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.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.


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


Market Performance


7 Day Return

-1.0%

HLS

-1.1%

AU Healthcare

-1.0%

AU Market


1 Year Return

6.2%

HLS

17.9%

AU Healthcare

12.2%

AU Market

Return vs Industry: HLS underperformed the Australian Healthcare industry which returned 19.8% over the past year.

Return vs Market: HLS underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

HLSIndustryMarket
7 Day-1.0%-1.1%-1.0%
30 Day-4.6%3.0%-1.4%
90 Day5.5%-0.7%-1.9%
1 Year8.9%6.2%21.5%17.9%18.8%12.2%
3 Year-10.1%-19.8%11.1%0.9%38.4%19.8%
5 Year-18.3%-32.3%42.3%22.3%50.8%16.5%

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?

33.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLS (A$3.08) is trading above our estimate of fair value (A$1.32)

Significantly Below Fair Value: HLS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HLS is poor value based on its PE Ratio (33.4x) compared to the Healthcare industry average (19.1x).

PE vs Market: HLS is poor value based on its PE Ratio (33.4x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: HLS is poor value based on its PEG Ratio (1.3x)


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 (1.7x).


Next Steps

Future Growth

How is Healius forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

26.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLS's forecast earnings growth (26.6% per year) is above the savings rate (2.3%).

Earnings vs Market: HLS's earnings (26.6% per year) are forecast to grow faster than the Australian market (10.2% 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 (3.6% 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 (6%).


Next Steps

Past Performance

How has Healius performed over the past 5 years?

-38.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HLS's earnings have declined by -38.1% per year over the past 5 years.

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 0.3%.


Return on Equity

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


Return on Assets

ROA vs Industry: HLS's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: HLS's Return on Capital Employed has declined over the past 3 years.


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 (346.5M) do not cover its long term liabilities (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.

Debt Coverage: HLS's debt is not well covered by operating cash flow (15.6%).

Interest Coverage: HLS's interest payments on its debt are well covered by EBIT (3.4x coverage).


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).


Next Steps

Dividend

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

2.34%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.4%markettop25%5.6%industryaverage2.9%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HLS's dividend (2.34%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: HLS's dividend (2.34%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

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 (51.1% payout ratio).


Next Steps

Management

What is the CEO of Healius's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Malcolm Parmenter (64yo)

2.1yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

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


Management Age and Tenure

2.0yrs

Average Tenure

Experienced Management: HLS's management team is considered experienced (2 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

