Healius Limited (HLS) AI Stock Analysis

• Market Cap: AU$700.72M
• Dividend Yield: N/A
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -23.02%
• EPS Growth: 33.11%
• Country: AU
• Employees: 4,329
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.02
• 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$0.92
• Price Target Upside: -2.67% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: AU$1.00 ▲(5.26% Upside)

Healius Limited's overall stock score is primarily impacted by its financial performance, which shows significant challenges with declining revenues and high leverage. While technical analysis indicates some bullish momentum, the stock's valuation is unattractive due to negative profitability. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Flow Generation

Strong cash flow generation relative to net income provides liquidity and operational flexibility, supporting business continuity and investment capacity.

Market Position

A wide network of laboratories and collection centers enhances market reach and service accessibility, solidifying Healius's position in the healthcare diagnostics sector.

Partnerships and Collaborations

Strategic partnerships expand service reach and ensure a steady patient flow, enhancing revenue stability and competitive advantage in the healthcare sector.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in market demand or competitive pressures, potentially affecting long-term growth and profitability.

High Leverage

High leverage increases financial risk and limits financial flexibility, potentially impacting the company's ability to invest in growth initiatives or weather economic downturns.

Negative Profitability

Sustained negative profitability undermines financial health, necessitating strategic improvements to achieve sustainable growth and shareholder value.

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

Healius Limited faces significant financial challenges, with declining revenues, negative profitability, and high leverage. The income statement reflects substantial losses, while the balance sheet shows high debt levels. Cash flow generation remains a relative strength, providing some liquidity cushion. The company needs to address its profitability and leverage issues to improve its financial health and stability.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.34B	1.34B	1.75B	1.71B	2.29B	1.90B
Gross Profit	398.60M	398.60M	1.52B	341.70M	779.20M	526.50M
EBITDA	92.10M	31.20M	-298.10M	-57.80M	734.80M	470.40M
Net Income	-151.20M	-151.20M	-645.80M	-367.80M	307.90M	43.70M
Balance Sheet
Total Assets	1.78B	1.78B	2.98B	3.65B	4.14B	3.78B
Cash, Cash Equivalents and Short-Term Investments	57.20M	57.20M	60.10M	115.30M	81.30M	70.10M
Total Debt	911.80M	911.80M	1.60B	1.77B	1.78B	1.44B
Total Liabilities	1.19B	1.19B	1.94B	2.15B	2.22B	1.92B
Stockholders Equity	587.90M	587.90M	1.04B	1.51B	1.92B	1.86B
Cash Flow
Free Cash Flow	223.00M	231.70M	173.80M	230.30M	480.30M	432.00M
Operating Cash Flow	277.00M	285.70M	266.80M	306.40M	573.80M	493.30M
Investing Cash Flow	730.00M	730.00M	-63.00M	67.30M	-401.70M	386.90M
Financing Cash Flow	-995.60M	-1.02B	-259.00M	-339.70M	-163.50M	-984.70M

Healius Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HLS, the sentiment is Positive. The current price of 0.95 is below the 20-day moving average (MA) of 0.98, above the 50-day MA of 0.89, and above the 200-day MA of 0.88, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 32.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:HLS.

Healius Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACL	71 Outperform	AU$541.16M	16.33	18.59%	4.45%	6.73%	37.16%
MVF	67 Neutral	AU$319.50M	12.77	10.25%	6.26%	6.65%	―
SHL	64 Neutral	AU$11.13B	21.06	6.32%	4.75%	9.44%	-0.37%
IDX	55 Neutral	AU$917.40M	161.84	0.94%	2.70%	33.54%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HLS	50 Neutral	AU$700.72M	-1.31	-67.21%	―	-23.02%	33.11%
GSS	41 Neutral	AU$54.51M	-2.60	-36.16%	―	62.81%	16.37%

Healius Limited Corporate Events

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.

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.

Healius Limited Director Increases Shareholding

Healius Limited has announced a change in the director’s interest, with Paul Anderson acquiring an additional 54,431 ordinary shares through an on-market trade. This change reflects an increase in Anderson’s indirect interest in the company, potentially signaling confidence in Healius’s future performance and impacting stakeholder perceptions positively.

Healius Limited Announces Director’s Share Rights Acquisition

Healius Limited announced a change in the director’s interest, with Katherine Ostin acquiring 45,955 share rights in lieu of $40,000 in director fees for FY26. This move reflects a strategic alignment of director compensation with company performance, potentially impacting stakeholder perceptions and reinforcing the company’s commitment to aligning leadership incentives with shareholder interests.

Healius Limited Issues New Equity Securities

Healius Limited has announced the issuance of 45,955 unquoted equity securities in the form of NED Share Rights, effective November 10, 2025. This move is part of the company’s strategic financial operations, potentially impacting its market positioning and offering implications for its stakeholders.

