ASX:HLS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Healius Limited provides facilities and support services to independent general practitioners, radiologists, and other healthcare professionals in Australia. More Details


Snowflake Analysis

Proven track record 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

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


Market Performance


7 Day Return

8.0%

HLS

-2.1%

AU Healthcare

0.3%

AU Market


1 Year Return

19.7%

HLS

4.0%

AU Healthcare

-5.4%

AU Market

Return vs Industry: HLS exceeded the Australian Healthcare industry which returned 4% over the past year.

Return vs Market: HLS exceeded the Australian Market which returned -5.4% over the past year.


Shareholder returns

HLSIndustryMarket
7 Day8.0%-2.1%0.3%
30 Day8.7%2.4%6.3%
90 Day18.6%5.3%3.7%
1 Year21.1%19.7%6.0%4.0%-2.1%-5.4%
3 Year18.3%7.7%21.9%12.1%18.3%3.3%
5 Year17.8%0.8%28.4%10.9%43.1%14.0%

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?

1.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLS (A$3.76) is trading below our estimate of fair value (A$3.8)

Significantly Below Fair Value: HLS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HLS is poor value based on its PE Ratio (32.5x) compared to the AU Healthcare industry average (29.8x).

PE vs Market: HLS is poor value based on its PE Ratio (32.5x) compared to the Australian market (21x).


Price to Earnings Growth Ratio

PEG Ratio: HLS is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: HLS is good value based on its PB Ratio (1.2x) compared to the AU Healthcare industry average (1.4x).


Next Steps

Future Growth

How is Healius forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLS's forecast earnings growth (10.4% per year) is above the savings rate (2.3%).

Earnings vs Market: HLS's earnings (10.4% per year) are forecast to grow slower than the Australian market (17.4% per year).

High Growth Earnings: HLS's earnings are forecast to grow, but not significantly.

Revenue vs Market: HLS's revenue (4.1% per year) is forecast to grow slower than the Australian market (4.6% per year).

High Growth Revenue: HLS's revenue (4.1% 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 (5.3%).


Next Steps

Past Performance

How has Healius performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLS has a large one-off gain of A$19.4M impacting its June 30 2020 financial results.

Growing Profit Margin: HLS's current net profit margins (4.5%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: HLS has become profitable over the past 5 years, growing earnings by 4% per year.

Accelerating Growth: HLS's earnings growth over the past year (25.4%) exceeds its 5-year average (4% per year).

Earnings vs Industry: HLS earnings growth over the past year (25.4%) exceeded the Healthcare industry -6.1%.


Return on Equity

High ROE: HLS's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Healius's financial position?


Financial Position Analysis

Short Term Liabilities: HLS's short term assets (A$1.3B) exceed its short term liabilities (A$972.8M).

Long Term Liabilities: HLS's short term assets (A$1.3B) do not cover its long term liabilities (A$1.7B).


Debt to Equity History and Analysis

Debt Level: HLS's debt to equity ratio (43.2%) is considered high.

Reducing Debt: HLS's debt to equity ratio has reduced from 50.6% to 43.2% over the past 5 years.

Debt Coverage: HLS's debt is well covered by operating cash flow (40.7%).

Interest Coverage: HLS's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.24%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HLS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HLS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HLS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HLS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HLS is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HLS's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Malcolm Parmenter (65 yo)

3.08yrs

Tenure

AU$3,232,745

Compensation

Dr. Malcolm W. Parmenter, MB, BS, MAICD, has been the Managing Director and Chief Executive Officer at Healius Limited (formerly known as Primary Health Care Limited) since joined on September 06, 2017 & s ...


CEO Compensation Analysis

Compensation vs Market: Malcolm's total compensation ($USD2.30M) is above average for companies of similar size in the Australian market ($USD1.29M).

Compensation vs Earnings: Malcolm's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Malcolm Parmenter
MD, CEO & Director3.08yrsAU$3.23m0.018%
A$ 383.8k
Maxine Jacquet
Chief Financial Officer1.17yrsAU$1.41m0.0098%
A$ 210.5k
Dean Lewsam
Chief Executive of Imaging5yrsAU$1.34m0.0054%
A$ 115.9k
John McKechnie
Chief Executive of the Pathology Division1.17yrsAU$1.19m0.0026%
A$ 55.3k
Peter Wilson
Group Executive of People & Shared Services0.92yrno datano data
Scott Beattie
Chief Executive of Medical Centre0.92yrno datano data
Ben Korst
CEO of Montserrat Day Hospitals0.92yrno datano data
Charles Tilley
Company Secretary5.67yrsno datano data
Alison Stephenson
Additional Company Secretary1.17yrsno datano data
Janet Payne
Group Executive of Corporate Affairs5.25yrsno datano data
John Houston
3yrsAU$1.16mno data

1.2yrs

Average Tenure

Experienced Management: HLS's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Malcolm Parmenter
MD, CEO & Director3.08yrsAU$3.23m0.018%
A$ 383.8k
Arlene Tansey
Independent Non-Executive Director8.17yrsAU$163.56k0.0026%
A$ 54.9k
Gordon Davis
Non-Executive Director5.17yrsAU$161.82k0.0089%
A$ 191.8k
Paul Jones
Independent Non-Executive Director9.92yrsAU$147.57k0.0065%
A$ 139.5k
Robert Hubbard
Chairman2.25yrsAU$277.50k0.012%
A$ 264.7k
Sally Evans
Independent Non-Executive Director2.17yrsAU$157.52k0.0024%
A$ 51.6k

4.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: HLS's board of directors are considered experienced (4.1 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 not been meaningfully diluted in the past year.


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$2.143b
  • Shares outstanding: 623.01m
  • 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
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 facilities and support services to independent general practitioners, radiologists, and other healthcare professionals in Australia. The company operates through three segments: Pa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 10:33
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.