Returns On Capital At Sonic Healthcare (ASX:SHL) Have Stalled
Feb 11
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Australian (ASX) Healthcare Sector Analysis
UpdatedFeb 13, 2026
DataAggregated Company Financials
Companies125
- 7D-9.6%
- 3M-13.0%
- 1Y-29.2%
- YTD-11.0%
Over the last 7 days, the Healthcare industry has dropped 9.6%, driven by CSL declining 17%. However, the industry is down 29% over the past year. Looking forward, earnings are forecast to grow by 23% annually.
Sector Valuation and Performance
Has the Australian Healthcare Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 13 Feb 2026 | AU$191.4b | AU$72.0b | AU$2.1b | 37.4x | 90x | 2.7x |
| Sun, 11 Jan 2026 | AU$214.3b | AU$73.9b | AU$4.5b | 31.4x | 47.6x | 2.9x |
| Tue, 09 Dec 2025 | AU$222.5b | AU$74.2b | AU$4.3b | 33.6x | 52.1x | 3x |
| Thu, 06 Nov 2025 | AU$221.3b | AU$75.0b | AU$4.6b | 31.7x | 47.8x | 2.9x |
| Sat, 04 Oct 2025 | AU$242.8b | AU$74.5b | AU$4.6b | 30.4x | 53.3x | 3.3x |
| Mon, 01 Sep 2025 | AU$244.2b | AU$74.9b | AU$4.6b | 31.6x | 53.5x | 3.3x |
| Wed, 30 Jul 2025 | AU$278.3b | AU$71.7b | AU$4.3b | 31.2x | 64.9x | 3.9x |
| Fri, 27 Jun 2025 | AU$254.2b | AU$71.7b | AU$4.3b | 25.9x | 59.7x | 3.5x |
| Sun, 25 May 2025 | AU$257.4b | AU$71.8b | AU$4.3b | 27.4x | 60.3x | 3.6x |
| Tue, 22 Apr 2025 | AU$242.5b | AU$70.6b | AU$4.9b | 27.1x | 49.7x | 3.4x |
| Thu, 20 Mar 2025 | AU$253.9b | AU$70.9b | AU$4.9b | 27.9x | 51.9x | 3.6x |
| Sat, 15 Feb 2025 | AU$239.0b | AU$66.0b | AU$3.6b | 28.7x | 67.1x | 3.6x |
| Mon, 13 Jan 2025 | AU$250.1b | AU$66.6b | AU$3.3b | 23.7x | 76x | 3.8x |
| Wed, 11 Dec 2024 | AU$246.0b | AU$68.4b | AU$3.3b | 26.7x | 75.3x | 3.6x |
| Fri, 08 Nov 2024 | AU$239.6b | AU$67.3b | AU$3.1b | 25.5x | 77.2x | 3.6x |
| Sun, 06 Oct 2024 | AU$241.0b | AU$66.9b | AU$3.0b | 30.4x | 79.4x | 3.6x |
| Tue, 03 Sep 2024 | AU$243.3b | AU$66.0b | AU$3.1b | 26.2x | 79.7x | 3.7x |
| Thu, 01 Aug 2024 | AU$246.4b | AU$63.3b | AU$2.7b | 29.7x | 91x | 3.9x |
| Sat, 29 Jun 2024 | AU$237.3b | AU$62.7b | AU$2.6b | 32.1x | 90.6x | 3.8x |
| Mon, 27 May 2024 | AU$223.7b | AU$61.1b | AU$2.6b | 27.5x | 85.4x | 3.7x |
| Wed, 24 Apr 2024 | AU$222.8b | AU$61.8b | AU$2.7b | 25.8x | 82x | 3.6x |
| Fri, 22 Mar 2024 | AU$219.9b | AU$61.5b | AU$2.6b | 26.4x | 83.7x | 3.6x |
| Sun, 18 Feb 2024 | AU$223.4b | AU$60.5b | AU$3.5b | 25.8x | 64.2x | 3.7x |
| Tue, 16 Jan 2024 | AU$225.9b | AU$60.2b | AU$2.8b | 24.5x | 80.4x | 3.8x |
| Thu, 14 Dec 2023 | AU$215.2b | AU$60.5b | AU$2.9b | 24.9x | 74.6x | 3.6x |
| Sat, 11 Nov 2023 | AU$200.5b | AU$61.3b | AU$3.0b | 24.5x | 67x | 3.3x |
| Mon, 09 Oct 2023 | AU$198.7b | AU$61.2b | AU$2.9b | 24.9x | 67.8x | 3.2x |
| Wed, 06 Sep 2023 | AU$211.5b | AU$61.4b | AU$2.9b | 26.3x | 72.4x | 3.4x |
| Fri, 04 Aug 2023 | AU$211.9b | AU$58.2b | AU$3.0b | 26.2x | 71.6x | 3.6x |
| Sun, 02 Jul 2023 | AU$216.5b | AU$57.8b | AU$2.9b | 27x | 74.8x | 3.7x |
| Tue, 30 May 2023 | AU$231.7b | AU$58.1b | AU$2.9b | 26.8x | 78.8x | 4x |
| Thu, 27 Apr 2023 | AU$233.6b | AU$57.4b | AU$2.9b | 28.2x | 80.6x | 4.1x |
| Sat, 25 Mar 2023 | AU$220.6b | AU$57.2b | AU$2.9b | 24.9x | 76.7x | 3.9x |
| Mon, 20 Feb 2023 | AU$226.3b | AU$56.2b | AU$3.3b | 24.9x | 68.2x | 4x |
Price to Earnings Ratio
68.2x
Current Industry PE
- Investors are optimistic on the Australian Healthcare industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 90.0x which is higher than its 3-year average PE of 69.7x.
- The 3-year average PS ratio of 3.6x is higher than the industry's current PS ratio of 2.7x.
Past Earnings Growth
- The earnings for companies in the Healthcare industry have declined 14% per year over the last three years.
- Meanwhile revenues for these companies have grown 8.6% per year.
- This means that although more sales are being generated, 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 sector?
| AU Market | 1.34% | |
| Healthcare | -9.57% | |
| Pharma | 2.23% | |
| Life Sciences | -2.15% | |
| Healthcare Services | -2.67% | |
| Medical Equipment | -3.37% | |
| Biotech | -14.62% | |
| Healthtech | -16.56% | |
Industry PE
- Investors are most optimistic about the Healthtech industry even though it's trading below its 3-year average PE ratio of 2kx.
- Analysts are expecting annual earnings growth of 13.6%, which is lower than the prior year's growth of 112.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Life Sciences industry, expecting annual earnings growth of 48% over the next 5 years.
- This is better than its past earnings growth rate of 2.4% per year.
- In contrast, the Healthtech industry is expected to see its earnings grow by 14% 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 | |
|---|---|---|---|---|---|
| RHC Ramsay Health Care | AU$36.93 | 2.9% +AU$241.4m | 6.9% | PE1248.7x | |
| 4DX 4DMedical | AU$3.52 | 13.5% +AU$239.3m | 604.0% | PS342.6x | |
| MSB Mesoblast | AU$2.38 | 6.7% +AU$193.6m | -15.0% | PS126.6x | |
| PYC PYC Therapeutics | AU$1.52 | 1.0% +AU$138.3m | 17.9% | PS43.1x | |
| SPL Starpharma Holdings | AU$0.49 | 32.4% +AU$50.4m | 390.0% | PS35.2x |
