Despite a grim evolution during the last 12 months, with almost 80% losses, MedLife shares remain popular among Romanian investors and international best-performing funds. While you can buy MedLife shares directly, sometimes it's worth considering an ETF with M representation.
MedLife is a leading private healthcare provider in Romania. The company operates the largest network of clinics, one of the largest networks of medical laboratories, general and specialist hospitals and has the largest customer base for preventive health packages in the country. In terms of sales, the company is one of the largest private healthcare companies in Central and Eastern Europe, according to MedLife Group's public information.
The shares issued by MedLife SA are admitted to trading on the regulated spot market managed by the Bucharest Stock Exchange (BVB), Premium Category, with the trading symbol "M".
MedLife Shares - Research and Ratings
- Are M stocks undervalued compared to their fair value, analyst forecasts, and its price relative to the market?
- What is the analyst’s 12-month MedLife shares price forecast?
- What are MedLife’s shares future growth expectations?
- How had M stocks performed over the past 5 years?
- Should you buy MedLife shares or invest in ETFs with M representation?
MedLife Shares (BVB: M) - A brief history
MedLife is a healthcare provider company based in Romania founded in 1996. The chain of clinics owned by MedLife SA is composed of seven hyper clinics, eight own analysis laboratories and 28 general medical centers, having partnerships with more than 110 clinics throughout the country.
MedLife owns the largest private hospital in Romania, Life Memorial Hospital, the result of an investment of more than 10 million euros. The hospital provides many specialties: general and plastic surgery, ophthalmology, dermatology, ENT, pediatrics, gynecology, maternity and neonatology, oncology, etc.
In February 2011, MedLife purchased a 55% majority stake in the private medical group Genesys Medical Clinic in Arad for €2 million.
MedLife shares distribution:
Legal entities: 41,1812%
MARCU MIHAIL: 14,7672%
CRISTESCU MIHAELA GABRIELA: 14,0443%
PRIVATE PENSION FUND NN: 13,2379%
MARCU NICOLAE: 10,4127%
Individuals: 6,3568%
Medlife Shares (BVB: M) - Fundamental Analysis and Financial Ratings
See the latest MedLife SA stock price analysis, including valuation, future growth, past performance, and more to help you make more informed investing decisions.
Valuation
Are MedLife shares undervalued compared to their fair value, analyst forecasts and its price relative to the market?
- M (RON4.05) is trading below simplywall.st estimate of fair value (RON7.74) by more than 20%.
- M is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (4.7x).
- M is expensive based on its Price-To-Sales Ratio (1x) compared to the European Healthcare industry average (0.7x).
Future Growth
MedLife is forecast to grow earnings and revenue by 70.4% and 11.2% per annum respectively. EPS is expected to grow by 74.4% per annum. Return on equity is forecast to be 5.7% in 3 years.
- M's forecast earnings growth (70.4% per year) is above the savings rate (5.5%).
- M's earnings (70.4% per year) are forecast to grow faster than the RO market (0.9% per year).
- MedLife's earnings are expected to grow significantly over the next 3 years.
- M's revenue is forecast to grow slower than 20% per year (11.2% per year) but faster than the RO market (0.1% per year).
- MedLife's Return on Equity is forecast to be low in 3 years time (5.7%).
- Analyst coverage is Low.
Past Performance
How has MedLife stock performed over the past 5 years?
MedLife has been growing earnings at an average annual rate of 4.7%, while the Healthcare industry saw earnings growing at 12.2% annually. Revenues have been growing at an average rate of 20.8% per year.
- M has a large one-off loss of RON2.0M impacting its last 12 months of financial results to 31st December 2023.
- M's current net profit margins (0.2%) are lower than last year (1.8%).
- M's earnings have grown by 4.7% per year over the past 5 years.
- M's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
- M had negative earnings growth (-88.5%) over the past year, making it difficult to compare to the Healthcare industry average (2.6%).
- M's Return on Equity (-0.8%) is considered low.
Financial Health
What is Medlife's financial position?
MedLife has a total shareholder equity of RON494.2M and total debt of RON1.2B, which brings its debt-to-equity ratio to 233.3%. Its total assets and total liabilities are RON2.6B and RON2.1B respectively. MedLife's EBIT is RON94.8M making its interest coverage ratio 1.4. It has cash and short-term investments of RON100.3M.
- M's short-term assets (RON533.5M) do not cover its short-term liabilities (RON699.7M).
- M's short-term assets (RON533.5M) do not cover its long-term liabilities (RON1.4B).
- M's net debt to equity ratio (213%) is considered high.
- M's debt to equity ratio has increased from 190.6% to 233.3% over the past 5 years.
- M's debt is not well covered by operating cash flow (15.9%).
- M's interest payments on its debt are not well covered by EBIT (1.4x coverage).
MedLife Dividend
MedLife does not have a record of paying dividends.
MedLife Shares Price Forecast
What is the analyst 12-month MedLife stock price forecast, and do we have any statistical confidence in the consensus price target from analysts?
