tiprankstipranks
Trending News
More News >
Regis Healthcare Ltd. (AU:REG)
ASX:REG
Australian Market

Regis Healthcare Ltd. (REG) AI Stock Analysis

Compare
20 Followers

Top Page

AU

Regis Healthcare Ltd.

(Sydney:REG)

Rating:58Neutral
Price Target:
AU$8.50
▲(11.40%Upside)
Regis Healthcare's stock score is driven by solid technical performance and strong cash flows, offset by financial instability due to negative equity and overvaluation concerns. The company's operational improvements are a positive sign, but profitability and balance sheet issues limit the score.

Regis Healthcare Ltd. (REG) vs. iShares MSCI Australia ETF (EWA)

Regis Healthcare Ltd. Business Overview & Revenue Model

Company DescriptionRegis Healthcare Limited provides residential aged care services in Australia. The company offers home care services, including personal hygiene and care, dressing and undressing, mobility and transportation, rehabilitation, and others; and home help services, such as cleaning, cooking, shopping, transportation, and facilitating social outings. It also provides companionship, and government-funded and private home care services; and owns and operates specialist retirement and independent living villages, which offers laundry, meals, and cleaning, as well as allied health services comprising physiotherapy, podiatry, diversional therapy, and therapeutic activities. In addition, the company provides aged care services, including ageing-in-place, respite care, dementia care, and palliative care services; in-home disability support and veterans' home care services; and therapeutic services to people living in the community, in retirement villages, and low care homes, as well as operates Day Respite centres. As of June 30, 2022, it owned and operated 64 residential aged care homes. The company was formerly known as Fairway Investment Holdings Pty Ltd. and changed its name to Regis Healthcare Limited in 2014. Regis Healthcare Limited was founded in 1994 and is based in Armadale, Australia.
How the Company Makes MoneyRegis Healthcare Ltd. primarily generates revenue through government funding and resident fees. The company receives a significant portion of its income from government subsidies, which are provided for each resident based on their care needs and eligibility. In addition to government contributions, Regis Healthcare charges fees directly to residents for accommodation and additional services. These fees vary depending on the level of care and type of accommodation chosen by the resident. The company may also engage in partnerships with healthcare providers and suppliers to enhance service delivery, though these partnerships primarily support operational efficiency rather than directly generating revenue.

Regis Healthcare Ltd. Financial Statement Overview

Summary
Regis Healthcare is showing revenue growth and operational improvements, but faces challenges in profitability with a negative net income. The balance sheet reflects financial distress due to negative equity, although strong cash flows provide some operational stability.
Income Statement
58
Neutral
Regis Healthcare has seen revenue growth from 2023 to 2024, with an increase from AUD 771 million to AUD 1,014 million. However, the company is facing challenges in profitability, as indicated by a negative net income of AUD 21 million in 2024, although it has improved from a loss of AUD 28 million in 2023. Gross profit margin improved significantly from negative to positive, reflecting better cost management. EBIT and EBITDA margins have also turned positive, indicating operational improvements.
Balance Sheet
45
Neutral
The balance sheet shows a concerning negative stockholders' equity in 2024, indicating potential financial instability. The debt-to-equity ratio cannot be calculated due to negative equity. Despite this, the company has significantly reduced its total debt, which is a positive sign. The negative equity ratio suggests the company's assets are heavily leveraged, which poses a risk.
Cash Flow
72
Positive
Cash flow analysis reveals strong operational cash flows, increasing from AUD 105 million in 2023 to AUD 252 million in 2024, supporting the company's liquidity. Free cash flow also improved, suggesting effective capital expenditure management. The operating cash flow to net income ratio is robust, indicating good cash generation relative to reported net losses.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.10B1.01B771.48M717.89M685.87M666.15M
Gross Profit195.43M47.17M-3.78M5.18M67.54M80.89M
EBITDA160.41M191.45M96.81M55.86M82.65M61.55M
Net Income15.09M-21.41M-28.45M-38.80M19.95M-716.00K
Balance Sheet
Total Assets2.05B1.81B1.71B1.76B1.75B1.79B
Cash, Cash Equivalents and Short-Term Investments179.92M64.91M61.32M4.15M3.89M3.80M
Total Debt4.30M3.84M71.07M113.32M153.41M248.54M
Total Liabilities2.07B1.84B1.67B1.68B1.61B1.67B
Stockholders Equity-17.48M-22.89M38.39M79.01M141.97M127.79M
Cash Flow
Free Cash Flow241.70M186.57M53.73M67.60M87.75M87.94M
Operating Cash Flow309.02M252.30M105.16M114.79M105.03M127.23M
Investing Cash Flow-103.95M-136.59M6.58M-48.62M7.50M-37.91M
Financing Cash Flow-111.74M-112.12M-43.17M-62.39M-119.47M-93.25M

