Samso Healthcare Radar - Weekly Review - Time for ASX Investors to Take Position?
- Noel Ong
- 2 days ago
- 22 min read
The timing may be now for investors to take notice and understand the ASX Healthcare sector, as some signs are showing that a counter-cyclical opportunity may be in play in 2025. Timing is the key, and this Samso Radar Weekly Review may be the beginning of the understanding process.
This is our second Samso Radar - Weekly Review, and this week we are looking at the Health Care sector on the ASX. Over the years, Samso has been focusing on the mineral resource small-cap sector on the ASX, and with our new evolution in 2025, we are spreading our wings to create more balanced content over more sectors on the ASX.
The health care sector on the ASX frequently resembles a battleground of hopefuls—innovative companies that are both advancing boundaries and contending with regulatory frameworks, clinical data challenges, and market scepticism. However, occasionally, you encounter those rare small-cap companies that are not only enduring the chaos but are also driving significant progress.
As we slowly work through the blog, you will start to develop a picture of Samso and feel that investors should be taking some notice of the ASX Healthcare sector now. It's all about the counter-cyclical way of investing.
On the Australian Securities Exchange (ASX), the Health Care sector is defined as comprising companies whose primary business activities are related to:
Providing medical services, manufacturing medical equipment or drugs, and facilitating the provision of health care to patients.
This sector includes a wide range of businesses, typically grouped into two main industry groups under the Global Industry Classification Standard (GICS) used by the ASX:
1. Health Care Equipment & Services
This includes companies involved in:
Medical equipment production (e.g., diagnostic devices, surgical instruments)
Health care services such as hospitals, clinics, diagnostics labs, and aged care providers
Distribution of medical products
Examples: CSL Limited (ASX: CSL), Sonic Healthcare (ASX: SHL), Ramsay Health Care (ASX: RHC)
2. Pharmaceuticals, Biotechnology & Life Sciences
This includes companies engaged in:
Drug discovery and development
Biotech research and diagnostics
Nutraceuticals and health-related supplements
Clinical trials and regulatory approval
Summary Definition - ASX Healthcare Sector
ASX Health Care Sector: Companies engaged in the development, manufacturing, distribution, or provision of medical or health-related products and services—including biotechnology, pharmaceuticals, medical devices, hospitals, and diagnostics.
Samso's Picks for Discussion This Week.
Over the past few months, I have been focusing on the next wave of globally disruptive business, and that is AI. I have been exposing myself to the realms of AI to better understand what developments have been in the business environment.
One of the key categories for my search to gain new insights is to discover where AI is used to help the human species, other than making money. This search has led to a review of companies in the Health Care sector on the ASX, where their business focuses on AI.
The goal is to identify companies currently in the market and perform a quick analysis of their business and potential as an investment opportunity for retail investors. What better method to discuss AI than by utilising ChatGPT to generate a list for our evaluation?
According to ChatGPT, these companies signify a rising trend of incorporating AI into healthcare services to tackle the challenges linked to an ageing population. Their innovations are designed to enhance the quality of care, increase operational efficiency, and promote independent living for seniors.
InteliCare specializes in AI-powered home monitoring solutions for seniors. Their platform utilizes smart sensors and predictive analytics to detect changes in daily routines, enabling early intervention and supporting independent living. The company has formed partnerships with aged care providers like Hardi Aged Care and Bolton Clarke to implement its technology in residential settings.
PainChek has developed a clinically validated smartphone application that uses AI to assess pain levels in individuals who cannot communicate effectively, such as those with dementia. The app analyses facial expressions to detect pain, facilitating better pain management in aged care facilities.
CARETEQ offers assistive living technologies, including AI-driven medication management systems. In partnership with StrongRoom AI, CARETEQ aims to digitize medication records in aged care facilities, enhancing compliance and reducing errors.
Alcidion provides healthcare analytics and informatics solutions that incorporate AI for clinical decision support. Their platforms are used across hospitals and aged care facilities to improve patient outcomes through real-time data analysis and predictive insights.
Beamtree focuses on health data analytics, offering AI-powered decision support tools like RippleDown. These tools assist clinicians in making informed decisions, which is particularly beneficial in managing the complex care needs of the elderly.
Sonic Healthcare has invested in AI through its joint venture with Harrison.ai, forming Franklin.ai. This collaboration aims to develop AI solutions for pathology, enhancing diagnostic accuracy and efficiency, which can indirectly benefit aged care by improving disease detection and management.
