Netcare is engaged in provision of a range of general and other medical care services in South Africa and the U.K. Co operates its business within the following three segments: Hospital and Emergency Services, which include the operation of Co.'s private hospital network and emergency medical services; and Primary Care, which is engaged in the provision of primary healthcare services and managed care. Co.'s primary care segment provides medical and dental services through Medicross family medical and dental centers and Prime Cure clinics. Co.'s U.K. segment includes operation of private acute care hospitals in the U.K.
  • Ticker10EE
  • ISINZAE000011953
  • ExchangeJohannesburg Stock Exchange
  • SectorHealth Care Equipment & Services
  • CountrySouth Africa

Analysts

NETCARE LTD. sees a downgrade to Neutral on account of less fundamental stars

The independent financial analyst theScreener just lowered the general evaluation of NETCARE LTD. (ZA), active in the Health Care Providers industry. As regards its fundamental valuation, the title now shows 1 out of 4 stars while market behaviour can be considered moderately risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Neutral. As of the analysis date February 21, 2020, the closing price was ZAR 19.40 and its target price was estimated at ZAR 16.95.

Steph Erasmus

Netcare | ESG analysis

We rank Netcare's (JSE: NTC) corporate governance as ‘good' with a score of 3.16. Based on our ESG risk framework, NTC's ESG risk exposure is moderate, with a residual risk rating of 3.2 out of 5. We commend the Group's willingness to engage in ESG topics. The Group's Board comprises eight non-executive members, of which three have served over nine years. NTC's board is 80% independent (Avior: 50%). We consider Board members with a tenure of over nine years to be non-independent. We support variable compensation comprising 42% and 35% of NTC's CEO and CFO total FY '19 remuneration, respectiv...

Steph Erasmus

Netcare | All about execution

Netcare delivered a credible set of results given persistent pressures from medical funders and affordability. In our view, Netcare is the purest play on the SA hospital industry, given the location of its beds (good), ability to drive occupancies and unguarded balance sheet. Netcare has recently been added as one of two anchor providers for the Government Employee Medical Scheme EVO plan in 2020, a key step to increasing occupancies.

Steph Erasmus

Healthcare | Rising off a low base

Our views around Mediclinic Switzerland (MEISW) have evolved guided by evidence that MEISW is delivering on its turnaround strategy by generating c.14% EBITDA margin for H1 20f. In our view, MEI's current share price is not reflective of the green shoots guided for in Switzerland. While Life Healthcare (LHC) has withdrawn from its Max India investment, we remain concerned about the longevity of their Alliance Medical (LHCAM) business. Since Jan ‘19 LHC has benefited from the inclusion c.470k insured PolMed lives, at the expense of Netcare (NTC). However, despite our c.40% growth in FY ‘20f...

Steph Erasmus

Healthcare | The final Health Market Inquiry report, expected yet unsettling

Our outlook for Life Healthcare, Mediclinic and Netcare's (the healthcare providers) South African acute EBITDA margins has worsened. The Health Market Inquiry (HMI) commission's findings on the profitability of the healthcare providers suggest that the government will embark on further measures to reduce the profitability of the healthcare providers. The general tone of the HMI report is also of concern, with the HMI commission (the commission) not making mention of private-public partnerships. The commission, by its own admission said that there is no reliable source for health outcomes d...

1 director sold

A director at Netcare Limited sold 25,000 shares at 17.482ZAR and the significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of boar...

Steph Erasmus

Netcare | ESG analysis

We rank Netcare's (JSE: NTC) corporate governance as ‘good' with a score of 3.16. Based on our ESG risk framework, NTC's ESG risk exposure is moderate, with a residual risk rating of 3.2 out of 5. We commend the Group's willingness to engage in ESG topics. The Group's Board comprises eight non-executive members, of which three have served over nine years. NTC's board is 80% independent (Avior: 50%). We consider Board members with a tenure of over nine years to be non-independent. We support variable compensation comprising 42% and 35% of NTC's CEO and CFO total FY '19 remuneration, respectiv...

Steph Erasmus

Netcare | All about execution

Netcare delivered a credible set of results given persistent pressures from medical funders and affordability. In our view, Netcare is the purest play on the SA hospital industry, given the location of its beds (good), ability to drive occupancies and unguarded balance sheet. Netcare has recently been added as one of two anchor providers for the Government Employee Medical Scheme EVO plan in 2020, a key step to increasing occupancies.

Steph Erasmus

Healthcare | Rising off a low base

Our views around Mediclinic Switzerland (MEISW) have evolved guided by evidence that MEISW is delivering on its turnaround strategy by generating c.14% EBITDA margin for H1 20f. In our view, MEI's current share price is not reflective of the green shoots guided for in Switzerland. While Life Healthcare (LHC) has withdrawn from its Max India investment, we remain concerned about the longevity of their Alliance Medical (LHCAM) business. Since Jan ‘19 LHC has benefited from the inclusion c.470k insured PolMed lives, at the expense of Netcare (NTC). However, despite our c.40% growth in FY ‘20f...

Steph Erasmus

Healthcare | The final Health Market Inquiry report, expected yet unsettling

Our outlook for Life Healthcare, Mediclinic and Netcare's (the healthcare providers) South African acute EBITDA margins has worsened. The Health Market Inquiry (HMI) commission's findings on the profitability of the healthcare providers suggest that the government will embark on further measures to reduce the profitability of the healthcare providers. The general tone of the HMI report is also of concern, with the HMI commission (the commission) not making mention of private-public partnerships. The commission, by its own admission said that there is no reliable source for health outcomes d...

Steph Erasmus

Healthcare | Amputate, cauterise or euthanise?

Healthcare demand is inelastic, representing one of society's most basic needs. Despite 1.5% annual population growth and an ageing affluent consumer, occupancies for South Africa's (SA) private healthcare providers have weakened to c.70% of capacity from c.72% in 2015 due to static medical scheme covered lives in SA at c.9m. By filling unused capacity, SA's private healthcare providers could care for an additional c.7.7m South Africans. Considering that c.44m South Africans depend on the public healthcare system, the proposed National Health Insurance scheme (NHI) could fill spare capacity...

NETCARE LTD. sees a downgrade to Neutral on account of less fundamental stars

The independent financial analyst theScreener just lowered the general evaluation of NETCARE LTD. (ZA), active in the Health Care Providers industry. As regards its fundamental valuation, the title now shows 1 out of 4 stars while market behaviour can be considered moderately risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Neutral. As of the analysis date February 21, 2020, the closing price was ZAR 19.40 and its target price was estimated at ZAR 16.95.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

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