Daily Archives: October 20, 2019

Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand Oceania Healthcare Limited (NZSE:OCA).

Oceania Healthcare has a ROE of 7.4%, based on the last twelve months. One way to conceptualize this, is that for each NZ$1 of shareholders' equity it has, the company made NZ$0.07 in profit.

View our latest analysis for Oceania Healthcare

The formula for return on equity is:

Return on Equity = Net Profit Shareholders' Equity

Or for Oceania Healthcare:

7.4% = NZ$45m NZ$610m (Based on the trailing twelve months to May 2019.)

Most readers would understand what net profit is, but its worth explaining the concept of shareholders equity. It is all earnings retained by the company, plus any capital paid in by shareholders. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company.

Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the amount earned after tax over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, as a general rule, a high ROE is a good thing. That means ROE can be used to compare two businesses.

Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Oceania Healthcare has a lower ROE than the average (11%) in the Healthcare industry.

NZSE:OCA Past Revenue and Net Income, October 20th 2019

That certainly isn't ideal. We prefer it when the ROE of a company is above the industry average, but it's not the be-all and end-all if it is lower. Still, shareholders might want to check if insiders have been selling.

Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.

Although Oceania Healthcare does use debt, its debt to equity ratio of 0.44 is still low. Its ROE isn't particularly impressive, but the debt levels are quite modest, so the business probably has some real potential. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.

Return on equity is one way we can compare the business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.

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But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at this data-rich interactive graph of forecasts for the company.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfree list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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Based On Its ROE, Is Oceania Healthcare Limited (NZSE:OCA) A High Quality Stock? - Yahoo Finance

Kavinda Herath

Commonwealth Games medallist Natasha Hansen racing in the women Elite Keirin at the SIT ZeroFees Velodrome in Invercargill on Friday, during the Oceania Track Championships.

Southland riders have impressed during the Oceania Track Championships at the cycling velodrome in Invercargill this week.

Cycling Southland'sGlen Thomson saidNatasha Hansen was looking dynamicin the heats of the women'selite keirin event on Friday and qualified for the final.

Another Southlander, Corbin Strong, has also featured strongly,finishing fourth in theomnium despite not being part of the men's elite team.

John Hawkins

Jordan Castle competing at the SIT ZeroFees Velodrome in Invercargill on Friday, during the Oceania Track Championships.

Southland's Eddie Dawkins, who has already won gold during the championships, willracein the men'skeirin event onSaturday.

Anotherfavourite for that event isAustralia's MattGlaetzer, a friend and rival ofDawkins,Thomson said.

He believed the two "beasts" could reach speeds of up to 80kmh during the racing.

Kavinda Herath

Women's elite keirin race at the SIT Velodrome in Invercargill, during the Oceania Track Championships this week.

"Australia versus New Zealand, we love that sort of battle."

Dawkins and his team-mates in the New Zealand men's sprint teamset the championships alighton Wednesday night.

Theywon the OceaniaChampionshipin a record-winningtime of 42.508 seconds.

It was the best time laid down by a New Zealand sprint team.

The championships, whichstarted on Wednesday and will finish on Saturday,has attracted nearly 180 of New Zealand and Australia's best track riders on the SIT Velodrome.

Thomson said the track was running fast and records were being broken.

Cycling Southland general manager Nicola Willssays the elite riders from the twocountrieshave produced some red hot racing as they vie to qualifyfor the 2020 Tokyo Olympics.

Wills is thrilled to have the event in Invercargill for the first time in four years.

The Southland public hasgot behind the event, with strong crowd numbers and hundreds of school children turning up each day.

Southland has been represented in the New Zealand eliteteam through the likes of Hansen, Dawkins,Kirstie James, Nick Kergozou, Tom Sexton, Conor Shearing, Bradley Knipe.

Five Southland riders have formed part of the New Zealand under-19 team racing at the event; Navarh Robertson, Mitchell Fitzsimons, Tayla Green, Jessica Spencer and Natalie Green.

Read more:

Southland cyclists impress at Oceania Championships in Invercargill - Stuff.co.nz

Seoul Incheon International is subsidising the marketing costs of five trial routes as part of an incubator programme aimed at expanding the airport's network.

Participating airlines are Asiana Airlines, flying to Melbourne and Lisbon; low-cost carrier T'way Air, to Batam; and Korean Air, to Dalat and Krabi.

