Whilst big blue-chip healthcare shares such as Cochlear Limited (ASX: COH) and ResMed Inc. (CHESS) (ASX: RMD) gain a lot of attention from investors, I believe there are a number of quality small-cap healthcare shares flying under the radar.
Three which I think are worth taking a close look at today are listed below. Here's why:
1300 Smiles Limited (ASX: ONT)
Weak trading conditions in the dental industry weighed heavily on the performance of this leading dental surgery operator in FY 2017. As a result, its shares are down by around 9% since the turn of the year. But with management optimistic that conditions will improve in the near future, now could be an opportune time to snap up shares. Especially considering its shares currently provide investors with a fully franked 3.3% dividend.
National Veterinary Care Ltd (ASX: NVL)
With pet ownership in Australia and New Zealand at high levels, I believe this veterinary company is in a solid position to continue its strong growth. In FY 2017 National Veterinary Care reported a 51% increase in revenue to $66.9 million. Whilst the acquisition and integration of 14 veterinary services businesses during FY 2017 played a key role in this growth, the company did deliver strong organic growth as well. I expect more of the same in FY 2018.
Zenitas Healthcare Ltd (ASX: ZNT)
This recently listed home care and health services company operates across 54 locations throughout Australia. With the Federal government intent on moving the burden of healthcare services from hospitals to primary care via the National Healthcare Reform, I believe Zenitas is in a great position to profit. And thanks to the highly fragmented nature of the industry, there appears to be ample opportunities for the company to grow through acquisitions. In FY 2018 management expects EBITDA of between $13 million and $13.5 million, up from $7 million in FY 2017.
