Healius Limited (HLS) AI Stock Analysis

• Market Cap: AU$497.40M
• Dividend Yield: N/A
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -23.02%
• EPS Growth: 33.11%
• Country: AU
• Employees: 4,329
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.01
• Shares Outstanding: 726,132,800
• 10 Day Avg. Volume: 3,249,015
• 30 Day Avg. Volume: 2,941,962
• PEG Ratio: 0.05
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 0.66
• 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$0.77
• Price Target Upside: 12.51% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6
• EPS Forecast (FY): >-0.01
• Revenue Forecast (FY): AU$1.40B

• Rating: 46 Neutral
• Price Target: AU$0.67 ▼(-1.32% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

Overall score reflects weak financial performance (declining revenue, negative margins, high leverage) and bearish technicals (below all major moving averages with negative MACD). Valuation signals are also impaired due to negative earnings (negative P/E) with no dividend yield data to offset risk.

Positive Factors

Essential, reimbursed services

Healius delivers core diagnostic pathology and imaging services paid by government schemes, insurers and patients. Because demand is referral- and reimbursement-driven rather than discretionary, the business benefits from structurally stable revenue sources and predictable utilization over months.

Positive operating cash generation

Despite losses, Healius generates positive operating cash flow and a strong operating cash flow to net income ratio. This cash generation provides short-to-medium-term liquidity to fund operations, service working capital and bridge performance while management works on profitability fixes.

Scale and operational leverage

Healius operates high fixed-cost labs and imaging assets with collection centres and institutional contracts. That scale creates operational leverage: higher utilization and contract volumes can meaningfully improve per-test economics and margins if volumes stabilize or rise.

Negative Factors

Sustained revenue decline

A 13.8% revenue decline reflects lower volumes or pricing pressure that directly reduces utilization of fixed-cost labs and scanners. Over months this weak top-line undermines margin recovery, limits scale benefits and constrains reinvestment unless volumes or contract rates improve.

Negative profitability

A negative net margin of -11.2% signals the business is burning shareholder capital to operate. Sustained losses erode equity, limit internal funding for capex or initiatives, and may force restructuring or external capital needs if profitability is not restored in the medium term.

High financial leverage

A debt-to-equity ratio of 1.55 combined with negative returns on equity increases refinancing, covenant and interest-service risk. High leverage reduces strategic flexibility to absorb continued revenue weakness and raises the probability of financing actions if cash generation weakens further.

Healius Limited Business Overview & Revenue Model

Company Description

Healius Limited provides specialty diagnostic services to consumer and practitioners in Australia. The company operates through four segments: Pathology, Imaging, Day Hospitals, and Others. It offers diagnostic imaging services, private medical laboratory, and pathology services. It also provides cataract surgery, colonoscopy, gastroscopy, plastic and cosmetic surgery, skin cancer removal, IVF egg collection, and gynaecological surgery services under the Laverty Pathology, Dorevitch Pathology, QML Pathology, Western Diagnostic Pathology, Genomic Diagnostic, Vetpath Laboratory, Vetnostics, QML Vetnostics, TML Vetnostics, ASAP Laboratory, Abbott Pathology, TML Pathology, IQ, Pathology, Kossard, Gastrolab, and Agilex Biolabs; Lumus Imaging; and Montserrat brands. It operates 2,105 pathology sites; 11 day hospital sites; and 134 imaging sites. The company was formerly known as Primary Health Care Limited and changed its name to Healius Limited in December 2018. Healius Limited was incorporated in 1994 and is based in Sydney, Australia.

How the Company Makes Money

Healius generates revenue primarily through its pathology and diagnostic services, which are offered to both individual patients and healthcare providers. The company operates a network of pathology laboratories and collection centers across Australia, allowing it to capture a significant share of the market for diagnostic testing. Key revenue streams include fees charged for medical tests, consultations, and specialized services such as genetic testing and imaging. Additionally, Healius has established partnerships with various healthcare providers and government entities, which further contribute to its earnings by expanding its service reach and ensuring a steady flow of patients. The company may also benefit from economies of scale as it consolidates its operations and invests in technology to enhance service efficiency and reduce costs.

Healius Limited Financial Statement Overview

Summary

Financials show material strain: revenue fell 13.8% and net margin is -11.2%, indicating ongoing losses. Leverage is high (debt-to-equity 1.55) and ROE is negative, though operating cash flow remains positive, providing some liquidity support despite declining free cash flow (-20.84%).

Income Statement

Healius Limited's income statement reveals significant challenges. The company experienced a notable revenue decline of 13.8% in the most recent year, coupled with a negative net profit margin of -11.2%, indicating substantial losses. The gross profit margin has also decreased significantly from previous years, reflecting reduced profitability. Despite these challenges, there is a slight improvement in EBIT margin, but overall, the income statement highlights a need for strategic improvements to return to profitability.

Balance Sheet

The balance sheet of Healius Limited shows a high debt-to-equity ratio of 1.55, indicating significant leverage, which could pose financial risks. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. However, the equity ratio remains relatively stable, suggesting that the company still maintains a reasonable level of equity compared to its total assets. Overall, the balance sheet indicates financial strain but also potential for stabilization.