Healius Limited Announces Director’s Share Acquisition

Healius Limited announced a change in the director’s interest, with Paul Anderson acquiring 57,471 ordinary shares through the Tuis Farm Family Trust, where he is a beneficiary. This acquisition, conducted via an on-market trade at $0.887 per share, reflects a strategic move in the company’s securities management, potentially impacting stakeholder perceptions and director alignment with shareholder interests.

Healius Limited Announces Amended Constitution Approval

Healius Limited has announced the approval of its amended Constitution by shareholders at the 2025 Annual General Meeting. This amendment, which includes the reinsertion of proportional takeover approval provisions, reflects ongoing adjustments to the company’s governance framework, potentially impacting its operational and strategic direction.

Healius Limited AGM Results: All Resolutions Passed

Healius Limited announced the results of its Annual General Meeting, where all proposed resolutions were passed by a poll. Notably, the adoption of the 2025 Remuneration Report received over 75% approval, avoiding a second strike under the Corporations Act 2001, which meant that the Conditional Spill Resolution was not required. This outcome reflects positively on Healius’s governance and stakeholder relations, reinforcing its stable position in the healthcare industry.

Healius Limited’s AGM Highlights Pathology Sector Challenges and Strategic Responses

Healius Limited’s 2025 Annual General Meeting highlighted the company’s ongoing commitment to the Australian pathology sector, emphasizing its role in modern medicine through diagnostic services. The Chair’s address acknowledged challenges such as the disparity between Medicare rebates and rising costs, indicating a need for sustainable service provision strategies. The meeting underscored Healius’s position as a key player in the industry, particularly in underserved areas, and its efforts to adapt to industry disruptions.

Healius Limited Announces Key Leadership Change

Healius Limited announced the resignation of Steven Humphries as Company Secretary and the appointment of Andrew Thomson, the Chief Financial Officer, to the role effective October 29, 2025. This change in leadership is expected to streamline operations and maintain strong communication with the ASX, with Kylie Brown and Gillian Nairn continuing their roles in managing ASX-related communications.

Healius Limited Announces Key Leadership Appointments

Healius Limited has announced the appointment of Andrew Thomson as the new Chief Financial Officer, succeeding Steve Humphries who is retiring. Thomson brings extensive experience from his previous roles in multinational businesses, which is expected to aid Healius in executing its T27 strategic plan. Additionally, Eric Swayn has been appointed as the National Laboratory Operations Manager, bringing over 25 years of experience in the Australian pathology industry. These appointments are anticipated to strengthen Healius’s operational leadership and support its strategic objectives.

Healius Limited Announces Director Change

Healius Limited announced that Michael Stanford has ceased to be a director as of September 30, 2025. The announcement details his holdings, which include 40,000 ordinary shares directly and an indirect interest in 32,468 ordinary shares held by Mrs. Sally Stanford. This change in directorship may impact the company’s governance and strategic direction.

Healius Limited Strengthens Leadership with New Director Appointment

Healius Limited announced the appointment of Christopher Hall as a director, effective from September 30, 2025. This appointment is part of the company’s strategic efforts to strengthen its leadership team, which could potentially enhance its market position and operational capabilities in the healthcare sector.

Healius Limited Announces Hybrid 2025 AGM for Enhanced Shareholder Engagement

Healius Limited has announced that its 2025 Annual General Meeting will be held on October 30, 2025, as a hybrid event, allowing shareholders to participate either in person or virtually. This approach aims to enhance shareholder engagement and accessibility, reflecting Healius’s commitment to transparency and stakeholder involvement.

Healius Limited Announces Strategic Board Changes

Healius Limited announced significant changes to its Board of Directors with the resignation of Dr. Michael Stanford and Mr. Neil Vinson, and the appointment of Mr. Steven Rubic and Mr. Chris Hall as new Non-Executive Directors. These appointments bring extensive experience in healthcare and asset management, aligning with Healius’ strategic goals and ensuring a diverse and skilled board to oversee the company’s T27 strategy, which is crucial for its future growth and market positioning.

Healius Limited Releases 2025 Corporate Governance Statement

Healius Limited has released its corporate governance statement for the financial year ending June 30, 2025. The statement, approved by the board, outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations. This disclosure is part of Healius’s commitment to transparency and accountability in its operations, potentially enhancing stakeholder trust and reinforcing its market position.

Healius Limited Reinforces Commitment to Corporate Governance in 2025 Statement

Healius Limited has released its 2025 Corporate Governance Statement, highlighting its commitment to high standards of corporate governance in alignment with ASX Recommendations. The statement outlines the company’s governance framework, emphasizing ethical conduct and social responsibility, with the Board and its committees overseeing various aspects such as risk management and remuneration.