Singular Health Group Ltd, a medical technology company, develops and commercializes volumetric rendering platform (VRP) for the 3D and virtual reality (VR) visualization of anatomy using standard radiological imagery. It offers 3Dicom Viewer, a cross-platform application that allows its users to interact with standard 2D medical images; 3DicomVSP, an end-to-surgical planning platform; Health Academy, a scalable multi-lingual platform that provides templated curriculum aligned lessons; and GeoVR, a cloud platform for use in the mineral resources sector. The company was founded in 2017 and is headquartered in Subiaco, Australia.

Australia

Singular Health Group Ltd

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. 

SHG.AX reported revenue of AUD  The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS fell 18% from FY23 to AUD -0.04.

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). The stock has outperformed this peer group by 175ppts over past six months and grown 4ppts faster 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 positive. Usually, this means that a fairly valued or slightly undervalued stock has become more 'expensive', indicating that the market, in general, may have gained short-term confidence in the stock.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -2337.2% in the last 12 months, up from -3176.6% in FY24. 

Historically, SHG.AX has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -2541.8%, a growth from -5422.2% in FY24. 

Singular Health Group Ltd reported a return on equity (RoE) of -61.4% in the last 12 months, up from -709.3% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to -51.4% in the last 12 months, an increase from -174.1% in FY24. 

In the last 12 months, the return on capital employed (RoCE) grew to -61.4%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -41.6 in the past several years. This ratio implies a fragile 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.

SHG.AX has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is 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. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny 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, bleak profitability, negligible return on capital, poor working capital management, inadequate interest coverage, and poor cash flow generation. We note resilient historical revenue growth, low margin volatility, and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, SHG.AX is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, SHG.AX is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. 

Singular Health Group Ltd

A$ 0.23

1

Singular Health Group Ltd

A$ 0.23

1

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Profitability factor

Risk / Profitability

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A$ 0.23

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