Budget Outcome for Pathology Providers Broadly in Line With Our Expectations; Industry Undervalued
Top pathology providers remain significantly undervalued following the supportive pathology policy changes announced in the federal budget.
Sonic Healthcare Ltd SHL
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
-
Sonic Healthcare to Pay $132 Million for Swiss Lab Group
-
Sonic Healthcare 1st Half Net Profit Falls 47%
-
Sonic Healthcare Agrees US$150 Million Acquisition of Pathology Watch
-
Sonic Healthcare Annual Profit Falls 53% as Covid-19 Boost Ebbs
-
Synlab Sells Swiss Business to Sonic Healthcare for $167.5 Million
Trading Information
- Previous Close Price
- A$27.62
- Day Range
- A$26.69–27.59
- 52-Week Range
- A$25.72–36.40
- Bid/Ask
- A$29.35 / A$25.00
- Market Cap
- A$12.82 Bil
- Volume/Avg
- 12,000 / 1.5 Mil
Key Statistics
- Price/Earnings (Normalized)
- 24.74
- Price/Sales
- 1.51
- Dividend Yield (Trailing)
- 3.89%
- Dividend Yield (Forward)
- 3.89%
- Total Yield
- 3.93%
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
|
Metric
|
SHL
|
HLS
|
DGX
|
|---|---|---|---|
Price/Earnings (Normalized) | 24.74 | 2.48 | 15.98 |
Price/Book Value | 1.65 | 0.87 | 2.40 |
Price/Sales | 1.51 | 0.45 | 1.69 |
Price/Cash Flow | 11.11 | 2.68 | 11.12 |
Price/Earnings
SHL
HLS
DGX
Financial Strength
|
Metric
|
SHL
|
HLS
|
DGX
|
|---|---|---|---|
Quick Ratio | 0.78 | 0.44 | 0.78 |
Current Ratio | 0.94 | 0.53 | 0.97 |
Interest Coverage | 5.95 | −13.26 | 7.31 |
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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