What Does It Mean for Shareholders, Investors, and the End User?
The question for us is to discover how effective these innovations are or will be for practical uses in the real world. The challenge for the "truth" of the effectiveness or the practical use by the end user, the ultimate proof of concept, can be difficult, as we all know. The strength of the bank balance and the funding required to allow that process to happen will ultimately determine success.
This truth is, in many ways, shrouded in mystery, as the lack of funding could limit the success of the innovation, and the acceptance from shareholders to increase their exposure could halt the progression of the innovation. Does that mean that the innovation is not successful? Does the halting of further work mean that the technology will not work?
This leads to the next part of the equation: Is the market loving the concept? Is the market supporting its long-term potential viability?
Market Acceptance
Let's have a look at what the market thinks about each of these companies. These companies we are reviewing were not picked to highlight anything other than that they have their business in the AI realm and are in the Health Sector on the ASX. My intention is to show where they are in the market and whether their innovations are accepted by the market forces, which, ultimately, for a publicly listed company, is the ultimate litmus test.
This will be a lengthy review, so please use the links below to navigate yourself through the review:
1.0 InteliCare Holdings Ltd (ASX: ICR)
InteliCare Holdings Ltd (ASX: ICR) is an Australian technology company specializing in AI-driven predictive analytics solutions for the aged care, disability, and healthcare sectors. Established in 2016 and headquartered in Leederville, Western Australia, the company offers a Software-as-a-Service (SaaS) platform designed to enhance independent living and support caregivers through real-time monitoring and data insights.
1.1 Core Technology and Offerings
InteliCare's platform integrates smart home sensors, wearable devices, and AI algorithms to monitor various aspects of an individual's daily life, including:
Activity Levels: Tracking movement patterns to identify deviations that may indicate health issues.
Behavioral Patterns: Analysing routines to detect anomalies.
Health Metrics: Monitoring vital signs and other health indicators.
Sleep Patterns: Assessing sleep quality and duration.
The system provides caregivers and healthcare providers with 24/7 access to live health and well-being data, enabling proactive interventions and personalised care plans.
1.2 Industry Applications
InteliCare's solutions are utilized across various settings:
Residential Aged Care: Enhancing resident safety and care quality.
Home Care: Supporting independent living with remote monitoring.
Disability Support Services: Providing tailored monitoring solutions.
Notably, the company has partnered with organisations like Hardi Aged Care and Mecwacare to implement its technology in multiple facilities, aiming to improve care delivery and operational efficiency.
1.3 Market Situation
When we look at the market participation of ICR, it is not a pretty picture. The declining share price (Figure 1 and Figure 2) would not make shareholders happy. However, for the mature small-cap investors, this also smells of opportunity. The company is struggling with cash flow, and the profit-loss balance is on the wrong side for now.
Figure 1: ICR Life Time Share Price Chart as of the 13th June 2025. (source: commsec)
The stock reached its 52-week high of A$0.027 in July 2024 and hit a low of A$0.005 in June 2025. ICR share performance is obviously, from the shareholders' point of view, underperforming compared to the Australian healthcare services sector, which saw a 102.9% return. To make the pain worse, when the share performance of ICR is compared to the broader Australian market, which returned 6.8% over the same period, shareholders and potential shareholders must want to ask some questions.
Figure 2: ICR Share Price Chart for the last 12 months as of the 13th June 2025. (source: commsec)
Over the past 12 months, InteliCare Holdings Ltd (ASX: ICR) has experienced a significant decline in its share price (Figure 2). As of June 2025, the stock is trading at approximately A$0.006, marking a decrease of about 33% from its price a year earlier.
There have been some highlights over the last 2 months for InteliCare Holdings Ltd (ASX: ICR), and how they have affected the share price decline would make an interesting discussion for all the stakeholders involved in ICR.
1. Strategic Partnerships and Deployments:
In January 2025, InteliCare announced the commencement of deployment planning for its platform with Hardi Aged Care, signalling a strategic move into aged care services.
In April 2025, the company entered into an agreement with Mecwacare, a Victorian aged care provider, to trial its AI-powered care platform.
2. Financial Reports and Performance:
The company's Quarterly Operations Report and Appendix 4C Cash Flow Report, released on April 30, 2025, highlighted ongoing operational activities and financial positions.
