REGIS HEALTHCARE LIMITED (REG)
Share Price Analysis and Chart

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

25/02/2025

1

Buy

$7.40

12.46%

Regis Healthcare's 1H25 EBITDA of 68m, up 31%, beat Ord Minnett’s estimate by 5%. Occupancy increased to 95.3%, the highest in over seven years, with revenue per occupied bed rising 9% YoY the broker notes

Net operating cash flow grew 37% to $209m, supported by $86m in refundable accommodation deposit (RAD) inflows. The company raised care minutes to 215, progressing toward its 222 target, the broker observes.

The analyst points to a moderation in operating margins in 2H25 due to rising staff costs, but earnings should re-accelerate in FY26 as RAD retention starts.

Ord Minnett maintains a Buy rating with a higher $7.40 target from $7.20.

FORECAST
Ord Minnett forecasts a full year FY25 dividend of 15.50 cents and EPS of 15.40 cents.
Ord Minnett forecasts a full year FY26 dividend of 21.60 cents and EPS of 21.40 cents.

05/03/2025

2

Overweight

$7.56

14.89%

Regis Healthcare delivered a better-than-expected topline in its first half, which Jarden notes is underpinned by an increase in occupancy.

Spot occupancy now sits at 96% and this is expected to improve further as Camberwell appears to be recruiting residents faster than previously anticipated.

The broker is further convinced the company will increasingly allocate capital to greenfield, brownfield and M&A to take advantage of the attractive funding environment and deliver an increase in the number of premium aged care beds.

So far Regis Healthcare has announced five greenfield sites, representing 562 beds. Overweight rating maintained. Target is raised to $7.56 from $7.10.

FORECAST
Jarden forecasts a full year FY25 dividend of 13.70 cents and EPS of 17.70 cents.
Jarden forecasts a full year FY26 dividend of 16.80 cents and EPS of 23.80 cents.