Ann: Presentation FY2019 Results Briefing, page-7

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49parkn

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02/09/19

18:37

Post #: 40281239
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Originally posted by madamswer: ↑

I see that Morningstar are maintaining a Hold and indicating that it is fully valued at the current price.

Not that I'd dream of taking my investing cues from a so-called research house, in this case I happen to agree that the stock is not cheap.

But, then again, it has not been cheap for more than half a decade, in my view.

And I'm not sure what is going to make it become cheap because it is a highly defensive business with resilient earnings and cash flows.

Take this result: they still managed to increase Revenue and Operating Earnings in Australia by 4% and 6%, respectively, despite some of the most challenging industry conditions in years, judging by what the private health insurers, NIB and MPL, are saying about the benign claims inflation environment.

"They rightly claim that Australia is the jewel in the crown with 45% of revenue producing 90% of profits. I have a question as to how long Australian politics will keep overlooking that degree of overpricing compared with other countries? "

What do you think politicians can/might/will do that will impact private hospital operators in Australia?

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In a way their Pharmacy strategy could be a hedge of sorts against a softening private health market. Interesting footnote that plays a big part in their future plans that is constantly downplayed in reports.

RHC Price at posting: $66.39 Sentiment: Hold Disclosure: Held
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0 Great analysis

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