HealthCo Healthcare & Wellness REIT (HCW) AI Stock Analysis

• Market Cap: AU$357.61M
• Dividend Yield: 11.21%
• Average Volume (3M): 3.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• 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$55.08M

• Rating: 54 Neutral
• Price Target: AU$0.66 ▼(-2.50% 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 Health

A moderate debt-to-equity ratio (0.57) and a healthy equity ratio indicate the REIT has conservative leverage and a solid asset base. This improves resilience to interest rate moves, supports access to capital and refinancing capacity, and provides financial flexibility over the next several months.

Free Cash Flow Generation

Positive free cash flow growth and a stable free cash flow-to-net-income ratio show the business can generate cash despite earnings volatility. Durable FCF supports distributions, essential maintenance capex, and reduces near-term reliance on external funding, aiding operational continuity.

Gross Margin Strength

A relatively strong gross margin suggests core property income or rental economics remain sound. That margin provides a structural cushion to cover variable costs and enables management to focus on reducing overheads or improving occupancies to restore operating profitability over a multi-month horizon.

Negative Factors

Declining Revenue Trend

A 13.26% revenue decline signals weakening demand or tenant performance in the healthcare portfolio. Persistent top-line erosion reduces scale benefits, limits cash inflows for fixed costs, and constrains investment in property upkeep or growth, pressuring operational stability over coming months.

Negative Profitability

Negative net profit and operating margins mean core operations currently do not cover costs. If losses persist, equity value can be eroded and management may need to cut distributions, sell assets, or pursue restructuring — all of which weaken long-term financial footing over the medium term.

Weak Cash Conversion

A low operating cash flow-to-net-income ratio points to weak cash quality of earnings and timing or working capital pressures. Even with positive FCF growth, poor conversion elevates liquidity risk and could force reliance on debt or equity issuance to fund capex and distributions in the next several months.

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: Positive
• RSI: Neutral
• STOCH: Positive

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 0.68, 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 Positive momentum. The RSI at 33.99 is Neutral, neither overbought nor oversold. The STOCH value of 5.36 is Positive, 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$690.72M	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$381.59M	2.70	7.93%	7.46%	-3.97%	1057.09%
WOT	56 Neutral	AU$85.73M	-5.93	-2.01%	3.95%	-5.21%	-14350.00%
HCW	54 Neutral	AU$357.61M	-3.71	-10.44%	11.21%	-16.67%	-1419.67%
COF	53 Neutral	AU$609.28M	2.79	-1.91%	8.63%	-4.50%	88.28%
AOF	49 Neutral	AU$58.36M	-4.82	-23.55%	15.14%	-68.24%	42.03%

HealthCo Healthcare & Wellness REIT Corporate Events

HealthCo REIT Director Kelly O’Dwyer Increases Stake Under FY26 Unit Plan

HealthCo Healthcare & Wellness REIT has disclosed a change in director Kelly O’Dwyer’s holdings following her acquisition of additional units in the trust. O’Dwyer bought 23,328 fully paid ordinary units at $0.72 per unit, lifting her direct holding to 149,221 units while her indirect interest through the Jonkel Family Trust remains at 38,626 units.

The purchase represents the first tranche of a two-part acquisition under HealthCo’s FY26 voluntary non-executive director unit acquisition arrangement, implemented via the manager’s existing product disclosure framework. The transaction, which was not conducted during a closed trading period, signals ongoing alignment between the director’s interests and those of unitholders through increased equity participation.

The most recent analyst rating on (AU:HCW) stock is a Hold with a A$0.64 price target. To see the full list of analyst forecasts on HealthCo Healthcare & Wellness REIT stock, see the AU:HCW Stock Forecast page.

HealthCo Director Increases Stake Under FY26 Unit Acquisition Plan

HealthCo Healthcare and Wellness REIT has disclosed a change in the securities held by non-executive director Joseph Carrozzi AM, in line with ASX listing rule requirements. The notice details that Carrozzi, who previously held 435,612 fully paid ordinary units, acquired an additional 22,674 units on 4 March 2026 at $0.72 per unit, taking his total holding to 458,286 units.

The acquisition represents the first tranche of a two-part purchase under HealthCo’s FY26 voluntary non-executive director unit acquisition arrangement, implemented under a product disclosure framework established in 2021. The transaction was not conducted during a closed trading period, underscoring routine governance processes rather than an opportunistic trade, and signals continued alignment of board interests with those of unitholders through increased equity participation.

The most recent analyst rating on (AU:HCW) stock is a Hold with a A$0.64 price target. To see the full list of analyst forecasts on HealthCo Healthcare & Wellness REIT stock, see the AU:HCW Stock Forecast page.

HealthCo director boosts holding under FY26 unit acquisition plan

HealthCo Healthcare and Wellness REIT has disclosed a change in the securities held by director Natalie Jane Meyenn, reflecting increased alignment between board interests and unitholders. Meyenn acquired 27,537 fully paid ordinary units at $0.72 per unit on 4 March 2026, lifting her direct holding to 188,542 units.

The purchase forms the first tranche of two under the FY26 voluntary non-executive director unit acquisition arrangement, implemented via a product disclosure statement dated August 2021. The transaction, which did not involve any disposal of units or trading during a closed period, underscores ongoing director participation in the REIT’s equity-based arrangements.

The most recent analyst rating on (AU:HCW) stock is a Hold with a A$0.64 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 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.