HealthCo Healthcare & Wellness REIT (HCW) AI Stock Analysis

• Market Cap: AU$418.13M
• Dividend Yield: 11.05%
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 78.7
• Beta (1Y): 0.74
• Revenue Growth: -14.19%
• EPS Growth: -115.93%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 73
• Industry: REIT - Healthcare Facilities
• EPS (TTM): -0.03
• Shares Outstanding: 550,175,900
• 10 Day Avg. Volume: 1,580,725
• 30 Day Avg. Volume: 1,906,806
• PEG Ratio: 0.86
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.00
• Price Target Upside: 31.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: AU$1.00 ▲(31.58%Upside)

HealthCo Healthcare & Wellness REIT's strong revenue growth and operational efficiency are offset by declining profitability and cash flow challenges. The bearish technical trends and negative P/E ratio further weigh on the stock's attractiveness. While the high dividend yield is a positive aspect, the overall outlook remains cautious due to profitability and valuation concerns.

HealthCo Healthcare & Wellness REIT Business Overview & Revenue Model

Company Description

HealthCo Healthcare and Wellness REIT operates as a real estate investment trust that focuses on owning healthcare and wellness property assets in Australia. It invests in a portfolio of healthcare property assets, including hospitals, aged care, childcare, government, life sciences and research, primary care, and wellness property assets, as well as other healthcare and wellness property adjacencies. The company was incorporated in 2021 and is headquartered in Sydney, Australia.

How the Company Makes Money

HealthCo Healthcare & Wellness REIT generates revenue primarily through leasing its properties to healthcare providers and operators. The company's income is derived from long-term lease agreements with tenants, which typically include healthcare systems, medical practitioners, and wellness service providers. Rent collected from these leases forms the core revenue stream for HCW. Additionally, the REIT may also earn income from property management fees and potential appreciation of its real estate assets. Strategic partnerships with healthcare organizations and a focus on acquiring properties in high-demand areas further contribute to its earnings.

HealthCo Healthcare & Wellness REIT Financial Statement Overview

Summary

HealthCo Healthcare & Wellness REIT shows strong revenue growth and operational efficiency with a significant revenue increase of 83.6%, a solid gross profit margin of 77%, and a strong EBIT margin of 93.6%. However, challenges include a declining net profit margin and cash flow pressures, with a significant decrease in free cash flow and return on equity dropping from 2.1% to 0.76%.

Income Statement

HealthCo Healthcare & Wellness REIT has shown a significant revenue growth of 83.6% from 2023 to 2024, indicating strong market performance and expansion. However, the net profit margin decreased from 5.0% in 2023 to 0.9% in 2024, suggesting increased costs or reduced pricing power. The gross profit margin improved to 77%, and the EBIT margin remained strong at 93.6%, reflecting efficient operations despite the lower net income.

Balance Sheet

The company has a low debt-to-equity ratio of 0.53, indicating a conservative leverage position for a REIT. However, the equity ratio has decreased slightly, suggesting a potential increase in liabilities. The return on equity dropped significantly from 2.1% in 2023 to 0.76% in 2024, highlighting reduced profitability on shareholder investments.

Cash Flow

Free cash flow decreased significantly from 2023 to 2024, potentially impacting the company's ability to fund operations and dividend payments. The operating cash flow to net income ratio is less than optimal, and with a negative free cash flow growth, liquidity might be a concern moving forward. Despite this, the company managed operating cash flows well, maintaining a positive cash position.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022
Income Statement		Total Revenue
61.10M	64.00M	40.20M	24.46M
	Gross Profit
53.00M	47.00M	24.30M	16.31M
	EBIT
52.20M	44.10M	33.80M	52.93M
	EBITDA
26.60M	49.40M	33.80M	52.93M
	Net Income Common Stockholders
-3.50M	6.90M	20.20M	49.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.70M	19.90M	7.60M	2.69M
	Total Assets
1.46B	1.44B	1.72B	693.60M
	Total Debt
491.70M	481.10M	703.70M	22.29M
	Net Debt
487.00M	461.20M	696.10M	19.60M
	Total Liabilities
519.80M	521.50M	766.20M	39.51M
	Stockholders Equity
931.00M	912.60M	951.20M	654.09M
Cash Flow		Free Cash Flow
15.40M	6.40M	888.90M	-473.92M
	Operating Cash Flow
15.40M	6.40M	11.10M	19.96M
	Investing Cash Flow
138.70M	41.50M	-961.90M	-522.47M
	Financing Cash Flow
-117.70M	-35.60M	944.10M	501.58M

HealthCo Healthcare & Wellness REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HCW, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 0.80, below the 50-day MA of 0.82, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.03 is Neutral, neither overbought nor oversold. The STOCH value of 69.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:HCW.

