Assura plc (AGR) AI Stock Analysis

• Market Cap: £1.51B
• Dividend Yield: 7.11%
• Average Volume (3M): 21.09M
• Price to Earnings (P/E): 21.7
• Beta (1Y): 1.06
• Revenue Growth: 7.09%
• EPS Growth: N/A
• Country: UK
• Employees: 71
• Sector: Real Estate
• Sector Strength: 62
• Industry: REITs
• EPS (TTM): 0.02
• Shares Outstanding: 3,250,609,000
• 10 Day Avg. Volume: 21,436,939
• 30 Day Avg. Volume: 21,091,731
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.23
• Price to Cash Flow (P/CF): 17.90
• P/FCF Ratio: 0.00
• 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: 44.00p
• Price Target Upside: -5.42% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Assura plc receives a strong overall score due to its solid financial stability, positive technical indicators, and strategic corporate actions. While profitability challenges persist, the company's cash flow strength and attractive dividend yield provide investor appeal. Positive corporate developments, like asset disposals and interest from private equity, further boost confidence in the stock.

Positive Factors

Dividend yield

Assura offers a high dividend yield of 8.6%, which is well ahead of its peer PHP's yield of 7.3%.

Earnings growth

Assura's earnings are expected to grow at 10% over the next three years compared to PHP's 6.1%.

Market position

Assura has established itself as the UK's leading Diversified Healthcare REIT due to transformative investments and acquisitions.

Negative Factors

Income-oriented shares

Income-oriented shares continue to underperform the wider REIT sector, despite a shift in interest rate expectations that has seen the 5-year swap rates drift back towards 3.5%.

Share performance

Despite positive metrics and diversification, Assura shares have underperformed, down 20% year to date.

Assura plc Business Overview & Revenue Model

Company Description

Assura plc (AGR) is a UK-based real estate investment trust (REIT) that specializes in the development, investment, and management of primary care properties. The company primarily focuses on providing high-quality healthcare facilities across the United Kingdom, working closely with the National Health Service (NHS) and other healthcare providers to ensure that their buildings meet the evolving needs of healthcare delivery.

How the Company Makes Money

Assura plc generates revenue primarily through leasing its properties to healthcare providers, including the NHS and other medical service organizations. As a REIT, the company earns rental income from its portfolio of healthcare properties. This rental income is typically secured through long-term leases, providing a stable and predictable revenue stream. Additionally, Assura grows its earnings by developing new healthcare facilities and acquiring existing properties, which expand its rental base. The company's strategic partnerships with healthcare providers and government bodies also play a significant role in driving its financial performance, ensuring high occupancy rates and consistent demand for its properties.

Assura plc Financial Statement Overview

Summary

Assura plc displays solid revenue growth and strong gross margins, but faces challenges with profitability as evidenced by its recurring net losses. The balance sheet is stable with moderate leverage and a healthy equity ratio. Cash flow remains a strength, providing a cushion against earnings volatility. The company should focus on improving operational efficiencies to enhance profitability.

Income Statement

Assura plc has shown a stable revenue growth rate of approximately 3.82% over the past year. However, the company has been experiencing persistent net losses, with a negative net profit margin of -18.25% in the most recent year. Gross profit margin remains strong at 90.82%, indicating efficient management of direct costs. The company needs to address the negative EBITDA to improve overall profitability.

Balance Sheet

The balance sheet indicates a moderately leveraged position with a debt-to-equity ratio of 0.85, suggesting a balanced approach to financing. Return on equity is negative at -1.95%, reflecting recent net losses. The equity ratio is healthy at 52.37%, indicating a strong asset base supported by equity.

