Want to see SKHHY full AI Analyst Report?
Top Page
Sonic Healthcare
(OTC:SKHHY)
Select Model
Select Model
Rating:64Neutral
Price Target:
$16.00
▲(10.65% Upside)
Action:Reiterated
Date:08/22/26
Overall score is driven primarily by solid but not standout financial performance (strong growth, moderated margins/returns, and weaker cash conversion) and a constructive earnings-call backdrop tempered by meaningful near-term headwinds and conservative guidance. Valuation helps notably thanks to a strong dividend yield and reasonable P/E, while technical indicators are mixed with modest momentum but some near-term softness.
Positive Factors
Strong revenue and profit growth
Broad-based revenue and earnings growth supports Sonic’s ability to expand its diagnostic network and absorb fixed laboratory costs. Sustained top-line momentum can strengthen operating scale and provide funding for technology, capacity and strategic growth.
Negative Factors
Margin compression and weaker cash conversion
Current profitability remains below earlier peak levels, limiting the earnings benefit from revenue growth. Weaker conversion of accounting profit into free cash flow reduces flexibility for acquisitions, dividends and investment, and makes performance less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and profit growth
Broad-based revenue and earnings growth supports Sonic’s ability to expand its diagnostic network and absorb fixed laboratory costs. Sustained top-line momentum can strengthen operating scale and provide funding for technology, capacity and strategic growth.
Read all positive factors
Sonic Healthcare (SKHHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.70B
Dividend Yield5.67%
Average Volume (3M)94.93K
Price to Earnings (P/E)15.5
Beta (1Y)0.44
Revenue Growth21.18%
EPS Growth21.43%
CountryUS
Employees43,000
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)1.23
Shares Outstanding494,237,950
10 Day Avg. Volume120,639
30 Day Avg. Volume94,933
Financial Highlights & Ratios
PEG Ratio1.43
Price to Book (P/B)1.24
Price to Sales (P/S)0.96
P/FCF Ratio13.61
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.88
Revenue Forecast (FY)$7.93B
Sonic Healthcare Business Overview & Revenue Model
Company Description
Headquartered in Sydney, Australia, Sonic Healthcare Limited, established in 1934, is a global provider of medical diagnostic and healthcare services. The company delivers a comprehensive range of laboratory medicine (pathology) services, alongsid...
How the Company Makes Money
Sonic Healthcare primarily makes money by delivering diagnostic services and receiving payment for each service performed. Its two main revenue streams are: (1) Pathology/Laboratory services: revenue is generated from clinical laboratory tests suc...
Sonic Healthcare Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 22, 2027
Earnings Call Sentiment Positive
The call conveyed a predominantly positive performance picture: strong revenue, EBITDA and NPAT growth, solid organic expansion, and notable success in advanced diagnostics and M&A integration (notably Germany and Switzerland). Management also outlined proactive investments in digital transformation and clear U.S. turnaround actions expected to deliver AUD 25–30 million in FY2027 earnings. However, several near-term headwinds were emphasized, including regulatory fee cuts in Switzerland (CHF 20m), U.K. contract integration delays, software impairments and legacy IT write-downs, higher interest and capex in FY2026, FX and policy uncertainties (PAMA, GOÄ). On balance the highlights (growth, synergy capture, digital investment and disciplined capital management) outweigh the lowlights, although they limit near-term upside and keep guidance conservative.Positive Updates
Strong Top-Line and Profit Growth
Total revenue grew 13% year-on-year to AUD 10.867 billion; underlying EBITDA increased 11% to AUD 1.933 billion (AUD 1.916 billion constant currency); net profit after tax rose 17% to AUD 621 million and EPS increased 14% to AUD 1.26.
Negative Updates
Regulatory Fee Headwinds in Switzerland
Regulatory changes effective 1 July 2026 are expected to reduce FY2027 revenue in Switzerland by an estimated CHF 20 million (approximately 3% of Swiss revenue) and will directly pressure top-line and margins unless fully mitigated by synergies.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Top-Line and Profit Growth
Total revenue grew 13% year-on-year to AUD 10.867 billion; underlying EBITDA increased 11% to AUD 1.933 billion (AUD 1.916 billion constant currency); net profit after tax rose 17% to AUD 621 million and EPS increased 14% to AUD 1.26.