Earlier, in February 2025, InteliCare released its Interim Financial Report, providing insights into its financial health and performance metrics.
3. Capital Raising and Shareholder Activities:
In August 2024, director Greg Leach participated in a placement, acquiring additional shares, indicating confidence in the company's direction.
Earlier in June 2024, InteliCare successfully raised $2 million to support its growth initiatives and convert its robust pipeline.
4. Financials:
InteliCare's share price has been volatile, with a 52-week range between A$0.005 and A$0.027.
The company reported a net loss of A$2.37 million with a revenue of A$662,000.
What all this means is that with a market capitalisation of AUD $2.92M and a clear negative cash flow position, will the business of ICR be moving much further?
2.0 PainChek Ltd (ASX: PCK)
PainChek Ltd (ASX: PCK) is an Australian health technology company that has developed the world's first regulatory-cleared medical device for automated pain assessment using artificial intelligence (AI) and facial recognition technology. The company's flagship product, PainChek®, is a mobile application designed to assess pain in individuals who are unable to communicate effectively, such as those with dementia, disabilities, or pre-verbal.
2.1 Core Technology: AI-Driven Pain Assessment
PainChek® utilizes a smartphone or tablet camera to analyze facial expressions in real-time, detecting micro-expressions associated with pain. This AI-powered analysis provides an objective pain score, enabling caregivers to assess and manage pain more accurately. The application also integrates with the Numerical Rating Scale (NRS) for individuals who can self-report, offering a comprehensive solution for pain assessment across varying communication abilities.
2.2 Applications Across Healthcare Settings
The PainChek® system is employed in various healthcare environments, including
Aged Care Facilities: Assisting in the assessment of pain for residents with cognitive impairments.
Home Care: Enabling remote monitoring and pain assessment for individuals receiving care at home.
Hospitals: Integrating with electronic health records to provide consistent pain assessments.
Infant Care: Assessing pain in pre-verbal infants through facial expression analysis.
2.3 Global Expansion and Regulatory Approvals
PainChek® has received regulatory clearance in multiple countries, including Australia, the United Kingdom, and Canada. The company has been actively pursuing U.S. FDA De Novo clearance for its adult application, with a decision anticipated in mid-2025. Successful FDA approval would grant access to the extensive U.S. aged care market, encompassing over 1.7 million beds.
2.4 Financial Highlights
Market Capitalization: Approximately AUD 73.7M
Revenue (TTM): AUD 3.03M
Net Loss (TTM): AUD 8.17M
Annual Recurring Revenue (ARR): AUD 4.8 million, with over 100,000 contracted licenses.
PainChek Ltd continues to innovate in the field of pain assessment, aiming to improve the quality of care for individuals with communication challenges. For more information, you can visit their official website:https://www.painchek.com/
2.5 Market Situation
The share price journey of Painchek Limited since 2019 is one that draws a lot of questions on the viability of the business. Looking at the list of announcements listed below, one would think this was a growing positive sentiment, but as you can see in Figure 3, at the end of October, there looks like a major selling event.
29th April 2024: Morrison Govt $5M Grant for PainChek Trial in Aged Care
27th May 2024: International Market Milestone Achieved with UK Distribution
19th June 2024: $4.15M Placement to Fast-Track International Expansion
2nd July 2024: PainChek Partners with MCRI for Infant App PainFaces Study
24th July 2024: PainChek Granted US Patent for Pain Assessment Invention
6th August 2024: Singapore Regulatory Clearance Received. Allium Agreement
5th September 2024: UK market presence building with recruitment of UK BD Head
17th October 2024: Partnership with Ward Medication for national roll out
Figure 3: PainChek Limited share price chart since 2019 as of 13th June 2025. (source: commsec)
That selling event kept going till September 2023, and a recent rise in share price fortune in January 2025 (Figure 4). There was a recent spate of announcements, which was probably initiated by the company releasing news in regards to its FDA submission and a reseller agreement with BESTMED followed by an entitlement offer to shareholders to raise AUD $5.1M, giving fresh energy to the share price.
Figure 4: PainChek Limited share price chart for the last 12 months as of the 13th June 2025. (source: commsec)
The latest interest in the company could indicate a resurgence in the investing community for the story, as there do not seem to be any company releases about any setback on the story, not that I saw anyway. The decline in stock price in 2019 most likely was a profit-taking process, and one would not blame shareholders who were in the stock prior to the run. Don't forget that the decline was on the eve of COVID, and that probably made things worse.
