Sonic Healthcare Limited
Sonic Healthcare Limited Fundamental Analysis
Sonic Healthcare Limited (SKHCF) shows weak financial fundamentals with a PE ratio of 17.68, profit margin of 5.19%, and ROE of 6.39%. The company generates $10.4B in annual revenue with moderate year-over-year growth of 7.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SKHCF's fundamental strength across five key dimensions:
Efficiency Score
WeakSKHCF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSKHCF shows balanced valuation metrics.
Growth Score
ModerateSKHCF shows steady but slowing expansion.
Financial Health Score
ExcellentSKHCF maintains a strong and stable balance sheet.
Profitability Score
WeakSKHCF struggles to sustain strong margins.
Key Financial Metrics
Is SKHCF Expensive or Cheap?
P/E Ratio
SKHCF trades at 17.68 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SKHCF's PEG of 4.35 indicates potential overvaluation.
Price to Book
The market values Sonic Healthcare Limited at 1.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.71 times EBITDA. This is generally considered low.
How Well Does SKHCF Make Money?
Net Profit Margin
For every $100 in sales, Sonic Healthcare Limited keeps $5.19 as profit after all expenses.
Operating Margin
Core operations generate 18.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.39 in profit for every $100 of shareholder equity.
ROA
Sonic Healthcare Limited generates $3.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sonic Healthcare Limited produces operating cash flow of $1.36B, showing steady but balanced cash generation.
Free Cash Flow
Sonic Healthcare Limited produces free cash flow of $866.12M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.75 in free cash annually.
FCF Yield
SKHCF converts 9.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.006
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How SKHCF Stacks Against Its Sector Peers
| Metric | SKHCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.68 | 28.45 | Better (Cheaper) |
| ROE | 6.39% | 763.00% | Weak |
| Net Margin | 5.19% | -45265.00% (disorted) | Weak |
| Debt/Equity | 0.86 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.01 | 2795.60 | Neutral |
| ROA | 3.17% | -16588.00% (disorted) | Weak |
SKHCF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sonic Healthcare Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.99%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-4.00%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-5.96%
Industry Style: Defensive, Growth, Innovation
Declining