Regis Healthcare Ltd. (REG) AI Stock Analysis

• Market Cap: AU$2.30B
• Dividend Yield: 2.12%
• Average Volume (3M): 509.96K
• Price to Earnings (P/E): 152.3
• Beta (1Y): 1.19
• Revenue Growth: 25.38%
• EPS Growth: N/A
• Country: AU
• Employees: 11,000
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Care Facilities
• EPS (TTM): 0.08
• Shares Outstanding: 301,249,360
• 10 Day Avg. Volume: 516,056
• 30 Day Avg. Volume: 509,962
• PEG Ratio: 0.86
• Price to Book (P/B): 17.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$8.76
• Price Target Upside: 14.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• 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. Business Overview & Revenue Model

Company Description

Regis 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 Money

Regis 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

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

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

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.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.10B	1.01B	771.48M	717.89M	685.87M	666.15M
Gross Profit	195.43M	47.17M	-3.78M	5.18M	67.54M	80.89M
EBITDA	160.41M	191.45M	96.81M	55.86M	82.65M	61.55M
Net Income	15.09M	-21.41M	-28.45M	-38.80M	19.95M	-716.00K
Balance Sheet
Total Assets	2.05B	1.81B	1.71B	1.76B	1.75B	1.79B
Cash, Cash Equivalents and Short-Term Investments	179.92M	64.91M	61.32M	4.15M	3.89M	3.80M
Total Debt	4.30M	3.84M	71.07M	113.32M	153.41M	248.54M
Total Liabilities	2.07B	1.84B	1.67B	1.68B	1.61B	1.67B
Stockholders Equity	-17.48M	-22.89M	38.39M	79.01M	141.97M	127.79M
Cash Flow
Free Cash Flow	241.70M	186.57M	53.73M	67.60M	87.75M	87.94M
Operating Cash Flow	309.02M	252.30M	105.16M	114.79M	105.03M	127.23M
Investing Cash Flow	-103.95M	-136.59M	6.58M	-48.62M	7.50M	-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 Price: 7.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REG	58 Neutral	AU$2.30B	152.30	-276.16%	2.12%	25.38%	―
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.33%	16.99%	1.69%
ANSLF		$2.88B	22.01	6.45%	2.46%	―	―
PGZ		€322.11M	―	-4.46%	―	―	―
RMSYF		$5.42B	1,144.55	0.52%	2.00%	―	―
SHL	73 Outperform	AU$12.83B	23.44	6.86%	3.29%	10.15%	6.20%

Regis Healthcare Ltd. Corporate Events

Regis Healthcare Responds to Delay in Aged Care Act Implementation

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

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

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.