GAROFALO HEALTH CARE SPA (GHC.MI) Stock Fundamental Analysis
BIT:GHC - Euronext Milan - IT0005345233 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to GHC. GHC was compared to 25 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of GHC get a neutral evaluation. Nothing too spectacular is happening here. GHC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GHC was profitable.
In the past year GHC had a positive cash flow from operations.
Each year in the past 5 years GHC has been profitable.
GHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GHC has a better Return On Assets (3.69%) than 76.00% of its industry peers.
GHC has a Return On Equity of 9.73%. This is in the better half of the industry: GHC outperforms 64.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.56%, GHC is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
GHC had an Average Return On Invested Capital over the past 3 years of 4.41%. This is in line with the industry average of 5.77%.
The last Return On Invested Capital (6.56%) for GHC is above the 3 year average (4.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 9.73% | ||
| ROIC | 6.56% |
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's Profit Margin of 4.61% is fine compared to the rest of the industry. GHC outperforms 76.00% of its industry peers.
In the last couple of years the Profit Margin of GHC has declined.
GHC has a Operating Margin of 9.50%. This is amongst the best in the industry. GHC outperforms 84.00% of its industry peers.
GHC's Operating Margin has declined in the last couple of years.
GHC has a Gross Margin of 45.32%. This is comparable to the rest of the industry: GHC outperforms 56.00% of its industry peers.
GHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 4.61% | ||
| GM | 45.32% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GHC is still creating some value.
GHC has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for GHC has been increased compared to 5 years ago.
The debt/assets ratio for GHC has been reduced compared to a year ago.
2.2 Solvency
GHC has an Altman-Z score of 1.93. 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.
The Altman-Z score of GHC (1.93) is comparable to the rest of the industry.
The Debt to FCF ratio of GHC is 17.13, which is on the high side as it means it would take GHC, 17.13 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 17.13, GHC is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.70 indicates that GHC is somewhat dependend on debt financing.
GHC's Debt to Equity ratio of 0.70 is fine compared to the rest of the industry. GHC outperforms 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 17.13 | ||
| Altman-Z | 1.93 |
ROIC/WACC1
WACC6.56%
2.3 Liquidity
GHC has a Current Ratio of 1.14. 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 Current ratio of 1.14 is in line compared to the rest of the industry. GHC outperforms 60.00% of its industry peers.
GHC has a Quick Ratio of 1.09. 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 1.09 is fine compared to the rest of the industry. GHC outperforms 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for GHC have decreased by -5.79% in the last year.
GHC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.81% yearly.
GHC shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.83%.
Measured over the past years, GHC shows a quite strong growth in Revenue. The Revenue has been growing by 18.92% on average per year.
EPS 1Y (TTM)-5.79%
EPS 3Y5.52%
EPS 5Y8.81%
EPS Q2Q%0.53%
Revenue 1Y (TTM)21.83%
Revenue growth 3Y18.48%
Revenue growth 5Y18.92%
Sales Q2Q%1.86%
3.2 Future
The Earnings Per Share is expected to grow by 5.45% 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 3Y5.45%
EPS Next 5YN/A
Revenue Next Year3.78%
Revenue Next 2Y2.78%
Revenue Next 3Y2.46%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.79, the valuation of GHC can be described as correct.
Based on the Price/Earnings ratio, GHC is valued a bit cheaper than 76.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, GHC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.01, the valuation of GHC can be described as correct.
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 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.79 | ||
| Fwd PE | 16.01 |
4.2 Price Multiples
76.00% of the companies in the same industry are more expensive than GHC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GHC indicates a slightly more expensive valuation: GHC is more expensive than 76.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.83 | ||
| EV/EBITDA | 7.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GHC does not grow enough to justify the current Price/Earnings ratio.
GHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.29
PEG (5Y)1.68
EPS Next 2Y5.05%
EPS Next 3Y5.45%
5. Dividend
5.1 Amount
GHC has a Yearly Dividend Yield of 1.67%. Purely for dividend investing, there may be better candidates out there.
GHC's Dividend Yield is a higher than the industry average which is at 2.79.
GHC's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y5.05%
EPS Next 3Y5.45%
BIT:GHC (6/30/2025, 10:10:22 AM)
5.175
+0.02 (+0.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners12.02%
Inst Owner ChangeN/A
Ins Owners62.9%
Ins Owner ChangeN/A
Market Cap466.79M
Analysts84
Price Target6.63 (28.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly DividendN/A
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)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.79 | ||
| Fwd PE | 16.01 | ||
| P/S | 0.69 | ||
| P/FCF | 34.83 | ||
| P/OCF | 13.34 | ||
| P/B | 1.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.28 |
EPS(TTM)0.35
EY6.76%
EPS(NY)0.32
Fwd EY6.25%
FCF(TTM)0.15
FCFY2.87%
OCF(TTM)0.39
OCFY7.5%
SpS7.55
BVpS3.57
TBVpS-0.56
PEG (NY)4.29
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 9.73% | ||
| ROCE | 9.17% | ||
| ROIC | 6.56% | ||
| ROICexc | 6.87% | ||
| ROICexgc | 15.38% | ||
| OM | 9.5% | ||
| PM (TTM) | 4.61% | ||
| GM | 45.32% | ||
| FCFM | 1.97% |
ROA(3y)2.83%
ROA(5y)2.81%
ROE(3y)7.12%
ROE(5y)6.88%
ROIC(3y)4.41%
ROIC(5y)3.91%
ROICexc(3y)4.63%
ROICexc(5y)4.13%
ROICexgc(3y)10.78%
ROICexgc(5y)9.37%
ROCE(3y)6.5%
ROCE(5y)5.8%
ROICexcg growth 3Y7.97%
ROICexcg growth 5Y2.8%
ROICexc growth 3Y6.71%
ROICexc growth 5Y0.74%
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%
F-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 17.13 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 85.24% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | 6.58 | ||
| Cash Conversion | 38.88% | ||
| Profit Quality | 42.7% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.93 |
F-Score7
WACC6.56%
ROIC/WACC1
Cap/Depr(3y)82.25%
Cap/Depr(5y)102.09%
Cap/Sales(3y)4.73%
Cap/Sales(5y)5.79%
Profit Quality(3y)118.21%
Profit Quality(5y)101.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.79%
EPS 3Y5.52%
EPS 5Y8.81%
EPS Q2Q%0.53%
EPS Next Y3.45%
EPS Next 2Y5.05%
EPS Next 3Y5.45%
EPS Next 5YN/A
Revenue 1Y (TTM)21.83%
Revenue growth 3Y18.48%
Revenue growth 5Y18.92%
Sales Q2Q%1.86%
Revenue Next Year3.78%
Revenue Next 2Y2.78%
Revenue Next 3Y2.46%
Revenue Next 5Y1.51%
EBIT growth 1Y7.42%
EBIT growth 3Y18.26%
EBIT growth 5Y14.91%
EBIT Next Year67.89%
EBIT Next 3Y22.03%
EBIT Next 5Y16.09%
FCF growth 1Y-59.21%
FCF growth 3Y4.79%
FCF growth 5Y6.69%
OCF growth 1Y-30.02%
OCF growth 3Y-1.23%
OCF growth 5Y13.09%