- Mid-cap stocks are considered fast-growing stocks having market capitalisations varying from AU$2-AU$10 billion.
- Mid-cap shares provide investors with an opportunity for portfolio diversification as these companies offer growth and stability.
- EBOS Group, Pro Medicus, Healius and Clinuvel Pharmaceuticals are some mid-cap healthcare shares that have offered significant returns.
Mid-cap stocks are the companies that have started operating in steady with profitable positions. These are fast-growing companies having market capitalisation varying from AU$2 billion to AU$10 billion.
Mid-cap stocks are useful for the market participants who look for a stable portfolio diversification offering balanced growth and stability. While small-cap healthcare shares are often considered fast-growing but volatile, blue-chips have comparatively slow and follow steady growth patterns. Mid-cap companies are best known to remain somewhere in between.
RELATED READ: 5 ASX mid-cap stocks with high returns
In this backdrop, let us talk about four ASX-listed healthcare mid-cap stocks-
Source: ASX, (Stock Information as per 30 September 2021 closing data)
EBOS Group Limited (ASX:EBO)
EBOS Group is the most diversified wholesaler, marketer, and distributor of pharmaceutical and medical formulations throughout Australasia.
In early September, the Company disclosed that it had completed Sentry Medical's acquisition to expand further into medical consumables. As a result, EBOS is confident that Sentry Medical will further reinforce its presence in the distribution of medical consumables to the institutional healthcare market.
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Interestingly, this is the fourth acquisition completed by EBOS in the last one year and signifies a continuation of its investment strategy for growth and development.
Pro Medicus (ASX:PME)
Leading healthcare informatics firm Pro Medicus provides a complete range of medical imaging software as well as services to imaging centres, hospitals, and health care groups across the world.
In the financial year 2021 (ended 30 June 2021), the Company delivered a net profit of AU$30.9 million, up by 33.7% on the pcp. During the period, PME recorded substantial revenue growth in all its key jurisdictions- Europe (up 25.7%), Australia (up 23.4%) and North America (up 18.0%).
Also, the Company declared a final dividend of 8 cents per share (fully-franked), taking total dividends to 15 cents per share for the year.
Healius Limited (ASX:HLS)
ASX-listed leading healthcare service provider Healius Limited offers its services across three key businesses- Pathology, Imaging and Day Hospital. The pathology business of the Company has a significant role in the response of Australia to combat the COVID-19 pandemic.
On 23 August 2021, Virtus Health (ASX:VRT) signed a deal with Healius to acquire its Adora Fertility as well as three-day hospitals. The companies anticipate the acquisition to complete in the 2Q FY22.
In FY21, Healius generated revenue increased by 22% to ~AU$2 billion. The underlying EBIT was recorded at AU$266.5 million. The company has declared a final dividend of 6.75 cents per share (fully franked) during the year, bringing dividends to 13.25 cents per share for FY21.
Clinuvel Pharmaceuticals Ltd (ASX:CUV)
Global and diversified biopharmaceutical firm Clinuvel Pharmaceuticals focused on developing and commercialising therapies for the treatment of genetic and life-threatening indications.
In the financial year ended 30 June 2021, Clinuvel witnessed record revenue growth with annual revenues reaching AU$48.451 million and profit AU$25.713 million before tax. Notably, the Company has accomplished five consecutive years of positive revenues, profit, and cash flow while facilitating its growth.
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Clinuvel has declared a fourth consecutive dividend (unfranked) of AU$0.025 per ordinary share following the financial results for FY21.