Primary Health Properties PHP.L
United KingdomReal Estate · REIT - Healthcare FacilitiesLondon Stock Exchange · GBP
1.15 GBP (+28.5%)
9 analysts
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Primary Health Properties is a UK REIT that invests in health centers and medical offices, earning rental income from long-term leases with public and private sector tenants.
Listed on London Stock Exchange · Symbol PHP.L · LON: PHP · Currency GBP
Key points
from its scores- ✓Favourable backdrop7.3
- ✕Fragile balance sheet4.0
- ✕Little or no dividend4.7
- !Weak share-price trend5.4
AI analysis
bottom line, main risk, context and newsThe high debt and unsustainable payout warrant caution until the direction of interest rates and refinancing capacity become clearer.
Primary Health Properties presents a highly leveraged balance sheet (Net Debt/EBITDA of 10.94x) and a payout of 120.83%, raising doubts about the sustainability of its dividend, although its valuation (P/B 0.90) and high gross margin (89.92%) offer some appeal.
The main risk is the high leverage (Net Debt/EBITDA of 10.94x) in a rising interest rate environment, which could make refinancing more expensive and jeopardize dividend sustainability.
Context and risks
The company's risk profile reflects its high leverage (Net Debt/EBITDA of 10.94x), which in a rising UK interest rate environment increases refinancing costs and pressures its financial health. As a REIT, its model depends on external financing, making it sensitive to credit conditions.
Is Primary Health Properties stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 34% below the Real Estate median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 14.9 | 21.6 | −31% |
| EV / EBITDA | 18.5 | 18.5 | +0% |
| Price / book | 0.9 | 1.4 | −37% |
| Price / sales | 6.3 | 6.3 | +0% |
Sector: median of the 100 Real Estate companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.4 out of 10 (median for Real Estate: 4.9).
Average analyst target: 1.15 GBP, +28.5% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 4.0 (sector 5.5), Growth 6.8 (sector 5.7).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Real Estate medianValuation
- P/E
- 14.9
- Forward P/E
- 11.7
- EV / EBITDA
- 18.5
- Price / book
- 0.9
- Price / sales
- 6.3
- Market cap
- 2.3B GBP
- Enterprise value
- 5.6B GBP
Profitability
- ROE
- 8.1%
- ROA
- 4.2%
- ROIC (approx.)
- 5.2%
- Gross margin
- 89.9%
- Operating margin
- 83.2%
- Net margin
- 43.3%
- Free cash flow
- 180.7M GBP
- FCF yield
- 7.8%
- Cash conversion
- 59%
Solvency
- Total debt
- 3.4B GBP
- Net debt
- 3.3B GBP
- Cash
- 31.0M GBP
- EBITDA
- 304.5M GBP
- Net debt / EBITDA
- 10.94
- Debt / equity
- 131.37
- Current ratio
- 0.38
- Quick ratio
- 0.35
Growth
- Revenue growth
- +118.9%
- Earnings growth
- −13.6%
- EPS (TTM)
- 0.06 GBP
- EPS (forward)
- 0.08 GBP
Dividend
- Dividend yield
- 7.8%
- Payout
- 120.8%
Risk and market
- Beta
- 0.77
- Analyst consensus
- Strong buy (9)
- Target price
- 1.15 GBP
Recent news
All PHP.L news →Compare it with its sector
All 100 in Real Estate →Frequently asked questions about Primary Health Properties
Is Primary Health Properties stock cheap or expensive?
On P/E and Price / book, it trades 34% below the Real Estate median on average. Valuation score: 6.4 out of 10 (median for Real Estate: 4.9). Average analyst target: 1.15 GBP, +28.5% versus the price. This is not investment advice.
What score does Primary Health Properties get on MeridIAn Screener?
It scores 5.6 out of 10, rank 1,362 of 2,130 (better than 35% of the companies analysed). Its strongest category is Risk & Context (7.3) and its weakest, Financial health (4.0). Analysis of 08/10/2026.
What is Primary Health Properties's P/E ratio?
Its P/E is 14.9: the share price equals 14.9 times earnings per share over the last 12 months. The Real Estate median is 21.6. Based on the earnings analysts expect, the forward P/E is 11.7.
How much is Primary Health Properties worth on the stock market?
Its market capitalisation is 2.3B GBP.
Does Primary Health Properties pay a dividend?
Yes: its dividend yield is 7.84% and it pays out 121% of its earnings.
How has Primary Health Properties stock performed over the last year?
It has risen 1.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 1.10 GBP. Past performance does not guarantee future results.
What do analysts think of Primary Health Properties?
9 analysts cover it; their average recommendation is “Strong buy” and their average target is 1.15 GBP (+28.5% versus the price). It is an estimate, not market data.