ASX:HLS

Stock Analysis Report

Executive Summary

Healius Limited provides various services and facilities to general practitioners, specialists, dentists, IVF specialists, and other healthcare professionals operating in the bulk billing and private billing sector in Australia.

Rewards

Trading at 77.7% below its fair value

Earnings are forecast to grow 22.34% per year

Earnings grew by 1263.4% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Healius's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HLS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

HLS

0.8%

AU Healthcare

1.4%

AU Market


1 Year Return

3.8%

HLS

26.9%

AU Healthcare

16.1%

AU Market

Return vs Industry: HLS underperformed the Australian Healthcare industry which returned 26.9% over the past year.

Return vs Market: HLS underperformed the Australian Market which returned 16.1% over the past year.


Shareholder returns

HLSIndustryMarket
7 Day1.4%0.8%1.4%
30 Day1.4%2.3%0.5%
90 Day-3.2%6.4%4.8%
1 Year6.4%3.8%30.9%26.9%21.2%16.1%
3 Year0.6%-10.2%25.0%13.6%37.0%18.6%
5 Year-21.1%-34.6%34.1%15.0%51.7%17.8%

Price Volatility Vs. Market

How volatile is Healius's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Healius undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLS (A$2.98) is trading below our estimate of fair value (A$13.38)

Significantly Below Fair Value: HLS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HLS is poor value based on its PE Ratio (32.4x) compared to the Healthcare industry average (19.4x).

PE vs Market: HLS is poor value based on its PE Ratio (32.4x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: HLS is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: HLS is good value based on its PB Ratio (0.9x) compared to the AU Healthcare industry average (1.9x).


Next Steps

Future Growth

How is Healius forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLS's forecast earnings growth (22.3% per year) is above the savings rate (1.1%).

Earnings vs Market: HLS's earnings (22.3% per year) are forecast to grow faster than the Australian market (9.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HLS's revenue (4.5% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: HLS's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLS's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has Healius performed over the past 5 years?

-38.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLS has high quality earnings.

Growing Profit Margin: HLS's current net profit margins (3.1%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: HLS has become profitable over the past 5 years, growing earnings by -38.1% per year.

Accelerating Growth: HLS's earnings growth over the past year (1263.4%) exceeds its 5-year average (-38.1% per year).

Earnings vs Industry: HLS earnings growth over the past year (1263.4%) exceeded the Healthcare industry 1.8%.


Return on Equity

High ROE: HLS's Return on Equity (2.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Healius's financial position?


Financial Position Analysis

Short Term Liabilities: HLS's short term assets (A$346.5M) do not cover its short term liabilities (A$391.9M).

Long Term Liabilities: HLS's short term assets (A$346.5M) do not cover its long term liabilities (A$903.5M).


Debt to Equity History and Analysis

Debt Level: HLS's debt to equity ratio (39.9%) is considered satisfactory.

Reducing Debt: HLS's debt to equity ratio has reduced from 46.9% to 39.9% over the past 5 years.


Balance Sheet

Inventory Level: HLS has a low level of unsold assets or inventory.

Debt Coverage by Assets: HLS's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HLS is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: HLS is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Healius's current dividend yield, its reliability and sustainability?

2.42%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%2.3%markettop25%5.5%industryaverage2.6%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: HLS's dividend (2.42%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: HLS's dividend (2.42%) is low compared to the top 25% of dividend payers in the Australian market (5.5%).


Stability and Growth of Payments

Stable Dividend: HLS's dividend payments have been volatile in the past 10 years.

Growing Dividend: HLS's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.2%), HLS's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HLS's dividends in 3 years are forecast to be covered by earnings (54.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Malcolm Parmenter (64yo)

2.4yrs

Tenure

AU$1,899,523

Compensation

Dr. Malcolm W. Parmenter, MB, BS, MAICD, has been the Managing Director and Chief Executive Officer at Primary Health Care Limited since September 06, 2017. Dr. Parmenter served as the Chief Executive Offi ...


CEO Compensation Analysis

Compensation vs Market: Malcolm's total compensation ($USD1.28M) is about average for companies of similar size in the Australian market ($USD1.35M).

Compensation vs Earnings: Malcolm's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Malcolm Parmenter
MD, CEO & Director2.4yrsAU$1.90m0.014% A$253.5k
Maxine Jacquet
Chief Financial Officer0.5yrsAU$710.97k0.0080% A$147.9k
Dean Lewsam
Chief Executive of Imaging4.3yrsAU$773.74k0.0050% A$92.2k
Peter Wilson
Group Executive of People & Shared Services0.3yrsno datano data
Scott Beattie
Chief Executive of Medical Centre0.3yrsno datano data
John McKechnie
Chief Executive of the Pathology Division0.5yrsno datano data
Ben Korst
CEO of Montserrat Day Hospitals0.3yrsno datano data
Charles Tilley
Company Secretary5yrsno datano data
Alison Stephenson
Additional Company Secretary0.5yrsno datano data
Janet Payne
Group Executive of Corporate Affairs4.6yrsno datano data

0.5yrs

Average Tenure

Experienced Management: HLS's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Malcolm Parmenter
MD, CEO & Director2.4yrsAU$1.90m0.014% A$253.5k
Arlene Tansey
Non-Executive Director7.5yrsAU$169.48k0.0026% A$47.5k
Gordon Davis
Non-Executive Director4.5yrsAU$170.68k0.0089% A$166.1k
Paul Jones
Non-Executive Director9.3yrsAU$157.50k0.0065% A$121.0k
Robert Hubbard
Chairman1.6yrsAU$292.02k0.012% A$229.4k
Sally Evans
Independent Non-Executive Director1.5yrsAU$134.22k0.0024% A$44.7k

3.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: HLS's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.3%.


Top Shareholders

Company Information

Healius Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Healius Limited
  • Ticker: HLS
  • Exchange: ASX
  • Founded: 1994
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: AU$1.856b
  • Shares outstanding: 622.74m
  • Website: https://www.healius.com.au

Number of Employees


Location

  • Healius Limited
  • 203 Pacific Highway
  • Level 6
  • St Leonards
  • New South Wales
  • 2065
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PHCR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1998
HLSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 1998
PGZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1998
HLSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 1998

Biography

Healius Limited provides various services and facilities to general practitioners, specialists, dentists, IVF specialists, and other healthcare professionals operating in the bulk billing and private billing sector in Australia. It operates through three segments: Pathology, Medical Centres, and Imaging. The company offers diagnostic imaging services, including X-ray, ultrasound, computerized tomography, mammography, magnetic resonance imaging, nuclear medicine, positron emission tomography, and interventional radiology; and private medical laboratory and pathology services. It also operates medical centers that provide a range of specialist services, such as dental, physiotherapy, occupational health, allied health, IVF, eye specialist, skin specialist, skin cancer check, and consultant specialist services, as well as scanning services from standalone imaging sites, hospitals, and medical centers. The company operates 2,318 pathology laboratories and collection centers; 95 medical centers and day hospitals; and 145 imaging sites. The company was formerly known as Primary Health Care Limited and changed its name to Healius Limited in December 2018. Healius Limited was incorporated in 1994 and is based in St Leonards, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 10:30
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.