The below mentioned healthcare stocks are trading close to their 52 weeks high prices. Let’s take a quick look at the recent financial and operational performances of these stocks.
CSL Limited (ASX: CSL)
Global biotechnology company, CSL Limited (ASX: CSL) with its two businesses i.e., CSL Behring and Seqirus, is involved in the research, development, manufacture, marketing and distribution of biopharmaceutical and allied products in the global markets. CSL Behring is a global leader in biotherapies with broadest range of quality products, whereas Seqirus is one of the world’s leading influenza vaccine companies.
The financial year 2019 has proven to be a strong year for CSL Limited (ASX: CSL) with revenue growth of 11% and profit after tax growth of 17%. During the year, the company witnessed strong growth in its core immunoglobulin and albumin therapies and witnessed high patient demand for specialty products Haegarda and Kcentra.
As a result of strong demand for Privigen® (10% liquid Ig) and Hizentra® in FY19, CSL Behring’s Immunoglobulin (Ig) product sales grew by 16% (constant currency basis) to US$3,543 million. CSL Behring’s witnessed a growth of 11% in its total sales which reached to US$7,187 million. North America region contributed 48% in the total sales CSL Behring, up 11% on last year.
Region-wise Contribution of CSL Behring’s Sales (Source: Company Reports)
Increased usage for chronic therapies as well as increased awareness & diagnosis were the major demand drivers of Immunoglobulin product sales.
In FY19, Seqirus witnessed a revenue growth of 12% with total Product Sales growth of 14%.
The company’s Board has determined a final dividend of US$1.00 per ordinary share, unfranked, taking the total dividend for 2019 to US$1.85 per share.
In the medium term, the company is expecting to continue to grow through the development of differentiated plasma-derived and recombinant products and over the longer term it is planning to develop new products which are protected by its own intellectual property and which are high margin human health medicines.
These strategies are supported by CSL’s research and development strategy that comprises five Therapeutic Areas:
- Immunology & Neurology – support and enhance the current portfolio with improved patient convenience, yield improvements, expanded labels and new formulation science;
- Haematology & Thrombosis – support and enhance the current portfolio with new plasma-derived products, recombinant coagulation factors and coagulation research;
- Respiratory – explore new opportunities for plasma-derived respiratory therapies and develop new therapies for significant unmet medical needs;
- Transplant – expand the use of speciality plasma-derived products and investigate novel technologies in the area of transplantation; and
- Cardiovascular & Metabolic – explore new plasma-derived opportunities for treatment of acute coronary syndrome, as well as novel biotechnology therapies for treating diabetes.
CSL group reported cashflow from operations of US$1,644 million, down 14% on pcp. For FY19, the group reported total revenue of US$8,539 million and gross profit of US$4,777 million.
On the stock performance front, CSL’s stock has provided a return of 17.95% in the past six months, as on 13 August 2019. At market close on 14 August 2019, the CSL’s stock was trading at a price of A$234, up 6.06% intraday, with a market capitalisation of circa A$99.46 billion. CSL is trading near to its 52 weeks high price of $235.655.
ResMed INC (ASX: RMD)
Global leader in remote monitoring software, ResMed INC (ASX: RMD) reported Net revenue US$2,606.6 million in FY19, up 11% on FY18. The company’s Gross profit increased to US$1,536.6 million in FY19, up 13% on pcp.
During FY19, the company introduced AirFit P30i, ResMed’s second top-of-head connected CPAP mask and expanded Brightree’s suite of HME solutions.
For the fourth quarter of FY19, the company declared a quarterly cash dividend of $0.39 per share, up 5% on previous quarter.
On the stock performance front, RMD’s stock has provided a return of 39.97% as on 13 August 2019. At market close on 14 August 2019, the RMD’s stock was trading at a price of A$19.870, up 2.423% intraday, with a market capitalisation of circa A$21.81 billion. Like CSL, RMD is also trading near to its 52 weeks high price of A$19.870.
Six months Price Performance Chart of RMD (Source: ASX)
Ramsay Health Care Limited (ASX: RHC)
Recently in May 2019, Ramsay Health Care Limited (ASX: RHC) announced the resignation Mr. Bruce Soden from the position Group Finance Director and Chief Financial Officer (CFO) of the company. Ramsay Health Care is now searching for its new CFO. The company has recently appointed highly experienced Ms. Henrietta Rowe for the role of Group General Counsel and Company Secretary. Ms. Rowe will be stepping into the shoes of Mr. John O’Grady, who is going to retire in August 2019.
For the half year ended 31 December 2019, the company reported Core net profit after tax of $290.8 million, up 1% on pcp. The company also reported Core earnings per share 140.6 cents, up 1.2% on pcp.
On the stock performance front, RHC’s stock has provided a return of 20.94% as on 13 August 2019. At market close on 14 August 2019, the RHC’s stock was trading at a price of $71.090, up 0.31% intraday, with a market capitalisation of circa $14.32 billion. RHC is also trading near to its 52 weeks high of $74.120. RHC has an annual dividend yield of 2.07% and a PE multiple of 35.680x.
Sonic Healthcare Limited (ASX: SHL)
In the first half of FY19, Sonic Healthcare Limited (ASX: SHL) reported revenue growth of 9% and Underlying EBITDA growth of 7%. For the half year period, the company reported strong performance in US, Australian and Swiss laboratory operations. The company currently has a market capitalization of circa $13.34 billion with 474.08 million outstanding shares.
H1 FY 2019 highlights:
- Completion of Aurora Diagnostics acquisition;
- Progressive dividend policy maintained;
- Organic revenue growth 4.5% constant currency;
- Net profit growth 7% (adjusted for one-off tax gain in previous year);
- Cash generated from operations up 5%, with 101% conversion of EBITDA to cash flow.
H1 FY19 Snapshot (Source: Company Reports)
Following the acquisition of Aurora Diagnostics, the company has upgraded its Full-year earnings guidance to 6-8% underlying EBITDA growth.
At market close on 14 August 2019, SHL’s stock was trading at a price of $28.190, very near to its 52 weeks high price of $28.660. In the past six months, SHL’s stock has provided a return of 18.94% as on 13 August 2019. SHL’s stock is trading at a PE multiple of 25.480x and an annual dividend yield of 2.92%.
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