Current Analysis: Sonic Healthcare (SKHCF)


Image Source: PixabaySonic Healthcare (SKHCF) is a global pathology provider. It is the largest private operator in Australia, Germany, Switzerland, and the U.K., the second largest in Belgium and New Zealand, and the third largest in the U.S.In addition to pathology, which contributes roughly 85% of group revenue, Sonic is the second-largest player in diagnostic imaging in Australia and the largest operator of medical centers in Australia.The company typically earns about 40% of group revenue in Australia and New Zealand, 25% in the U.S., and 35% in Europe.Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia.Three key data points gauge Sonic Healthcare or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.SKHCF PriceOver the past year, Sonic’s share price fell about 19% from $22.29 to $18.07 as of Thursday’s market close.If Sonic shares trade in the range of $15.00 to $20.00 this next year, their recent $18.07 share price might rise to $18.50 by next year. Of course, the SKHCF price could also drop about the same $0.43 estimated amount or more.My $0.43 upside is based on the average of Sonic’s past 9-year price performance.SKHCF DividendSonic Healthcare Ltd has paid semi-annual variable dividends since September 2010, except for 2019-20. The most recent $0.28 semi-annual dividend was declared on February 20th for shareholders of record on March 1st, with payment made on March 21st. A forward-looking $0.68 annual dividend yields 3.76% at Thursday’s closing price.SKHCF ReturnsTo put it all together, a $1.11 estimated one-year gross gain per share shows up when adding Sonic’s  $0.68 estimated annual dividend to the estimated price upside of $0.43, equalling $1.11.A little over $1000 buys us 55 shares at their $18.08 share price.A $10 broker fee (if charged), paid half at purchase and half at the sale, might take about $0.18 per share out of the $1.11 annual, gross gain to give us a a net gain of $0.93 X 55 shares = $51.15 for about a 5.1% estimated net gain for the year.Furthermore, the $37.60 annual dividend income from $1K invested is over 2 times more than Sonic’s $18.08 single share price. Based on these numbers, Sonic Healthcare Ltd may be an ideal dividend dog.You might choose to pounce on SKHCF. It is a 90-year-old semi-annual dividend-paying Australia-based pathology firm with almost a 14-year record paying regular semi-annual dividends.The exact track of SKHCF’s future price and dividend will entirely be determined by market action.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Analysis: Sinopharm Group (SHTDY)
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