Healius Ltd
HLS: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$1.70 | Lxsg | Btfdsbg |
Healius Earnings: Shares Undervalued as Margins Recover
No-moat Healius reported fiscal 2024 underlying revenue growth of 6% to AUD 1.7 billion and group EBIT of AUD 65 million, 3% above our forecast. The result was driven by cost and revenue initiatives in pathology with second-half group EBIT margin expanding 370 basis points on the first half to 5.5%. The firm improved its AUD 15 million net savings target for fiscal 2024 by AUD 5 million. Our long-term estimates are broadly unchanged, including our midcycle EBIT margin forecast of 14%.