Latest news with #SonicHealthcare
Yahoo
14-06-2025
- Business
- Yahoo
Sonic Healthcare (ASX:SHL) shareholders have endured a 8.4% loss from investing in the stock three years ago
As an investor its worth striving to ensure your overall portfolio beats the market average. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. We regret to report that long term Sonic Healthcare Limited (ASX:SHL) shareholders have had that experience, with the share price dropping 17% in three years, versus a market return of about 44%. It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the three years that the share price fell, Sonic Healthcare's earnings per share (EPS) dropped by 28% each year. This fall in the EPS is worse than the 6% compound annual share price fall. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Sonic Healthcare's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Sonic Healthcare, it has a TSR of -8.4% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! Sonic Healthcare shareholders are up 10% for the year (even including dividends). Unfortunately this falls short of the market return. The silver lining is that the gain was actually better than the average annual return of 1.7% per year over five year. This suggests the company might be improving over time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for Sonic Healthcare that you should be aware of before investing here. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News.com.au
04-06-2025
- Business
- News.com.au
Health Check: Whether stoic or simply too poor, Australians spurn GP visits
Doctor visits dipped in April, reversing a recovery trend Mayne Pharma threatens to go legal in takeover dispute … but peace erupts at Cann Group with settlement of legal spat We're either a healthy lot, rely on Dr Google or simply can't afford to visit a GP anymore. Take your pick as to why our doctor visitations are running below the historic trend. Medicare data for April shows a resumption of a decline in doctors' visits, thus reversing a recent recovery. Bell Potter says the 12-month rolling rate slipped back to 0.8% from 2.3% in March and now is below the long-term median 1.4% growth. In April last year, the rolling rate had dipped to -3%. The slippage was most apparent in Queensland, which shows what stoic souls they are up north. Or maybe they couldn't get to their clinics because they were hemmed in by floods. The rate of doctors' visits has a direct impact on diagnostic imaging volumes and thus is relevant for stocks such as Sonic Healthcare (ASX:SHL), Integral Diagnostics (ASX:IDX), Healius (ASX:HLS) and Australian Clinical Labs (ASX:ACL). (Healius sold its 69 medical centres to private equity firm BGH Capital for $500 million in November 2020.) Macquarie Equities says both pathology and imaging volumes grew 4% in April, year on year. But the DI providers look to be protected by more expensive procedures – 'higher fee modalities', as the firm puts it – with benefits paid rising 8% in April for pathology and 7% for imaging. On the bright side, face-to-face GP visits have held up relative to telehealth and the former is likely to result in diagnostic referrals. So it's a bit of a mixed picture. The re-elected Albo's pledge to extend bulk billing might also ramp up volumes. What will restrain the pain at Mayne? Mayne Pharma's (ASX:MYX) takeover is in the balance, with a 10-day consultation period expiring without suitor Cosette Pharmaceuticals pulling the plug. Cosette alleged that events had resulted in a 'material adverse change', thus triggering the consultation period. Mayne denies these events were material. The FDA has accused Mayne Pharma of downplaying the risks of its oral birth control pill, Nextstellis. Mayne Pharma now says the agency is satisfied the company has addressed the identified issues. Mayne is also in a tat-for-tat legal dispute with the Nasdaq-listed Therapeutics MD, relating to Mayne's purchase of assets from the latter in 2022. While Cosette is yet to walk, the terms of the scheme implementation deed (SID) enable the suitor to do so any time up to the second court hearing to approve the deal. The affair may end up in the courts in a different way, given Mayne 'intends to take all reasonable steps to enforce its rights under the SID.' This includes litigation, of course. Mayne shares this morning surged 5%, but they remain 32% below Cosette's $7.40 a share cash offer. So investors are saying the deal might have a pulse, but not at the original offer price. Cann Group pots legal settlement Medical cannabis play Cann Group (ASX:CAN) has settled a legal dispute with the NZ-listed Rua Biosciences, which had sued a Cann subsidiary over a manufacturing and supply agreement. As is the norm, the agreement is confidential but doesn't involve any money changing hands. Instead, the parties have agreed that Cann will supply 'certain medicinal cannabis products' to Rua under 'agreed market standard commercial terms.' As far as legal spats go, it sounds like a reasonable result. Across the Tasman, Rua shares were up more than 7% this morning Cann shares were about 3% off the pace, having lost 65% of their value year to date. The first Australian company to receive an Australian cannabis research and cultivation licence, Cann produces from its modern Mildura facility. But in the current oversupplied market, it's not easy being green. Radiopharm tackles HER-2 cancers Radiopharm Theranostics (ASX:RAD) has dosed the first patient in its phase I trial to treat advanced HER2-positive solid tumours. A human epidermal growth factor receptor, HER2 is expressed in a variety of tumours including some breast cancers. Dubbed Heat, the study road tests Radiopharm's lutetium isotope-based therapy. Taking place at multiple local centres, the study has the usual safety and tolerability remits. It also aims for the optimal dosage for a phase II trial, as well as early efficacy signals. 'Despite progressive improvements in the management of metastatic HER2-positive disease, the majority of patients experience disease progression on current standard of care and require further therapeutic options,' Radiopharm CEO Riccardo Canevari says. On Monday, the company said preclinical data from another program showed 'favorable biodistribution and ... maintained tumor uptake.' This one refers to its lutetium-based monoclonal antibody RV01, which targets solid tumours expressing the B7H3 protein. This one is via a joint venture with Houston's MD Anderson Cancer Center to develop at least four radiopharmaceutical products. The next step is FDA assent to run a first-in-human trial, which the company hopes to kick off in 2026.
