Orpea shares on the stock market: Analysis and future predictions

The story of Orpea

Founded in 1989 talk Doctor Jean-Claude MarianOrpea is a company specializing in creationTHAT development and management of nursing home. Specifically, Orpea offers long-term care services to its patients.

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Orpea’s logo in Lilas, France.

IN 2002Orpea achieved hers IPO allowing it to raise the necessary funds for its development and expansion into new geographical areas. This IPO enabled the company to expand its presence in Europe and internationally. In the 2000s, Orpea established itself in countries such asSpainL‘Italy as well as in areas such as China.

This expansion into new geographic areas was accompanied by a growth in revenue important and powerful growth in the share price on the stock market. Like any company, Orpea had to face some challenges in terms of patient management and compliance with quality standards. These challenges sometimes negatively affected the stock’s performance, but from 2002 to 2021 it generally did very well.

Orpea’s activity

Contrary to what one might think, Orpea’s activity is diversified and covers several sectors of activity :

  • Medical nursing homes (EHPAD): These establishments are designed for elderly people who need daily care and regular medical monitoring.
  • Care and rehabilitation clinics (SSR): Orpea also offers rehabilitation care for patients recovering from illness, surgery or hospitalization.
  • Home care: Orpea also offers services that allow elderly or dependent people to stay at home and receive help or care.
  • Serviced and senior housing: the company also has homes for the elderly with catering and cultural and social activities.

Orpea, originally present in France, has developed all these activities in many countries in Europe (Germany, Belgium, Spain, etc.) and in other regions of the world such as China.

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In addition to this, Orpea also takes care of train staff to provide appropriate care to the patients as well as to use the latest technologies that are made available. Orpea plays an important role in the care of elderly and dependent people.

Who are Orpea’s competitors?

Orpea has a few competitors in France, in Europe or even abroad, such as:

Korian is one of Orpea’s biggest competitors and is one of the leaders in the field the care sector made available to the elderly in Europe. The company Korien was founded in 2003 and highlights a number of services similar to Orpea’s such as EHPADs, care clinics and home care for elderly and dependent persons.

Also based in France, RemusVi is another competitor to Orpea on the elderly care market. The company owns EHPADs, residents for seniors and care clinics. RemusWe’ve been around since over 35 years.

Colisée is an important group in the sector for care of convalescent patients In Europe. The group owns a significant number of EHPADs, senior housing and SSR clinics and is known to focus on quality and well-being of his patients.

Orpea: the key figures

Spring 2022Orpea performs one turnover of 4.7 billion eurosbut for one financial debt of 8.8 billion euros the end of 2022against 6.77 billion euros by the end of 2021.

THAT property of the group was evaluated at 6.5 billion euros per 31 December 2022 against 8.4 billion euros a year earlier. More concretely, the group’s results are far from reassuring and follow poor management. Orpea has big losses, and this is reflected in the numbers and in the share price.

The dividend

The Orpea company do not pay yield to its shareholders, and that will probably never happen. In fact, the company is on a slippery slope and it is unable to pay dividends.

Technical Analysis of Orpea

Until 2021, the Orpea share showed a growth that was more than interesting for investors.

Despite some turbulent periods between 2017 and 2021, the company still performed well and attracted more and more investors.

But at the end of 2021, the nerves of Orpea shareholders were put to the test. While the company shows bad results, Loose money and wish to restructure by raising funds, the share price will not stops falling apart day after day.

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Is it a good idea to invest in Orpea?

We don’t do not recommend to invest in Orpea. The company is inside great financial difficulties. The share price rose from 8.1 euros in February 2020 to 0.014 euros in January 2024. Since the capital increase that made it possible to “save” it, the company has been diluted and there is no longer any reason to invest there, whether for trading or long-term investment.

The first capital increase amounting to 3.9 billion euros resulted in the issuance of 64.6 billion new shares at a unit price of €0.0601. This first capital increase was part of a protection plan and to save the company from debt.

We can only advise you stay away from this company and to take an interest in companies that are not in difficulty and that are not facing a restructuring plan.

We do not recommend that you do this, but here are the 3 envelopes that you can use to invest in Orpea in the stock market:

PEA allows you to invest in AND F and European companies while enjoying one favorable taxation. The CTO gives you the opportunity to invest in shares worldwideof derived products or even raw material. These two envelopes are ideal for investing in the stock market, becoming a shareholder in companies and becoming eligible for payments from yield.

The trading account is ideal for traders who want it speculate about the development in the price of shares, currencies, raw materials or cryptocurrency, up and down.

Our opinion on investing in Orpea on the stock market

We don’t do not recommend investing in Orpea in the stock market, it doesn’t matter whether you have a short-term or long-term investment horizon. By investing in Orea, you will take unnecessary risks.

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