In Figure 3, you can see the rise after COVID, which was the post-COVID recovery curve typical of most stocks globally. Like most of the health/biotech stories, the gestation period to commercialisation is very long, and in most cases, there are no updates in between, so no news means no honey for shareholders, and we all know that investor patience is very limited.
3.0 CARETEQ Ltd (ASX: CTQ)
Careteq Limited (ASX: CTQ) is an Australian health-tech company specializing in medication management services for the health, aged, and home care sectors. The company focuses on enhancing healthcare safety and clinical outcomes through its key platforms: Embedded Health Solutions (EHS) and HMR Referrals.
3.1 Core Business Operations
Embedded Health Solutions (EHS): EHS provides comprehensive medication management services in residential aged care settings. This includes conducting Residential Medication Management Reviews (RMMRs), which involve evaluating and managing patients' medication regimens to prevent medication-related harm. EHS also offers clinical governance services to ensure compliance with healthcare standards and regulations.
HMR Referrals: This platform streamlines the process of Home Medicines Reviews (HMRs) by connecting general practitioners (GPs) with accredited pharmacists. The system facilitates electronic referrals directly from the GP's practice management software, ensuring secure and efficient communication. HMRs are critical for patients at risk of medication misadventure, as they involve a pharmacist reviewing the patient's medications to identify and resolve potential issues.
By integrating EHS and HMR Referrals, Careteq aims to create a unified medication management ecosystem that spans both residential and home care settings. This integration is expected to enhance service delivery, improve patient outcomes, and drive operational efficiencies.
3.2 Key Developments Impacting Share Price
Several significant events have influenced Careteq's share price movements:
January 2022: Careteq listed on the ASX, attracting initial investor interest.
August 2023: The company acquired the remaining 45% stake in Embedded Health Solutions Pty Ltd for AUD 2.4 million, gaining full control over its operations and solidifying its focus on medication management and clinical governance.
October 2024: Careteq divested its Sofihub business for approximately AUD 0.58 million to streamline operations and improve cash flow.
February 2025: Announced a strategic partnership with MedicAlert Foundation Australia to enhance medication safety for Australians with complex medical conditions.
March 2025: Reported its first positive EBITDA in the first half of FY25, indicating a significant step towards profitability.
3.3 Market Situation
Careteq Limited is a new player on this list, and its share price performance is not one to admire (Figure 5). It appears that the introduction to the ASX healthcare sector for CTQ has not been a good experience, but as you are noticing, there is a trend happening with this sector over the last 5 years.
Figure 5: Careteq Limited share price chart since 2022 as of the 13th June 2025. (source: commsec)
Reading the ASX releases, there do not seem to be any revelations on the business. The acquisition of Embedded Health Solutions appears to be the key product, and the recent announcement of a Strategic Partnership with Medi Alert could be the beginning of business to come.
With a market capitalisation of AUD $2.6M as of the 13th June 2025, one would have to assume that things are still very early, and from a punter's point of view, this could be what we call " A Cheap Punt". The business of medication management will become a big market as healthcare moves to more self/home management. The homecare packages that are now ingrained in Australian aged care are a prime example of where the business of medication management, either by medical practitioners or home carers, will be a focal point of business in the coming years.
Figure 6: Careteq Limited share price chart for the last 24 months as of the 13th June 2025. (source: commsec)
From an investing point of view, the steady share price over the last 18 months (Figure 6) may indicate that the market is now happy where it is, and any sellers may have already left. There was some market activity in late 2023 with the acquisition of Home Medicines Review Platform, but that led to a sell-down again in early 2024, but since then, it's been pretty steady.
4.0 Alcidion Group Ltd (ASX: ALC)
Alcidion Group Limited is an Australian health technology company dedicated to revolutionizing healthcare delivery through innovative software solutions. Founded in 2000 and headquartered in South Yarra, Victoria, Alcidion has established a significant presence in Australia, New Zealand, and the United Kingdom, serving over 400 hospitals across more than 95 healthcare organizations.
Alcidion currently has a market capitalisation of AUD $127.5M (as of 13th June 2025) and currently has a share price of AUD $0.09.
4.1 Core Offerings
At the heart of Alcidion's product suite is Miya Precision, a modular, cloud-native platform designed to enhance clinical decision-making and streamline healthcare operations. Built on the Fast Healthcare Interoperability Resources (FHIR) standard, Miya Precision facilitates seamless data integration across various healthcare systems, enabling real-time access to patient information.