Cash Flow

Healius Limited's cash flow statement presents mixed results. The operating cash flow to net income ratio is relatively strong, indicating good cash generation relative to net income. However, the free cash flow has declined by 20.84%, and the free cash flow to net income ratio suggests that cash generation is not sufficient to cover losses. Despite these challenges, the company maintains a positive operating cash flow, which is a positive sign for liquidity management.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.37B	1.34B	1.75B	1.71B	2.29B	1.90B
Gross Profit	331.90M	398.60M	1.52B	341.70M	779.20M	526.50M
EBITDA	206.80M	31.20M	-298.10M	-57.80M	734.80M	470.40M
Net Income	-168.80M	-151.20M	-645.80M	-367.80M	307.90M	43.70M
Balance Sheet
Total Assets	1.77B	1.78B	2.98B	3.65B	4.14B	3.78B
Cash, Cash Equivalents and Short-Term Investments	51.60M	57.20M	60.10M	115.30M	81.30M	70.10M
Total Debt	1.66B	911.80M	1.60B	1.77B	1.78B	1.44B
Total Liabilities	1.22B	1.19B	1.94B	2.15B	2.22B	1.92B
Stockholders Equity	557.10M	587.90M	1.04B	1.51B	1.92B	1.86B
Cash Flow
Free Cash Flow	124.30M	231.70M	173.80M	230.30M	480.30M	432.00M
Operating Cash Flow	174.70M	285.70M	266.80M	306.40M	573.80M	493.30M
Investing Cash Flow	734.50M	730.00M	-63.00M	67.30M	-401.70M	386.90M
Financing Cash Flow	-973.90M	-1.02B	-259.00M	-339.70M	-163.50M	-984.70M

Healius Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HLS, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.80, below the 50-day MA of 0.89, and below the 200-day MA of 0.85, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 26.13 is Positive, neither overbought nor oversold. The STOCH value of 14.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:HLS.

Healius Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	70 Outperform	AU$11.78B	21.51	6.32%	4.69%	9.44%	-0.37%
MVF	67 Neutral	AU$270.80M	17.87	10.25%	6.22%	6.65%	―
ACL	59 Neutral	AU$432.39M	16.69	18.59%	4.60%	6.73%	37.16%
IDX	55 Neutral	AU$909.42M	64.72	0.94%	2.65%	33.54%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HLS	46 Neutral	AU$497.40M	-0.91	-67.21%	―	-23.02%	33.11%
GSS	40 Underperform	AU$22.71M	-2.02	-36.16%	―	62.81%	16.37%

Healius Limited Corporate Events

Healius Appoints Bruce Robinson to Board With No Current Shareholding

Healius Limited has announced the appointment of Bruce Robinson as a director of the company, effective 2 February 2026. According to the initial director’s interest notice lodged with the ASX, Robinson currently holds no relevant interests in Healius securities and has no interests in any related contracts, indicating that he joins the board without an existing equity stake or contractual ties that could affect his independence.

The most recent analyst rating on (AU:HLS) stock is a Hold with a A$0.95 price target. To see the full list of analyst forecasts on Healius Limited stock, see the AU:HLS Stock Forecast page.

Healius Sets Date and Webcast Details for 1H26 Results Briefing

Healius Limited has announced that it will release its financial results for the first half of the 2026 financial year on 18 February 2026, followed by a webcast briefing for analysts and investors. The company will host an online presentation at 10:30 a.m. AEST on the same day, with participants able to join via a dedicated webcast and teleconference, including an opportunity to submit questions, underscoring Healius’s ongoing engagement and transparency with the investment community.

The most recent analyst rating on (AU:HLS) stock is a Hold with a A$0.95 price target. To see the full list of analyst forecasts on Healius Limited stock, see the AU:HLS Stock Forecast page.

Healius Limited Announces Board Changes with New Appointment

Healius Limited has announced significant changes to its board, with the appointment of Professor Bruce Robinson as an independent Non-Executive Director and the retirement of Professor John Mattick. Professor Robinson, a distinguished physician and academic, brings extensive experience in healthcare leadership, which is expected to enhance the board’s capabilities. This transition reflects Healius’s strategic focus on strengthening its leadership in healthcare services, particularly in genomics diagnostics, and is likely to impact its operational strategies and stakeholder relations positively.

The most recent analyst rating on (AU:HLS) stock is a Hold with a A$1.05 price target. To see the full list of analyst forecasts on Healius Limited stock, see the AU:HLS Stock Forecast page.

Healius Secures $60 Million Pathology Services Contract with Australian Defence Force

Healius Limited has secured a contract with the Australian Department of Defence to supply private pathology services to the Australian Defence Force (ADF). This contract, which begins on December 1, 2025, and spans an initial five-year period, with potential extensions, is valued at approximately $60 million. The agreement will enhance pathology access for ADF personnel through Healius’s extensive national network of laboratories and collection centers, including those in regional and rural areas. The contract emphasizes Healius’s modern digital solutions, which aim to improve service delivery for both patients and doctors, thereby strengthening the company’s industry positioning and stakeholder relationships.

The most recent analyst rating on (AU:HLS) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Healius Limited stock, see the AU:HLS Stock Forecast page.

Healius Limited Announces New Director Appointment

Healius Limited has announced the appointment of Steven Rubic as a director, effective December 1, 2025. This appointment is accompanied by an initial interest notice, indicating Rubic’s holding of 30,000 fully paid ordinary shares in the company. This move is expected to strengthen the company’s governance and potentially impact its strategic direction, aligning with its growth objectives.

The most recent analyst rating on (AU:HLS) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Healius Limited stock, see the AU:HLS Stock Forecast page.