HealthCo Healthcare & Wellness REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.83B	10.89	0.42%	9.23%	5.94%	-21.26%
HCW	58 Neutral	AU$418.13M	78.69	-0.39%	11.05%	-14.19%	-115.93%
CNRAF		$7.45B	10.95	7.73%	4.99%	―	―
CTOUF		$5.84B	275.06	1.03%	1.61%	―	―
DEXSF		$4.82B	―	-9.22%	3.39%	―	―
GOZ	61 Neutral	AU$1.89B	―	-10.45%	9.03%	2.70%	-8.39%
SCP	57 Neutral	AU$9.80M	―		―	―	―

HealthCo Healthcare & Wellness REIT Corporate Events

HealthCo REIT Secures Rent Deferral to Sustain Hospital Operations

HealthCo Healthcare & Wellness REIT and the Unlisted Healthcare Fund have agreed to a short-term partial rent deferral with Healthscope and its Receivers to ensure the continuity of services at 11 private hospitals. This agreement includes immediate payment of outstanding rents for March and April 2025, and 85% of rent for May 2025, with the remaining 15% deferred until September 2025. The landlords are also in discussions about the Healthscope sale process and have received interest from other hospital operators to re-tenant the facilities, indicating a strategic move to maintain operations and explore new partnerships.

The most recent analyst rating on (AU:HCW) stock is a Sell with a A$1.04 price target. To see the full list of analyst forecasts on HealthCo Healthcare & Wellness REIT stock, see the AU:HCW Stock Forecast page.

HealthCo REIT Maintains Stability Amid Healthscope Receivership

HealthCo Healthcare & Wellness REIT (ASX:HCW) and the Unlisted Healthcare Fund (UHF) have announced that two entities within the Healthscope group have entered into receivership and administration. However, the entities that HCW and UHF contract with remain operational and unaffected by the receivership. The existing legal rights of HCW and UHF, including cross default and termination rights, remain intact, although termination rights are not currently enforceable. This situation underscores the resilience of HCW’s operations and its strategic positioning in the healthcare property market, ensuring stakeholders that their investments remain secure despite the challenges faced by Healthscope.

The most recent analyst rating on (AU:HCW) stock is a Sell with a A$1.04 price target. To see the full list of analyst forecasts on HealthCo Healthcare & Wellness REIT stock, see the AU:HCW Stock Forecast page.

HMC Capital Showcases Strategic Strengths at Macquarie Conference

HMC Capital presented at the 2025 Macquarie Australia Conference, highlighting its strategic focus and operational strengths. The presentation underscores HMC Capital’s ability to manage substantial funds and execute complex deals, reinforcing its position in the alternative asset management industry and its commitment to delivering strong returns for its investors.

HealthCo REIT Announces Cessation of Securities via Buy-Back

HealthCo Healthcare & Wellness REIT announced the cessation of 10,827,051 ordinary units, which were canceled as part of an on-market buy-back program completed on December 31, 2024. This strategic move is likely aimed at optimizing the company’s capital structure and potentially enhancing shareholder value, reflecting a proactive approach in managing its financial resources.

HealthCo Completes Significant Buy-Back of Ordinary Units

HealthCo Healthcare & Wellness REIT has completed a buy-back of 18,188,371 ordinary units, with a total consideration of AUD 20,151,127.44. This buy-back, finalized on April 22, 2025, reflects the company’s strategic decision to manage its capital structure, potentially enhancing shareholder value and signaling confidence in its financial position.

HealthCo Healthcare & Wellness REIT Announces Registry Office Relocation

HealthCo Healthcare & Wellness REIT announced a change in the address of its registry office, effective from April 14, 2025, moving to a new location in Sydney. This operational update is part of their compliance with ASX Listing Rules and is expected to have minimal impact on stakeholders as contact details remain unchanged.

HealthCo REIT Suspends Quarterly Distribution to Preserve Financial Flexibility

HealthCo Healthcare and Wellness REIT announced that it will not declare a quarterly distribution for the period from January 1, 2025, to March 31, 2025, in order to maintain balance sheet flexibility. The company remains committed to maximizing long-term value for its unitholders and ensuring the continuity of essential healthcare services to the Australian community.