Sonic Healthcare – Valuation Review

Sonic Healthcare is under Algo Engine sell conditions, however, we take the time to look at the financial outlook of the business, following yesterday’s FY19 result.

FY19 sales revenue was up 11.6% and EBIT growth increased by 10%.

Excluding any FX benefit, we expect Sonic to grow FY20 EBITDA at 6 – 8%, which will support a forward yield of 3.2%.

The stock is trading on FY20 PE of 23x earnings and we will look to buy SHL on the next Algo Engine buy signal.





Sonic Healthcare Lifts FY19 Earnings Guidance

Sonic Healthcare is one of our preferred opportunities in the current market.

We suggest accumulating the stock and looking to sell covered call options to enhance the return.

SHL has re-affirmed FY19 earnings and guidance was lifted slightly, the new earnings growth range now sits between 6- 8%.

Based on FY19 earnings, we have SHL now trading on a forward yield of 4%.

Sonic Healthcare


SHL Is Nearing Key Support

Sonic Healthcare is looking oversold and we believe buying support will build within the $21.50 – $22.50 price range.

SHL has a large percentage of their diagnostic equipment revenue based in US Dollars. As such, the company  will benefit from the lower Aussie Dollar.