Sonic Healthcare

Should I buy Sonic Healthcare stock in 2025?

P. Laurore
P. Laurore Last updated: 3 May 2025

Verified Information

Is Sonic Healthcare stock a buy right now?

As of early May 2025, Sonic Healthcare (ASX: SHL) trades near AUD 26.06, with a robust average daily trading volume of around 1.43 million shares—reflecting continued investor engagement. The company’s most recent half-year results showcased solid momentum, reporting a 6.1% organic revenue increase and EBITDA margin expansion. Recent acquisitions, notably the LADR Laboratory Group in Germany, are expected to soon be earnings accretive and strengthen Sonic’s pan-European footprint. Meanwhile, long-term contracts in the UK NHS and growing digital initiatives in the USA reinforce operational confidence. While sector peers have faced cyclicality and reimbursement pressures, Sonic’s global diversification and steady cash flow generation have provided resilience, reflected in steady price-to-earnings and a reliable 4.11% dividend yield. Technical indicators point to a consolidation phase, but with bullish undertones supported by positive moving averages and a low beta profile, suggesting reduced volatility. With the consensus of more than 28 local and international banks, the target price stands at AUD 33.90—implying considerable upside should recent growth drivers fully materialize. Within Australia’s dynamic healthcare sector, Sonic Healthcare’s scale, geographic reach, and disciplined acquisition strategy continue to underpin its appeal as a considered addition to a diversified portfolio.

  • Global leader in diagnostics, with strong brands across six major markets.
  • Consistent organic revenue growth—over 6% recently in core segments.
  • Progressive, reliable dividend policy yielding 4.11%, above sector average.
  • Strong cash generation; 103% EBITDA conversion to operating cash flow.
  • Accretive acquisitions set to enhance margins and future EBITDA growth.
  • Integration risk from recent acquisitions could modestly impact synergy timing.
  • Regulatory changes in Australia and Europe may temporarily affect earnings visibility.
Table of Contents
  • What is Sonic Healthcare?
  • How much is Sonic Healthcare stock?
  • Our full analysis on Sonic Healthcare </b>stock
  • How to buy Sonic Healthcare stock in Australia?
  • Our 7 tips for buying Sonic Healthcare stock
  • The latest news about Sonic Healthcare
  • FAQ
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Why trust HelloSafe?

At HelloSafe, our expert has been meticulously monitoring the performance of Sonic Healthcare for more than three years. Each month, hundreds of thousands of Australians rely on us to interpret market trends and highlight the most promising investment opportunities. Our analyses are created exclusively for informational purposes and should not be considered financial advice. In line with our ethical charter, we have never been, and will never be, paid by Sonic Healthcare.

What is Sonic Healthcare?

IndicatorValueAnalysis
🏳️ NationalityAustraliaAustralian-based, with operations spanning several major global healthcare markets.
💼 MarketAustralian Securities Exchange (ASX: SHL)Listed in Australia, providing high visibility to local investors.
🏛️ ISIN codeAU000000SHL7Unique identifier for Sonic Healthcare’s shares, used for international trading.
👤 CEODr. Colin GoldschmidtLong-serving CEO, credited with driving the company’s strategic vision and organic growth.
🏢 Market capAUD 12.52 billionIndicates a large-cap stock with strong market presence and liquidity.
📈 RevenueAUD 4.7 billion (H1 FY25)Strong and growing revenue, buoyed by organic growth and recent acquisitions.
💹 EBITDAAUD 1.70–1.75 billion (FY25 Guidance)Projected EBITDA growth of up to 10% highlights operational leverage and margin expansion.
📊 P/E Ratio (Price/Earnings)22.94Indicates a moderate valuation; lower than some peers, but reflects steady earnings.
Key fundamentals and analysis of Sonic Healthcare
🏳️ Nationality
Value
Australia
Analysis
Australian-based, with operations spanning several major global healthcare markets.
💼 Market
Value
Australian Securities Exchange (ASX: SHL)
Analysis
Listed in Australia, providing high visibility to local investors.
🏛️ ISIN code
Value
AU000000SHL7
Analysis
Unique identifier for Sonic Healthcare’s shares, used for international trading.
👤 CEO
Value
Dr. Colin Goldschmidt
Analysis
Long-serving CEO, credited with driving the company’s strategic vision and organic growth.
🏢 Market cap
Value
AUD 12.52 billion
Analysis
Indicates a large-cap stock with strong market presence and liquidity.
📈 Revenue
Value
AUD 4.7 billion (H1 FY25)
Analysis
Strong and growing revenue, buoyed by organic growth and recent acquisitions.
💹 EBITDA
Value
AUD 1.70–1.75 billion (FY25 Guidance)
Analysis
Projected EBITDA growth of up to 10% highlights operational leverage and margin expansion.
📊 P/E Ratio (Price/Earnings)
Value
22.94
Analysis
Indicates a moderate valuation; lower than some peers, but reflects steady earnings.
Key fundamentals and analysis of Sonic Healthcare

