HealthCo Healthcare & Wellness REIT (HCW) AI Stock Analysis

• Market Cap: AU$371.37M
• Dividend Yield: 11.21%
• Average Volume (3M): 3.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• 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): -0.05
• 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$0.85
• Price Target Upside: 25.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): AU$53.99M

• Rating: 54 Neutral
• Price Target: AU$0.68 ▼(-0.29% Downside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

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

Balance Sheet Stability

A debt-to-equity of ~0.57 and a healthy equity ratio indicate manageable leverage and a solid asset base. This structural balance-sheet strength supports refinancing flexibility, limits near-term solvency risk, and underpins the REIT's ability to fund operations and maintenance over the next several quarters.

Positive Free Cash Flow Growth

Reported positive free cash flow growth demonstrates the company's capacity to generate distributable cash despite earnings volatility. Sustained FCF provides a durable source to cover capex and distributions, supporting operational continuity and reducing reliance on frequent external financing needs.

Attractive Income Profile

A nearly 10% yield signals a consistent income focus and is structurally appealing to yield-seeking investors. When combined with manageable leverage and positive FCF, a high yield can help maintain investor access to capital and support long-term investor demand for the REIT's shares and debt issuance.

Negative Factors

Revenue and Profitability Decline

A >13% revenue decline and negative net margins reflect structural pressure on rent roll or occupancy and persistent cost issues. Over several months this erodes cash cushion, weakens covenant headroom, and forces management to address leasing, pricing, or cost structure to restore sustainable EBITDA and distributable income.

Negative Return on Equity

Negative ROE signals the firm's assets and capital base are not producing adequate returns, pointing to poor asset utilization or underperforming properties. Persisting ROE weakness can impair reinvestment, limit dividend sustainability, and constrain strategic options over the medium term.

Weak Operating Cash Conversion

Low conversion of accounting earnings into operating cash makes reported profits an unreliable indicator of liquidity. Structurally weak cash conversion increases dependence on external funding for capex and distributions, raising long-term financing costs and the risk of distribution cuts if the trend persists.

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 balance sheet shows moderate stability, but cash flow management requires attention. The company needs to address operational inefficiencies and improve cash conversion to enhance financial health.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	55.20M	53.00M	64.00M	40.20M	24.46M
Gross Profit	32.20M	36.10M	47.00M	24.30M	16.31M
EBITDA	5.90M	-64.10M	49.40M	33.80M	52.93M
Net Income	-100.30M	-88.80M	6.90M	20.20M	49.61M
Balance Sheet
Total Assets	1.18B	1.27B	1.44B	1.72B	693.60M
Cash, Cash Equivalents and Short-Term Investments	52.50M	40.50M	19.90M	7.60M	2.69M
Total Debt	376.60M	448.30M	481.10M	703.70M	22.29M
Total Liabilities	409.10M	478.30M	521.50M	766.20M	39.51M
Stockholders Equity	761.10M	788.00M	912.60M	951.20M	654.09M
Cash Flow
Free Cash Flow	22.70M	18.30M	6.40M	888.90M	-473.92M
Operating Cash Flow	22.70M	18.30M	6.40M	11.10M	19.96M
Investing Cash Flow	105.00M	83.90M	41.50M	-961.90M	-522.47M
Financing Cash Flow	-80.70M	-81.60M	-35.60M	944.10M	501.58M

HealthCo Healthcare & Wellness REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.69, below the 50-day MA of 0.72, and below the 200-day MA of 0.74, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 36.21 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 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
SRV	71 Outperform	AU$702.70M	4.31	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$377.45M	2.70	7.93%	7.46%	-3.97%	1057.09%
HCW	54 Neutral	AU$371.37M	-3.71	-10.44%	11.21%	-16.67%	-1419.67%
COF	53 Neutral	AU$606.30M	2.79	-1.91%	8.63%	-4.50%	88.28%
WOT	52 Neutral	AU$80.88M	-5.93	-2.01%	3.95%	-5.21%	-14350.00%
AOF	49 Neutral	AU$60.00M	-4.82	-23.55%	15.14%	-68.24%	42.03%

HealthCo Healthcare & Wellness REIT Corporate Events

HMC Capital Sets February Schedule for Half-Year Results and Investor Briefings

HMC Capital has announced the timetable for releasing half-year financial results to 31 December 2025 for its listed vehicles, including HealthCo Healthcare & Wellness REIT, with a series of result announcements and accompanying investor briefings and webcasts scheduled across February 2026. The structured program of conference calls and webcasts, supported by pre-registration and dedicated investor presentations, signals an organised investor relations push aimed at providing detailed disclosure and engagement with shareholders across HMC Capital’s platform, including the healthcare and wellness real estate portfolio.

The most recent analyst rating on (AU:HCW) stock is a Hold with a A$0.80 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 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.