The Healthscope Ltd (ASX: HSO) share price hit a 52-week low of $1.61 in trade today as investors continue to sell the stock after its operating profit for the year ending June 20 2017 fell 5.6% on the prior year. The private hospital operator delivered earnings per share down 9.2% to 9.4 cents and paid total dividends of 7 cents per share.
Selling for $1.61 the shares change hands for 17x trailing earnings with a trailing dividend yield of 4.35%. Over the last financial year net debt also increased $363.2 million to $1.645 billion as the group continues to invest in new private health developments particularly in the Sydney area.
The group flagged that its existing development programs should be funded from existing cash reserves, debt facilities, and operating cash flows, with no current need to raise capital.
Like its rival Ramsay Health Care Limited (ASX: RHC), Healthscope enjoys some powerful tailwinds in the form of the ageing population and the ever-increasing healthcare spends of the general public. It looks a business for investors' watch lists given the sharp share price falls.