Source: simplywall.st
According to simplywall.st, MedLife`s 12-month shares price target (RON4.98) is 23% higher than the current share price (RON4.05), and analysts are within a statistically confident range of agreement.
According to stockopedia.com, the analyst consensus target price for shares in MedLife SA is RON5.61. That is 40.25% above the last closing price of RON4.00.
Trading Economics forecasts MedLife SA to be priced at 3.76 by the end of this quarter and at 3.56 in one year, according to their global macro models projections and analysts` expectations.
There are no 5-year MedLife shares price forecasts and price predictions.
Important: When considering MedLife's fundamental analysis, financial rating and price predictions, it’s important to remember that high market volatility and changing economic environment makes it difficult to give long-term estimates. As such, analysts and algorithm-based platforms can and do get their ratings and predictions wrong. Always do your own research before making an investment decision. And never trade or invest more than you can afford to lose.
MedLife Shares - Technical Analysis
From a long-term perspective, MedLife shares are being trade within a range since mid-2022 as seen on the daily M shares chart below. Although price is making lower highs, which reflects a downside pressure, bulls managed to maintain the multiyear key support area RON3.80 - 4.00.
Source: bvb.ro
However, price seems to complete a descending triangle which is a classic bearish pattern. If this scenario is confirmed, we may assist to a further breakdown targeting lower levels. On the other hand, if the recent price action proves itself to be an accumulation, price could initially find resistance at 4.3 level or higher, around 4.6 area.
How to Invest in MedLife
Some investors want to take an active hand in managing their investments, while others prefer to set it and forget it. Your preference may change but decide on an approach to get started.
For most people, stock market investing means choosing among these two investment types:
Individual MedLife shares
If you’re after a specific company, you can buy a single share or a few shares to dip your toe into the stock-trading waters. Building a diversified portfolio out of many individual stocks is possible, but it takes significant investment and research.
If you go this route, remember that individual stocks will have ups and downs. If you research a company and choose to invest in it, think about why you picked that company in the first place if jitters start to set in on a down day.
Traditional stockbrokers allow you to invest in local stocks. However, you might not be able to invest in international stocks listed on the major stock exchanges, global ETFs, and other assets.
ETFs with MedLife holdings
MedLife shares (or any single stock, for that matter) can be a very unpredictable investment. You can manage the risk you see extreme highs and lows by diversifying your investment holdings. An ETF, for instance, contains a basket of individual stocks. When you invest in a fund, you also own small pieces of each of those companies.
If you want an ETF with M representation, you might consider iShares MSCI Frontier and Select ETF. BlackRock's iShares is the largest provider of ETFs as calculated by assets under management.
The fund can be suitable for Romania and foreign investors who want liquid and diversified exposure to another top 10 companies listed on the Bucharest Stock Exchange:
Why invest in MedLife Shares via FM?
With net assets of almost $450M, the iShares MSCI Frontier and Select EM ETF (FM) is the largest exchange-traded-fund that seeks to track the investment results of an index composed primarily of frontier market equities along with select emerging market equities.
- Exposure to frontier market stocks and smaller size emerging market stocks with an emphasis on tradability and investability of the underlying constituents;
- One-click access to a virtually untapped investment portfolio, including Bucharest Stock Exchange and BET index exposure;
- Use to seek long-term growth and diversification.
How to Get Started with CAPEX.com
Here is how to buy and trade stocks, ETFs and other assets with an international, highly regulated broker like CAPEX.com:
- Choose which type of account you want to use. Your first concern should be your risk appetite and time horizon. If you want to buy and hold shares, open an Invest account. If you want to speculate on price movements (including falling prices) with zero commission and leverage, open a CFD trading account.
- Create an account. Regardless of your chosen account, you need to register and complete the KYC process to verify your identity.
- Fund your account with fiat money. Before buying and trading stocks and ETFs, you need to fund your exchange account with U.S. dollars, Euros, or other currencies.
- Place your order. Click on the "Search" icon located in the left panel or by clicking on "ETFs" and then select the instrument, such as "iShares MSCI Frontier and Select EM ETF”.
When trading stocks, the CFDs (contracts for difference) are stored in your account and are more liquid than the underlying asset.
However, you should be aware that CFD trading is fast-moving and requires close monitoring. As a result, traders should be aware of the significant risks when trading CFDs. There are margins you need to maintain; if you cannot cover reductions in values, your position might be closed, and you'll have to meet the loss no matter what subsequently happens to the underlying asset.
With CAPEX, you can trade CFDs on +2.000 stocks and invest in +5.000 stocks and ETFs with ownership.
Free resources
Before you start investing in shares, you should consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of free trading courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to become a more informed trader.
Our demo account is a great place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how CFDs work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.
Sources:
https://m.bvb.ro/FinancialInstruments/Details/FinancialInstrumentsDetails.aspx?s=m
https://simplywall.st/stocks/ro/healthcare/bvb-m/med-life-shares/future
https://www.stockopedia.com/share-prices/med-life-sa-BSE:M/
https://www.investing.com/equities/med-life-sa
https://tradingeconomics.com/m:ro