Integral Diagnostics' Valuation Gap to Private Radiology Deals Narrows

A chequered history and messy execution left the stock trading well below private market multiples, and a new CEO's systematic improvement plan aims to close that gap.

30 Sep 2026 · 3 min read

Integral Diagnostics has been one of the ASX's more contested value plays, a radiology business with a chequered history and mediocre historical returns that fund managers increasingly argue trades at a substantial discount to private market transaction multiples, as a new CEO from larger rival I-MED lays out a systematic margin improvement plan.

A mediocre historical track record, but recovering industry data

Seneca Financial Solutions said it is not a huge fan of the stock, noting that despite the common rule of thumb that an ageing population and healthcare generally make money, diagnostic imaging has actually been a pretty average return sector, delivering around 5 percent growth and 5 percent return on equity, describing it as pretty mediocre and pointing to past labour force issues. Maple-Brown Abbott rated the stock a buy, agreeing it has had a chequered history, with the share price halving over recent years amid a number of missteps by old management, but arguing industry data for radiology has bounced back quite strongly as long-COVID-related disruption faded. Lennox Capital Partners said it had held exposure to Integral Diagnostics for some time and recently increased it to a top holding, arguing diagnostic imaging is very much a defensive growth industry that makes a major player like Integral compelling regardless of the economic backdrop, with margin recovery underway.

It's had a very chequered history. The share price has halved over the last few years. There have been a number of missteps by old management. Where it's positioned now, though, is you're seeing the industry data come back for radiology.

— Maple-Brown Abbott, Article, October 2025

A messy business, but a healthy market share

Forager Funds held at hold, having owned Integral previously, saying the situation continues to be a little messy, with GP referrals and margins not as clean as would be nice for the sector, but acknowledging the business now holds a healthy market share, especially following its acquisition of Capitol Health. Wilson Asset Management rated it a buy, describing a very simple business that for some reason has been made very difficult and messy, calling it frustrating, and one reason the fund had gone substantial in the company to help instigate change, given it trades around 7 times enterprise value to EBITDA.

It is a very, very simple business that for some reason is made very difficult and messy and it's very frustrating and one of the reasons why we've gone substantial in this company because we want to instigate change.

— Wilson Asset Management, Article, May 2026

A private-market valuation gap

Investors Mutual Limited described Integral Diagnostics as the second-largest radiology player in the country, with a great footprint across Queensland, Victoria and Western Australia, noting private market transactions for radiology businesses like Qscan have occurred at around 12 times EBITDA, well above where Integral itself trades.

A new CFO, a new CEO, and a systematic improvement plan

First Samuel said Integral Diagnostics announced preliminary profits alongside the appointment of new CFO Jenny Martin, having completed its first full year incorporating the Capitol Health acquisition, which significantly bulked up the business and provides lucrative synergy opportunities, with revenue printing close to expectations despite some market disappointment elsewhere. Investors Mutual Limited, a long-term holder, said new CEO Jason Martinez, formerly of larger rival I-MED, laid out a systematic plan focused on revenue management, margin improvement and capital allocation, targeting EBITDA margins above 21 percent, seeing the stock trading around 8 times EV/EBITDA against private-market deals at 12 to 13 times as an opportunity.

New CEO Jason Martinez laid out a systematic plan focused on revenue management, margin improvement and capital allocation, targeting EBITDA margins above 21%. The stock is trading around 8x EV/EBITDA versus private-market deals at 12-13x.

— Investors Mutual Limited, Article, August 2026

What fund managers say they are watching next is delivery of the new CEO's systematic plan toward EBITDA margins above 21 percent, realisation of Capitol Health acquisition synergies, whether the roughly 8 times EV/EBITDA multiple closes toward the 12 to 13 times private-market benchmark, and continued recovery in radiology industry demand and pricing.