Cirium schedules data shows that Korean Air is operating the trial flights to Dalat with Boeing 737-900s, while Asiana will begin flying Boeing 777-200ERs to Melbourne in the next quarter.

The airport operator will subsidise the airlines' marketing costs by up to $50,000 over three years and offer additional funding of $20,000 if the route is converted to a regular service.

Under the same incubator programme, the operator signed a memorandum of understanding with Melbourne Tullamarine airport in September to attract new airlines and routes to the Oceania region.

It is also actively marketing its ability to support new flights and expanding routes, with plans to grow its network to 200 destinations.

"We plan to enhance the convenience of passengers by strengthening Incheon International airport's aviation network through new service and expansion of routes, says Lim Byeong-gi, the airport's head of future business development.

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Incheon airport subsidises five trial flights to Oceania - Flightglobal

Boeing 787s going through final assembly at the companys Everett facility. (Boeing)

Boeing says the airlines of Oceania will require 820 new aircraft in the two decades ahead to meet the demand for air travel led by passenger growth into and out of the region.

The manufacturers outlook covering Australia, New Zealand and the nations of the South Pacific is a decline of 50 aircraft from the 870 new aircraft deliveries for the region in the 2018-2037 Current Market Outlook (CMO).

Boeing Commercial Airplanes senior managing director for marketing Darren Hulst noted aviation played a key role in the the travel and tourism sectors, which have become an increasingly significant contributor to economic growth or gross domestic product (GDP).

About 11 per cent of Australias economy is travel and tourism 12 per cent of jobs and we see that growing faster than GDP growth over time, Hulst told reporters in Sydney on Wednesday.

Aviation will continue to have an increasing role in enabling economic growth but also supporting more and more tourism, more and more travel, whether that be for tourism or for leisure in this marketplace.

The Boeing forecast said the 820 new aircraft comprised 10 in the regional jets segment, 560 in the single-aisle segment, 250 in the widebody segment and nil in the freighters segment.

The only change from the prior years CMO was in the widebody segment, which was reduced by 50 aircraft from 300 previously.

While a 16.7 per cent reduction in widebody demand would seem, on the surface, statistically significant, Hulst said the bulk of the change was the decision to reallocate expected aircraft deliveries to other regions due to the way the CMO now treated airline affiliates.

He cited the example of the Jetstar group of carriers, which has operations in Australia and New Zealand, Japan, Singapore and Vietnam.

We used to forecast our aircraft based on where the parent company was domiciled, Hulst explained.

For example Jetstar in Japan and Vietnam would be considered Oceania. Now, weve adjusted that to really focus on where the airplanes will be flying.

Thats moved some of the demand out of the region but it hasnt changed the nature of the demand, it just moved it to its rightful home.

The improved operating performance of new single-aisle aircraft was also a factor as aircraft such as the Airbus A321LR and 737 MAX were being deployed on longer sectors.

Hulst noted more than half of the capacity today in Australia was on single-body aircraft such as 737 and A320 family of aircraft.

Both of the fleets have seen an increase in the last decade of over 50 per cent, Hulst said.

Widebodies are being de-emphasised regionally because of the flexibility of these single-aisle aircraft.

We will continue to see that because of the versatility of these fleets and going forward, both from an industry perspective and also here in the region, we continue to see a slow creep upward in terms of the average capacity.

A supplied image of Boeing 737 MAX 7, 8 and 9 artwork. (Boeing)

Hulst said the average number of seats on a single-aisle aircraft a decade ago was about 140 seats. Today the figure was closer to 155-160 seats.

This was achieved via upgauging and adding more seats onto existing aircraft.

In terms of the fleet composition, the number of aircraft in Oceania was expected to grow by about 60 per cent from 550 today to 920 by 2038.

Some 450 aircraft would be replaced, with 370 new aircraft joining the fleet for growth. Finally 100 aircraft flying today will still be in the skies in two decades time, according to Boeing estimates.

The split between growth and replacement for Oceania was at odds with the global CMO forecast, which showed 56 per cent of all aircraft deliveries would be for growth and 44 per cent to replace older airframes.

Market fragmentation is the main driver behind Oceanias modest passenger growth as airlines utilize new smaller and highly efficient widebody airplanes to increase city-pair growth to international destinations, Boeings CMO said.

