Sometime in 2015 (as best I can recall it), about one third of the professionals employed by Monash wrote a letter to the management criticising the company's culture. I don't think the precise aspects of concern were ever broadcast but Monash rejected the claims.
In May 2017 the then CEO James Theideman announced his resignation.
About the same time Dr Lynn Burmeister, one of the highest profile specialists in Australiaresigned and departed Monash sometime before October, 2017 but not before a court case was settled
A profit downgrade ensued due to anticipated revenue leakage as a result of the resignation.
David Morris was appointed as CEO in November, 2017 but resigned after less than one year in the job.
In August 2019, 5 fertility specialists resigned
A profit downgrade ensued again in anticipation of revenue loss.
In April 2019, the then current CFO Michael Knaap was appointed as CEO.
So it's pretty messy.My concern isn't just that high level specialists seem to be unhappy resulting in some leaving but that, when they do, they take portions of the business with them and Monash seems unable to curtail this process.
It may mean that Monash administration is poor or they just may not be able to bring enough to the discussion table which may bring the business model into question.
However Monash offers :
forward estimated free cash flow yields of about 7% - 8%
forward estimated dividend yields of about 5% - 6%
P/E ratio of about 12 - 13 times.
I don't think investing was ever meant to be easy and this is a prime example as to why. I have owned Monash in the past but decided about a year ago to take the risk off the table.
(20min delay)