ABA Abano health

[James108]

Australian side is under assault from other corporate consolidators as well as one listed company opening new practices in malls.

I would be very interested in this if they could turn aus sss around. Brands are currently being consolidated so this could happen.

[hardt]

That lovely trend we were seeing snapped and has been slowly moving downhill since the cr last year... results out tomorrow.

Come to think of it, I haven't been in to a Lumino this season so it might be bad...

Disc: Holding

[winner69]

That lovely trend we were seeing snapped and has been slowly moving downhill since the cr last year... results out tomorrow.

Come to think of it, I haven't been in to a Lumino this season so it might be bad...

Disc: Holding

Result looks pretty awesome

[percy]

Result looks pretty awesome

Take off the one off $2.1mil profit from the Ascot Radiology sale, the profit does not look flash to me.

[James108]

Take off the one off $2.1mil profit from the Ascot Radiology sale, the profit does not look flash to me.

Agree, sss in aus deteriorating from first half. No turn around yet there, still watching and waiting.

[BlackPeter]

Result looks pretty awesome

I agree - the wording is awesome (made me look into the results). Not that sure about the numbers, though. They helped me with the decision that I better keep my powder dry for real opportunities.

EPS was somewhat higher than analysts predicted (but just due to one-offs) and revenue even a tad below consensus. Multi year growth is not really worthwhile mentioning (Revenue CAGR bumping between 3 and 5%) and EPS CAGR too bumpy to pick a representative value due to wildly jumping annual results.

51 cents EPS for a close to $9 share is not the most exciting EPS either (forward PE 16.3) and I don't see really anything which would speed up (EPS) growth in the years to come. Given that their business model is to buy and integrate dental practices - the low hanging fruit are always picked first. Unlikely that future acquisitions will offer better EPS than previous acquisitions.

Add to that the huge chunk of goodwill they carry on their books. I guess - sure the auditors accepted it after some tests, but just imagine managements income assumptions change a tad ... never happened before?

[winner69]

HHG reckon ABA pretty good ....and cheap at the moment

https://www.hhg.co.nz/news/abano-hea...ipheral-stock/

[percy]

HHG reckon ABA pretty good ....and cheap at the moment

https://www.hhg.co.nz/news/abano-hea...ipheral-stock/

Always happy to disagree.
I rate ABA as an avoid.

[macduffy]

Always happy to disagree.
I rate ABA as an avoid.

Could you expand on that, percy?

I'm in two minds regarding ABA.

[percy]

A lot of capital required for acquisitions,which have a very poor return on capital..
Very little growth from each practice.
Revenue growth is mainly driven by acquisitions.
I do not think dentist have "pricing power".
A visiit to the dentist is easily put off when times are tough.
Australian mortgage requirements,ie a stop to interest only loans will cause hardships.
Increasing mortgage interest rates will work against ABA's clients too.