Netcare Limited
Netcare Limited Fundamental Analysis
Netcare Limited (NWKHY) shows moderate financial fundamentals with a PE ratio of 8.60, profit margin of 6.47%, and ROE of 15.76%. The company generates $26.0B in annual revenue with moderate year-over-year growth of 6.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NWKHY's fundamental strength across five key dimensions:
Efficiency Score
WeakNWKHY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNWKHY trades at attractive valuation levels.
Growth Score
ExcellentNWKHY delivers strong and consistent growth momentum.
Financial Health Score
ModerateNWKHY shows balanced financial health with some risks.
Profitability Score
ModerateNWKHY maintains healthy but balanced margins.
Key Financial Metrics
Is NWKHY Expensive or Cheap?
P/E Ratio
NWKHY trades at 8.60 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NWKHY's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Netcare Limited at 1.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.85 times EBITDA. This is generally considered low.
How Well Does NWKHY Make Money?
Net Profit Margin
For every $100 in sales, Netcare Limited keeps $6.47 as profit after all expenses.
Operating Margin
Core operations generate 10.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.76 in profit for every $100 of shareholder equity.
ROA
Netcare Limited generates $5.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Netcare Limited produces operating cash flow of $3.45B, showing steady but balanced cash generation.
Free Cash Flow
Netcare Limited produces free cash flow of $2.01B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $16.83 in free cash annually.
FCF Yield
NWKHY converts 14.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How NWKHY Stacks Against Its Sector Peers
| Metric | NWKHY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.60 | 27.91 | Better (Cheaper) |
| ROE | 15.76% | 687.00% | Weak |
| Net Margin | 6.47% | -45285.00% (disorted) | Weak |
| Debt/Equity | 1.19 | 0.33 | Weak (High Leverage) |
| Current Ratio | 1.15 | 2795.76 | Neutral |
| ROA | 5.83% | -13557.00% (disorted) | Weak |
NWKHY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Netcare Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.76%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-35.58%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-43.41%
Industry Style: Defensive, Growth, Innovation
Declining