Oceania Healthcare Limited
Oceania Healthcare Limited Fundamental Analysis
Oceania Healthcare Limited (OCA.AX) shows moderate financial fundamentals with a PE ratio of 12.89, profit margin of 13.57%, and ROE of 4.01%. The company generates $0.3B in annual revenue with weak year-over-year growth of -1.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OCA.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakOCA.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOCA.AX trades at attractive valuation levels.
Growth Score
WeakOCA.AX faces weak or negative growth trends.
Financial Health Score
ModerateOCA.AX shows balanced financial health with some risks.
Profitability Score
WeakOCA.AX struggles to sustain strong margins.
Key Financial Metrics
Is OCA.AX Expensive or Cheap?
P/E Ratio
OCA.AX trades at 12.89 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OCA.AX's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Oceania Healthcare Limited at 0.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.11 times EBITDA. This signals the market has high growth expectations.
How Well Does OCA.AX Make Money?
Net Profit Margin
For every $100 in sales, Oceania Healthcare Limited keeps $13.57 as profit after all expenses.
Operating Margin
Core operations generate 14.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.01 in profit for every $100 of shareholder equity.
ROA
Oceania Healthcare Limited generates $1.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Oceania Healthcare Limited generates strong operating cash flow of $147.18M, reflecting robust business health.
Free Cash Flow
Oceania Healthcare Limited generates strong free cash flow of $112.79M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.16 in free cash annually.
FCF Yield
OCA.AX converts 19.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How OCA.AX Stacks Against Its Sector Peers
| Metric | OCA.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.89 | 27.91 | Better (Cheaper) |
| ROE | 4.01% | 687.00% | Weak |
| Net Margin | 13.57% | -45285.00% (disorted) | Strong |
| Debt/Equity | 0.54 | 0.33 | Weak (High Leverage) |
| Current Ratio | 0.10 | 2795.76 | Weak Liquidity |
| ROA | 1.46% | -13557.00% (disorted) | Weak |
OCA.AX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Oceania Healthcare Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.47%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
288.00%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-6.42%
Industry Style: Defensive, Growth, Innovation
Declining