The bulk of the growth in passenger traffic for Oceania, which Hulst described as a very stable, mature market, was likely to be for travel into and out of the region, which was expected to grow by between three and four per cent a year.

More inbound traffic, more outbound traffic, more medium and long-haul traffic, which is driving that growth rate higher, Hulst said.

The inter-regional markets to and from Oceania are the ones that have seen the biggest growth and likely will see the fastest growth going forward.

We see a lot of opportunity for continued expansion in these markets.

This compared with average annual growth of one to two per cent a year over the past five years in the domestic and trans-Tasman markets of Oceania.

The Boeing CMO, first published in June, estimated that over the next 20 years airlines would need 44,040 new aircraft worth some US$6.8 trillion. This was up from 42,730 aircraft in the prior years outlook.

A supplied image of the Boeing 787-10 on its first flight in April 2017. (Boeing)

Meanwhile, Hulst said Boeing was continuing to develop the specific timing of when the 777-8X would enter service, having pushed back the timetable for the program from 2022 to an unspecified future date in August.

Our timetable on the 777-8 obviously is still under consideration for when it actually enters service, Hulst said.

I would say we are absolutely committed to the 777-8 as a product and as a model but it is really more of when the combination of the demand from our customers and how it aligns with the design and production system for the 777-X as a program.

I dont have a specific date but we absolutely are committed to the 777-8 and think that it provides unique product capability that nothing else can in the market.

The 777-8X was one of the aircraft under consideration for Qantass Project Sunrise, which sought an aircraft able to operate nonstop from Australias east coast to London and New York, among other cities.

Airbus has put forward its A350 platform for Qantass consideration.

With the 777-8X not available by Qantass projected 2023 start date, Boeing has said previously it had offered a compelling offer to account for the new timetable for the aircraft.

The airline has said previously it would decide whether to proceed with Project Sunrise by the end of calendar 2019.

An artists impression of the Boeing777-9X and 777-8X. (Boeing)

Excerpt from:

Boeing forecasts 820 new aircraft in Oceania over next 20 years - Australian Aviation

Veranda Stateroom Oceania Sirena.Photo: Michel Verdure EXOTIC ENCOUNTERS

Oceania Cruises has produced a Sirena Exotic Collectionof cruises in the Middle East and Asia. The nine 10- to 24-day itineraries launch in November 2020 and continue into April 2021, kicking off with a 12-day voyage from Jerusalem to Istanbul. Sirena then sails through the Red Sea to explore the Emirates, Qatar, Bahrain and Oman. After that, it's onwards from Dubai to Mumbai, Yangon and Bangkok before Sirena traces its route back to Athens. All itineraries include overnight port calls, with some featuring as many as four overnight port stays.

Phone 1300 355 200. See oceaniacruises.com

Abercrombie & Kent has a new expedition cruise to Iceland and Greenland in August 2020 aboard the exclusively chartered Le Boreal. The cruise sails vast and spectacular landscapes such as the Westman archipelago, ice-covered Lindenow Fiord and Prince Christian Sound. Guests will explore the high Arctic tundra on foot to admire wildflowers and migrating seabirds, and will enjoy regular Zodiac excursions to glaciers, fiords and fishing villages. Cultural experiences are another highlight on visits to remote Greenlandic communities where guests learn first-hand about the local people, their cultures and ancient archaeological sites.

Phone 1300 590 317. See abercrombiekent.com.au

Latitude 33 has released a 26-night Golden Triangle & Rafflesjourney in Asia departing on November 13, 2020 that opens with an eight-night land tour in India and finishes with a stay in Singapore's Raffles Hotel. In between is a 16-night cruise from Mumbai to Singapore on Crystal Symphony, with stopovers in southern Indian spice-trading port Kochi, Sri Lankan capital Colombo, and two port nights in Yangon in Myanmar for an exploration of its golden temples, ancient pagodas and colonial heritage. Phuket, Penang and Port Kelang (Kuala Lumpur) round off the voyage.

Phone 1300 636 848. See latitude33.travel

Ponant is offering 62 cruises across Africa, Asia, the Indian Ocean and Polynesia in its 2020-21 season. Among them, a 10-night China & Vietnam cruise departs Shanghai on October 28, 2020 and visits Wenzhou, Xiamen, Hong Kong, Hainan Island and Vietnam's Ha Long Bay, while a 14-night Jewels of the Indian Oceancruise departing March 29, 2021 between Port Louis in Mauritius and Zanzibar in Tanzania visits Reunion Island and Madagascar. An eight-night Treasures of the Persian Gulfcruise has 10 departures between November 2020 and January 2021 and visits Abu Dhabi, Doha and Oman.

