The ASX dividend stock Regis Healthcare Ltd has fallen a large 49% from its high just over a year ago and this looks like a great time to invest.
Regis is one of the largest aged care operators in Australia.
Some of the decline happened earlier this month after the company noted that the Australian National Aged Care Classification starting price will increase 2.55% from $295.64 to $303.19, starting 1 October 2026.
The government also announced that the hotelling supplement will remain unchanged at $22.15 per resident per day.
Regis Healthcare said that the price increase is below cost inflation in the sector and the broader economy.
The ASX dividend stock is a buy for multiple reasons.
In FY26, its total occupied bed days increased 8.4% to 2.85 million, with its average occupancy increased by 0.7 percentage points to 95.8%.
FY26's aged care revenue per occupied bed grew 6.7%, while aged care staff expenses per occupied bed rose 8.3%.
FY26 underlying operating profit climbed 10% to $138 million, underlying net profit grew 4% to $55.6 million, and statutory net profit rose 14% to $55.7 million.
According to the forecast on Commsec, the Regis Healthcare share price is now valued at 28x FY27's estimated earnings.
Regis Healthcare said the industry needs 10,000 new beds per year to meet potential demand.
Plus, the ASX dividend stock is undertaking a range of initiatives to mitigate ongoing margin pressures.