Extendicare Inc. Fundamental Analysis (TSX: EXE.TO)
Extendicare Inc. (TSX: EXE.TO) shows moderate financial fundamentals with a PE ratio of 24.06, profit margin of 6.13%, and ROE of 36.33%. The company generates $2.0B in annual revenue with strong year-over-year growth of 13.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EXE.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakEXE.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEXE.TO trades at attractive valuation levels.
Growth Score
ExcellentEXE.TO delivers strong and consistent growth momentum.
Financial Health Score
WeakEXE.TO carries high financial risk with limited liquidity.
Profitability Score
ModerateEXE.TO maintains healthy but balanced margins.
Key Financial Metrics
Is EXE.TO Expensive or Cheap?
P/E Ratio
EXE.TO trades at 24.06 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, EXE.TO's PEG of 1.08 indicates fair valuation.
Price to Book
The market values Extendicare Inc. at 7.49 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.52 times EBITDA. This signals the market has high growth expectations.
How Well Does EXE.TO Make Money?
Net Profit Margin
For every $100 in sales, Extendicare Inc. keeps $6.13 as profit after all expenses.
Operating Margin
Core operations generate 8.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $36.33 in profit for every $100 of shareholder equity.
ROA
Extendicare Inc. generates $7.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Extendicare Inc. generates limited operating cash flow of $148.44M, signaling weaker underlying cash strength.
Free Cash Flow
Extendicare Inc. generates weak or negative free cash flow of $58.69M, restricting financial flexibility.
FCF Per Share
Each share generates $0.62 in free cash annually.
FCF Yield
EXE.TO converts 1.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.36
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How EXE.TO Stacks Against Its Sector Peers
| Metric | EXE.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.06 | 32.14 | Better (Cheaper) |
| ROE | 36.33% | 550.00% | Weak |
| Net Margin | 6.13% | 30133.00% | Weak |
| Debt/Equity | 1.60 | 0.56 | Weak (High Leverage) |
| Current Ratio | 0.75 | 5.70 | Weak Liquidity |
| ROA | 7.79% | 3.00% | Excellent |
EXE.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Extendicare Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
58.23%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
87.57%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
43.27%
Industry Style: Defensive, Growth, Innovation
High Growth