HealthCo Healthcare & Wellness REIT (HCW) AI Stock Analysis

• Market Cap: AU$418.13M
• Dividend Yield: 11.21%
• Average Volume (3M): 3.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -16.67%
• EPS Growth: -1419.67%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.02
• Shares Outstanding: 550,175,900
• 10 Day Avg. Volume: 1,402,122
• 30 Day Avg. Volume: 3,744,168
• PEG Ratio: <0.01
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 7.69
• P/FCF Ratio: 22.28
• 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$0.89
• Price Target Upside: 23.61% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: AU$0.85 ▲(17.64% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and profitability. Technical analysis indicates positive momentum but warns of overbought conditions. The valuation is mixed, with a high dividend yield offset by a negative P/E ratio.

Positive Factors

Strategic Partnerships

Strategic partnerships with reputable healthcare providers ensure stable occupancy rates and consistent cash flow, supporting long-term revenue stability.

Diversified Portfolio

A diversified portfolio across healthcare facilities mitigates sector-specific risks and capitalizes on the growing demand for healthcare services.

Positive Free Cash Flow Growth

Positive free cash flow growth indicates the company's ability to generate cash from operations, supporting reinvestment and debt servicing.

Negative Factors

Declining Revenue

A significant decline in revenue suggests challenges in maintaining market position and could impact long-term financial health if not addressed.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and could strain financial resources, affecting future growth and shareholder returns.

Cash Flow Management Issues

Issues in converting earnings into cash suggest potential liquidity challenges, which may limit the company's ability to invest in growth opportunities.

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 rental income from its leased healthcare properties. The company enters into long-term lease agreements with healthcare operators, who utilize the facilities for their services. Additionally, HCW may benefit from property appreciation and potential capital gains when selling assets. The company's revenue model is bolstered by its strategic partnerships with reputable healthcare providers and operators, ensuring stable occupancy rates and consistent cash flow. Furthermore, HCW may engage in property development and redevelopment projects, expanding its asset base and creating additional revenue opportunities.

HealthCo Healthcare & Wellness REIT Financial Statement Overview

Summary

HealthCo Healthcare & Wellness REIT faces challenges with declining revenue and profitability, impacting its financial performance. The income statement shows a concerning trend with declining revenue and profitability, while the balance sheet reflects moderate financial stability. Cash flow management requires attention.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. The company experienced a significant revenue decline of 13.26% in the latest year, and the net profit margin turned negative, indicating losses. The gross profit margin remains relatively strong, but the negative EBIT and EBITDA margins highlight operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability with a manageable debt-to-equity ratio of 0.57. However, the return on equity is negative, indicating inefficiencies in generating returns for shareholders. The equity ratio is healthy, suggesting a solid asset base relative to liabilities.

Cash Flow

Cash flow analysis reveals mixed results. While there is positive free cash flow growth, the operating cash flow to net income ratio is low, suggesting potential issues in converting earnings into cash. The free cash flow to net income ratio is stable, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	53.00M	53.00M	64.00M	40.20M	24.46M
Gross Profit	36.10M	36.10M	47.00M	24.30M	16.31M
EBITDA	36.10M	-64.10M	49.40M	33.80M	52.93M
Net Income	-88.80M	-88.80M	6.90M	20.20M	49.61M
Balance Sheet
Total Assets	1.27B	1.27B	1.44B	1.72B	693.60M
Cash, Cash Equivalents and Short-Term Investments	40.50M	40.50M	19.90M	7.60M	2.69M
Total Debt	448.30M	448.30M	481.10M	703.70M	22.29M
Total Liabilities	478.30M	478.30M	521.50M	766.20M	39.51M
Stockholders Equity	788.00M	788.00M	912.60M	951.20M	654.09M
Cash Flow
Free Cash Flow	23.30M	18.30M	6.40M	888.90M	-473.92M
Operating Cash Flow	23.30M	18.30M	6.40M	11.10M	19.96M
Investing Cash Flow	78.90M	83.90M	41.50M	-961.90M	-522.47M
Financing Cash Flow	-81.60M	-81.60M	-35.60M	944.10M	501.58M

HealthCo Healthcare & Wellness REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 0.72 is below the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.75, and below the 200-day MA of 0.77, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 61.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
SRV	71 Outperform	AU$673.21M	12.53	24.81%	3.97%	11.19%	34.96%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DXC	64 Neutral	AU$391.23M	9.94	7.93%	7.46%	-3.97%	1057.09%
WOT	56 Neutral	AU$88.97M	-18.17	-2.01%	3.95%	-5.21%	-14350.00%
HCW	54 Neutral	AU$418.13M	-4.69	-10.44%	11.21%	-16.67%	-1419.67%
COF	53 Neutral	AU$669.02M	-33.69	-1.91%	8.63%	-4.50%	88.28%
AOF	49 Neutral	AU$61.64M	-1.73	-23.55%	15.14%	-68.24%	42.03%

HealthCo Healthcare & Wellness REIT Corporate Events

HealthCo REIT Updates Operations Amid Healthscope Transition

HealthCo Healthcare & Wellness REIT announced updates on its capital management and tenant agreements, emphasizing efforts to maintain financial stability amid ongoing transitional challenges with Healthscope. Healthscope remains compliant with leasing obligations, while HCW proactively prepares to finalize lease agreements with alternative tenants for its hospital assets should the Healthscope sale process not meet terms. Additionally, HCW has implemented strategic asset sales generating $76.8 million in proceeds to ensure adequate liquidity and balance sheet strength. As a further measure to preserve liquidity, HCW will temporarily suspend quarterly distributions until the Healthscope situation is resolved, reflecting their operational focus and financial prudence.

The most recent analyst rating on (AU:HCW) stock is a Hold with a A$0.85 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 Secures Full Rent Collection and Prepares for Tenant Transition

HealthCo Healthcare & Wellness REIT announced that all deferred rent from Healthscope for the May-October 2025 period has been fully paid, including the rent for November 2025. The company has entered into conditional agreements with alternative tenants for its 11 hospitals, ensuring continuity of service and maintaining jobs, should the current Healthscope sale process not yield satisfactory lease arrangements. Additionally, HCW reported a strong financial position with a pro-forma cash and undrawn debt of $137.5 million as of June 2025, and a gearing ratio below its target range. The portfolio occupancy stands at approximately 99%, with Healthscope contributing 59% of total income.

The most recent analyst rating on (AU:HCW) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on HealthCo Healthcare & Wellness REIT stock, see the AU:HCW Stock Forecast page.