Key components of Miya Precision include
Clinical Decision Support (CDS): Provides clinicians with evidence-based recommendations to improve patient outcomes.
Electronic Patient Record (EPR): Offers a comprehensive, longitudinal view of patient health information.
Patient Administration System (PAS): Manages administrative tasks such as admissions, discharges, and transfers.
Patient Flow Management: Optimizes patient movement through healthcare facilities, enhancing efficiency.
Virtual Care and Remote Patient Monitoring: Supports telehealth initiatives, allowing for continuous patient engagement outside traditional settings.
Integrated Operations Centre: Provides a centralized dashboard for monitoring and managing hospital operations.
In addition to Miya Precision, Alcidion offers other notable products:
Smartpage: A secure, smartphone and web-based communication system for hospital staff, facilitating efficient task management.
Patientrack: A bedside monitoring solution that assists in early detection of patient deterioration.
Silverlink PCS: A patient administration system acquired to expand Alcidion's EPR capabilities.
4.2 Strategic Developments
Alcidion has demonstrated a commitment to growth and innovation through strategic partnerships and product enhancements
Generative AI Integration: Collaborated with Google Cloud to incorporate generative AI capabilities into Miya Precision, aiming to reduce administrative burdens and support clinicians in decision-making processes.
UK Market Expansion: Secured a 10-year contract with North Cumbria Integrated Care NHS Foundation Trust for the deployment of Miya Precision as their Electronic Patient Record system, marking a significant milestone in Alcidion's UK expansion.
Financial Performance: As of FY24, Alcidion reported revenues of AUD 37.1 million, with 74% being recurring revenue, and maintained gross margins exceeding 86%.
4.3 Market Position
The Alcidion story started in 2000, and since that time, it has had a good following over that time (Figure 7). There was the hype of its share price high in mid-2021, but that has come back since that time and is now looking to be back on that rising journey again. Alcidion looks like a legitimate healthcare business, and like all businesses, there are the ups and downs and the constant battle with market perception and what is the reality of the business cycle.
Figure 7: Alcidion Group Limited (ASX: ALC) share price chart since its IPO in 2000 as of the 13th June 2025. (source; commsec)
Looking at the cash flow question, Alcidion has not achieved profitability over the past five fiscal years. Here's a summary of its financial performance during this period:
Net Income (FY2020–FY2024)
FY2020 (ending June 30, 2020): Net loss of approximately AUD 2.24 million.
FY2021: Net loss of approximately AUD 4.41 million.
FY2022: Net loss of approximately AUD 3.62 million.
FY2023: Net loss of approximately AUD 8.42.
FY2024: Net loss of approximately AUD 4.97 million.
These figures indicate that while Alcidion has experienced revenue growth, it has consistently reported net losses during this period. In the world of accounting, the net loss may be due to the potential that the company has been focusing on expanding its product offerings and market presence, and the increased operational costs have negatively impacted the overall profitability.
For a business that seems to be achieving a flow of product development and market penetration, as long as funding to add cash flow continues to come from the market, I see some good points to think about a potential investment in Alcidion.
5.0 Beamtree Holdings Ltd (ASX: BMT)
Beamtree Holdings Ltd (ASX: BMT) is an Australian health technology company specializing in artificial intelligence (AI) and data analytics solutions for the healthcare sector. The company provides tools that enhance clinical decision-making, automate coding processes, and improve data quality, aiming to optimize patient care and operational efficiency.
5.1 Business Overview
Beamtree's core offerings include
RippleDown: An AI-driven decision support system that automates clinical interpretations, reducing manual workload and enhancing accuracy.
PICQ (Performance Indicator Coding Quality): A tool that assesses and improves the quality of clinical coding, ensuring accurate health data for analysis and reporting.
RISQ (Record Integrity and Statistical Quality): A solution that identifies and rectifies data quality issues within health records, ensuring reliable information for decision-making.
These products are utilized by healthcare organizations in Australia and internationally, including partnerships with the UK's National Health Service (NHS) and healthcare providers in Saudi Arabia.
5.2 Key Events Impacting Share Price
Several significant events have influenced Beamtree's share price trajectory:
2021: Acquisition of Potential(x) and Ainsoff Pty Ltd, expanding Beamtree's analytics capabilities and product offerings.
