Kovai Medical Center & Hospital Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (23.3x coverage).
• Dividends per share have been stable in the past 10 years.

Cons

• Kovai Medical Center and Hospital's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Kovai Medical Center and Hospital's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Kovai Medical Center and Hospital is profitable, therefore cash runway is not a concern.
• Kovai Medical Center and Hospital is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (69.8%, greater than 20% of total debt).
• The level of debt compared to net worth has been reduced over the past 5 years (131% vs 91.1% today).
• Interest payments on debt are well covered by earnings (EBIT is 20x coverage).

Cons

• Kovai Medical Center and Hospital's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Debt is not covered by short term assets, assets are 0.4x debt.
• Kovai Medical Center and Hospital's long term commitments exceed its cash and other short term assets.
• Kovai Medical Center and Hospital's level of debt (91.1%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Kovai Medical Center and Hospital board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Nalla's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• Nalla's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Kovai Medical Center and Hospital is not covered by any analysts.

past

Pros

• Kovai Medical Center and Hospital's 1-year earnings growth exceeds its 5-year average (28.4% vs 11.7%)
• Kovai Medical Center and Hospital's year on year earnings growth rate has been positive over the past 5 years.
• Kovai Medical Center and Hospital used its assets more efficiently than the IN Healthcare industry average last year based on Return on Assets.
• Kovai Medical Center and Hospital has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• Kovai Medical Center and Hospital's earnings growth has exceeded the IN Healthcare industry average in the past year (28.4% vs 14.4%).

Cons

• Kovai Medical Center and Hospital's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

value

Pros

• Kovai Medical Center and Hospital is good value based on earnings compared to the IN Healthcare industry average.
• Kovai Medical Center and Hospital is good value based on earnings compared to the India market.
• 523323 outperformed the Market in India which returned -14.5% over the past year.
• BSE:523323 is up 6.1% along with the Healthcare industry (5.4%) over the past month.

Cons

• Kovai Medical Center and Hospital's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Kovai Medical Center and Hospital's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Kovai Medical Center and Hospital is overvalued based on assets compared to the IN Healthcare industry average.
• 523323 underperformed the Healthcare industry which returned 9.1% over the past year.
• BSE:523323 is up 6.1% underperforming the market in India which returned 8% over the past month.