How much is Sonic Healthcare stock?

The price of Sonic Healthcare stock is rising this week. Currently trading at AUD 26.06, the stock is up 1.24% over the past 24 hours and has gained 1.96% for the week, bringing the company’s market capitalisation to AUD 12.52 billion. Sonic Healthcare sees an average three-month daily volume of 1.43 million shares, a P/E ratio of 22.94, and offers a strong dividend yield of 4.11%. The stock’s beta sits at 0.43, highlighting its relatively low volatility compared to the broader market. With steady performance and a dependable dividend, Sonic Healthcare continues to present an attractive option for Australian investors seeking stability and long-term growth.

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Our full analysis on Sonic Healthcare stock

We have revisited Sonic Healthcare Limited’s latest financial results and share price behaviour over the past three years, integrating our proprietary analytics across financial, technical, and competitive benchmarks. Drawing from multiple reputable sources and factoring in dynamic sectoral and macroeconomic trends, Sonic Healthcare (ASX: SHL) emerges as a company with considerable momentum and evolving strategic advantages. So, why might Sonic Healthcare stock once again become a strategic entry point into the healthcare diagnostics sector for investors looking toward 2025?

Recent Performance and Market Context

Sonic Healthcare’s stock has demonstrated notable resilience in a sector that remains structurally robust, finishing at AUD 26.06 as of May 3, 2025—comfortably above its 52-week low and just over 11% off its recent high. Over the past 12 months, shares have delivered a positive return of +0.46%, reflecting a solid rebound following sector-wide volatility, while the 24-hour and one-week price changes (+1.24% and +1.96% respectively) underscore a reinvigorated short-term momentum.

This sustained performance has been reinforced by a series of positive corporate events:

  • Strong half-yearly financials with organic revenue up by 6.1% to AUD 4.7 billion and net profit at AUD 237 million.
  • Expansion across geographies (notably 9% organic growth in Australian Pathology and high-single-digit gains in the UK, Germany, and Switzerland).
  • Dividend yield stable at 4.11%, reflecting a rare combination of defensive income and capital growth optionality.

Importantly, the diagnostics and research sector is expected to benefit from secular tailwinds—such as aging demographics, increasing focus on preventive medicine, and accelerating roll-out of advanced diagnostic technologies. Moreover, macroeconomic stability in most of Sonic’s operating regions, especially Australia and Western Europe, has contributed to a more predictable business environment and enhanced sector sentiment.

Technical Analysis

Technical signals for SHL.AX have taken on a constructive tone in the past few months. The Relative Strength Index (RSI) sits in a neutral range, having recently approached oversold levels—often an early clue that a base is forming.

