Raffles Medical Group Ltd (SGX: BSL) is a private healthcare group with operations in 14 cities spread across five countries. In all, it serves more than two million patients and 7,000 corporate clients.
Investors who are interested in investing in a company should look at its historical financial performance to see if it has been performing strongly, in addition to other aspects of the business. Past strong performance could mean that the company can continue performing well in the future.
With that, here’s how Raffles Medical has done financially over the last five years.
How much Raffles Medical raked in?
The following chart shows Raffles Medical’s revenue growth from 2014 to 2018 (the company has a 31 December year-end):
Source: Raffles Medical Group Ltd 2018 annual report
From 2014 to 2018, revenue improved by 6.9% annually, from S$374.6 million to S$489.1 million. Revenue growth was broad-based, with all three business divisions of hospital services, healthcare services and investment holdings showing growth over the years.
In particular, the hospital services division grew from S$250.8 million in 2014 to S$289.4 million in 2018, bringing in the bulk of total revenue at 54% last year. This division provides specialised medical services and is involved in the operation of hospitals.
The healthcare services division raked in 41% of total revenue while the investment holdings division contributed 5% to total revenue.
Net profit attributable to shareholders inched up by 1.2% annually, from S$67.6 million in 2014 to S$71.1 million in 2018. Earnings per share, however, eased from 3.99 Singapore cents in 2014 to 3.97 Singapore cents in 2018.Source: Raffles Medical Group Ltd 2018 annual report
How much have shareholders received?
The following shows how dividend per share has grown from 2014 to 2018:Source: Raffles Medical Group Ltd 2018 annual report
Raffles Medical’s dividend per share has grown at a faster rate than its net profit over the years. Dividends rose 8% per annum, from 1.83 Singapore cents per share in 2014 to 2.50 Singapore cents per share in 2018. The higher dividend payment in the past two years could signal confidence in its outlook, even as Raffles Medical expands into China with two new hospitals.
The Foolish takeaway
Raffles Medical has shown resilient growth in both its top and bottom line over the past five years. Even though the growth has not been spectacular, patient investors could be well-rewarded in the future when the newly-opened Singapore wing and the new hospitals in China (one already open and another yet to open) ramp up their services along the way. At Raffles Medical’s share price of S$1.05 on 8 May, it had a price-to-earnings ratio of 27 and a dividend yield of 2.4%.
Worried about the overall state of the market? Do you know the 1 thing you should never do in the stock market? The Motley Fool Singapore’s new e-book lays out a plan to handle market crashes, details the greatest advantage you have as an investor, and looks at decades worth of market data to bring you the smartest insights on investing. You can download the full e-book FREE of charge—Simply click here now to claim your copy
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Raffles Medical Group Ltd. Motley Fool Singapore contributor Sudhan P owns shares in Raffles Medical Group Ltd.