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SHL

Sonic Healthcare ASX:SHL Stock Report

Last Price

AU$33.64

Market Cap

AU$15.8b

7D

-3.6%

1Y

-19.2%

Updated

15 Aug, 2022

Data

Company Financials +
SHL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends5/6

SHL Stock Overview

Sonic Healthcare Limited offers medical diagnostic services in Australia.

Sonic Healthcare Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sonic Healthcare
Historical stock prices
Current Share PriceAU$33.64
52 Week HighAU$46.95
52 Week LowAU$31.96
Beta0.51
1 Month Change-0.91%
3 Month Change-5.74%
1 Year Change-19.23%
3 Year Change21.23%
5 Year Change50.25%
Change since IPO33,540.00%

Recent News & Updates

Aug 07
We Like Sonic Healthcare's (ASX:SHL) Returns And Here's How They're Trending

We Like Sonic Healthcare's (ASX:SHL) Returns And Here's How They're Trending

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Jun 26
Sonic Healthcare Limited's (ASX:SHL) Intrinsic Value Is Potentially 62% Above Its Share Price

Sonic Healthcare Limited's (ASX:SHL) Intrinsic Value Is Potentially 62% Above Its Share Price

Does the June share price for Sonic Healthcare Limited ( ASX:SHL ) reflect what it's really worth? Today, we will...

May 10
Does Sonic Healthcare (ASX:SHL) Deserve A Spot On Your Watchlist?

Does Sonic Healthcare (ASX:SHL) Deserve A Spot On Your Watchlist?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Apr 28
Shareholders Would Enjoy A Repeat Of Sonic Healthcare's (ASX:SHL) Recent Growth In Returns

Shareholders Would Enjoy A Repeat Of Sonic Healthcare's (ASX:SHL) Recent Growth In Returns

What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a...

Mar 19
A Look At The Fair Value Of Sonic Healthcare Limited (ASX:SHL)

A Look At The Fair Value Of Sonic Healthcare Limited (ASX:SHL)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Sonic Healthcare...

Shareholder Returns

SHLAU HealthcareAU Market
7D-3.6%-3.9%0.7%
1Y-19.2%-9.0%-8.5%

Return vs Industry: SHL underperformed the Australian Healthcare industry which returned -9% over the past year.

Return vs Market: SHL underperformed the Australian Market which returned -8.5% over the past year.

Price Volatility

Is SHL's price volatile compared to industry and market?
SHL volatility
SHL Average Weekly Movement3.5%
Healthcare Industry Average Movement5.8%
Market Average Movement10.6%
10% most volatile stocks in AU Market18.1%
10% least volatile stocks in AU Market4.6%

Stable Share Price: SHL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SHL's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193438,000Colin Goldschmidthttps://www.sonichealthcare.com

Sonic Healthcare Limited offers medical diagnostic services in Australia. The company provides laboratory medicine/pathology; diagnostic imaging/radiology, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry; and primary care medical services comprising general practice services, occupational health services, remote health services, community and home nursing services, primary care research programs, health assessment technologies, clinical trials, and chronic disease management programs to clinicians, hospitals, community health services, and their patients. It also offers administrative services and facilities to medical practitioners.

Sonic Healthcare Fundamentals Summary

How do Sonic Healthcare's earnings and revenue compare to its market cap?
SHL fundamental statistics
Market CapAU$15.85b
Earnings (TTM)AU$1.47b
Revenue (TTM)AU$9.08b

10.8x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SHL income statement (TTM)
RevenueAU$9.08b
Cost of RevenueAU$5.41b
Gross ProfitAU$3.67b
Other ExpensesAU$2.20b
EarningsAU$1.47b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)3.11
Gross Margin40.38%
Net Profit Margin16.14%
Debt/Equity Ratio24.9%

How did SHL perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

31%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SHL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SHL?

Other financial metrics that can be useful for relative valuation.

SHL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2x
Enterprise Value/EBITDA7.7x
PEG Ratio-0.7x

Price to Earnings Ratio vs Peers

How does SHL's PE Ratio compare to its peers?

