GB : Medica Group - On-track for 2021, further re-rating ahead

Medica reported FY2020 results this morning which given the prelim update in January were largely as expected. A resilient performance in the NightHawk business (+4%) offset COVID driven weakness in the Elective Business (-49%) meaning group revenue of £36.8m was as expected. EPS of 3.47p was also largely as anticipated. More importantly, the business appears to be tracking in-line with our 2021 forecasts as the Elective recovery gathers pace and hence we don’t expect any changes to estimates. Over the next five years we expect Medica to deliver a 22% EPS CAGR to 2025, to diversify its revenue base and to generate c.30% of its market cap in cash. Despite this it still trades at a c.30% discount to peers. As such it remains remains the Top Pick across all 23 of the stocks in our universe.

Most Viewed See latest

This publication is being distributed by Tellimer solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not con...

Full Tellimer disclaimers