Get the latest news and updates emailed straight to your inbox.

Phone 1300 737 178. See au.ponant.com

A reminder that we're approaching the end of Cruise Month, organised each October by the member cruise lines and travel agencies of Cruise Lines International Association (CLIA) to showcase their cruise offerings. The good news is that the month finishes in style with a special emphasis on luxury cruising. If big-ship, budget-end cruise holidays aren't for you, head down to a cruise-focused travel agency and ask about the ever more impressive array of luxury ships that have floated out of the dockyards in recent years. To find a specialist CLIA travel agent in your area, see cruising.org.au

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Oceania Cruises' new itineraries in the Middle East and Asia - Traveller

There will be plenty of world champions bling on display when the track cycling international season gets underway at the Oceania Championships in Invercargill.

Around 180 riders from Australia and New Zealand will compete in the four-day UCI continental championship from 16-19 October at the SIT Zero Fees Velodrome in Invercargill. As well as Oceania titles, the championship offers all-important qualifying spots for next years UCI World Championships.

It will also be a shakedown for riders ahead of the UCI Track World Cup season, which is highlighted with back-to-back events at Cambridge on 6-8 December and the following week in Brisbane.

The winners of 25 world championship rainbow jerseys will be competing at Invercargill to add some real sparkle to the event as the leading riders amp-up for a massive nine months ahead to the Tokyo Olympics.

The charge from across the Tasman comes from their sprinters led by four-time team sprint world champion Kaarle McCulloch and 2018 individual sprint world champion Matt Glaetzer, along with Sam Welsford, a three-time team pursuit world champion and the current scratch race rainbow jersey holder.

The Vantage New Zealand rainbow wearers include three-time team sprint victors Ethan Mitchell, Sam Webster and Eddie Dawkins, the 2017 individual pursuit winner Jordan Kerby and current omnium world champion, Campbell Stewart.

Current Australian team pursuit world champions Welsford and Kelland OBrien will pair-up to focus on the two-rider Madison, which is a new addition to the Olympic schedule.

The Vantage elite New Zealand team will be competing in force with their entire squad, with some riding for their centres as well.

Our endurance and sprint teams have worked hard over the winter in building a base for the upcoming track season. So this is a good opportunity for as many of our best riders, both elite and junior, to stretch their legs in very strong competition, said Cycling New Zealand high performance director, Martin Barras.

It is firstly a chance for us to find out where all the riders are at in terms of their development and what they need to focus on. It will give us information we need to select final combinations for the world cup season coming up, especially the home round in Cambridge, said Barras.

It also offers some important ranking points towards the world championships.

We will also be watching with real interest in the development of our junior riders, particularly the ones who have been prominent internationally this year.

The rest is here:

City To Host 180 Riders For Oceania Track Champs - What's On Invers

Former Liverpool, Real Madrid, Manchester United and England striker Michael Owen has been invited to come to Fiji.

Owen will attend the 2019 Fiji Football Awards Night in February 2020.

The main guest is not yet fully finalised, so it could still change, but Fiji FA President Rajesh Patel says they are in discussions with FIFA over Owen coming to the country.

Owens appearance is made possible by the FIFA Legends Program, which saw former Manchester United and Arsenal full-back, Mikal Silvestre, come to Fiji earlier this year for the 2018 Awards Night.

The Fiji FA also says Owen will conduct clinics and visit schools and clubs during his stay.

This year we had Mikal Silvestre as the main guest during our annual awards function at the Sofitel Resort and next year we are getting ready to have Michael Owen, FFA President Rajesh Patel told the FAs website.

We want to reward our hardworking players and officials in a bigger and better way every year and having legends of the sport present at the event surely adds more colour and encourages everyone to contribute more to football, he said.

Michael Owen is most famous for playing over 200 matches for Liverpool and scoring 118 goals. He also played for Real Madrid, Newcastle and Manchester United.

For the English national team, he turned out 89 times and scored 40 goals. He is number 11 on the list of players with the most games for England and number five on the list of players with the most goals for Three Lions.

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Premier League legend invited to Fiji - Football in Oceania