62yo

Average Age

Experienced Board: HLS's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: HLS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$48,90019 Sep 19
Sally Evans
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares15,000
Max PriceAU$3.26
BuyAU$8,504,94727 Aug 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares2,727,999
Max PriceAU$3.13
SellAU$5,52123 Aug 19
MLC Investment Management Limited
EntityCompany
Shares1,763,938
Max PriceAU$2.88
BuyAU$727,31323 Aug 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares242,481
Max PriceAU$3.00
BuyAU$28,10723 Aug 19
MLC Investments Limited
EntityCompany
Shares9,500
Max PriceAU$2.96
SellAU$2,15623 Aug 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares749
Max PriceAU$2.88
BuyAU$21,02223 Aug 19
MLC Investment Management Limited
EntityCompany
Shares7,445
Max PriceAU$2.82
BuyAU$77,15021 Aug 19
Robert Hubbard
EntityIndividual
Role
Chairman of the Board
Chairman
Shares25,000
Max PriceAU$3.09
BuyAU$399,20308 Aug 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares135,404
Max PriceAU$2.95
BuyAU$6,00708 Aug 19
MLC Investment Management Limited
EntityCompany
Shares2,076
Max PriceAU$2.89
SellAU$14,62525 Jul 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares4,987
Max PriceAU$2.94
BuyAU$571,20422 Jul 19
MLC Investments Limited
EntityCompany
Shares193,171
Max PriceAU$2.96
BuyAU$5,873,91418 Jul 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares1,908,827
Max PriceAU$3.08
SellAU$1,797,62318 Jul 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares578,282
Max PriceAU$3.11
SellAU$149,90218 Jul 19
MLC Investment Management Limited
EntityCompany
Shares47,635
Max PriceAU$3.15
SellAU$1,701,48318 Jul 19
MLC Investments Limited
EntityCompany
Shares540,100
Max PriceAU$3.15
SellAU$20,877,99516 Jul 19
T. Rowe Price Group, Inc.
EntityCompany
Shares6,734,836
Max PriceAU$3.10
SellAU$10,722,11630 Apr 19
Harris Associates L.P.
EntityCompany
Shares4,115,318
Max PriceAU$2.67
BuyAU$11,320,26424 Apr 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares3,870,257
Max PriceAU$2.92
BuyAU$260,15124 Apr 19
MLC Investment Management Limited
EntityCompany
Shares108,020
Max PriceAU$2.63
BuyAU$7,192,79424 Apr 19
MLC Investments Limited
EntityCompany
Shares2,568,130
Max PriceAU$2.80
BuyAU$1,749,35824 Feb 19
T. Rowe Price Group, Inc.
EntityCompany
Shares588,414
Max PriceAU$2.97
SellAU$19,899,46324 Feb 19
T. Rowe Price Group, Inc.
EntityCompany
Shares6,826,573
Max PriceAU$2.92
SellAU$13,280,77431 Jan 19
Maple-Brown Abbott Limited
EntityCompany
Shares4,590,500
Max PriceAU$2.90
BuyAU$404,78031 Jan 19
Maple-Brown Abbott Limited
EntityCompany
Shares160,740
Max PriceAU$2.64
SellAU$60,066,27823 Dec 18
Harris Associates L.P.
EntityCompany
Shares7,640,319
Max PriceAU$8.11
BuyAU$24,067,77423 Dec 18
Harris Associates L.P.
EntityCompany
Shares7,982,090
Max PriceAU$3.90
BuyAU$29,43021 Dec 18
Errol Katz
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares13,080
Max PriceAU$2.25
BuyAU$10,08028 Nov 18
Arlene Tansey
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares4,000
Max PriceAU$2.52
BuyAU$1,04601 Nov 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares433
Max PriceAU$2.42
BuyAU$361,02001 Nov 18
MLC Investments Limited
EntityCompany
Shares148,178
Max PriceAU$2.44
BuyAU$17,595,97130 Oct 18
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares6,132,116
Max PriceAU$2.87

Ownership Breakdown


Management Team

  • Malcolm Parmenter (64yo)

    MD, CEO & Director

    • Tenure: 2.1yrs
    • Compensation: AU$1.90m
  • Tim Haggett

    Chief Executive of Medical Centres

    • Tenure: 2yrs
    • Compensation: AU$935.12k
  • Dean Lewsam

    Chief Executive of Imaging

    • Tenure: 4yrs
    • Compensation: AU$773.74k
  • Charles Tilley

    Company Secretary

    • Tenure: 4.7yrs
  • Maxine Jacquet

    Chief Financial Officer

    • Tenure: 0.2yrs
    • Compensation: AU$710.97k
  • Janet Payne

    Group Executive of Corporate Affairs

    • Tenure: 4.3yrs
  • John Houston

    • Tenure: 2yrs
    • Compensation: AU$1.16m
  • Scott Beattie

    Group Executive of Technology & Innovation

    • Tenure: 0.8yrs
  • John McKechnie

    Chief Executive of the Pathology Division

    • Tenure: 0.2yrs
  • Alison Stephenson

    Additional Company Secretary

    • Tenure: 0.2yrs

Board Members

  • Malcolm Parmenter (64yo)

    MD, CEO & Director

    • Tenure: 2.1yrs
    • Compensation: AU$1.90m
  • Arlene Tansey (62yo)

    Non-Executive Director

    • Tenure: 7.2yrs
    • Compensation: AU$169.48k
  • Gordon Davis (63yo)

    Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: AU$170.68k
  • Errol Katz (49yo)

    Non-Executive Director

    • Tenure: 8.9yrs
    • Compensation: AU$167.50k
  • Paul Jones (64yo)

    Non-Executive Director

    • Tenure: 8.9yrs
    • Compensation: AU$157.50k
  • Rob Hubbard (60yo)

    Chairman

    • Tenure: 1.3yrs
    • Compensation: AU$292.02k
  • Sally Evans (60yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$134.22k

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$1.924b
  • 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 billi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:31
End of Day Share Price2019/10/23 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.