SHL PE Ratio vs Peers
The above table shows the PE ratio for SHL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.2x
HLS Healius
9.4x-16.9%AU$2.1b
ACL Australian Clinical Labs
5.5x-49.6%AU$980.0m
IDX Integral Diagnostics
34x25.0%AU$734.3m
RHC Ramsay Health Care
43.7x22.5%AU$16.3b
SHL Sonic Healthcare
10.8x-16.4%AU$15.8b

Price-To-Earnings vs Peers: SHL is good value based on its Price-To-Earnings Ratio (10.8x) compared to the peer average (23.2x).


Price to Earnings Ratio vs Industry

How does SHL's PE Ratio compare vs other companies in the Oceanian Healthcare Industry?

Price-To-Earnings vs Industry: SHL is good value based on its Price-To-Earnings Ratio (10.8x) compared to the Oceanic Healthcare industry average (26x)


Price to Earnings Ratio vs Fair Ratio

What is SHL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SHL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.8x
Fair PE Ratio17.9x

Price-To-Earnings vs Fair Ratio: SHL is good value based on its Price-To-Earnings Ratio (10.8x) compared to the estimated Fair Price-To-Earnings Ratio (17.9x).


Share Price vs Fair Value

What is the Fair Price of SHL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SHL (A$33.64) is trading below our estimate of fair value (A$52.23)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Sonic Healthcare forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-16.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHL's earnings are forecast to decline over the next 3 years (-16.4% per year).

Earnings vs Market: SHL's earnings are forecast to decline over the next 3 years (-16.4% per year).

High Growth Earnings: SHL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SHL's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: SHL's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHL's Return on Equity is forecast to be low in 3 years time (10%).


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Past Performance

How has Sonic Healthcare performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


26.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SHL has high quality earnings.

Growing Profit Margin: SHL's current net profit margins (16.1%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: SHL's earnings have grown significantly by 26.9% per year over the past 5 years.

Accelerating Growth: SHL's earnings growth over the past year (54.1%) exceeds its 5-year average (26.9% per year).

Earnings vs Industry: SHL earnings growth over the past year (54.1%) exceeded the Healthcare industry 39%.


Return on Equity

High ROE: SHL's Return on Equity (21%) is considered high.


Discover strong past performing companies

Financial Health

How is Sonic Healthcare's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SHL's short term assets (A$2.4B) exceed its short term liabilities (A$2.0B).

Long Term Liabilities: SHL's short term assets (A$2.4B) do not cover its long term liabilities (A$3.3B).


Debt to Equity History and Analysis

Debt Level: SHL's net debt to equity ratio (14.7%) is considered satisfactory.

Reducing Debt: SHL's debt to equity ratio has reduced from 71.9% to 24.9% over the past 5 years.

Debt Coverage: SHL's debt is well covered by operating cash flow (127%).

Interest Coverage: SHL's interest payments on its debt are well covered by EBIT (26.2x coverage).


Balance Sheet


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Dividend

What is Sonic Healthcare current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.82%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SHL's dividend (2.82%) is higher than the bottom 25% of dividend payers in the Australian market (2.56%).

High Dividend: SHL's dividend (2.82%) is low compared to the top 25% of dividend payers in the Australian market (6.36%).


Stability and Growth of Payments

Stable Dividend: SHL's dividends per share have been stable in the past 10 years.

Growing Dividend: SHL's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31%), SHL's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (23.3%), SHL's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

21.6yrs

Average management tenure


CEO

Colin Goldschmidt (68 yo)

no data

Tenure

AU$6,733,090

Compensation

Dr. Colin Stephen Goldschmidt, M.B.B.Ch., F.R.C.P.A., F.A.I.C.D. serves as the Chief Executive Officer of Sonic Healthcare Limited since 1993 and has been its Managing Director since 1992. Dr. Goldschmidt...


CEO Compensation Analysis

Compensation vs Market: Colin's total compensation ($USD4.78M) is about average for companies of similar size in the Australian market ($USD4.20M).

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


Leadership Team

Experienced Management: SHL's management team is seasoned and experienced (21.6 years average tenure).


Board Members

Experienced Board: SHL's board of directors are seasoned and experienced ( 12.1 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

Sonic Healthcare Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sonic Healthcare Limited
  • Ticker: SHL
  • Exchange: ASX
  • Founded: 1934
  • Industry: Health Care Services
  • Sector: Healthcare
  • Implied Market Cap: AU$15.847b
  • Shares outstanding: 471.77m
  • Website: https://www.sonichealthcare.com

Number of Employees


Location

  • Sonic Healthcare Limited
  • Grosvenor Place
  • Level 22
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.