The average target price of MPARK.IS is 515 and suggests 54% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 595.0. This translates into 78% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 500.0. This suggests 50% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

MLP Saglik Hizmetleri A.S. provides healthcare service in Turkey. The company operates diagnosis and treatment units. It operates 30 hospitals with 6,000 beds in 15 cities under the Liv Hospital, VM Medical Park and Istinye University Hospital names. MLP Saglik Hizmetleri A.S. was formerly known as Medical Park. The company was founded in 1993 and is based in Istanbul, Turkey.

Turkey

MLP Saglik Hizmetleri A.S.

Healthcare

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

MPARK.IS reported revenue of TRY 42 874mn in the last 12 months, up 91% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 10% from FY23 to TRY 24.00. Market expects EPS to reach TRY 27.88 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 11ppts over past six months and grown 10ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported good EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 33.4% in the last 12 months, a decline from 40.0% in FY23. 

Historically, MPARK.IS has reported strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 13.0%, down from 20.2% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 20.7%, above the peers. The consensus estimate for FY24 for RoCE is 94.0%, again ahead of the peers. 

MLP Saglik Hizmetleri A.S. reported a return on equity (RoE) of 31.5% in the last 12 months, down from 62.6% in FY23. The market consensus projects an RoE of 87.9% in FY24, again ahead of its peers. 

Another important profitability metric, return on assets (RoA), amounted to 14.7% in the last 12 months, a decrease from 24.6% in FY23. The market analysts predict that RoA will be 39.2% in FY24, again stronger than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 4.5 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are acceptable. In combination with good business standards, shareholder rights are protected.

MPARK.IS has above average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually very stable and is unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, excessive margin volatility, and poor working capital management. We note resilient historical revenue growth, robust profitability, solid return on capital, strong debt servicing capacity, and solid cash flow generation, among the positive credit factors. 

In highly turbulent market conditions, MPARK.IS is not overly volatile. In other words, the stock will fall less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be low. 

In normal market circumstances, MPARK.IS is as volatile as an index. Put differently, without outstanding market volatility or shocking company news, the stock's price will move with the index. The stock's losses on its worst days (less than 1-5% of the time) will range from low to average. We would also like to highlight the average intraday volatility of the instrument. 

From both historical and forecast perspectives, the stock is underpriced compared to similar stocks. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, reasonably priced on P/FCF. 

MLP Saglik Hizmetleri A.S.

TRY 333.5

6

MLP Saglik Hizmetleri A.S.

TRY 333.5

6

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

TRY 333.5

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