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Is Primary Health Care Limited a buy at this share price?

The Primary Health Care Limited (ASX: PRY) share price is down nearly 11% since the start of this year, currently trading for around $3.63.

That’s well off the 52- week high of $4.31, although the share price has recovered somewhat after plunging to a low of $3.18 in February, after reporting a disappointing first six months of the 2017 financial year.

Primary Health owns and operates medical centres, and provides diagnostic imaging and pathology services around Australia. Pathology is the largest revenue generator, with earnings before interest & tax (EBIT) in the last half roughly double that of the medical centres.

The company saw its CEO Peter Gregg resign in January as well, and appointed new CEO Dr. Malcolm Parmenter at the start of May 2017.

At the current price, Primary is trading on a prospective P/E ratio of more than 22x which doesn’t appear cheap, and the dividend yield is a fairly low 3.1%. As such, there are better opportunities on the market, and Foolish investors don’t need to buy into Primary, like the ones below.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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