In This Article:
Oneview Healthcare PLC (ASX:ONE), a AU$97m small-cap, operates in the healthcare industry, which continues to be affected by the sustained economic uncertainty and structural trends, such as an aging population, impacting the sector globally. Healthcare analysts are forecasting for the entire industry, a positive double-digit growth of 16% in the upcoming year , and a whopping growth of 82% over the next couple of years. This rate is larger than the growth rate of the Australian stock market as a whole. Today, I’ll take you through the sector growth expectations, and also determine whether Oneview Healthcare is a laggard or leader relative to its healthcare sector peers.
Check out our latest analysis for Oneview Healthcare
What’s the catalyst for Oneview Healthcare’s sector growth?
New R&D methods are creating opportunities for innovations, though, stakeholders are challenged with the pressure of reducing costs. In the previous year, the industry saw growth in the teens, beating the Australian market growth of 11%. Oneview Healthcare lags the pack with its lower growth rate of 8.1% over the past year, which indicates the company has been growing at a slower pace than its healthcare tech peers. However, the future seems brighter, as analysts expect an industry-beating growth rate of 24% in the upcoming year. This future growth may make Oneview Healthcare a more expensive stock relative to its peers.
Is Oneview Healthcare and the sector relatively cheap?
The healthcare tech industry is trading at a PE ratio of 32.33x, higher than the rest of the Australian stock market PE of 16.78x. This illustrates a somewhat overpriced sector compared to the rest of the market. However, the industry returned a similar 13% on equities compared to the market’s 12%. Since Oneview Healthcare’s earnings doesn’t seem to reflect its true value, its PE ratio isn’t very useful. A loose alternative to gauge Oneview Healthcare’s value is to assume the stock should be relatively in-line with its industry.
Next Steps:
Oneview Healthcare’s industry-beating future is a positive for investors. If Oneview Healthcare has been on your watchlist for a while, now may be the time to enter into the stock, if you like its growth prospects and are not highly concentrated in the healthcare tech industry. However, before you make a decision on the stock, I suggest you look at Oneview Healthcare’s fundamentals in order to build a holistic investment thesis.
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Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
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Historical Track Record: What has ONE’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Oneview Healthcare? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.