tiprankstipranks
Trending News
More News >
Healius Limited (AU:HLS)
ASX:HLS

Healius Limited (HLS) AI Stock Analysis

Compare
44 Followers

Top Page

AU

Healius Limited

(Sydney:HLS)

Rating:45Neutral
Price Target:
AU$1.00
▲(14.94%Upside)
The overall stock score of 45 reflects Healius Limited's current financial struggles and bearish technical indicators. The most significant factor is the company's financial performance, characterized by negative profitability metrics and increased leverage. Technical analysis supports this view with indicators pointing to a downtrend. Valuation concerns due to a negative P/E ratio further weigh on the score.

Healius Limited (HLS) vs. iShares MSCI Australia ETF (EWA)

Healius Limited Business Overview & Revenue Model

Company DescriptionHealius 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 MoneyHealius Limited generates revenue primarily through its diagnostic services, including pathology and imaging. The pathology division is a significant contributor to its earnings, providing essential laboratory services to hospitals, clinics, and private patients. The imaging division offers comprehensive diagnostic imaging services such as X-rays, MRIs, and CT scans. Additionally, Healius operates day hospitals, which provide outpatient and short-stay medical procedures. The company's earnings are bolstered by partnerships with medical professionals and healthcare facilities, as well as contracts with government and private health insurers, which secure a steady flow of patients and ensure reimbursement for services rendered. Healius' focus on operational efficiency and strategic acquisitions also plays a role in its revenue generation.

Healius Limited Financial Statement Overview

Summary
Healius Limited faces significant profitability challenges with declining revenue growth and negative net profit margins, indicating financial distress. Despite a moderate balance sheet and some positive cash flow generation, the company's high leverage and negative return on equity raise concerns about financial risk and future sustainability.
Income Statement
45
Neutral
Healius Limited has faced declining revenue, with a Revenue Growth Rate of 2.31% from 2023 to 2024, indicating stagnation compared to previous years. The Gross Profit Margin stands at 31.00% for 2024, showing some efficiency in generating profit from sales, but the Net Profit Margin is significantly negative at -36.98% due to substantial net losses, which is a red flag for profitability. The EBIT Margin of 3.75% reflects limited operating efficiency, while a negative EBITDA Margin suggests challenges in covering operating expenses without considering depreciation and amortization.
Balance Sheet
50
Neutral
The Balance Sheet indicates a moderate level of financial stability. The Debt-to-Equity Ratio has increased to 1.53 in 2024, suggesting higher leverage and potential risk if earnings do not improve. However, the company maintains an Equity Ratio of 34.89%, indicating that a substantial portion of assets is financed by equity. Return on Equity is currently negative at -62.05%, highlighting the company's struggle to generate returns for shareholders amid net losses.
Cash Flow
60
Neutral
Healius Limited demonstrates some strength in cash flow generation, with Operating Cash Flow to Net Income Ratio at -0.37, reflecting better cash flow management than net income suggests. The Free Cash Flow to Net Income Ratio is -0.27, indicating that despite net losses, the company is generating positive free cash flow. However, Free Cash Flow Growth Rate is negative at -24.54%, showing a decline in cash available for expansion and debt reduction.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
1.56B1.75B1.71B2.29B1.90B1.56B
Gross Profit
461.90M1.52B341.70M779.20M526.50M343.60M
EBIT
408.60M65.50M94.90M474.10M255.40M86.10M
EBITDA
77.80M-298.10M-57.80M734.80M470.40M300.80M
Net Income Common Stockholders
-22.80M-645.80M-374.60M307.90M43.70M-70.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
85.70M60.10M115.30M81.30M70.10M137.50M
Total Assets
3.02B2.98B3.65B4.14B3.78B4.59B
Total Debt
1.62B1.60B1.77B1.78B1.44B1.75B
Net Debt
1.53B1.54B1.65B1.70B1.37B1.61B
Total Liabilities
1.97B1.94B2.15B2.22B1.92B2.66B
Stockholders Equity
1.05B1.04B1.51B1.92B1.86B1.93B
Cash FlowFree Cash Flow
292.70M173.80M230.30M480.30M432.00M307.80M
Operating Cash Flow
338.50M237.80M306.40M573.80M493.30M380.20M
Investing Cash Flow
-56.50M-63.00M67.30M-401.70M386.90M-121.90M
Financing Cash Flow
-251.40M-259.00M-339.70M-163.50M-952.10M-233.60M

Healius Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.87
Price Trends
50DMA
1.02
Negative
100DMA
1.01
Negative
200DMA
1.08
Negative
Market Momentum
MACD
-0.05
Positive
RSI
28.58
Positive
STOCH
9.08
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 0.87 is below the 20-day moving average (MA) of 1.00, below the 50-day MA of 1.02, and below the 200-day MA of 1.08, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 28.58 is Positive, neither overbought nor oversold. The STOCH value of 9.08 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

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
53
Neutral
$5.25B3.24-45.38%2.81%16.79%-0.06%
AUHLS
45
Neutral
€628.10M-4.46%-7.82%98.08%
$2.96B22.016.45%2.46%
$11.50B47.3520.61%1.58%
$5.62B1,000.000.52%2.40%
AUSHL
70
Outperform
AU$12.74B23.296.86%4.03%10.15%6.20%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:HLS
Healius Limited
0.87
-0.14
-13.52%
ANSLF
Ansell
18.00
1.23
7.33%
CHEOF
Cochlear
174.30
-41.82
-19.35%
RMSYF
Ramsay Health Care
23.73
-8.34
-26.01%
AU:SHL
Sonic Healthcare Limited
26.60
2.82
11.86%

Healius Limited Corporate Events

Perpetual Limited Ceases to be Substantial Holder in Healius Limited
May 29, 2025

Healius Limited announced that Perpetual Limited and its related bodies corporate have ceased to be substantial holders in the company as of May 27, 2025. This change in shareholding could impact Healius’s market dynamics and stakeholder relationships, as substantial holders often influence company decisions and strategic directions.

