OTCPK:SKHH.Y

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with proven track record.


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


Market Performance


7 Day Return

0.3%

SKHH.Y

-0.3%

US Healthcare

-0.6%

US Market


1 Year Return

5.0%

SKHH.Y

-9.2%

US Healthcare

0.7%

US Market

SKHH.Y outperformed the Healthcare industry which returned -9.1% over the past year.

SKHH.Y outperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

SKHH.YIndustryMarket
7 Day0.3%-0.3%-0.6%
30 Day-1.4%2.1%4.9%
90 Day1.0%-0.8%1.7%
1 Year6.2%5.0%-7.8%-9.2%3.0%0.7%
3 Yearn/a29.7%24.4%44.8%35.4%
5 Yearn/a66.1%56.2%62.0%44.3%

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 based on future cash flows and its price relative to the stock market?

13%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sonic Healthcare's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Sonic Healthcare's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Sonic Healthcare is overvalued based on earnings compared to the US Healthcare industry average.

Sonic Healthcare is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Sonic Healthcare is poor value based on expected growth next year.


Price Based on Value of Assets

Sonic Healthcare is good value based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Sonic Healthcare expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sonic Healthcare's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).

Sonic Healthcare's earnings are expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Sonic Healthcare's revenue growth is positive but not above the United States of America market average.

Sonic Healthcare's earnings growth is positive but not above the United States of America market average.

Sonic Healthcare's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Sonic Healthcare is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Sonic Healthcare performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sonic Healthcare's year on year earnings growth rate has been positive over the past 5 years.

Sonic Healthcare's 1-year earnings growth exceeds its 5-year average (15.6% vs 7.2%)

Sonic Healthcare's earnings growth has exceeded the US Healthcare industry average in the past year (15.6% vs 5.6%).


Return on Equity

Sonic Healthcare has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sonic Healthcare used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Sonic Healthcare's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sonic Healthcare's financial position?


Financial Position Analysis

Sonic Healthcare's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Sonic Healthcare's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sonic Healthcare's level of debt (55.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (63.4% vs 55.3% today).

Debt is well covered by operating cash flow (27.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

3.30%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sonic Healthcare's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Sonic Healthcare's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

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

11.7yrs

Average board tenure


CEO

Colin Goldschmidt (65yo)

0yrs

Tenure

AU$5,087,789

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

Colin's remuneration is lower than average for companies of similar size in United States of America.

Colin's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

11.7yrs

Average Tenure

61.5yo

Average Age

The average tenure for the Sonic Healthcare board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Chris Wilks (61yo)

    Finance Director

    • Tenure: 29.8yrs
    • Compensation: AU$2.26m
  • Colin Goldschmidt (65yo)

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$5.09m
  • Philip Dubois (73yo)

    Executive Director

    • Tenure: 18.2yrs
    • Compensation: AU$814.00k
  • David Byrne (60yo)

    Chief Executive Officer of The Doctors Laboratory

    • Tenure: 0yrs
    • Compensation: AU$1.07m
  • Paul Alexander (53yo)

    Deputy CFO & Company Secretary

    • Tenure: 18.7yrs
    • Compensation: AU$354.42k
  • G. Schottdorf

    Chief Executive Officer of Schottdorf Group

    • Tenure: 0yrs
    • Compensation: AU$724.87k
  • Prashan Kulasekera (47yo)

    Assistant Company Secretary

    • Tenure: 0yrs
  • Peter Savage

    Chief Business Officer

    • Tenure: 0yrs

Board Members

  • Kate Spargo (68yo)

    Non-Executive Independent Director

    • Tenure: 9.2yrs
    • Compensation: AU$240.00k
  • Chris Wilks (61yo)

    Finance Director

    • Tenure: 29.8yrs
    • Compensation: AU$2.26m
  • Colin Goldschmidt (65yo)

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$5.09m
  • Philip Dubois (73yo)

    Executive Director

    • Tenure: 18.2yrs
    • Compensation: AU$814.00k
  • Neville Mitchell (60yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: AU$165.00k
  • Mark Compton (58yo)

    Chairman

    • Tenure: 3.8yrs
    • Compensation: AU$425.00k
  • Lou Panaccio (62yo)

    Non-Executive Independent Director

    • Tenure: 14.3yrs
    • Compensation: AU$258.00k
  • Elizabeth Wilson (60yo)

    Non-Executive Independent Director

    • Tenure: 9.2yrs
    • Compensation: AU$233.00k

Company Information

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


Key Information

  • Name: Sonic Healthcare Limited
  • Ticker: SKHH.Y
  • Exchange: OTCPK
  • Founded: 1934
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: AU$13.399b
  • Listing Market Cap: AU$9.072b
  • Shares outstanding: 474.79m
  • 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 Analysis2019/09/23 00:43
End of Day Share Price2019/09/20 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.