Sonic Healthcare's (ASX:SHL) Returns On Capital Not Reflecting Well On The Business
Apr 24
Australian (ASX) Healthcare Services Industry Analysis
UpdatedMay 02, 2024
DataAggregated Company Financials
Companies16
- 7D-2.1%
- 3M-6.4%
- 1Y-21.0%
- YTD-9.4%
Over the last 7 days, the Healthcare Services industry has dropped 2.1%, driven by pullbacks in Sonic Healthcare and Ramsay Health Care of 3.0% and 2.7%, respectively. In contrast, Pacific Smiles Group has gained 17%. Overall the industry is down 21% in 12 months. Looking forward, earnings are forecast to grow by 20% annually.
Industry Valuation and Performance
Has the Australian Healthcare Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 02 May 2024 | AU$29.8b | AU$31.7b | -AU$280,512,128.00 | 31.4x | -106.3x | 0.9x |
| Sat, 30 Mar 2024 | AU$32.6b | AU$31.7b | -AU$280,512,128.00 | 35x | -116.3x | 1x |
| Mon, 26 Feb 2024 | AU$31.7b | AU$31.6b | AU$357.4m | 27.2x | 88.7x | 1x |
| Wed, 24 Jan 2024 | AU$34.3b | AU$32.8b | AU$608.0m | 24.5x | 56.4x | 1x |
| Fri, 22 Dec 2023 | AU$34.2b | AU$32.8b | AU$608.0m | 24.3x | 56.3x | 1x |
| Sun, 19 Nov 2023 | AU$32.5b | AU$32.8b | AU$608.0m | 23.8x | 53.5x | 1x |
| Tue, 17 Oct 2023 | AU$32.9b | AU$32.8b | AU$608.0m | 24.9x | 54.2x | 1x |
| Thu, 14 Sep 2023 | AU$33.7b | AU$33.0b | AU$596.0m | 26.2x | 56.6x | 1x |
| Sat, 12 Aug 2023 | AU$37.0b | AU$33.0b | AU$1.3b | 25.8x | 28.3x | 1.1x |
| Mon, 10 Jul 2023 | AU$36.8b | AU$33.0b | AU$1.3b | 25.8x | 28x | 1.1x |
| Wed, 07 Jun 2023 | AU$37.6b | AU$33.0b | AU$1.3b | 25.9x | 28.7x | 1.1x |
| Fri, 05 May 2023 | AU$38.5b | AU$32.5b | AU$1.3b | 27.1x | 29.3x | 1.2x |
| Sun, 02 Apr 2023 | AU$39.1b | AU$32.5b | AU$1.3b | 24.7x | 29.8x | 1.2x |
| Tue, 28 Feb 2023 | AU$38.3b | AU$32.8b | AU$1.6b | 21x | 24.6x | 1.2x |
| Thu, 26 Jan 2023 | AU$38.2b | AU$33.1b | AU$2.1b | 23.3x | 18x | 1.2x |
| Sat, 24 Dec 2022 | AU$36.5b | AU$33.1b | AU$2.1b | 24.5x | 17.2x | 1.1x |
| Mon, 21 Nov 2022 | AU$37.1b | AU$32.8b | AU$2.1b | 24.9x | 17.5x | 1.1x |
| Wed, 19 Oct 2022 | AU$35.7b | AU$32.8b | AU$2.1b | 24.9x | 16.8x | 1.1x |
| Fri, 16 Sep 2022 | AU$37.3b | AU$32.7b | AU$2.1b | 24.9x | 17.4x | 1.1x |
| Sun, 14 Aug 2022 | AU$40.7b | AU$32.1b | AU$2.3b | 30x | 17.6x | 1.3x |
| Tue, 12 Jul 2022 | AU$39.9b | AU$31.9b | AU$2.3b | 25.9x | 17.6x | 1.3x |
| Thu, 09 Jun 2022 | AU$41.5b | AU$31.9b | AU$2.3b | 25.7x | 18.3x | 1.3x |
| Sat, 07 May 2022 | AU$43.9b | AU$31.9b | AU$2.3b | 27.5x | 19.4x | 1.4x |
| Mon, 04 Apr 2022 | AU$41.7b | AU$35.9b | AU$2.3b | 33.3x | 18.4x | 1.2x |
| Wed, 02 Mar 2022 | AU$41.6b | AU$36.1b | AU$2.3b | 28x | 17.7x | 1.2x |
| Fri, 28 Jan 2022 | AU$41.4b | AU$34.9b | AU$2.1b | 24.8x | 19.9x | 1.2x |
| Sun, 26 Dec 2021 | AU$49.3b | AU$34.9b | AU$2.1b | 25.7x | 23.6x | 1.4x |
| Tue, 23 Nov 2021 | AU$45.6b | AU$35.3b | AU$2.1b | 27x | 22x | 1.3x |
| Thu, 21 Oct 2021 | AU$44.3b | AU$35.2b | AU$2.1b | 25.3x | 21.6x | 1.3x |
| Sat, 18 Sep 2021 | AU$46.9b | AU$35.1b | AU$2.1b | 26.5x | 22.9x | 1.3x |
| Mon, 16 Aug 2021 | AU$46.0b | AU$35.1b | AU$2.1b | 23x | 22.4x | 1.3x |
| Mon, 31 May 2021 | AU$40.8b | AU$34.1b | AU$1.5b | 23.5x | 27x | 1.2x |
Price to Earnings Ratio
28.9x
Current Industry PE
- Investors are pessimistic on the Australian Healthcare industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 0.94x.
Past Earnings Growth
- Total earnings for the Healthcare industry have declined over the last three years, with the industry now making a loss overall.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Australian Healthcare industry?
| AU Market | -1.54% | |
| Healthcare | -1.12% | |
| Healthcare Services | -2.06% | |
| Managed Healthcare | 0% | |
| Healthcare Services | -1.75% | |
| Healthcare Facilities | -2.21% | |
| Healthcare Distributors | -3.22% | |
Industry PE
- Investors are most optimistic about the Healthcare Distributors industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 11.8%, which is lower than the prior year's growth of 107.7% per year.
Forecasted Growth
- Analysts are most optimistic on the Healthcare Services industry, expecting annual earnings growth of 23% over the next 5 years.
- This is better than its past earnings decline of 54% per year.
- In contrast, the Healthcare Distributors industry is expected to see its earnings grow by 12% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| PSQ Pacific Smiles Group | AU$1.90 | 16.6% +AU$43.1m | 44.5% | PE45.9x | |
| MAP Microba Life Sciences | AU$0.18 | 15.6% +AU$11.2m | -40.3% | PS12.7x | |
| AHX Apiam Animal Health | AU$0.40 | 3.9% +AU$2.7m | -20.0% | PE27.3x | |
| HLA Healthia | AU$1.80 | 0.3% +AU$702.1k | 52.1% | PE46.1x | |
| SLA SILK Laser Australia | AU$3.34 | 0.3% +AU$531.2k | 53.9% | PE24.5x |
