Radius Residential Care Ltd (RAD) AI Stock Analysis

Radius Residential Care Ltd

(NZX:RAD)

Select Model

Rating:56Neutral

Price Target:NZD 0.42▲(6.92% Upside)

Action:initiatedcoverage

Date:10/05/26

The score is primarily supported by improving financial performance (return to profitability and stronger operating cash flow), but is capped by high balance-sheet leverage and cash-flow variability. Technical indicators are notably weak (below key moving averages with negative momentum), while valuation helps offset some of that risk with a moderate P/E and solid dividend yield.

Positive Factors

Improved earnings and revenue growthThe return to profitability, accelerating revenue growth, and steady operating margin indicate that the core care business is recovering. If these gains persist, improved earnings can support reinvestment, strengthen operating resilience, and provide a broader base for future expansion.

Negative Factors

High balance-sheet leverageDebt remains high relative to equity, limiting financial flexibility for a care-facilities operator. Elevated leverage can restrict the ability to fund capacity growth internally, increase sensitivity to weaker operating conditions, and leave less room to absorb unexpected pressure.

Radius Residential Care Ltd (RAD) vs. SPDR S&P 500 ETF (SPY)

Market Cap: NZD 110.55M
Dividend Yield: 4.34%
Average Volume (3M): 106.85K
Price to Earnings (P/E): 11.7
Beta (1Y): 0.33
Revenue Growth: 14.16%
EPS Growth: 34.82%
Country: NZ
Employees: 2,000
Sector: General
Sector Strength: 55
Industry: Medical - Care Facilities

Radius Residential Care Ltd Business Overview & Revenue Model

Company Description

Headquartered in Auckland, New Zealand, Radius Residential Care Limited has been a prominent provider of health and elder care services across the country since its establishment in 2003. The company focuses on supporting elderly and disabled individ...

How the Company Makes Money

RAD’s earnings are generated primarily from operating aged care and retirement living assets. Key revenue streams typically include: (1) resident fees for care services (e.g., rest home, hospital-level care, and dementia care where offered), which ar...

Radius Residential Care Ltd Financial Statement Overview

Summary

Earnings have recovered into 2025–2026 (returning to a solid profit with improved operating profitability), but the overall financial profile is constrained by high leverage (debt-to-equity ~2.8x) and historically volatile margins and free cash flow. Operating cash flow improved and free cash flow is positive, yet cash conversion weakened and free cash flow remains uneven.

Income Statement

64Positive

Balance Sheet

48Neutral

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	200.10M	200.10M	177.30M	144.70M	146.27M	133.38M
Gross Profit	20.50M	32.25M	177.30M	38.96M	8.79M	10.63M
EBITDA	36.56M	33.74M	27.09M	23.22M	19.47M	23.37M
Net Income	9.46M	9.46M	7.03M	-8.49M	-2.11M	2.67M
Balance Sheet
Total Assets	416.87M	416.87M	339.57M	334.71M	356.60M	290.14M
Cash, Cash Equivalents and Short-Term Investments	2.82M	2.82M	2.57M	2.35M	515.00K	2.09M
Total Debt	213.08M	213.08M	193.00M	196.96M	222.11M	172.54M
Total Liabilities	340.56M	340.56M	273.10M	270.28M	283.73M	220.06M
Stockholders Equity	76.09M	76.09M	66.47M	64.43M	72.86M	70.09M
Cash Flow
Free Cash Flow	10.74M	10.74M	14.21M	10.65M	-54.64M	-28.55M
Operating Cash Flow	25.12M	25.12M	20.05M	14.10M	4.04M	9.88M
Investing Cash Flow	-17.10M	-17.10M	-7.27M	15.16M	-59.23M	-52.79M
Financing Cash Flow	-7.76M	-7.76M	-12.56M	-24.53M	50.72M	42.24M

Radius Residential Care Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price0.39

Price Trends

50DMA0.43Negative

100DMA0.41Negative

200DMA0.40Negative

Market Momentum

MACD-0.01Positive

RSI37.83Neutral

STOCH18.10Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:RAD, the sentiment is Negative. The current price of 0.39 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.43, and below the 200-day MA of 0.40, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 37.83 is Neutral, neither overbought nor oversold. The STOCH value of 18.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NZ:RAD.

Radius Residential Care Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

NZ:RAD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NZ:TAH	70Outperform	NZD 41.81M	15.00	―	3.83%	21.56%	18.96%
NZ:SUM	66Neutral	NZD 1.61B	5.21	8.89%	2.61%	14.09%	-18.30%
NZ:PHL	63Neutral	NZD 36.33M	0.03	―	―	29.55%	-11.97%
NZ:RYM	56Neutral	NZD 1.80B	-10.76	-4.17%	―	11.86%	72.99%
NZ:RAD	56Neutral	NZD 110.55M	11.71	―	4.34%	14.16%	34.82%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
NZ:OCA	50Neutral	NZD 463.51M	3020.43	0.02%	―	2.52%	-99.52%

* General Sector Average

Performance Comparison

NZ:RAD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NZ:RAD	Radius Residential Care Ltd	0.39	0.04	10.80%
NZ:OCA	Oceania Healthcare Ltd.	0.64	-0.16	-20.00%
NZ:RYM	Ryman Healthcare	1.77	-1.10	-38.33%
NZ:SUM	Summerset Group Holdings Limited	6.56	-5.08	-43.66%
NZ:PHL	Promisia Healthcare Limited	0.67	0.18	35.35%
NZ:TAH	Third Age Health Services Limited	4.20	-0.45	-9.70%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 05, 2026

Radius Residential Care Ltd AI Stock Analysis