The average target price of AUNA is 13 and suggests 102% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 19.0. This translates into 200% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 7.9. This suggests 25% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Auna S.A., a healthcare service provider, operates hospitals and clinics in Mexico, Peru, and Colombia. The company provides prepaid healthcare plans in Peru; and dental and vision plans in Mexico. The company was founded in 1989 and is based in Luxembourg, Luxembourg.

Luxembourg

Auna S.A.

Healthcare

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

AUNA reported revenue of PEN 4 386mn in the last 12 months, up 13% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. Market expects EPS to reach PEN 0.53 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 6ppts over six months and grown 3ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

The company has reported average EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 24.0% in the last 12 months, up from 17.1% in FY23. 

Historically, AUNA has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 2.6%, a growth from -6.6% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 1.5% in the last 12 months, an increase from -3.6% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to 2.0%, below the peers. 

Auna S.A. reported a return on equity (RoE) of 7.6% in the last 12 months, up from -20.1% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.0 in the past several years. This ratio implies a weak shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

AUNA has poor trading liquidity. It will take several trading days for the average private investor to sell a common position under normal market conditions. Liquidity may be unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, negligible return on capital, poor working capital management, weak debt servicing capacity, inadequate interest coverage, and an unfavourable capital structure. 

In highly turbulent market conditions, AUNA is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, AUNA is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to notable. We would also like to highlight the notable intraday volatility of the instrument. 

Considering past and projected metrics, the stock is slightly 'cheaper' than its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITDA, underpriced on P/FCF. 

Auna S.A.

$ 6.29

4

Auna S.A.

$ 6.29

4

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 6.29

About

About

Auna S.A.

$ 6.29

4

Auna S.A.

$ 6.29

4

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 6.29

About

About

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