Yahoo
07-05-2025
- Business
- Yahoo
Sonic Healthcare Limited's (ASX:SHL) largest shareholders are individual investors with 55% ownership, institutions own 40%
Key Insights Sonic Healthcare's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public A total of 25 investors have a majority stake in the company with 39% ownership Insiders have bought recently Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If you want to know who really controls Sonic Healthcare Limited (ASX:SHL), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 55% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Meanwhile, institutions make up 40% of the company's shareholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Let's delve deeper into each type of owner of Sonic Healthcare, beginning with the chart below. See our latest analysis for Sonic Healthcare ASX:SHL Ownership Breakdown May 7th 2025 What Does The Institutional Ownership Tell Us About Sonic Healthcare? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. We can see that Sonic Healthcare does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Sonic Healthcare's historic earnings and revenue below, but keep in mind there's always more to the story. ASX:SHL Earnings and Revenue Growth May 7th 2025 Hedge funds don't have many shares in Sonic Healthcare. The company's largest shareholder is State Street Global Advisors, Inc., with ownership of 7.4%. In comparison, the second and third largest shareholders hold about 6.1% and 5.0% of the stock. On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Yahoo
10-04-2025
- Business
- Yahoo
Are Sonic Healthcare Limited's (ASX:SHL) Mixed Financials Driving The Negative Sentiment?
Sonic Healthcare (ASX:SHL) has had a rough three months with its share price down 11%. It seems that the market might have completely ignored the positive aspects of the company's fundamentals and decided to weigh-in more on the negative aspects. Long-term fundamentals are usually what drive market outcomes, so it's worth paying close attention. In this article, we decided to focus on Sonic Healthcare's ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Sonic Healthcare is: 7.0% = AU$581m ÷ AU$8.3b (Based on the trailing twelve months to December 2024). The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each A$1 of shareholders' capital it has, the company made A$0.07 in profit. Check out our latest analysis for Sonic Healthcare So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. When you first look at it, Sonic Healthcare's ROE doesn't look that attractive. However, the fact that the its ROE is quite higher to the industry average of 3.8% doesn't go unnoticed by us. But then again, seeing that Sonic Healthcare's net income shrunk at a rate of 7.6% in the past five years, makes us think again. Remember, the company's ROE is a bit low to begin with, just that it is higher than the industry average. So that could be one of the factors that are causing earnings growth to shrink. We then compared Sonic Healthcare's performance with the industry and found that the company has shrunk its earnings at a slower rate than the industry earnings which has seen its earnings shrink by 19% in the same 5-year period. While this is not particularly good, its not particularly bad either. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. What is SHL worth today? The intrinsic value infographic in our free research report helps visualize whether SHL is currently mispriced by the market. Sonic Healthcare's declining earnings is not surprising given how the company is spending most of its profits in paying dividends, judging by its three-year median payout ratio of 71% (or a retention ratio of 29%). With only a little being reinvested into the business, earnings growth would obviously be low or non-existent. Moreover, Sonic Healthcare has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 74%. Still, forecasts suggest that Sonic Healthcare's future ROE will rise to 9.2% even though the the company's payout ratio is not expected to change by much. On the whole, we feel that the performance shown by Sonic Healthcare can be open to many interpretations. Primarily, we are disappointed to see a lack of growth in earnings even in spite of a moderate ROE. Bear in mind, the company reinvests a small portion of its profits, which explains the lack of growth. That being so, the latest industry analyst forecasts show that the analysts are expecting to see a huge improvement in the company's earnings growth rate. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
21-03-2025
- Business
- Yahoo
Sonic Healthcare initiated with an Equal Weight at Morgan Stanley
Morgan Stanley initiated coverage of Sonic Healthcare (SKHHY) with an Equal Weight rating and A$28.10 price target Modest EPS growth has been impacted by declining margins and the company's return on invested capital is 'the lowest across our sector coverage,' with limited valuation appeal, the analyst tells investors while initiating coverage of the Australian Healthcare industry. Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on SKHHY: Questions or Comments about the article? Write to editor@ Sonic Healthcare (SKHHY) Unveils Dividend Details for Q1: Mark Your Calendar! Sonic Healthcare Earnings Call Reveals Strong Growth Sonic Healthcare Reports Strong Revenue and Profit Growth Sign in to access your portfolio
