For investors eyeing the real estate sector with an emphasis on healthcare facilities, ASSURA PLC ORD 10P (AGR.L) presents an intriguing opportunity. As a leading specialist healthcare property investor and developer in the UK, Assura plc holds a significant position in the market by managing a portfolio of over 600 healthcare buildings, serving more than six million patients. Based in Altrincham, Assura is a proud member of the FTSE 250 and the EPRA indices, with its portfolio valued at an impressive £2.7 billion as of the end of March 2024.
The stock, currently priced at 49.14 GBp, has shown stability with a minor price change of -0.02 GBp, reflecting a 0.00% shift. The 52-week range of 0.36 to 49.62 GBp indicates recent resilience and potential for growth, though the current price nears the upper limit of this range. Investors should note the stock’s average target price of 49.67 GBp, suggesting a modest potential upside of 1.07%.
A notable aspect of Assura’s financial performance is its revenue growth of 8.50%. However, traditional valuation metrics such as P/E Ratio, PEG Ratio, Price/Book, and Price/Sales are unavailable, which may present a challenge for valuation-oriented investors. The Forward P/E stands at a staggeringly high 1,360.09, potentially indicating high expectations for future earnings or a misalignment with current earnings levels.
Assura’s Return on Equity (ROE) is reported at 4.23%, a figure that, while modest, signals positive returns on shareholder investments. Furthermore, the company generates a free cash flow of £15,387,500, a crucial factor for sustaining its operations and funding dividends.
Dividend-focused investors will find Assura’s dividend yield of 6.84% particularly compelling. However, the high payout ratio of 158.10% suggests that the company is distributing more in dividends than it earns, a practice that could be unsustainable in the long term unless offset by strong cash flows or strategic financing.
Analyst ratings for Assura reflect a balanced sentiment with two buy ratings and two hold ratings, indicating cautious optimism. The absence of any sell ratings could be seen as a positive sign. Technical indicators provide further insights: the 50-day moving average stands at 47.69 GBp, while the 200-day moving average is 41.72 GBp, both pointing to an upward trend. The Relative Strength Index (RSI) at 44.72 indicates that the stock is neither overbought nor oversold, while the MACD and Signal Line values suggest a stable momentum.
Assura’s unique positioning in the healthcare real estate market, coupled with its strategic focus on healthy environments, communities, and business practices, underpins its commitment to sustainable growth. For investors seeking exposure to the UK’s healthcare property sector, Assura plc represents a company with a robust portfolio, consistent financial returns, and a dedication to shareholder value, albeit with some caution needed due to the high payout ratio and the lack of certain valuation metrics.