Key technical takeaways include:

  • The stock finds sturdy support at AUD 25.66, with more significant resistance at AUD 26.19 and a historical cap at the 52-week high near AUD 29.35.
  • Moving averages (50/100/200-day) are fanning out in a configuration consistent with medium-term bullish reversals, further evidenced by constructive crossovers observed in recent trading sessions.
  • The stock’s low beta of 0.43 reflects muted volatility, making it an appealing candidate for investors seeking growth in a less turbulent equity.

Technically, Sonic is now consolidating—a pattern that, in conjunction with its improving relative strength, often presages upward movement, especially if macro and sectoral conditions remain benign. The current technical structure suggests the potential for a bullish breakout on any fundamental or sentiment-driven catalyst.

Fundamental Analysis

From a valuation perspective, Sonic Healthcare sits at a notably attractive juncture:

  • P/E Ratio: 22.94, reasonable for a global healthcare leader with structural growth prospects.
  • Price/Sales: 1.35, reflecting efficient revenue conversion for a sector where leading peers frequently command premium multiples.
  • Price/Book: 1.53 and EV/EBITDA of 9.59 illustrate a company trading slightly below or at par with historical fair value despite clear forward growth.

Operationally, Sonic’s strengths are multidimensional:

  • Consistent organic revenue growth, driven by leading brands and a well-regarded clinical culture.
  • Exceptional cash flow metrics—103% conversion of EBITDA to gross operating cash flow denotes rare capital discipline.
  • Margin expansion (EBITDA up 60bps year-on-year) and ongoing cost rationalization, delivering profitability even as the group scales globally.

Strategically, Sonic’s recent acquisition streak (notably LADR Laboratory Group in Germany and Dr. Risch in Switzerland) not only enhances near-term earnings (AUD 82 million in new annual EBITDA to be realised from LADR) but also amplifies market share across key geographies. This disciplined, synergy-driven approach echoes management’s long-term commitment to value accretion, especially with projected double-digit accretion to earnings post-integration.

The group’s robust dividend policy ensures shareholder returns complement consistent operational execution—yielding 4.11% with a progressive payout trajectory in place.

Volume and Liquidity

Liquidity underpins investor confidence in larger-cap names, and Sonic Healthcare is no exception. With average daily trading volume at 1.43 million shares and a market capitalisation of AUD 12.52 billion, SHL maintains a dynamic float that readily accommodates both institutional and private buyers.

Sustained, healthy turnover levels are a clear marker of ongoing market interest, which is further bolstered during periods of positive news flow. The structure of Sonic’s shareholder base and its steady float enable dynamic valuation in response to corporate events, positioning the stock favourably for further price appreciation as new catalysts materialise.

Catalysts and Positive Outlook

Looking ahead to FY 2025 and beyond, several bullish catalysts stand out:

  • Acquisition Completion: The July 2025 closing of the LADR Laboratory Group deal (AUD 700 million) is forecast to be immediately accretive to EPS and to bring >11% post-synergy returns, strengthening Sonic’s European platform.
  • Digital Transformation: Deployment of the PathologyWatch platform in the USA signifies a sharp pivot towards digital pathology—a market expected to grow at a CAGR above 10% globally, offering operational leverage and service innovation.
  • Major UK NHS Contracts: The launch of the long-term Hertfordshire and West Essex laboratory outsourcing and the Royal National Orthopaedic Hospital partnership signal both recurring revenue streams and expansion into high-barrier, long-tenure markets.
  • Radiology Expansion: 12% organic growth and double-digit EBITDA increases in Radiology, benefiting from annual fee indexation agreements in Australia, UK, and Belgium.
  • Continued Margin Growth: SHL’s immaculate cash flow discipline and cost efficiency initiatives suggest further upward potential in operating margins.

Additionally, management’s FY 2025 guidance—AUD 1.70-1.75 billion in EBITDA, up to ~10% year-on-year—cements expectations for ongoing earnings momentum. The outlook is further buoyed by favourable macro trends in healthcare spending, regulatory stability, and the rising global demand for diagnostics.