Read all positive updates
Company Guidance
Guidance for FY2027 is for constant‑currency EBITDA of AUD 1.95–2.03 billion (note this excludes ~AUD 30 million of back‑office IT transformation costs), with depreciation forecast at AUD 810–825 million, amortisation AUD 90–95 million, interest expense expected to rise ~6% versus FY2026 and an effective tax rate of ~27%; the guidance assumes only completed acquisitions, no future regulatory changes (PAMA fee cuts excluded), current interest rates and excludes any property sale gains. Management expects the U.S. operating review to contribute c. AUD 25–30 million to FY2027 earnings, while a Swiss regulatory fee change is estimated to reduce FY2027 revenue by CHF 20 million (≈3% of Swiss revenue); foreign‑exchange movements at current spot rates could imply a c. AUD 40–50 million headwind to group EBITDA. Capital discipline remains a priority: maintenance CapEx is around 3% of revenue (FY2026 maintenance CapEx ~AUD 351 million), property‑related CapEx is expected to fall from FY2028 levels, the medium‑term dividend payout target is 70–80% of net profit (FY2026 full‑year dividend AUD 1.08, final AUD 0.63, 60% franked), and balance‑sheet metrics include a FY2026 net debt cover ratio of 2.2 and available headroom of ~AUD 1.6 billion pre‑dividend.Sonic Healthcare Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
62
Positive
Cash Flow
57
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.71B | 9.65B | 8.93B | 7.96B | 9.31B |
| Gross Profit | 2.96B | 3.19B | 2.94B | 2.11B | 3.41B |
| EBITDA | 1.91B | 1.75B | 1.66B | 1.72B | 2.80B |
| Net Income | 595.00M | 513.60M | 511.09M | 684.98M | 1.46B |
Balance Sheet | |||||
| Total Assets | 16.78B | 16.05B | 14.83B | 13.56B | 13.11B |
| Cash, Cash Equivalents and Short-Term Investments | 653.73M | 673.77M | 645.00M | 797.99M | 780.00M |
| Total Debt | 5.84B | 5.17B | 4.52B | 3.10B | 3.01B |
| Total Liabilities | 8.29B | 7.58B | 6.75B | 5.64B | 5.68B |
| Stockholders Equity | 8.34B | 8.32B | 7.92B | 7.74B | 7.27B |
Cash Flow | |||||
| Free Cash Flow | 757.78M | 960.55M | 492.01M | 974.02M | 1.85B |
| Operating Cash Flow | 1.37B | 1.30B | 1.07B | 1.47B | 2.23B |
| Investing Cash Flow | -877.39M | -577.62M | -1.81B | -580.04M | -989.18M |
| Financing Cash Flow | -500.78M | -735.93M | 592.41M | -911.51M | -1.35B |
Sonic Healthcare Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $25.94B | 24.93 | 14.49% | 1.40% | 9.87% | 12.51% | |
69 Neutral | $25.27B | 25.91 | 11.57% | 0.91% | 6.41% | 33.31% | |
64 Neutral | $6.70B | 15.50 | 7.20% | 5.67% | 21.18% | 21.43% | |
60 Neutral | $2.23B | -9.28 | -6.31% | 0.75% | 11.19% | 50.58% | |
60 Neutral | $21.12B | -48.09 | 211.46% | ― | 42.74% | -4.60% | |
58 Neutral | $5.94B | -283.26 | -1.95% | ― | 18.92% | -37.55% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
SKHHY
Sonic Healthcare
13.58
-0.72
-5.05%
LH
Labcorp Holdings
315.31
43.96
16.20%
DGX
Quest Diagnostics
237.89
60.84
34.36%
RDNT
Radnet
75.49
1.13
1.51%
NEO
NeoGenomics
18.41
10.42
130.41%
GH
Guardant Health
167.84
112.44
202.96%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.