The most recent analyst rating on (AU:HLS) stock is a Hold with a A$1.65 price target. To see the full list of analyst forecasts on Healius Limited stock, see the AU:HLS Stock Forecast page.

Healius Limited Strengthens Leadership with New Company Secretary Appointment
May 29, 2025

Healius Limited has announced the appointment of Kylie Brown as a Company Secretary, effective 29 May 2025. This strategic appointment, alongside the continued service of Stephen Humphries and Gillian Nairn in their respective roles, reinforces Healius’s commitment to maintaining robust communication and compliance with ASX Listing Rules, potentially enhancing its operational efficiency and stakeholder confidence.

The most recent analyst rating on (AU:HLS) stock is a Hold with a A$1.65 price target. To see the full list of analyst forecasts on Healius Limited stock, see the AU:HLS Stock Forecast page.

Healius Limited Announces Substantial Holder Interest Change
May 21, 2025

Healius Limited has announced a change in the interests of a substantial holder, with State Street Corporation and its subsidiaries adjusting their voting power in the company. This update reflects the dynamic nature of shareholder interests and could influence the company’s governance and decision-making processes.

The most recent analyst rating on (AU:HLS) stock is a Hold with a A$1.65 price target. To see the full list of analyst forecasts on Healius Limited stock, see the AU:HLS Stock Forecast page.

Spheria Reduces Stake in Healius Limited
May 9, 2025

Healius Limited has experienced a change in the interests of its substantial holder, Spheria Asset Management Pty Ltd, which has decreased its voting power from 8.59% to 7.34%. This change reflects a reduction in the number of shares held by Spheria, impacting the company’s shareholder dynamics and potentially influencing future decision-making processes within Healius.

Healius Limited Announces New Dividend Distribution
May 5, 2025

Healius Limited has announced a new dividend distribution for its shareholders, with a distribution amount of AUD 0.413 per share. The ex-date for the dividend is set for May 9, 2025, with a record date of May 12, 2025, and payment scheduled for May 23, 2025. This announcement reflects Healius Limited’s ongoing commitment to delivering value to its shareholders and may positively impact its market positioning by reinforcing investor confidence.

Healius Limited Declares Special Dividend and Secures New Debt Facility
May 5, 2025

Healius Limited has announced a fully franked special dividend of 41.3 cents per share, amounting to approximately $300 million, with key dates set for May 2025. Additionally, the company has secured a new $300 million syndicated bank facility to replace its existing $680 million facility, aiming to be in a net cash position by the end of the fiscal year, reflecting a strategic move to optimize financial operations and maintain industry competitiveness.

Healius Completes Sale of Lumus Imaging, Refocuses on Pathology
May 1, 2025

Healius Limited has completed the sale of Lumus Imaging to Affinity Equity Partners for $822 million, allowing Healius to focus on its pathology strategy and streamline operations. The transaction will enable Healius to pay a special dividend and provide transitional services to Lumus Imaging for up to eighteen months, ensuring a smooth transition for both the company and its patients.

Healius Limited Updates CEO Employment Terms and Incentive Structure
Apr 27, 2025

Healius Limited has announced changes to the employment terms of its CEO, Paul Anderson, transitioning his role to permanent ongoing employment and increasing his fixed annual remuneration. The CEO’s incentive arrangements for FY27 will align with other key management personnel, including short-term and long-term incentives, reflecting a strategic move to enhance leadership stability and align executive compensation with company performance goals.

Healius Limited Finalizes Sale of Lumus Imaging to Affinity Equity Partners
Apr 17, 2025

Healius Limited has announced the unconditional sale of its Lumus Imaging division to Affinity Equity Partners, with the completion date set for May 1, 2025. This strategic move, following the fulfillment of all conditions including regulatory approvals, is expected to impact Healius’s operations by allowing it to focus more on its core diagnostics services, potentially enhancing its market positioning and value for stakeholders.

Healius Limited Hosts Investor Day with Webcast and In-Person Attendance
Mar 26, 2025

Healius Limited announced the details of its Investor Day, which took place on March 27, 2025, both via webcast and in-person at UBS in Sydney. The event faced a minor issue with webcast registration confirmations, which omitted the webcast link, highlighting the company’s commitment to transparency and stakeholder engagement.

Healius Limited Discusses Future Prospects at Investor Day 2025
Mar 26, 2025

Healius Limited held its Investor Day 2025, focusing on its financial results and business prospects. The presentation included forward-looking statements, highlighting potential risks and uncertainties such as regulatory decisions, competitive changes, and cost fluctuations that could impact the company’s future outcomes.

Perpetual Limited Reduces Stake in Healius Limited
Mar 19, 2025

Perpetual Limited has reduced its substantial holding in Healius Limited from 9.785% to 8.784%, reflecting a decrease in voting power. This change in shareholding may impact Healius’ market dynamics and influence stakeholder perceptions, as substantial holders play a significant role in company governance and strategic decisions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.