Investment Strategies

Sonic Healthcare currently offers an aligned opportunity set across various investment horizons:

  • Short-Term Entry: The technical consolidation phase near robust support offers tactical upside, particularly for investors anticipating a breakout on imminent acquisition completion or positive quarterly updates. The stable dividend and low volatility profile add appeal for short-term allocators seeking defensive growth exposure.
  • Medium-Term Positioning: With integration of new acquisitions expected to yield tangible synergies into FY 2026, and sector fee increases rolling forward, medium-term holders benefit from both operational leverage and expected re-rating as margins expand.
  • Long-Term Allocation: Sonic’s combination of organic growth, disciplined M&A, and sectoral leadership in digital solutions positions it as a structural beneficiary of evolving healthcare demands. Dividend reinvestment and potential capital gains compound favourably for long-term shareholders, while the underlying defensive attributes of the healthcare sector moderate drawdown risk.

Given the technical setup and the proximity to several material catalysts, current levels may represent a prime period for well-timed entry, whether for portfolio rebalancing, capital growth, or yield-focused strategies.

Is it the Right Time to Buy Sonic Healthcare?

Drawing these insights together, Sonic Healthcare stands out as a stock where the fundamentals justify renewed interest:

  • Its recent financial performance confirms robust organic growth, rising profitability, and disciplined capital management.
  • The ongoing acquisition programme is expected to be immediately accretive, particularly in Europe, with further upside as synergies become embedded into the earnings base.
  • The company’s strong cash generation and dividend yield underpin defensive attributes, while management’s forward-looking digital and geographic expansion strategies lay the groundwork for sustainable long-term growth.
  • Liquidity metrics and technical signals point to a favourable risk/reward profile, especially as the share price remains nestled at a historically advantageous level within its long-term range.
  • Secular healthcare demand, broad geographic reach, and innovation-driven margin expansion all set the stage for compelling upside.

In our assessment, Sonic Healthcare may be entering a new bullish phase—where fundamentals dovetail with technical signals and significant operational catalysts. As such, the stock seems to represent an excellent opportunity for investors seeking exposure to resilient, growth-oriented healthcare diagnostics, supported by strong management, recurring revenues, and a progressive dividend policy.

For those evaluating strategic entry into a sector set for transformation, Sonic Healthcare’s positioning, pipeline, and execution provide confident grounds for consideration—making this a moment of real potential in the Australian equities landscape.

How to buy Sonic Healthcare stock in Australia?

Buying Sonic Healthcare (ASX: SHL) shares online is both straightforward and secure when you use a regulated broker registered in Australia. Today, there are two main ways to buy Sonic Healthcare stock: by acquiring the shares outright (known as spot or cash buying), or by trading Contracts for Difference (CFDs), which allow for leveraged exposure. Both methods can be accessed online in just a few clicks, with account setup and verification handled digitally for your convenience and safety. To help you choose the right platform for your needs, you’ll find a detailed broker comparison further down the page.

Spot Buying (Cash Purchase)

When you buy Sonic Healthcare shares for cash, you become a part-owner of the company and can benefit from any dividends and share price appreciation. In Australia, brokers typically charge a fixed commission per trade, often starting from $5 to $15 depending on the platform. For example, if the Sonic Healthcare share price is $26.06 AUD, you could purchase approximately 38 shares with a $1,000 investment (including a $5 brokerage fee):

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Important example

$1,000 - $5 broker fee = $995 usable
$995 ÷ $26.06 = ~38 shares

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Gain Scenario

Gain Scenario:
If the share price rises by 10%, your 38 shares would now be worth $1,100.
Result: That’s a $100 gross gain, or +10% return on your initial investment (excluding taxes and other potential trading costs).

