Metropolis Healthcare Analysis

dividend

Pros

• Dividends paid are well covered by earnings (3.2x coverage).
• Dividends after 3 years are expected to be covered by earnings (1.8x coverage).

Cons

• Metropolis Healthcare only just started paying a dividend, it is too early to tell if payments are increasing.
• It is too early to tell whether Metropolis Healthcare has stable dividend payments.
• Metropolis Healthcare's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Metropolis Healthcare's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Metropolis Healthcare's earnings are expected to grow significantly at over 20% yearly.
• Metropolis Healthcare's earnings growth is expected to exceed the India market average.
• Metropolis Healthcare's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Metropolis Healthcare's earnings are expected to increase by more than the low risk growth rate in 3 years time.
• Metropolis Healthcare's net income is expected to increase by more than 50% in 2 years time.
• Metropolis Healthcare is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
• Performance (ROE) is expected to be above the current IN Healthcare industry average.
• An improvement in Metropolis Healthcare's performance (ROE) is expected over the next 3 years.
• Metropolis Healthcare's revenue growth is expected to exceed the India market average.

Cons

• Cash flow for Metropolis Healthcare is expected to increase but not above the 50% threshold in 2 years time.
• Metropolis Healthcare's earnings are expected to decrease over the next year.
• Metropolis Healthcare's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Metropolis Healthcare's revenue is expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Metropolis Healthcare is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Metropolis Healthcare is profitable, therefore cash runway is not a concern.
• Metropolis Healthcare is profitable, therefore cash runway is not a concern.
• Metropolis Healthcare's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (5% vs 0% today).
• Metropolis Healthcare has no debt, therefore coverage of interest payments is not a concern.
• Metropolis Healthcare's level of debt (0%) compared to net worth is satisfactory (less than 40%).

Cons

• Operating cash flow is negative therefore debt is not well covered.
• Debt is not covered by short term assets, assets are -3.492571417742E+16x debt.
• High level of physical assets or inventory.

management

Pros

• The tenure for the Metropolis Healthcare management team is about average.

Cons

• The average tenure for the Metropolis Healthcare board of directors is less than 3 years, this suggests a new board.
• Metropolis Healthcare individual insiders have only sold shares in the past 3 months.

past

Pros

• Metropolis Healthcare's year on year earnings growth rate has been positive over the past 5 years.
• Metropolis Healthcare used its assets more efficiently than the IN Healthcare industry average last year based on Return on Assets.
• Metropolis Healthcare has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).

Cons

• Metropolis Healthcare's 1-year earnings growth is less than its 5-year average (5.9% vs 13.5%)
• Metropolis Healthcare's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Metropolis Healthcare's earnings growth has not exceeded the IN Healthcare industry average in the past year (5.9% vs 14.4%).

value

Pros

• 542650 outperformed the Healthcare industry which returned 9.1% over the past year.
• 542650 outperformed the Market in India which returned -14.5% over the past year.
• BSE:542650 is up 12.3% outperforming the Healthcare industry which returned 5.4% over the past month.
• BSE:542650 is up 12.3% outperforming the market in India which returned 8% over the past month.

Cons

• Metropolis Healthcare's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Metropolis Healthcare's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Metropolis Healthcare is overvalued based on assets compared to the IN Healthcare industry average.
• Metropolis Healthcare is poor value based on expected growth next year.
• Metropolis Healthcare is overvalued based on earnings compared to the IN Healthcare industry average.
• Metropolis Healthcare is overvalued based on earnings compared to the India market.