OTCPK:SKHC.F

Stock Analysis Report

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Executive Summary

Sonic Healthcare Limited, a healthcare company, provides medical diagnostic services, and administrative services and facilities to medical practitioners. More Details


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.7%

SKHC.F

-7.7%

US Healthcare

-5.3%

US Market


1 Year Return

25.0%

SKHC.F

10.6%

US Healthcare

10.4%

US Market

Return vs Industry: SKHC.F exceeded the US Healthcare industry which returned 10.4% over the past year.

Return vs Market: SKHC.F exceeded the US Market which returned 12% over the past year.


Shareholder returns

SKHC.FIndustryMarket
7 Day-2.7%-7.7%-5.3%
30 Day5.5%-0.8%-2.1%
90 Day9.5%-1.2%1.7%
1 Year25.0%25.0%12.1%10.6%12.9%10.4%
3 Year52.4%52.4%26.1%20.8%34.3%25.4%
5 Year85.7%85.7%53.4%42.2%73.7%54.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

31.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SKHC.F ($25.07) is trading above our estimate of fair value ($20.95)

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


Price To Earnings Ratio

PE vs Industry: SKHC.F is poor value based on its PE Ratio (31.3x) compared to the US Healthcare industry average (23.1x).

PE vs Market: SKHC.F is poor value based on its PE Ratio (31.3x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: SKHC.F is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: SKHC.F's PB Ratio (3x) is in line with the US Healthcare industry average.


Next Steps

Future Growth

How is Sonic Healthcare forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKHC.F's forecast earnings growth (5.3% per year) is above the savings rate (2.2%).

Earnings vs Market: SKHC.F's earnings (5.3% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: SKHC.F's revenue (3.7% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: SKHC.F's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SKHC.F's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Sonic Healthcare performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKHC.F has high quality earnings.

Growing Profit Margin: SKHC.F's current net profit margins (7.7%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: SKHC.F's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: SKHC.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SKHC.F had negative earnings growth (-4%) over the past year, making it difficult to compare to the Healthcare industry average (31.5%).


Return on Equity

High ROE: SKHC.F's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is Sonic Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: SKHC.F's short term assets (A$2.5B) exceed its short term liabilities (A$2.1B).

Long Term Liabilities: SKHC.F's short term assets (A$2.5B) do not cover its long term liabilities (A$4.4B).


Debt to Equity History and Analysis

Debt Level: SKHC.F's debt to equity ratio (57.2%) is considered high.

Reducing Debt: SKHC.F's debt to equity ratio has reduced from 67.1% to 57.2% over the past 5 years.

Debt Coverage: SKHC.F's debt is well covered by operating cash flow (42%).

Interest Coverage: SKHC.F's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SKHC.F's dividend (2.44%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: SKHC.F's dividend (2.44%) is low compared to the top 25% of dividend payers in the US market (4.78%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.5%), SKHC.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SKHC.F's dividends in 3 years are forecast to be covered by earnings (72.9% payout ratio).


Next Steps

Management

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

19.8yrs

Average management tenure


CEO

Colin Goldschmidt (66 yo)

no data

Tenure

AU$4,493,845

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 ($USD3.16M) is below average for companies of similar size in the US market ($USD11.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Colin Goldschmidt
CEO, MD & Executive Directorno dataAU$4.49m0.16%
A$ 18.3m
Christopher Wilks
Finance Director30.83yrsAU$1.98m0.13%
A$ 15.7m
Peter Savage
Chief Business Officerno datano datano data
Stephen Fairy
Global Chief Medical Officerno datano datano data
David Byrne
Chief Executive Officer of The Doctors Laboratoryno dataAU$1.07mno data
Paul Alexander
Deputy CFO & Company Secretary19.75yrsAU$354.42kno data
G. Schottdorf
Chief Executive Officer of Schottdorf Groupno dataAU$724.87kno data
Julian Adler
Chief Executive Officer of Sonic Imaging0.33yrno datano data
Prashan Kulasekera
Assistant Company Secretaryno datano datano data

19.8yrs

Average Tenure

61yo

Average Age

Experienced Management: SKHC.F's management team is seasoned and experienced (19.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Colin Goldschmidt
CEO, MD & Executive Directorno dataAU$4.49m0.16%
A$ 18.3m
Christopher Wilks
Finance Director30.83yrsAU$1.98m0.13%
A$ 15.7m
Kathryn Spargo
Non-Executive Independent Director10.25yrsAU$222.50k0.0046%
A$ 539.7k
Philip Dubois
Non-Executive Director19.25yrsAU$754.52k0.0025%
A$ 288.0k
Neville Mitchell
Independent Non-Executive Director3.08yrsAU$217.50k0.0021%
A$ 240.0k
Mark Compton
Independent Chairman of the Board4.92yrsAU$394.17k0.0019%
A$ 227.1k
Louis Panaccio
Non-Executive Independent Director15.33yrsAU$225.65k0.0017%
A$ 196.7k
Elizabeth Wilson
Non-Executive Independent Director10.25yrsAU$216.01k0.0016%
A$ 190.8k
Suzanne Crowe
Non-Executive Independent Director0.50yrAU$30.45k0.00018%
A$ 21.1k

10.3yrs

Average Tenure

63yo

Average Age

Experienced Board: SKHC.F's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SKHC.F insiders have sold more shares than they have bought 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sonic Healthcare Limited
  • Ticker: SKHC.F
  • Exchange: OTCPK
  • Founded: 1934
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: AU$16.634b
  • Listing Market Cap: AU$11.707b
  • Shares outstanding: 477.72m
  • Website: https://www.sonichealthcare.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
SKHC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SABDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SHLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
SKHH.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDAug 2017

Biography

Sonic Healthcare Limited, a healthcare company, provides medical diagnostic services, and administrative services and facilities to medical practitioners. The company operates through Laboratory, Imaging, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 23:32
End of Day Share Price2020/10/29 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.