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Highlights
- Value stocks trade at a lower price corresponding to their fundamentals
- A high dividend yield and low P/B P/E ratios are common features of value stocks
- Healius reported a 100% increment in underlying unaudited EBITDA YTD to May 2022 compared to the previous corresponding period
Value investing implies putting money on securities whose prices are unjustifiably low based on their intrinsic worth. A value stock is a company's share that trades at a lower price relative to its fundamentals, such as earnings and dividends, making it a tempting choice for investors. A high dividend yield and low P/B and P/E ratios are some of the common features of value stocks.
Do read: CSL, RHC, SHL: 3 ASX health care stocks on investors’ watchlist
On that note, let us have a look at three healthcare value stocks from the ASX all ordinaries index.
Healius Limited (ASX:HLS)
Healius is a healthcare service provider operating a network of pathology laboratories, diagnostic imaging centres, day hospitals, and In-Vitro Fertilization (IVF) clinics.
The company has a market capitalisation of AU$2.18 billion with a 6.4% dividend yield. Its P/B and P/E ratios are 1.12 and 9.96, respectively.
Healius has announced AU$473 million as its unaudited underlying Earnings Before Interest and Taxes (EBIT) for the year-to-date to May 2022, which is a 100% increment compared to the previous corresponding period.
Monash IVF Group Limited (ASX:MVF)
Monash provides assisted reproductive services and specialist women’s imaging and diagnostic services in Australia and Southeast Asia.
Recently, the company entered into a binding sale agreement for the acquisition of PIVET Medical Centre, a fertility services provider.
Monash has a market capitalisation of AU$414.96 million, providing an annual dividend yield of 6.0%. It has P/E and P/B ratios of 17.78 and 1.48, respectively.
Sonic Healthcare Limited (ASX:SHL)
Sonic provides its services in laboratory medicine/pathology, general practice, radiology, medicine, and corporate medical services. It has a market capitalisation of AU$16.35 billion with a P/B ratio of 2.32 and a P/E ratio of 11.28.
Sonic reported a 7% increment in revenue, an 18% increment in Earnings Before Interest, Taxes, Depreciation & Amortisation (EBITDA), and a 22% growth in net profit in the half-year ended 31 December 2021, boasting a record financial performance.
Ansell Limited (ASX:ANN)
Ansell, a company providing safety protection solutions, deals with developing and selling gloves and personal protective equipment.
In the half-year ended 31 December 2021, Ansell received organic sales growth of 7.5%. However, its EBIT declined 24.3% on a reported basis, and earnings per share declined 26.5% on a reported basis.
Ansell has a market capitalisation of AU$3.12 billion with P/B and P/E ratios of 1.45 and 10.46, respectively.
Also read: OPT, BIT, IMM: Updates from ASX biotech players with over 10% returns
