Value investing involves placing money in securities whose prices are unduly low given their intrinsic value. A value stock is a stock of a company that is trading 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 characteristics of value stocks.
Read: CSL, RHC, SHL: 3 ASX healthcare stocks on investor watch list
On that note, let’s take a look at three healthcare value stocks from the ASX all ordinaries index.
Healius Limited (ASX:HLS)
Healius is a healthcare services provider operating a network of pathology laboratories, diagnostic imaging centers, day hospitals and in vitro fertilization (IVF) clinics.
The company has a market capitalization of A$2.18 billion with a dividend yield of 6.4%. Its P/B and P/E ratios are 1.12 and 9.96 respectively.
Healius announced A$473 million as its unaudited underlying earnings before interest and tax (EBIT) for the year-to-date to May 2022, a 100% increase over the prior corresponding period.
Monash IVF Group Limited (ASX: MVF)
Monash provides assisted reproduction services and specialist imaging and diagnostic services for women in Australia and South East Asia.
Recently, the company entered into a binding sale agreement to acquire PIVET Medical Center, a provider of fertility services.
Monash has a market capitalization of A$414.96 million, offering 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 medicine, radiology, medicine and corporate medical services. It has a market capitalization of A$16.35 billion with a P/B ratio of 2.32 and a P/E ratio of 11.28.
Sonic reported a 7% increase in revenue, an 18% increase in earnings before interest, taxes, depreciation and amortization (EBITDA) and 22% growth in net income in the six months ended December 31, 2021, posting a record financial performance.
Ansell Limited (ASX:ANN)
Ansell, a company providing safety protection solutions, is involved in the development and sale of gloves and personal protective equipment.
During the six months ended December 31, 2021, Ansell recorded organic sales growth of 7.5%. However, its EBIT decreased 24.3% on a reported basis and earnings per share decreased 26.5% on a reported basis.
Ansell has a market capitalization of A$3.12 billion with P/B and P/E ratios of 1.45 and 10.46, respectively.
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