Ann: Trading Update - Results for 4 months to October 2022, page-6

"rock solid base business with continued COVID windfall, I can't think of any better place to park excess cash."

"rock solid base business" - I agree with you there (with the one caveat to bear in mind who ultimately funds SHL's Revenues, viz, various governments)

"...continued Covid windfall" - In that regard, I don't share your enthusiasm; personally, I place a P/E of less than 1.0x on "Covid earnings"

"... I can't think of a better place to park excess cash" - I wouldn't say its the best place, but an OK place.


The investment calculus is not complicated: its a business that - with great reliability and high level of predictability - generates ~$1.1bn pa of Free Cash Flow, which equates to a ~7% FCF yield.

Not a dripping roast, sure, but attractive on a risk-adjusted return basis, considering the low level of operating and financial risk.

Accordingly, I started buying the stock this morning.

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