2022: Secured a five-year contract with Ampath for RippleDown, valued at approximately A$10.1 million.
2022: Established contracts with four NHS hospital trusts in England to implement RippleDown, marking a significant entry into the UK market.
2024: Won a €2.3 million (approximately A$3.95 million) contract to deliver PICQ in the Republic of Ireland, further expanding its international presence.
2025: Announced strategic contract wins for autonomous coding solutions, indicating growing adoption of its AI technologies.
These developments have contributed to fluctuations in Beamtree's share price, reflecting investor response to the company's growth initiatives and market expansion.
5.3 Financial Performance (FY2020–FY2024)
Over the past five fiscal years, Beamtree has demonstrated revenue growth but has not achieved consistent profitability.
5.3.1 Net Income:
FY2020: Profit of A$0.38 million.
FY2021: Loss of A$0.39 million.
FY2022: Loss of A$4.45 million.
FY2023: Loss of A$6.91 million.
FY2024: Loss of A$5.11 million.
5.3.2 Operating Cash Flow:
FY2020: Positive A$1.05 million.
FY2021: Positive A$0.24 million.
FY2022: Negative A$2.32 million.
FY2023: Positive A$0.77 million.
FY2024: Negative A$0.49 million.
5.4 Market Conditions
Compared to the previous companies that we have reviewed, BMT has had a relatively steady journey since it was admitted to the ASX (Figure 8). Apart from the rise in interest prior to 2022, BMT would have a fairly flat curve, which is a good sign. As you read, the financial performance for BMT over the last six years has been steady, even though it is not a stellar performance in terms of numbers.
Figure 8: BMT share price since 2019 as of the 13th of June 2025. (source: commsec)
I find that reviewing companies that are based on a revenue-to-performance model, unlike those that are in the mineral resources sector, where discovery is the main feature and revenue comes later in the production stage. In many cases, companies in the small-cap "mining" sector nearly reach the "production" stage.
From an observer who is looking at a company that currently has a market capitalisation of AUD $90M, the last 24 months of trading do look like a decent time to do some serious DYOR to see if this is a viable entry price, if there is interest in taking a position in the stock.
The financials may not look flashy over the last four years from a net income point of view, but if you look at the cash flow, there are some positive years within that period. That shows to me that the business does exist, and potentially, traction is what it needs, and time in the market is required.
Notwithstanding technical breakdowns, I do think that I am seeing some trends in this sector.
6.0 Sonic Healthcare Ltd (ASX: SHL)
Sonic Healthcare Limited (ASX: SHL) is a leading global provider of medical diagnostic services, including pathology, radiology, and primary care medical services. Headquartered in Sydney, Australia, the company operates across Australia, New Zealand, the United States, Germany, the United Kingdom, Switzerland, Belgium, and Ireland. Sonic Healthcare is the largest medical laboratory provider in Australasia and Europe and ranks third in the United States.
Sonic Healthcare Limited is the big brother of the previous five companies in terms of market penetration and sustenance. Sonic has a market capitalisation of AUD $1.9B currently, and its share price is a handsome AUD $26.89 as of the 13th June 2025.
6.1 Business Overview
Sonic Healthcare's core operations encompass
Pathology/Laboratory Medicine: Providing clinical laboratory services to clinicians, hospitals, and patients.
Diagnostic Imaging/Radiology: Offering imaging services, including MRI, CT scans, and X-rays.
Primary Care Medical Services: Operating Australia's largest network of primary care medical centres through its Independent Practitioner Network (IPN).
The company's strategy focuses on combining local medical leadership with the infrastructure and resources of a global organization, ensuring high-quality and personalized healthcare services.
6.2 Key Events and Milestones
1987: Listed on the Australian Stock Exchange as Sonic Technology Australia Ltd.
1990s-2000s: Expanded through numerous acquisitions in Australia and internationally, including in New Zealand, the United States, and Europe.
2002: Acquired The Doctors Laboratory, the UK's largest private pathology practice.
2007: Entered the German market by acquiring Bioscientia Healthcare Group.
2019: Acquired Aurora Diagnostics in the United States, enhancing its presence in the American market.
2024: Announced the acquisition of German laboratory group LADR for €423 million (approximately A$698 million), aiming to strengthen its European operations.