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on Sonic Healthcare price movements without owning the actual shares. With CFDs, you can use leverage to increase your market exposure but should be aware of associated risks. Instead of a fixed commission, you'll pay the broker’s spread (the difference between buy and sell prices), and potentially overnight financing fees if you hold positions for more than a day.

icon

Important example

$1,000 capital × 5 leverage = $5,000 exposure

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Gain Scenario

Gain Scenario:
If the Sonic Healthcare stock price rises by 8%, the gain on your CFD position would be 8% × 5 (leverage) = 40%.
Result: That’s a $400 gain on your $1,000 deposit (excluding broker fees and overnight costs).

Final Advice

Before you invest, it’s important to compare brokers’ fees, trading conditions, and available research tools. Some platforms may offer competitive commissions, while others provide more comprehensive research or lower currency conversion costs. Your choice between spot buying and CFD trading depends on your investment objectives, risk tolerance, and whether you seek outright ownership or leveraged opportunities. For a clearer idea of which broker best fits your needs, consult the comparison table provided further down the page.

Application
Notes
Learn More
#1
CFD Specialist
#1Recommended Offer
Notes
4.9
5 things to know about Avatrade

Is AvaTrade reliable?

AvaTrade is a trusted broker, regulated by major institutions, including ASIC (Australia). They are also regulated by the Central Bank of Ireland, the AMF in France, and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.

Why choose AvaTrade?

AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.

What are the fees at AvaTrade?

AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.

Who is AvaTrade for?

AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.

Is AvaTrade reliable?

AvaTrade is a trusted broker, regulated by major institutions, including ASIC (Australia). They are also regulated by the Central Bank of Ireland, the AMF in France, and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.

Why choose AvaTrade?

AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.

What are the fees at AvaTrade?

AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.

Who is AvaTrade for?

AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.

#2
CFD and Indices Expert
#2
Notes
4.8
74% of CFD accounts lose money. Risk limited to your capital.
5 things to know about IG

Is IG reliable?

IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.

Why choose IG?

IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.

What are the fees at IG?

IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.

Who is IG for?

IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.

Is IG reliable?

IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.

Why choose IG?

IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.

What are the fees at IG?

IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.

Who is IG for?

IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.

#3
30+ million users
#3
Notes
4.6
On the broker's website
5 Things to Know About eToro

Is eToro reliable?

Yes, eToro is a reliable platform, regulated by leading authorities, including ASIC (Australia). It is also regulated by the FCA (UK) and CySEC (Europe). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.

Why choose eToro?

With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.

What are the fees at eToro?

eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5 USD. In the event that you remain inactive for 12 months or more, a $10 USD monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).

Who is eToro for?

eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).

Is eToro reliable?

Yes, eToro is a reliable platform, regulated by leading authorities, including ASIC (Australia). It is also regulated by the FCA (UK) and CySEC (Europe). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.

Why choose eToro?

With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.

What are the fees at eToro?

eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5 USD. In the event that you remain inactive for 12 months or more, a $10 USD monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).

Who is eToro for?

eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).

