Here's Why Sonic Healthcare (ASX:SHL) Can Manage Its Debt Responsibly
Nov 23
Australian (ASX) Healthcare Sector Analysis
UpdatedDec 01, 2023
DataAggregated Company Financials
Companies156
- 7D2.1%
- 3M-2.0%
- 1Y-8.8%
- YTD-3.4%
The Healthcare industry is up 2.1% in the last week, with CSL up 1.8%. In the past year, the industry is down 8.8%. Looking forward, earnings are forecast to grow by 18% 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, 01 Dec 2023 | AU$206.3b | AU$60.4b | AU$2.9b | 24.8x | 72.2x | 3.4x |
| Sun, 29 Oct 2023 | AU$186.6b | AU$61.3b | AU$3.0b | 24.3x | 62.1x | 3x |
| Tue, 26 Sep 2023 | AU$200.3b | AU$61.0b | AU$2.9b | 24.6x | 69.1x | 3.3x |
| Thu, 24 Aug 2023 | AU$208.8b | AU$60.6b | AU$2.8b | 26x | 73.5x | 3.4x |
| Sat, 22 Jul 2023 | AU$212.2b | AU$57.5b | AU$2.9b | 27x | 74.3x | 3.7x |
| Mon, 19 Jun 2023 | AU$217.6b | AU$57.1b | AU$2.8b | 25.7x | 77.5x | 3.8x |
| Wed, 17 May 2023 | AU$231.3b | AU$57.7b | AU$2.9b | 27.4x | 80.5x | 4x |
| Fri, 14 Apr 2023 | AU$232.1b | AU$57.0b | AU$2.9b | 28.6x | 81.4x | 4.1x |
| Sun, 12 Mar 2023 | AU$220.3b | AU$57.4b | AU$2.9b | 25.1x | 75.9x | 3.8x |
| Tue, 07 Feb 2023 | AU$232.8b | AU$55.3b | AU$4.0b | 24.9x | 58.8x | 4.2x |
| Thu, 05 Jan 2023 | AU$216.0b | AU$55.4b | AU$4.0b | 25.1x | 53.9x | 3.9x |
| Sat, 03 Dec 2022 | AU$227.8b | AU$55.6b | AU$4.0b | 26.5x | 56.4x | 4.1x |
| Mon, 31 Oct 2022 | AU$209.7b | AU$56.5b | AU$4.2b | 27x | 49.8x | 3.7x |
| Wed, 28 Sep 2022 | AU$211.9b | AU$56.2b | AU$4.2b | 25.6x | 50.3x | 3.8x |
| Fri, 26 Aug 2022 | AU$223.7b | AU$54.4b | AU$4.6b | 32x | 48.9x | 4.1x |
| Sun, 24 Jul 2022 | AU$223.2b | AU$53.9b | AU$4.8b | 24.1x | 46.3x | 4.1x |
| Tue, 21 Jun 2022 | AU$200.2b | AU$54.0b | AU$4.8b | 24.1x | 41.3x | 3.7x |
| Thu, 19 May 2022 | AU$214.7b | AU$53.8b | AU$4.8b | 25.5x | 44.7x | 4x |
| Sat, 16 Apr 2022 | AU$211.8b | AU$56.7b | AU$4.7b | 27.7x | 45.5x | 3.7x |
| Mon, 14 Mar 2022 | AU$204.0b | AU$57.1b | AU$4.7b | 24.3x | 43.2x | 3.6x |
| Wed, 09 Feb 2022 | AU$210.4b | AU$55.7b | AU$4.7b | 28.9x | 44.7x | 3.8x |
| Fri, 07 Jan 2022 | AU$240.3b | AU$55.4b | AU$4.6b | 14.8x | 51.7x | 4.3x |
| Sun, 05 Dec 2021 | AU$231.4b | AU$56.4b | AU$4.7b | 30.2x | 48.8x | 4.1x |
| Tue, 02 Nov 2021 | AU$238.5b | AU$55.2b | AU$4.5b | 29.6x | 52.8x | 4.3x |
| Thu, 30 Sep 2021 | AU$227.4b | AU$55.8b | AU$4.6b | 30.4x | 49.3x | 4.1x |
| Sat, 28 Aug 2021 | AU$240.8b | AU$55.1b | AU$4.5b | 29.8x | 53.7x | 4.4x |
| Sun, 04 Jul 2021 | AU$226.8b | AU$55.1b | AU$4.5b | 30.7x | 50.2x | 4.1x |
| Wed, 07 Apr 2021 | AU$208.7b | AU$52.5b | AU$3.8b | 23.1x | 54.5x | 4x |
| Sat, 09 Jan 2021 | AU$211.4b | AU$50.7b | AU$3.1b | 31.9x | 68.2x | 4.2x |
Price to Earnings Ratio
76.6x
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 72.2x which is higher than its 3-year average PE of 58.2x.
- The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 3.4x.
Past Earnings Growth
- The earnings for companies in the Healthcare industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 6.2% 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 and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Australian Healthcare sector?
| AU Market | 0.80% | |
| Healthcare | 2.13% | |
| Medical Equipment | 4.30% | |
| Pharma | 4.23% | |
| Biotech | 2.03% | |
| Healthcare Services | 1.07% | |
| Healthtech | 0.79% | |
| Life Sciences | 0.69% | |
Industry PE
- Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 95.9x.
- Analysts are expecting annual earnings growth of 14.6%, which is higher than its past year's earnings decline of 3.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Life Sciences industry, expecting annual earnings growth of 57% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Pharma industry is expected to see its earnings grow by 13% 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 | |
|---|---|---|---|---|---|
| CSL CSL | AU$262.86 | 1.8% +AU$2.3b | -12.9% | PE38.2x | |
| COH Cochlear | AU$272.29 | 5.2% +AU$881.9m | 26.4% | PE59.3x | |
| SHL Sonic Healthcare | AU$29.12 | 2.0% +AU$277.1m | -9.5% | PE20.2x | |
| TLX Telix Pharmaceuticals | AU$9.91 | 5.8% +AU$174.9m | 33.9% | PS9x | |
| HLS Healius | AU$1.59 | 22.3% +AU$165.3m | -47.5% | PS0.5x |