Cash Flow

Assura plc has demonstrated a positive free cash flow growth rate of 26.27%, supported by a strong operating cash flow. The operating cash flow to net income ratio is robust, indicating effective conversion of income into cash. The company should focus on maintaining this cash flow strength to offset the reported net losses.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
157.80M	152.00M	137.30M	121.00M	111.50M
	Gross Profit
143.30M	139.40M	126.70M	112.10M	103.60M
	EBIT
129.30M	125.60M	114.50M	98.20M	93.60M
	EBITDA
-1.30M	-92.20M	182.30M	132.40M	93.70M
	Net Income Common Stockholders
-28.80M	-119.20M	155.90M	108.30M	78.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.20M	118.00M	243.50M	46.60M	18.50M
	Total Assets
2.81B	2.92B	3.12B	2.56B	2.21B
	Total Debt
1.25B	1.25B	1.25B	954.20M	847.10M
	Net Debt
1.22B	1.13B	1.01B	907.60M	828.60M
	Total Liabilities
1.34B	1.34B	1.33B	1.03B	906.90M
	Stockholders Equity
1.47B	1.59B	1.79B	1.53B	1.30B
Cash Flow		Free Cash Flow
99.60M	78.90M	91.10M	76.70M	12.40M
	Operating Cash Flow
102.40M	94.10M	94.60M	77.40M	66.30M
	Investing Cash Flow
-97.70M	-130.40M	-293.90M	-267.50M	-166.20M
	Financing Cash Flow
-87.30M	-89.20M	396.20M	218.20M	100.10M

Assura plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.52
• 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 GB:AGR, the sentiment is Positive. The current price of 46.52 is above the 20-day moving average (MA) of 44.82, above the 50-day MA of 40.83, and above the 200-day MA of 39.06, indicating a bullish trend. The MACD of 1.75 indicates Positive momentum. The RSI at 66.62 is Neutral, neither overbought nor oversold. The STOCH value of 26.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AGR.

Assura plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGR	75 Outperform	£1.51B	21.72	4.23%	7.11%	7.09%	―
PHP	73 Outperform	£1.25B	30.92	2.96%	7.20%	7.01%	51.96%
GRI	65 Neutral	£1.50B	48.11	1.63%	3.71%	6.29%	21.16%
BLND	65 Neutral	£3.65B	19.81	3.17%	6.24%	-30.83%	―
DOCS	64 Neutral	£509.93M	18.23	8.42%	4.71%	-17.55%	-71.22%
Sector *	61 Neutral	$4.73B	18.32	-3.52%	11.32%	5.97%	-21.87%
LAND	54 Neutral	£4.05B	38.57	1.61%	7.29%	-1.73%	―

Assura plc Corporate Events

Assura PLC Updates Voting Rights Structure Post-Acquisition

Assura PLC has announced a change in the breakdown of its voting rights, as Schroders Plc’s holdings have fallen below the 5% threshold. This change was due to the issuance of shares related to the acquisition of the UK Private Hospital Portfolio, which was not initially included in the Total Voting Rights calculation. The notification highlights the company’s ongoing adjustments to its shareholder structure, which may impact its governance and stakeholder engagement.

Schroders Increases Stake in Assura plc

Assura plc has announced that Schroders plc has increased its voting rights in the company to 5.238072%, crossing the 5% threshold. This change in holdings was due to an acquisition of voting rights, and it highlights Schroders’ growing influence within Assura, potentially impacting the company’s strategic decisions and stakeholder dynamics.

Assura plc Executives Acquire Shares Under Incentive Plan

Assura plc announced that several of its senior executives, including the CEO and CFO, have acquired shares under the company’s Share Incentive Plan following a dividend award. This transaction, conducted in accordance with the Market Abuse Regulation, reflects the company’s ongoing efforts to align managerial interests with shareholder value, potentially strengthening stakeholder confidence in its governance and financial strategies.

Assura plc Extends Deadline for Potential Acquisition Offer

Assura plc has announced an extension to the deadline for a potential all-cash acquisition offer from a consortium consisting of Kohlberg Kravis Roberts & Co. Partners L.L.P. and Stonepeak Partners (UK) LLP. The extension, approved by the Takeover Panel, allows the consortium more time for due diligence, with the new deadline set for April 11, 2025. This move indicates ongoing negotiations and the potential for significant changes in Assura’s ownership structure, impacting stakeholders and possibly altering the company’s strategic direction.

