Primary Health Properties PLC (PHP.L) stock analysis

In our weekly check, Primary Health Properties PLC is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 7.

About Primary Health Properties PLC

Primary Health Properties PLC is a Real Estate company (REIT - Healthcare Facilities) based in the United Kingdom, listed on LSE as PHP.L.

What our checks show for PHP.L

Red flags

• Net debt is 15.9x a year of EBITDA (debt/equity 1.31). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 50.3 points over 5 years, to 45.9%: the company keeps less of each sale as profit.
• The gross margin fell by 3.6 points, to 89.6%: costs are rising faster than prices.
• Analysts expect the net margin to shrink by 7.6 points from today's 45.9%.
• Recovering from its deepest fall took about 7.2 years.
• The share count grew by 34.2% in 2 years: each shareholder owns a smaller slice.
• Return on capital (ROCE) is only 5%.

Warning signs

• Operating profit covers interest only 3.2 times: a weak year could make the payments hard.
• The dividend takes 90% of profit: little cushion if profit falls.
• The stock has fallen as much as 54% from a peak. Would you have held through that?

Strengths

• Revenue grew 18.9% a year over the last 3 years.
• Earnings per share grew 16.3% a year over the last 3 years.
• Net profit grew 28.3% a year over the last 3 years.
• The company keeps 45.9% of its revenue as net profit.
• Free cash flow is 40.2% of revenue: cash for dividends, buybacks or growth.
• The price moves calmly: 17.4% annual volatility.

Similar companies

LTC · DHC · NHI · MPT · SBRA · AED.BR

Questions

What grade does Primary Health Properties PLC (PHP.L) have?

In our weekly check, Primary Health Properties PLC is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of PHP.L stock?

This week's biggest flags for Primary Health Properties PLC: High debt, Margins falling, Gross margin falling. In total 10 of 25 checks show a warning or a red flag.

What does Primary Health Properties PLC do?

Primary Health Properties PLC is a Real Estate company (REIT - Healthcare Facilities) based in the United Kingdom, listed on LSE as PHP.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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