Fund Manager Summary
The fund managers believe that the outlook for Integral Diagnostics Ltd remains promising despite recent challenges. They note that the company experienced a 31.7% decline in share price due to higher-than-expected labour costs linked to an industry-wide shortage of medical staff, resulting in a 5% downgrade to consensus earnings forecasts. However, in their opinion, the sharp price reaction indicates that investors were anticipating an upgrade, given the strong sector tailwinds. The fund managers highlight that preventative screening, telehealth, and AI-driven efficiencies are poised to drive long-term growth, reinforcing the industry’s fundamentals. They also emphasize the CEO and CFO's commitment to achieving scale efficiency from the Capital Health acquisition, which could unlock significant upside potential. They view the recent share price movement as a timing issue, maintaining that the overall investment thesis remains intact.
Source: Trading View
Commentary From The Managers
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Wilson Asset Management
10 Nov 2025
$2.56
Summary
- Integral Diagnostics (IDX) delivered a positive Q1 FY2026 update at its AGM.
- Australian revenue increased by 8.3% year-on-year.
- Guidance for FY2026 EBITDA margin is approximately 21%.
- Growth is expected to accelerate in FY2026, supported by MRI deregulation, the National Lung Cancer Screening Program, and the GP Bulk Billing Incentive (effective 1 November).
- Early full-year guidance indicates greater confidence from the board and management regarding revenue, margins, and merger synergies.
- Recent share price decline ahead of the AGM was driven by fears of a weaker trading update, which now appear overdone.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Wilson Asset Management
10 Nov 2025
$2.56
- Integral Diagnostics (IDX) delivered a positive Q1 FY2026 update at its AGM.
- Australian revenue increased by 8.3% year-on-year.
- Guidance for FY2026 EBITDA margin is approximately 21%.
- Growth is expected to accelerate in FY2026, supported by MRI deregulation, the National Lung Cancer Screening Program, and the GP Bulk Billing Incentive (effective 1 November).
- Early full-year guidance indicates greater confidence from the board and management regarding revenue, margins, and merger synergies.
- Recent share price decline ahead of the AGM was driven by fears of a weaker trading update, which now appear overdone.
Summary
Seneca Financial Solutions
10 Oct 2025
$2.71
- Seneca Financial Solutions continues to evaluate the performance of Integral Diagnostics Ltd amidst an ageing population and healthcare trends.
- The diagnostic imaging sector has shown mediocre returns, with only 5% growth and 5% return on equity.
- Concerns about labour force inflation and challenges from boutique practices impact the company's potential.
- Regulatory tailwinds may exist, but forecasting these changes is not a primary focus for Seneca Financial Solutions.
- While there is interest in IDX, it does not align with Seneca's investment strategy at this time.
Summary
Maple-Brown Abbott
10 Oct 2025
$2.71
- Maple-Brown Abbott notes that Integral Diagnostics Ltd has experienced a chequered history, with the share price halving over recent years.
- Previous management missteps have impacted performance, but the current positioning shows promise.
- Industry data for radiology is rebounding strongly, indicating a recovery from the long COVID hangover.
- Regulatory tailwinds, such as the deregulation of MRI licenses and national lung cancer screening, are expected to boost volume in the coming years.
- Cost synergies from the Capital Health acquisition may be greater than anticipated.
- Valuation appears attractive, as recent private equity deals in the sector have been priced significantly higher than Integral's current trading levels.
- Maple-Brown Abbott believes earnings have reached an inflection point, suggesting potential for growth.
Summary
Blackwattle Investment Partners
28 Feb 2025
$2.13
- Integral Diagnostics fell 31.7%, making it the key detractor for the month.
- The company reported higher-than-expected labour costs in its radiology centres due to an industry-wide shortage of medical staff.
- The unexpected costs led to a 5% downgrade to consensus earnings forecasts.
- Despite this, the sharp share price drop suggests investors were expecting an upgrade, given strong sector tailwinds.
- Key drivers for long-term structural growth include preventative screening, telehealth, and AI-driven cost efficiencies.
- In a post-results meeting, the CEO and CFO reaffirmed their commitment to unlocking scale efficiency benefits from the Capital Health acquisition.
- If successfully executed, this presents significant upside potential for the company.
- Blackwattle Investment Partners continues to hold because they see the share price movement as a timing issue and believe the investment thesis remains intact.
Summary
Wilson Asset Management
28 Feb 2025
$2.13
- Integral Diagnostics provides diagnostic services to patients.
- FY2025 interim results fell short of market expectations, impacting share price.
- Reported a statutory loss after tax of $0.4 million.