6.3 Financial Performance (FY2020–FY2024)
Sonic Healthcare has demonstrated consistent financial performance over the past five fiscal years:
6.3.1 Revenue:
FY2020: A$6.83 billion
FY2021: A$8.75 billion
FY2022: A$9.34 billion
FY2023: A$8.17 billion
FY2024: A$8.97 billion
6.3.2 Net Profit After Tax:
FY2020: A$527.7 million
FY2021: A$1.32 billion
FY2022: A$1.46 billion
FY2023: A$684.98 million
FY2024: A$511.1 million
Looking at the numbers, it is no surprise that the spike in revenue and profit during FY2021 and FY2022 was primarily due to increased demand for COVID-19 testing services. The takeaway point here is that companies in this sector, if they gain market share, are looking at multiples of income and capital appreciation that would leave shareholders very happy.
6.3.3 Cash Flow Analysis
One would not be guessing that the cash flow for Sonic Healthcare would be anything but strong and impressive, especially when compared to those previous companies we have discussed. The list below highlights the last five years of financials.
6.3.4 Operating Cash Flow:
FY2020: A$1.36 billion
FY2021: A$2.04 billion
FY2022: A$2.23 billion
FY2023: A$1.47 billion
FY2024: A$1.07 billion
6.3.5 Free Cash Flow:
FY2020: A$1.13 billion
FY2021: A$1.77 billion
FY2022: A$1.08 billion
FY2023: A$600.9 million
FY2024: A$823.6 million
These figures indicate that Sonic Healthcare has been generating substantial cash flows, supporting its operations, acquisitions, and shareholder returns.
6.4 Market Conditions
Sonic Healthcare is the more famous brother of the last five companies reviewed. In some ways, the share price journey of Sonic Healthcare (Figure 9) is something that the previous companies would like to have, and especially if they can maintain the steady rising curve of capital appreciation for shareholders.
The growth of Sonic since its admission to the ASX in 1987 is spectacular to see; however, the decline in valuation since 2020 is interesting to see.
Figure 9: Sonic Healthcare Limited (ASX: SHL) share price over 30 years as of 13th June 2025. (source: commsec)
When you look at the sector in general, this is the obvious trend, and it is across the board and Sonic Healthcare (Figure 10) is leading the way. It would be interesting now to see if the giants of the sector will lead a recovery, and if this is a sector issue, does this mean that taking positions in the health sector during this period could be the ideal situation?
Figure 10: Sonic Healthcare Limited (ASX: SHL) share price over the last 5 years as of 13th of June 2025. (source: commsec)
Only time will tell, but understanding the business of Sonic Healthcare and why the sector trend of a downward slide in share price fortunes is happening across the sector will be high on the things-to-do list.
7.0 Samso Concluding Comments
This has been a long blog to complete, and as I write, I feel the need to complete the factual review and a discussion on the sector-wide sentiment. As I complete the arduous task of researching and then commenting on each company, I get the feeling that the general market has been experiencing a decline in the last 5 years.
There are pockets within the sector that are experiencing the opposite, but this is the same in every sector. While some are struggling to raise funds or are struggling to get their business some market traction, others are booming.
As I looked at the charts of the bigger, more common names or the better-performing stocks in the sector, I saw the same proportion of winners and losers as the other sectors. What does strike me is that it feels like the companies that are out there doing business and are doing the two-step forward and one-step back scenario are worth getting a better understanding of, and then looking for that optimum entry price.
I won't bother with more of my thoughts, but I think if you get to this stage of the blog, I want to thank you for your perseverance and your patience. Please take your time to further educate yoursel, as this review is more about bringing awareness of the sector to readers than a recommendation of the stocks discussed.
As usual, please take note of the Samso Philosophy and enjoy the journey.
The Samso Philosophy:
Stay curious. Stay sharp. And remember—digging deeper always uncovers the real value.
In Life, there is no such thing as a Free Lunch.
Happy Investing, and the only four-letter word you need to know is DYOR.
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There may be numerous paths to success in investing, but the common thread among successful individuals is that they remain committed to making informed decisions. Equip yourself with the right knowledge and tools, and you will be well on your way to achieving your financial goals.
Most importantly, investors need to be absolutely diligent in understanding their own risk-reward tolerance and capabilities. Never bite off more than you can chew. As they say, Rome wasn’t built in a day, and the Great Wall stood because it took centuries to complete.
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The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints.
Share to Grow: Your Bonus
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A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook.
If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au.
Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.
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