The Motley Fool

A Quick Overview of Raffles Medical Group Ltd’s Track Record in Growing Its Business

Raffles Medical Group Ltd (SGX: BSL) runs hospital and healthcare services in Singapore.

One of the things that I like to do when analysing a company is to study its track record. The past is no guarantee of the future. But historical information is the most reliable thing that we can use as our basis to forecast what lies ahead. And this brings me to the main purpose of this article, which is to have a quick overview of Raffles Medical’s historical business growth. The table below is a snapshot of the company’s important financial metrics from FY2014 (financial year ended 31 December 2014) to FY2018:

Source: Raffles Medical’s 2018 Annual Report

Here are a few points worth noting:

  1. First of all, revenue increased from S$374.6 million to S$489.1 million, up by 30.6% during the period. This translates to a compound annual growth rate (CAGR) of 6.9%.
  2. Secondly, profit after tax and minority interest (PATMI) has grown from S$67.6 million in FY2014 to S$71.1 million in FY2018, up by a total of 5.2% during the period. Yet, earnings per share (EPS) remained flat during the same period.
  3. Last but not least, dividend per share grew by 36.6%, or a CAGR of 8.1%, during the same time frame.

Takeaway

In sum, Raffles Medical delivered a respectable growth in revenue and dividend in the past five years. On the downside, EPS remained roughly flat during that period.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool has a recommendation for Raffles Medical Group Ltd.