- Loss attributed to clinical staff shortages and high labour cost inflation in regional Australia.
- Despite challenges, there was solid revenue growth.
- Merger with Capitol Health expected to enhance scale and improve margins.
- Wilson Asset Management continues to hold due to potential growth in metropolitan areas.
Summary
Tyndall Asset Management
28 Feb 2025
$2.13
- Tyndall Asset Management exited their investment in Integral Diagnostics prior to the 1H25 results.
- The decision was influenced by anticipated downgrades that were expected to impact share prices.
- Concerns about cost issues were significant leading up to the results.
- These concerns were validated by the results, which contributed to an earnings downgrade.
- The exit was a proactive measure in response to the potential for a heavy share price decline.
Summary
Yarra Capital Management
28 Feb 2025
$2.13
- Integral Diagnostics (IDX) remains in a modest overweight position.
- Recent performance was affected by a weaker-than-expected first-half result.
- Results showed higher costs and lower margins.
- Yarra Capital Management believes in the strong long-term fundamentals of radiology.
- Market growth potential is supported by an aging population and new tests.
- Productivity opportunities are expected from technological advancements such as AI.
Summary
Firetrail Investments
30 Nov 2024
$2.85
- Firetrail Investments continues to hold its position in Integral Diagnostics (IDX).
- IDX experienced Q1 revenue growth of 8% in Australia, below the industry growth rate of 11%.
- The company’s performance is impacted by its greater regional mix and capped contracts that reset at the beginning of Q2.
- Over a 2-year period, IDX has matched industry growth at 8% p.a..
- Industry growth is primarily driven by a shift to higher modality, more expensive scans, Medicare indexation, and volume growth.
Summary
Elston Asset Management
30 June 2024
$2.59
- Integral Diagnostics announced intentions to acquire Capitol Health, a domestic diagnostic imaging peer.
- Elston is cautious of large acquisitions, as they often overpromise and underdeliver for shareholders.
- The businesses are geographically complementary, with Capitol Health sites concentrated in the Melbourne metro area blending well with Integral Diagnostics’ regional sites.
- There are still several hurdles to meet before the acquisition becomes a done deal.
- Elston will closely monitor the progress and seek further details as the acquisition looks more likely to materialise.
Summary
Forager Funds
30 June 2024
$2.59
- Forager Funds has adjusted its position in Integral Diagnostics (IDX), contributing a 2.2% decrease in the Fund’s return.
- Revenue growth remained robust in Australia, indicating positive market performance.
- New Zealand's revenue growth was noted to be weaker.
- Rising clinical staff shortages have led to increased costs and impacted margins early in the financial year.
- High levels of debt have raised concerns regarding financial stability.
- Reduced confidence in long-term margins prompted Forager Funds to reduce their investment.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"Despite a sharp decline, the fundamentals appear resilient. Integral Diagnostics seems poised for long-term growth, driven by sector tailwinds and strategic efficiencies. If execution aligns with potential, this dip could be a fleeting moment in a larger upward trajectory."
Last Updated: 10 Nov 2025
Query The Data
Frequently Asked Questions
Who is investing in Integral Diagnostics Ltd (ASX:IDX)?
Fund managers including Blackwattle Investment Partners, Forager Funds, Yarra Capital Management, Elston Asset Management, Firetrail Investments , Wilson Asset Management, Tyndall Asset Management, Seneca Financial Solutions and Maple-Brown Abbott have invested in Integral Diagnostics Ltd (ASX:IDX).
Why do fund managers invest in Integral Diagnostics Ltd?
Fund managers are invested in Integral Diagnostics Ltd due to its long-term growth potential driven by sector tailwinds such as preventative screening, telehealth, and AI efficiencies. Despite recent challenges, including higher-than-expected labor costs and a share price drop, the company's fundamentals remain strong. The management's focus on achieving scale efficiencies from the Capital Health acquisition further enhances the investment thesis, indicating significant upside potential.
What happened to Integral Diagnostics Ltd (ASX:IDX)?
Fund managers are investing in Integral Diagnostics Ltd due to a combination of improving industry dynamics and positive company performance indicators. Recent comments highlight a rebound in radiology growth following pandemic-related challenges, supported by regulatory tailwinds such as MRI license deregulation and the National Lung Cancer Screening Program. Additionally, the company reported an 8.3% increase in Australian revenue and a projected EBITDA margin of 21% for FY2026, indicating stronger management confidence. While some fund managers express caution due to historical missteps and sector challenges, others see the current valuation as attractive, suggesting that earnings may be at an inflection point.