Sonic Healthcare Ltd
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| k@& | LOCK|%^K^P | LOCK|%Y&hFp |
Sonic Healthcare Earnings: Shares Undervalued as Key Australian Business Delivers
Narrow-moat Sonic reported interim 2025 EBITDA growth of 12% to AUD 827 million on 6% organic revenue growth and underlying EBITDA margins expanding roughly 90 basis points to 18%. The result was driven by creditable cost control and strong organic sales growth in Australia partially offset by relatively weaker performances in the US and Germany. Sonic reiterated full-year underlying EBITDA guidance of AUD 1.70 billion-AUD 1.75 billion, implying 8% growth at the midpoint on fiscal 2024, and compares to our largely unchanged fiscal 2025 EBITDA forecast of AUD 1.72 billion. Our long-term estimates are also broadly unchanged, including our midcycle EBITDA margin forecast of 22%.
