Third Age Health Services Limited (TAH) AI Stock Analysis

Third Age Health Services Limited

(NZX:TAH)

Select Model

Rating:70Outperform

Price Target:NZD 5.00▲(19.05% Upside)

Action:initiatedcoverage

Date:10/05/26

The score is driven primarily by strengthening financial performance (higher profitability, improving leverage, and generally supportive cash flow), partially offset by technical weakness with the stock below key moving averages and slightly negative momentum. Valuation is reasonable with a moderate dividend yield, providing additional support but not enough to outweigh the near-term technical backdrop.

Positive Factors

Accelerating revenue and profitabilityThe combination of accelerating revenue and sharply higher net and operating margins indicates stronger operating leverage and improved execution. If maintained, this broader earnings base can support reinvestment, strengthen resilience, and provide a durable foundation for growth over the next several quarters.

Negative Factors

Sharp gross-margin compressionThe steep decline in gross margin introduces a meaningful question about the durability of recent profitability gains. If cost pressure or adverse service mix persists, it could reduce operating leverage, constrain reinvestment capacity, and make future earnings more volatile despite strong reported growth.

Third Age Health Services Limited (TAH) vs. SPDR S&P 500 ETF (SPY)

Market Cap: NZD 41.81M
Dividend Yield: 3.83%
Average Volume (3M): 6,734
Price to Earnings (P/E): 15.0
Beta (1Y): -0.35
Revenue Growth: 21.56%
EPS Growth: 18.96%
Country: NZ
Employees: 14,357
Sector: General
Sector Strength: 55
Industry: Medical - Care Facilities

Third Age Health Services Limited Business Overview & Revenue Model

Company Description

Third Age Health Services Limited, together with its subsidiaries, provides general practice health care services for older people living in retirement villages, private hospitals, and secure dementia units in New Zealand. The company offers aged med...

Third Age Health Services Limited Financial Statement Overview

Summary

Strong multi-year improvement with accelerating revenue growth and a large step-up in profitability (net margin ~3.9% in 2023 to ~12.6% in 2026; EBIT margin ~20.6% in 2026). Balance sheet leverage has improved materially (debt/equity down to ~0.66x in 2026), and cash flows generally support earnings (FCF ~98% of net income in 2026). Key risks are the sharp 2026 gross margin compression (~30.5% vs ~50%+ prior years) and historical variability in cash conversion and leverage sensitivity.

Income Statement

78Positive

Balance Sheet

67Positive

Cash Flow

74Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	22.49M	22.49M	19.08M	15.15M	11.22M	5.90M
Gross Profit	6.85M	6.85M	9.90M	7.62M	6.04M	3.69M
EBITDA	5.72M	5.70M	4.49M	2.79M	1.83M	1.73M
Net Income	2.83M	2.83M	2.34M	1.40M	439.00K	1.17M
Balance Sheet
Total Assets	13.21M	13.21M	10.96M	9.72M	10.04M	4.86M
Cash, Cash Equivalents and Short-Term Investments	2.90M	2.90M	2.59M	1.70M	1.35M	1.12M
Total Debt	3.35M	3.35M	3.57M	4.05M	5.38M	1.09M
Total Liabilities	7.70M	7.70M	6.99M	6.80M	7.50M	2.16M
Stockholders Equity	5.05M	5.05M	3.84M	2.96M	2.55M	2.70M
Cash Flow
Free Cash Flow	3.95M	3.95M	3.55M	2.53M	734.00K	1.04M
Operating Cash Flow	4.03M	4.03M	3.70M	2.68M	788.00K	1.04M
Investing Cash Flow	-1.54M	-1.54M	-724.00K	-149.00K	-2.06M	-970.00K
Financing Cash Flow	-2.18M	-2.18M	-2.08M	-2.19M	1.50M	-775.00K

Third Age Health Services Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price4.20

Price Trends

50DMA4.57Negative

100DMA4.57Negative

200DMA4.72Negative

Market Momentum

MACD-0.06Positive

RSI25.31Positive

STOCH0.00Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:TAH, the sentiment is Negative. The current price of 4.20 is below the 20-day moving average (MA) of 4.53, below the 50-day MA of 4.57, and below the 200-day MA of 4.72, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 25.31 is Positive, neither overbought nor oversold. The STOCH value of 0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NZ:TAH.

Third Age Health Services Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

NZ:TAH 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:RAD	56Neutral	NZD 110.55M	11.71	―	4.34%	14.16%	34.82%
NZ:RYM	56Neutral	NZD 1.80B	-10.76	-4.17%	―	11.86%	72.99%
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:TAH and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NZ:TAH	Third Age Health Services Limited	4.20	-0.45	-9.70%
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:RAD	Radius Residential Care Ltd	0.39	0.04	10.80%

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

Third Age Health Services Limited AI Stock Analysis