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1. Company Snapshot

1.a. Company Description

ORPEA SA operates nursing homes, assisted-living facilities, post-acute and rehabilitation hospitals, and psychiatric hospitals.Its nursing home facilities provide personalized support services; and logistical and residential services, including accommodation, meals, and laundry and room cleaning, as well as various daily event, entertainment, and therapeutic workshop services.The company's post-acute and rehabilitation hospitals offer services for geriatrics, musculoskeletal, nervous system, cardiovascular, hematology, and oncology conditions, as well as patients in a persistent vegetative state or in a minimally conscious state.


Its psychiatric hospitals provide services for the patients with mood disorders, anxiety disorders, obsessive-compulsive disorders, addictions, eating disorders, sleep disorders, personality disorders, ageing-related psychiatric disorders, psychosis, over exhaustion or burn-out, chronic fatigue syndrome, fibromyalgia, psychosomatic conditions, and post-traumatic stress disorder conditions, as well as geriatric, child, young adult, parent-child, and public/private patients psychiatry services.In addition, the company offers home care services, including housekeeping services, such as cleaning, meals, ironing, gardening, and household errands; daily life assistance services comprising day or night supervision, assistance with hygiene tasks, and meal-time assistance; and movement assistance services.The company operates in France, Belgium, Spain, Italy, Ireland, Switzerland, Austria, Germany, the Czech Republic, Poland, the Netherlands, Luxembourg, Portugal, Brazil, Russia, Slovenia, Uruguay, Colombia, Mexico, Chile, Latvia, Croatia, and China.


ORPEA SA was founded in 1989 and is headquartered in Puteaux, France.

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1.b. Last Insights on ORP

ORPEA SA's 1.0% performance over the past three months can be attributed to the company's efforts to restructure its financials, restart its liquidity contract with Natixis ODDO BHF, and divest non-core assets. The sale of a real-estate portfolio in the Netherlands and a nursing home portfolio in Ireland, worth €97 million and €56 million respectively, have likely contributed to the company's improved financial performance.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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emeis Announces the Signature of a Real Estate Promissory Sales Agreement Concerning Assets in Portugal, worth a Total Value of €24 Million

Jul -15

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ORPEA: emeis 2024 Annual General Meeting, Summary of Voting Results

Jun -25

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ORPEA: emeis Sells a Real-Estate Portfolio of Three Nursing Homes in Ireland Worth a Total Value of Around €56 Million

Jun -03

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ORPEA: Documents and Information Related to the Combined General Meeting of 25 June 2024

May -17

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Solid 11.3% Revenue Growth for emeis in First-quarter 2024

May -14

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ORPEA S.A. : Filing of the 2023 Universal Registration Document

May -06

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emeis Sells a Real-Estate Portfolio in the Netherlands Worth a Total Value of Around €97 Million

Apr -30

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EMEIS PURSUES ITS REFOUNDATION: 2023 Consolidated Financial Results of ORPEA S.A.

Apr -17

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Geriatric Healthcare Facilities

Expected Growth: 7%

Orpea SA's geriatric healthcare facilities growth is driven by an aging population, increasing life expectancy, and a shortage of caregivers. Government initiatives to promote elderly care, rising healthcare expenditure, and Orpea's strategic expansion into new markets also contribute to its 7% growth.

7. Detailed Products

Nursing Homes

Orpea SA operates nursing homes that provide 24/7 care and support to elderly residents, including assistance with daily living activities, medication management, and rehabilitation therapy.

Post-Acute Care

Orpea SA offers post-acute care services that provide short-term rehabilitation and recovery care to patients who have been hospitalized for surgery, illness, or injury.

Home Healthcare

Orpea SA provides home healthcare services that allow patients to receive medical care and support in the comfort of their own homes.

Rehabilitation Centers

Orpea SA operates rehabilitation centers that provide intensive therapy and rehabilitation programs for patients recovering from injury, illness, or surgery.

Mental Health Services

Orpea SA offers mental health services that provide support and treatment for individuals struggling with mental health issues.

8. Orpea SA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Orpea SA is moderate due to the presence of alternative healthcare services and facilities.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of negotiating power and the dependence on Orpea SA's services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers and the company's dependence on them.

Threat Of New Entrants

The threat of new entrants is high due to the growing demand for healthcare services and the relatively low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several competitors in the healthcare industry and the need to differentiate Orpea SA's services.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 75.60%
Debt Cost 6.56%
Equity Weight 24.40%
Equity Cost 7.36%
WACC 6.76%
Leverage 309.91%

11. Quality Control: Orpea SA passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Fresenius Medical Care

A-Score: 5.2/10

Value: 7.1

Growth: 3.0

Quality: 3.4

Yield: 3.8

Momentum: 7.5

Volatility: 6.7

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Medicover

A-Score: 4.4/10

Value: 2.2

Growth: 6.8

Quality: 2.6

Yield: 1.2

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

Stock-Card
Orpea

A-Score: 4.2/10

Value: 10.0

Growth: 5.3

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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LivaNova

A-Score: 3.8/10

Value: 6.2

Growth: 5.8

Quality: 4.0

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Ramsay Santé

A-Score: 3.8/10

Value: 8.9

Growth: 3.9

Quality: 1.7

Yield: 0.0

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

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CRISPR Therapeutics

A-Score: 3.3/10

Value: 6.6

Growth: 1.1

Quality: 3.8

Yield: 0.0

Momentum: 8.0

Volatility: 0.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.39$

Current Price

8.39$

Potential

-0.00%

Expected Cash-Flows