Integral Diagnostics Limited Company Valuation Report Group Assignment 1

Integral Diagnostics Limited Company Valuation Report Group Assignment 1 
INTRODUCTION
IDX are a leading Australian and New Zealand radiology and medical imaging company, garnering approximately 6.2% of the industry (Johnson 2021).
This report provides an assessment of the company's current position and future prospects. It incorporates various valuation techniques to arrive at
estimates of the intrinsic value of the company's ordinary shares. Ultimately, this report provides a recommendation of whether investors should
buy, sell, or hold the stock, based on the expected returns in the next six to twelve months.
COMPANY ANALYSIS (INCLUDING ESG FACTORS)
IDX is a public company providing quality medical imaging services across Australia and New Zealand. They provide their services across 67 clinics
and pride themselves on being able to provide high quality and easily accessible services. IDX was registered in April 2008 and listed on the ASX in
October 2015. Since then, IDX has continued to deliver strategic organic growth (Integral Diagnostics 2021, p 6). IDX have acquired several radiology,
health services and medical imaging clinics, to inorganically expand their business and unlock untapped synergies and economies of scale. Some of
IDX’s biggest ventures include:
x the purchase of Western District Radiology and South West MRI for $5 million in May 2016,
x the acquisition of Imaging Queensland for $104 million in August 2019,
x the acquisition of Ascot Radiology in New Zealand for NZD 50 million, and
x the announcement of ‘MedX’, a teleradiology joint venture with UK company Medica UK, positioning IDX for outer APAC expansion in the
long-term.
Through FY21 IDX participated in several acquisition processes that were not executed, due to the high acquisition multiples of available offers, this
has caused IDX to focus on organic growth through greenfield and brownfield expansions (Integral Diagnostics 2021, p 10). Dr Ian Kadish (IDX’s CEO)
defines brownfield expansions as adding technology to existing sites, and greenfield as the opening of new clinic locations. Some examples of
brownfield and greenfield expansions through 2H FY21 include:
x installations of new MRI machines in the Gold Coast, Toowoomba and Busselton, and,
x a completed new development site as well as a new commenced site in the Gold Coast.
IDX is expected to continue utilising its organic and inorganic mixed growth strategy into the foreseeable future, adapting based on the best available
market opportunities. On top of this, while the teleradiology joint venture is not expected to impact earnings in the near term, it will enable IDX to
expand both its reach and technology-driven services in the long term.