Regis Healthcare Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.63
Price Trends
50DMA
7.46
Positive
100DMA
6.98
Positive
200DMA
6.62
Positive
Market Momentum
MACD
0.03
Positive
RSI
50.93
Neutral
STOCH
58.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:REG, the sentiment is Positive. The current price of 7.63 is below the 20-day moving average (MA) of 7.68, above the 50-day MA of 7.46, and above the 200-day MA of 6.62, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 58.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:REG.

Regis Healthcare Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUREG
58
Neutral
AU$2.30B152.30-276.16%2.12%25.38%
51
Neutral
$7.41B0.36-61.88%2.33%16.99%1.69%
$2.88B22.016.45%2.46%
DEPGZ
€322.11M-4.46%
$5.42B1,144.550.52%2.00%
AUSHL
73
Outperform
AU$12.83B23.446.86%3.29%10.15%6.20%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:REG
Regis Healthcare Ltd.
7.63
3.52
85.64%
ANSLF
Ansell
18.00
1.11
6.57%
DE:PGZ
Healius Limited
0.42
-0.18
-30.00%
RMSYF
Ramsay Health Care
25.18
-5.20
-17.12%
AU:SHL
Sonic Healthcare Limited
26.70
2.02
8.18%

Regis Healthcare Ltd. Corporate Events

Regis Healthcare Responds to Delay in Aged Care Act Implementation
Jun 5, 2025

Regis Healthcare Limited has acknowledged the Australian Government’s decision to delay the commencement of the new Aged Care Act 2024 from July 1, 2025, to November 1, 2025. This postponement affects the implementation of funding reforms outlined in the Act, potentially impacting the company’s operations and planning. Regis has committed to keeping stakeholders informed as further details emerge, maintaining transparency in line with its disclosure obligations.

The most recent analyst rating on (AU:REG) stock is a Buy with a A$5.00 price target. To see the full list of analyst forecasts on Regis Healthcare Ltd. stock, see the AU:REG Stock Forecast page.

Ashburn Pty Ltd Reduces Stake in Regis Healthcare
May 15, 2025

Ashburn Pty Ltd, acting as trustee for the Dorman Family Trust, has reduced its stake in Regis Healthcare Ltd. by selling 15 million fully paid ordinary shares, decreasing its voting power from 21.40% to 16.40%. This change in shareholding could impact the company’s shareholder dynamics and influence future decision-making processes.

The most recent analyst rating on (AU:REG) stock is a Buy with a A$5.00 price target. To see the full list of analyst forecasts on Regis Healthcare Ltd. stock, see the AU:REG Stock Forecast page.

Regis Healthcare Highlights Current Activities and Financial Performance
May 7, 2025

Regis Healthcare Ltd. has released a presentation highlighting its current activities and financial performance. The company emphasizes the use of non-IFRS financial measures to better reflect its underlying performance. The presentation includes forward-looking statements subject to various risks and uncertainties, including regulatory changes and staffing challenges. Stakeholders are advised to consider these factors when evaluating the company’s future performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025