Assura plc Receives Attractive Cash Offer from KKR and Stonepeak Consortium

Assura plc has received a non-binding proposal from a consortium of Kohlberg Kravis Roberts & Co. Partners L.L.P. and Stonepeak Partners (UK) LLP for a possible cash offer of 49.4 pence per share, valuing the company at £1,607 million. This offer represents a significant premium over recent share prices, and the Board is inclined to recommend it, subject to further discussions and due diligence, while rejecting a less attractive proposal from Primary Health Properties PLC.

Assura plc Achieves £200 Million Disposal Milestone

Assura plc has reached a significant milestone by disposing of seven assets for £64 million, contributing to a total of £200 million in asset sales since the start of the financial year. This move is part of Assura’s strategy to reduce acquisition debt from a £500 million private hospital portfolio acquired in 2024. The disposals enhance earnings by repaying credit facilities and reinforce the company’s strong portfolio quality and cash flow resilience. Assura’s CEO highlighted that these actions align with their goals to lower net debt to EBITDA and loan-to-value ratios, enhancing their position as a leader in the healthcare REIT market.

Assura plc Board Rejects KKR’s Acquisition Proposal

Assura plc’s Board has rejected a non-binding proposal from Kohlberg Kravis Roberts & Co. Partners L.L.P. (KKR) to acquire the company at 48 pence per share, deeming it to significantly undervalue Assura’s worth and prospects. The Board remains confident in the company’s long-term potential and advises shareholders to take no action at this time, as they await further developments before the deadline set for KKR to make a firm offer.

Assura plc Considers Unsolicited Takeover Approach

Assura plc has received an unsolicited approach from Kohlberg Kravis Roberts & Co. Partners L.L.P. and USS Investment Management Limited, which might lead to a takeover offer. The board is reviewing the proposal but advises shareholders to take no action as there is no certainty of an offer. Assura remains confident in its long-term growth prospects, suggesting potential implications for its operations and shareholder value.

Assura’s Executive Team Enhances Stake via Share Incentive Plan

Assura plc announced on February 5, 2025, that several key executives acquired partnership shares and were awarded matching shares under the company’s Share Incentive Plan. This transaction, reported in compliance with the Market Abuse Regulation, involves top management figures such as the CEO, CFO, and other senior roles, reflecting a strategic move to align their interests with the company’s long-term growth.

Assura plc’s Pioneering Steps in Net Zero Carbon Healthcare Developments

Assura plc has completed its first net zero carbon development projects, achieving significant milestones in sustainable healthcare construction. These projects, located in Fareham and Winchester, involved refurbishments and new builds that incorporate energy-efficient technologies and renewable energy sources. The Northumbria Health and Care Academy, another of Assura’s developments, became the first healthcare building in the UK to receive the WELL Building Standard Gold Certification, highlighting the company’s dedication to high-quality, sustainable healthcare infrastructure.

Assura’s CIO Acquires Additional Shares, Signaling Confidence in Growth

Assura plc announced that Steven Noble, the Chief Investment Officer, acquired 106,319 ordinary shares at a price of 36.61 pence each, increasing his total stake to 607,630 shares. This transaction reflects a strategic move within the company, potentially signaling confidence in Assura’s ongoing growth and financial stability within the healthcare real estate sector.

Assura plc Reports Strong Q3 2024 Performance and Strategic Progress

Assura plc’s trading update for the third quarter of 2024 highlights its ongoing strategic progress with the successful integration of 14 private hospitals into its portfolio. The company has generated £48 million from asset disposals and is in discussions for further disposals, while maintaining a strong financial position and a dividend yield of over 9%. Assura is well poised to support the UK healthcare sector’s shift towards community healthcare investments, backed by recent government funding and partnerships. The company is actively developing new projects and enhancing existing assets to capitalize on growth opportunities in the private hospitals market.

Assura plc Announces Management Share Acquisitions Under SIP

Assura plc has announced transactions involving key managerial personnel under its Share Incentive Plan (SIP). On January 6, 2025, several executives, including the CEO, CFO, and other directors, acquired partnership shares and were awarded matching shares. This move, compliant with the Market Abuse Regulation, reflects Assura’s ongoing commitment to employee investment in the company, potentially enhancing stakeholder confidence and aligning management’s interests with those of shareholders.