Returns On Capital At Ramsay Health Care (ASX:RHC) Paint A Concerning Picture
Nov 11
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Australian (ASX) Healthcare Services Industry Analysis
UpdatedNov 20, 2024
DataAggregated Company Financials
Companies16
- 7D0.09%
- 3M1.6%
- 1Y2.4%
- YTD-5.9%
The Healthcare Services is pretty flat in the last 7 days, but Sonic Healthcare has stood out, gaining 5.0%. In line with that, the industry has also been flat over the past 12 months. Looking forward, earnings are forecast to grow by 25% 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 |
|---|---|---|---|---|---|---|
| Wed, 20 Nov 2024 | AU$32.4b | AU$36.9b | AU$35.3m | 28.7x | 916.4x | 0.9x |
| Fri, 18 Oct 2024 | AU$32.9b | AU$36.9b | AU$35.3m | 30.8x | 930.5x | 0.9x |
| Sun, 15 Sep 2024 | AU$30.8b | AU$36.8b | AU$43.1m | 31.7x | 714.4x | 0.8x |
| Tue, 13 Aug 2024 | AU$29.7b | AU$33.5b | -AU$278,022,128.00 | 43.1x | -106.7x | 0.9x |
| Thu, 11 Jul 2024 | AU$29.3b | AU$33.5b | -AU$278,022,128.00 | 44.6x | -105.5x | 0.9x |
| Sat, 08 Jun 2024 | AU$29.1b | AU$33.5b | -AU$278,022,128.00 | 41.6x | -104.7x | 0.9x |
| Mon, 06 May 2024 | AU$29.8b | AU$31.7b | -AU$280,512,128.00 | 31.7x | -106.2x | 0.9x |
| Wed, 03 Apr 2024 | AU$32.2b | AU$31.7b | -AU$280,512,128.00 | 35x | -114.9x | 1x |
| Fri, 01 Mar 2024 | AU$31.9b | AU$31.6b | -AU$282,375,099.00 | 29.6x | -112.8x | 1x |
| Sun, 28 Jan 2024 | AU$34.2b | AU$32.8b | AU$608.0m | 24.9x | 56.3x | 1x |
| Tue, 26 Dec 2023 | AU$34.4b | AU$32.8b | AU$608.0m | 24.2x | 56.5x | 1x |
| Thu, 23 Nov 2023 | AU$31.5b | AU$32.8b | AU$608.0m | 23.9x | 51.8x | 1x |
| Sat, 21 Oct 2023 | AU$32.3b | AU$32.8b | AU$608.0m | 24.6x | 53.1x | 1x |
| Mon, 18 Sep 2023 | AU$34.1b | AU$33.0b | AU$596.0m | 26.4x | 57.1x | 1x |
| Wed, 16 Aug 2023 | AU$37.0b | AU$33.0b | AU$1.3b | 26x | 28.2x | 1.1x |
| Fri, 14 Jul 2023 | AU$37.2b | AU$33.0b | AU$1.3b | 26.5x | 28.4x | 1.1x |
| Sun, 11 Jun 2023 | AU$37.6b | AU$33.0b | AU$1.3b | 25.5x | 28.7x | 1.1x |
| Tue, 09 May 2023 | AU$38.6b | AU$32.5b | AU$1.3b | 26.8x | 29.4x | 1.2x |
| Thu, 06 Apr 2023 | AU$40.0b | AU$32.5b | AU$1.3b | 25.2x | 30.5x | 1.2x |
| Sat, 04 Mar 2023 | AU$37.9b | AU$32.4b | AU$1.3b | 24.9x | 29.1x | 1.2x |
| Mon, 30 Jan 2023 | AU$37.7b | AU$33.1b | AU$2.1b | 23.3x | 17.7x | 1.1x |
| Wed, 28 Dec 2022 | AU$36.5b | AU$33.1b | AU$2.1b | 24.5x | 17.2x | 1.1x |
| Fri, 25 Nov 2022 | AU$37.4b | AU$32.8b | AU$2.1b | 24.9x | 17.6x | 1.1x |
| Sun, 23 Oct 2022 | AU$35.0b | AU$32.8b | AU$2.1b | 24.9x | 16.5x | 1.1x |
| Tue, 20 Sep 2022 | AU$36.5b | AU$32.7b | AU$2.1b | 24.9x | 17.1x | 1.1x |
| Thu, 18 Aug 2022 | AU$41.5b | AU$32.1b | AU$2.3b | 31.4x | 17.9x | 1.3x |
| Sat, 16 Jul 2022 | AU$39.9b | AU$31.9b | AU$2.3b | 26.4x | 17.6x | 1.3x |
| Mon, 13 Jun 2022 | AU$41.7b | AU$31.9b | AU$2.3b | 25.8x | 18.4x | 1.3x |
| Wed, 11 May 2022 | AU$42.8b | AU$31.9b | AU$2.3b | 26.3x | 18.9x | 1.3x |
| Fri, 08 Apr 2022 | AU$41.5b | AU$35.9b | AU$2.3b | 29.5x | 18.4x | 1.2x |
| Sun, 06 Mar 2022 | AU$40.5b | AU$36.0b | AU$2.3b | 26.5x | 17.2x | 1.1x |
| Tue, 01 Feb 2022 | AU$42.5b | AU$34.9b | AU$2.1b | 25.2x | 20.4x | 1.2x |
| Thu, 30 Dec 2021 | AU$50.0b | AU$34.9b | AU$2.1b | 25.6x | 24x | 1.4x |
| Sat, 27 Nov 2021 | AU$45.5b | AU$35.3b | AU$2.1b | 25.9x | 22x | 1.3x |
Price to Earnings Ratio
22x
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 916x which is higher than its 3-year average PE of 82.7x.
- The 3-year average PS ratio of 1.1x is higher than the industry's current PS ratio of 0.88x.
Past Earnings Growth
- The earnings for companies in the Healthcare industry have declined 74% per year over the last three years.
- 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 | 1.37% | |
| Healthcare | -3.03% | |
| Healthcare Services | 0.085% | |
| Healthcare Services | 2.22% | |
| Managed Healthcare | 0% | |
| Healthcare Facilities | -0.53% | |
| Healthcare Distributors | -5.70% | |
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 45.3%, which is higher than its past year's earnings decline of 34.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Healthcare Distributors industry, expecting annual earnings growth of 45% over the next 5 years.
- This is better than its past earnings decline of 35% per year.
- In contrast, the Healthcare Services industry is expected to see its earnings grow by 20% 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 | |
|---|---|---|---|---|---|
| SHL Sonic Healthcare | AU$27.79 | 5.0% +AU$638.7m | -3.8% | PE26.1x | |
| RHC Ramsay Health Care | AU$38.09 | 1.2% +AU$105.5m | -23.8% | PE34.4x | |
| REG Regis Healthcare | AU$6.44 | 0.9% +AU$18.1m | 136.8% | PS1.9x | |
| MAP Microba Life Sciences | AU$0.17 | 9.7% +AU$6.7m | -19.0% | PS6.3x | |
| IIQ INOVIQ | AU$0.46 | 3.4% +AU$1.7m | -24.2% | PS32.5x |
