Quick Ratio of 0.75. This is a bad value and indicates that GHC is not financially healthy enough and could expect problems in meeting its short term obligations.
GHC's Quick ratio of 0.72 is in line compared to the rest of the industry. GHC outperforms 58.33% of its industry peers.
Industry RankSector Rank
Current Ratio 0.75
Quick Ratio 0.72
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

The earnings per share for GHC have decreased by -4.86% in the last year.
The Earnings Per Share has been growing slightly by 7.23% on average over the past years.
Looking at the last year, GHC shows a very strong growth in Revenue. The Revenue has grown by 28.99%.
The Revenue has been growing by 18.69% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.86%
EPS 3Y17.62%
EPS 5Y7.23%
EPS Q2Q%-115.17%
Revenue 1Y (TTM)28.99%
Revenue growth 3Y20.41%
Revenue growth 5Y18.69%
Sales Q2Q%25%

3.2 Future

GHC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.27% yearly.
GHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.02% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.05, GHC is valued correctly.
Based on the Price/Earnings ratio, GHC is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
GHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
Based on the Price/Forward Earnings ratio of 17.62, the valuation of GHC can be described as rather expensive.
GHC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of GHC to the average of the S&P500 Index (92.74), we can say GHC is valued rather cheaply.
Industry RankSector Rank
PE 14.05
Fwd PE 17.62
GHC.MI Price Earnings VS Forward Price EarningsGHC.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GHC indicates a somewhat cheap valuation: GHC is cheaper than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GHC is valued a bit more expensive than 70.83% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.68
EV/EBITDA 7.14
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

The 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)1.22
PEG (5Y)1.94
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 (2/5/2025, 11:44:37 AM)

5.34

0 (0%)

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 Owners20.89%
Inst Owner ChangeN/A
Ins Owners62.91%
Ins Owner ChangeN/A
Market Cap481.67M
Analysts84
Price Target6.63 (24.16%)
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 14.05
Fwd PE 17.62
P/S 0.77
P/FCF 16.68
P/OCF 10.22
P/B 1.5
P/tB N/A
EV/EBITDA 7.14
EPS(TTM)0.38
EY7.12%
EPS(NY)0.3
Fwd EY5.67%
FCF(TTM)0.32
FCFY6%
OCF(TTM)0.52
OCFY9.78%
SpS6.94
BVpS3.55
TBVpS-0.59
PEG (NY)1.22
PEG (5Y)1.94
Profitability
Industry RankSector Rank
ROA 4.33%
ROE 11.36%
ROCE 11.25%
ROIC 8.46%
ROICexc 8.69%
ROICexgc 22.08%
OM 11.36%
PM (TTM) 5.81%
GM 45.5%
FCFM 4.62%
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-Score7
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 7.32
Debt/EBITDA 1.62
Cap/Depr 77.16%
Cap/Sales 2.92%
Interest Coverage 7.23
Cash Conversion 49.76%
Profit Quality 79.46%
Current Ratio 0.75
Quick Ratio 0.72
Altman-Z 1.83
F-Score7
WACC6.47%
ROIC/WACC1.31
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)-4.86%
EPS 3Y17.62%
EPS 5Y7.23%
EPS Q2Q%-115.17%
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 1Y18.74%
EBIT growth 3Y37.51%
EBIT growth 5Y14.27%
EBIT Next Year93.06%
EBIT Next 3Y27.33%
EBIT Next 5Y13.47%
FCF growth 1Y-1.68%
FCF growth 3Y44.8%
FCF growth 5Y28.5%
OCF growth 1Y4.51%
OCF growth 3Y29.62%
OCF growth 5Y21.98%