Our 7 tips for buying Sonic Healthcare stock

StepSpecific tip for Sonic Healthcare
Analyze the marketReview recent organic revenue growth, upcoming acquisitions like LADR, and sector demand for diagnostic services in Australia and globally before investing in Sonic Healthcare.
Choose the right trading platformSelect an ASX-accredited broker with competitive brokerage fees, strong research tools, and a simple interface for buying Sonic Healthcare (SHL.AX) shares.
Define your investment budgetDecide how much you can comfortably invest in Sonic Healthcare, considering its moderate volatility and strong dividend yield, while ensuring you remain diversified across sectors.
Choose a strategy (short or long term)Consider a long-term approach to benefit from Sonic Healthcare’s strong dividend history, acquisitive growth strategy, and consistent performance across markets.
Monitor news and financial resultsStay updated with Sonic Healthcare’s half-year and full-year financial announcements, key contract wins, and new acquisition updates, as these can affect share performance.
Use risk management toolsUtilise stop-loss and take-profit orders to protect your position in case of sudden market changes or integration challenges affecting Sonic Healthcare.
Sell at the right timeReassess your holding during technical resistance periods, after dividend payment dates, or if major regulatory or earnings risks emerge, to maximise returns or minimise losses.
Investment steps and practical tips for buying Sonic Healthcare (SHL.AX) shares.
Analyze the market
Specific tip for Sonic Healthcare
Review recent organic revenue growth, upcoming acquisitions like LADR, and sector demand for diagnostic services in Australia and globally before investing in Sonic Healthcare.
Choose the right trading platform
Specific tip for Sonic Healthcare
Select an ASX-accredited broker with competitive brokerage fees, strong research tools, and a simple interface for buying Sonic Healthcare (SHL.AX) shares.
Define your investment budget
Specific tip for Sonic Healthcare
Decide how much you can comfortably invest in Sonic Healthcare, considering its moderate volatility and strong dividend yield, while ensuring you remain diversified across sectors.
Choose a strategy (short or long term)
Specific tip for Sonic Healthcare
Consider a long-term approach to benefit from Sonic Healthcare’s strong dividend history, acquisitive growth strategy, and consistent performance across markets.
Monitor news and financial results
Specific tip for Sonic Healthcare
Stay updated with Sonic Healthcare’s half-year and full-year financial announcements, key contract wins, and new acquisition updates, as these can affect share performance.
Use risk management tools
Specific tip for Sonic Healthcare
Utilise stop-loss and take-profit orders to protect your position in case of sudden market changes or integration challenges affecting Sonic Healthcare.
Sell at the right time
Specific tip for Sonic Healthcare
Reassess your holding during technical resistance periods, after dividend payment dates, or if major regulatory or earnings risks emerge, to maximise returns or minimise losses.
Investment steps and practical tips for buying Sonic Healthcare (SHL.AX) shares.

The latest news about Sonic Healthcare

Sonic Healthcare’s Australian pathology division recorded an impressive 9% organic revenue growth and margin expansion in the latest half-year results. This strong performance in the domestic market highlights solid demand for diagnostic services and Sonic’s leadership in clinical excellence, further reinforced by the progressive rollout of fee indexation in Australian Pathology. The company’s Australian operations were singled out for delivering above-market growth, a trend expected to continue as population demand and government investment in healthcare remain robust.

Sonic Healthcare maintained a stable dividend yield at 4.11% with a progressive dividend strategy, supporting investor confidence in Australia. The most recent annual dividend of AUD 1.07 and consistent payout track record, combined with a disciplined capital management approach, affirm Sonic’s appeal to income-focused investors within the region. The company’s cash flow conversion—103% of EBITDA to gross operating cash flow—offers further reassurance regarding the sustainability of its shareholder returns for the foreseeable future.

The company’s share price rose 1.96% over the past week, supported by improving technical indicators and moderate volatility. Sonic Healthcare’s share price closed at AUD 26.06, with key technical levels, such as support at AUD 25.66 and resistance at the 52-week high near AUD 29.35, serving as important reference points. Technical analysis suggests the stock is emerging from oversold conditions, and its low beta of 0.43 reflects below-market volatility, which provides a measure of defensiveness appreciated by Australian investors, particularly during periods of broader market uncertainty.

Recent international acquisitions, such as the pending LADR Laboratory Group deal, are expected to deliver immediate earnings per share accretion and generate significant EBITDA contributions. Sonic’s disciplined approach to mergers and acquisitions is expected to add around AUD 82 million in annual EBITDA from LADR alone once the transaction completes on July 1, 2025, with post-synergy ROI projected above 11%. The company’s global scale and diversification enhance its resilience and are anticipated to support Australian operations through earnings repatriation and best-practice transfer.

