Sonic Healthcare Limited (SHL) AI Stock Analysis

• Market Cap: AU$13.65B
• Dividend Yield: 3.19%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.83
• Revenue Growth: 10.15%
• EPS Growth: 6.20%
• Country: AU
• Employees: 42,000
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.49
• Shares Outstanding: 494,237,950
• 10 Day Avg. Volume: 769,842
• 30 Day Avg. Volume: 1,036,851
• PEG Ratio: 4.33
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.36
• 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$30.39
• Price Target Upside: 10.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: AU$30.00 ▲(8.66%Upside)

Sonic Healthcare Limited's strong financial performance and positive earnings call contribute significantly to the overall score. The company's robust profitability, strategic growth initiatives, and effective cost management are key strengths. While the technical indicators suggest a neutral trend, the valuation remains fair, making it a balanced investment choice.

Sonic Healthcare Limited Business Overview & Revenue Model

Company Description

Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. The company provides laboratory medicine/pathology testing services, such as biochemistry, cytopathology, genetics, haematology, histopathology, immunoserology, microbiology, molecular pathology, prenatal testing, toxicology, and ancillary functions; and radiology services, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry. It also offers primary care medical services comprising general practice clinics, occupational health services, skin cancer clinics, after-hours general practice services, general practice IT solutions, and community-based healthcare services. The company operates in Australia, the United Kingdom, Ireland, the United States, Germany, Switzerland, New Zealand, Belgium, and internationally. Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia.

How the Company Makes Money

Sonic Healthcare makes money primarily through the provision of medical diagnostic services. The company's revenue model is centered on offering pathology and laboratory services, which include testing and analyzing biological samples such as blood, tissue, and other bodily fluids. These services are essential for the diagnosis and management of diseases, making them integral to healthcare systems. Key revenue streams for Sonic Healthcare include service fees charged to healthcare providers, hospitals, and patients for diagnostic tests and procedures. Additionally, Sonic Healthcare benefits from partnerships with healthcare institutions and government contracts, which ensure a steady flow of diagnostic service demand. The company's diversified geographical presence also allows it to tap into various healthcare markets, contributing to its revenue growth.

Sonic Healthcare Limited Financial Statement Overview

Summary

Sonic Healthcare Limited demonstrates strong profitability and operational efficiency, with stable margins and effective management of equity. While there is a slight increase in leverage and a recent decline in free cash flow, the company remains financially robust with well-managed resources.

Income Statement

Sonic Healthcare Limited shows a robust gross profit margin and stable net profit margins over the past years. Despite a moderate decline in revenue growth from 2022 to 2023, the company has managed to maintain strong EBIT and EBITDA margins, indicating operational efficiency and stability in its income-generating capabilities.

Balance Sheet

The company maintains a healthy debt-to-equity ratio, though it has increased recently, which could indicate higher leverage risk. Return on Equity (ROE) remains strong, demonstrating effective use of equity capital. The equity ratio shows a solid level of equity financing, contributing to financial stability.

Cash Flow

Operating cash flow remains strong, yet there has been a significant decline in free cash flow year-over-year. The company has a solid operating cash flow to net income ratio, suggesting efficient cash conversion from profits. However, the drop in free cash flow growth might indicate increased capital expenditures or reduced cash generation.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	8.93B	8.14B	9.31B	8.75B	6.56B
Gross Profit	2.33B	2.84B	3.73B	3.43B	2.20B
EBITDA	1.66B	1.72B	2.83B	2.56B	1.42B
Net Income	511.09M	684.98M	1.46B	1.32B	527.75M
Balance Sheet
Total Assets	14.83B	13.56B	13.11B	12.27B	12.63B
Cash, Cash Equivalents and Short-Term Investments	645.00M	797.99M	780.00M	899.83M	1.23B
Total Debt	4.52B	3.10B	3.01B	3.23B	4.62B
Total Liabilities	6.75B	5.64B	5.68B	5.77B	6.97B
Stockholders Equity	7.92B	7.74B	7.27B	6.38B	5.57B
Cash Flow
Free Cash Flow	492.01M	974.02M	1.85B	1.68B	1.03B
Operating Cash Flow	1.07B	1.47B	2.23B	2.04B	1.36B
Investing Cash Flow	-1.81B	-580.04M	-989.18M	-386.75M	-334.92M
Financing Cash Flow	592.41M	-911.51M	-1.35B	-1.95B	-536.74M

Sonic Healthcare Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SHL, the sentiment is Positive. The current price of 27.61 is above the 20-day moving average (MA) of 26.89, above the 50-day MA of 26.67, and above the 200-day MA of 26.83, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 69.27 is Neutral, neither overbought nor oversold. The STOCH value of 80.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SHL.

Sonic Healthcare Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	73 Outperform	AU$13.65B	24.24	6.86%	3.19%	10.15%	6.20%
Sector *	52 Neutral	$7.36B	-0.07	-63.77%	2.36%	16.35%	0.03%
PGZ	―	€318.75M	―	-4.46%	―	―	―
ACL	66 Neutral	AU$559.72M	18.52	18.39%	2.46%	7.80%	99.87%
MVF	55 Neutral	AU$296.12M	―	-0.87%	6.84%	14.24%	-109.59%
IDX	53 Neutral	AU$990.66M	109.47	1.14%	1.88%	7.83%	―
GSS	45 Neutral	AU$89.72M	―	-47.52%	―	44.61%	16.40%

Sonic Healthcare Limited Corporate Events

Sonic Healthcare Completes Acquisition of LADR Laboratory Group

Sonic Healthcare Limited has successfully completed the acquisition of LADR Laboratory Group Dr. Kramer & Colleagues, as announced earlier. This acquisition is expected to strengthen Sonic’s market position in the diagnostic services sector, potentially enhancing its operational capabilities and offering new growth opportunities.

The most recent analyst rating on (AU:SHL) stock is a Hold with a A$30.80 price target. To see the full list of analyst forecasts on Sonic Healthcare Limited stock, see the AU:SHL Stock Forecast page.

Sonic Healthcare Limited Announces Quotation of New Securities on ASX

Sonic Healthcare Limited announced the quotation of 13,833,980 ordinary fully paid securities on the Australian Securities Exchange (ASX) as part of a previously disclosed transaction. This move is expected to enhance the company’s financial flexibility and potentially improve its market position, benefiting stakeholders by increasing the liquidity of its shares.

The most recent analyst rating on (AU:SHL) stock is a Hold with a A$25.40 price target. To see the full list of analyst forecasts on Sonic Healthcare Limited stock, see the AU:SHL Stock Forecast page.

Sonic Healthcare Limited Announces Cessation of Securities

Sonic Healthcare Limited announced the cessation of 20,000 securities, identified by the ASX security code SHLAK, as of June 16, 2025. This cessation of securities may impact the company’s capital structure and could have implications for stakeholders, reflecting a strategic decision in managing their financial operations.

The most recent analyst rating on (AU:SHL) stock is a Hold with a A$25.40 price target. To see the full list of analyst forecasts on Sonic Healthcare Limited stock, see the AU:SHL Stock Forecast page.