Japara Healthcare Ltd (ASX: JHC) is an interesting company for investors looking to benefit from Australia's growing and ageing population.
Japara Healthcare is likely to be an unfamiliar name to many investors, given that it only listed its shares on the ASX in April last year. Japara was one of three aged care operators to do so, joining the likes of Estia Health Ltd (ASX: EHE) and Regis Healthcare Ltd (ASX: REG).
Shortly after Japara listed however, its shares experienced a violent drop following a review of its payroll which revealed that it had materially underpaid some employees. It seems that that incident is now a distant memory with the stock now trading at $2.58 which compares to a low of $1.82 in January, and a high of $2.89 in May.
As at 31 December 2014, Japara Healthcare owned and operated 39 aged care facilities with 3,171 operational places spread throughout Victoria, South Australia, New South Wales and Tasmania. Those figures are up 11.4% and 11% year on year, respectively, while it also enjoys 94.4% occupancy rates. Indeed, the company will continue to acquire facilities around Australia with the hope of becoming even better positioned to benefit from Australia's ageing population over the coming years and decades.
According to estimates from Morningstar, the company is set to record earnings per share of 11.2 cents for the 2015 financial year while the company itself expects to pay a full-year dividend of "at least" 10.5 cents per share. That would mean Japara's shares are trading on a multiple of 23x earnings with a yield of 4.1%.
Although Japara Healthcare isn't necessarily 'cheap', nor is it a risk-free investment, it could still be a great prospect for long-term investors.