Sonic Healthcare’s FY 2025 guidance projects up to 10% EBITDA growth, underpinned by continued strength in Australia and synergy realization from acquisitions. Management expects EBITDA of AUD 1.70–1.75 billion (constant currency) and remains confident in further organic growth, margin expansion, and operational leverage. These signals, coupled with robust local performance and stable regulatory settings in Australia, reinforce a constructive outlook for the stock, attracting analyst attention for its dependable positioning in the nation’s healthcare landscape.

FAQ

What is the latest dividend for Sonic Healthcare stock?

Sonic Healthcare currently pays a dividend, with the most recent annual dividend at AUD 1.07 per share. The ex-dividend date was March 5, 2025, and payment occurred on March 20, 2025. The company maintains a progressive dividend policy, aiming for steady increases when possible, reflecting strong cash flow and a commitment to rewarding shareholders. Over recent years, Sonic has delivered a consistent and competitive yield, making it attractive for income-focused investors.

What is the forecast for Sonic Healthcare stock in 2025, 2026, and 2027?

Based on current market trends, the projected Sonic Healthcare share price is AUD 33.88 at the end of 2025, AUD 39.09 at the end of 2026, and AUD 52.12 at the end of 2027. Sonic is supported by solid organic growth, continued margin expansion, and the benefits expected from its recent acquisitions. The healthcare diagnostics sector is experiencing steady global demand, which bodes well for the sustained growth of the company.

Should I sell my Sonic Healthcare shares?

Holding onto Sonic Healthcare shares could be a prudent choice for investors, given the company’s resilient business model and robust fundamentals. Sonic offers stable cash flows, a consistent dividend, and is well-positioned for future earnings growth through strategic acquisitions and operational excellence. Its global diversification and defensive market niche help cushion against economic fluctuations, indicating ongoing mid- to long-term growth potential.

How are dividends from Sonic Healthcare taxed for Australian investors?

For Australian investors, dividends from Sonic Healthcare are typically franked, meaning they carry franking credits that may offset personal income tax. Shareholders may be entitled to a reduction in tax payable or a refund, depending on their tax position. Capital gains realised upon selling Sonic shares are subject to capital gains tax, with possible discounts if held for over 12 months. Withholding tax does not apply to franked dividends for Australian residents.

What is the latest dividend for Sonic Healthcare stock?

Sonic Healthcare currently pays a dividend, with the most recent annual dividend at AUD 1.07 per share. The ex-dividend date was March 5, 2025, and payment occurred on March 20, 2025. The company maintains a progressive dividend policy, aiming for steady increases when possible, reflecting strong cash flow and a commitment to rewarding shareholders. Over recent years, Sonic has delivered a consistent and competitive yield, making it attractive for income-focused investors.

What is the forecast for Sonic Healthcare stock in 2025, 2026, and 2027?

Based on current market trends, the projected Sonic Healthcare share price is AUD 33.88 at the end of 2025, AUD 39.09 at the end of 2026, and AUD 52.12 at the end of 2027. Sonic is supported by solid organic growth, continued margin expansion, and the benefits expected from its recent acquisitions. The healthcare diagnostics sector is experiencing steady global demand, which bodes well for the sustained growth of the company.

Should I sell my Sonic Healthcare shares?

Holding onto Sonic Healthcare shares could be a prudent choice for investors, given the company’s resilient business model and robust fundamentals. Sonic offers stable cash flows, a consistent dividend, and is well-positioned for future earnings growth through strategic acquisitions and operational excellence. Its global diversification and defensive market niche help cushion against economic fluctuations, indicating ongoing mid- to long-term growth potential.

How are dividends from Sonic Healthcare taxed for Australian investors?

For Australian investors, dividends from Sonic Healthcare are typically franked, meaning they carry franking credits that may offset personal income tax. Shareholders may be entitled to a reduction in tax payable or a refund, depending on their tax position. Capital gains realised upon selling Sonic shares are subject to capital gains tax, with possible discounts if held for over 12 months. Withholding tax does not apply to franked dividends for Australian residents.

P. Laurore
P. Laurore
Finance expert
HelloSafe
Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.

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