Morningstar

Healius Ltd HLS

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Stock XASX Rating as of
A$1.75 +0.01 (0.29%)
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As of Delayed Price Closed

Company Report

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Healius: Proceeds from Lumus Sale Don’t Make Up for Lost Earnings

Shane Ponraj

Healius has agreed to sell its imaging business, Lumus Imaging, to Affinity Equity Partners for AUD 965 million. The deal is subject to customary conditions, including approval by the Foreign Investment Review Board. Cash proceeds are estimated to be around AUD 835 million after repayment of equipment leases and other working capital and capital expenditure adjustments. This is a huge transaction for Healius, with imaging accounting for almost half of the fiscal 2024 group operating earnings. It leaves the company a pure-play pathology provider.

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Price vs Fair Value

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HLS is trading at a 580% premium.
Price
A$1.75
Fair Value
A$7.10
Uncertainty
Medium
1-Star Price
A$9.49
5-Star Price
A$3.57
Economic Moat
Fcq
Capital Allocation
Nfmsxgjyh

Bulls Say, Bears Say

Bulls

On top of the base level of covid-19 testing that is likely to continue, Healius is well-positioned for underlying trends in preventive diagnostic treatments.

Bears

Elevated covid-19 testing is moderating and operating leverage is expected to unwind as earnings normalize.

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Trading Information

Previous Close Price
A$1.75
Day Range
A$1.70–1.75
52-Week Range
A$1.08–2.13
Bid/Ask
A$1.71 / A$1.75
Market Cap
A$1.27 Bil
Volume/Avg
1.8 Mil / 2.3 Mil

Key Statistics

Price/Earnings (Normalized)
10.02
Price/Sales
0.66
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
—

Company Profile

Healius is Australia’s second-largest pathology provider and third-largest diagnostic imaging provider, though the latter business is set to be sold in early 2025. Pathology and imaging revenue is almost entirely earned via the public health Medicare system. Healius typically earns approximately 75% of revenue from pathology and 25% from diagnostic imaging.
Sector
Healthcare
Industry
Diagnostics & Research
Stock Style Box
Small Growth
Total Number of Employees
11,000
Website
https://www.healius.com.au

Competitors

Valuation

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Metric
HLS
SHL
LH
Price/Earnings (Normalized)
 10.0225.0315.04
Price/Book Value
 1.221.652.25
Price/Sales
 0.661.451.47
Price/Cash Flow
 4.3312.0811.23
Price/Earnings
HLS
SHL
LH

Financial Strength

Metric
HLS
SHL
LH
Quick Ratio
 0.410.860.62
Current Ratio
 0.501.010.88
Interest Coverage
 −8.184.494.39
Quick Ratio
HLS
SHL
LH

Profitability

Metric
HLS
SHL
LH
Return on Assets (Normalized)
 −0.12%3.75%5.39%
Return on Equity (Normalized)
 −0.32%6.67%11.25%
Return on Invested Capital (Normalized)
 2.29%4.07%7.35%
Return on Assets
HLS
SHL
LH

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