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Sonic Healthcare Ltd SHL

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Stock XASX Rating as of
A$26.28 +0.16 (0.61%)
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Company Report

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Sonic Healthcare's Long-Term Outlook Remains Strong

Shane Ponraj

Sonic Healthcare’s “medical leadership” model recognizes the importance of the referring doctor as the company seeks to differentiate itself on service levels. Success in the model is evidenced by organic growth consistently tracking ahead of the market, suggesting market share gains. In an industry where absolute volume is an important component in achieving greater cost advantage, organic growth supplemented by appropriate acquisitions continues to add value for shareholders.

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Price vs Fair Value

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SHL is trading at a 18% discount.
Price
A$26.28
Fair Value
A$19.00
Uncertainty
Medium
1-Star Price
A$21.70
5-Star Price
A$72.60
Economic Moat
Cmhknnc
Capital Allocation
Xjthcgm

Bulls Say, Bears Say

Bulls

Sonic has a leading market position in most of its geographies and as a result benefits from a cost advantage derived from scale.

Bears

Elevated covid-19 testing is not able to be maintained and acquisitive growth is becoming more expensive to achieve.

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News

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Trading Information

Previous Close Price
A$26.12
Day Range
A$26.06–26.37
52-Week Range
A$25.72–36.40
Bid/Ask
A$27.61 / A$24.97
Market Cap
A$12.63 Bil
Volume/Avg
850,849 / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
24.36
Price/Sales
1.49
Dividend Yield (Trailing)
4.00%
Dividend Yield (Forward)
4.00%
Total Yield
4.00%

Company Profile

Sonic Healthcare is a global pathology provider. It is the largest private operator in Australia, Germany, Switzerland and the U.K., the second largest in Belgium and New Zealand, and the third largest in the U.S. In addition to pathology, which contributes roughly 85% of group revenue, Sonic is the second-largest player in diagnostic imaging in Australia and the largest operator of medical centers in Australia. The company typically earns about 40% of group revenue in Australia and New Zealand, 25% in the U.S., and 35% in Europe.
Sector
Healthcare
Industry
Diagnostics & Research
Stock Style Box
Large Value
Total Number of Employees
41,000
Website
https://www.sonichealthcare.com

Competitors

Valuation

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Metric
SHL
HLS
DGX
Price/Earnings (Normalized)
 24.362.4115.77
Price/Book Value
 1.620.852.37
Price/Sales
 1.490.441.67
Price/Cash Flow
 10.942.6110.98
Price/Earnings
SHL
HLS
DGX

Financial Strength

Metric
SHL
HLS
DGX
Quick Ratio
 0.780.440.78
Current Ratio
 0.940.530.97
Interest Coverage
 5.95−13.267.31
Quick Ratio
SHL
HLS
DGX

Profitability

Metric
SHL
HLS
DGX
Return on Assets (Normalized)
 4.07%0.10%7.33%
Return on Equity (Normalized)
 7.01%0.23%15.76%
Return on Invested Capital (Normalized)
 4.52%2.27%9.73%
Return on Assets
SHL
HLS
DGX
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