Returns At Sonic Healthcare (ASX:SHL) Appear To Be Weighed Down
Sep 19
Australian (ASX) Healthcare Services Industry Analysis
UpdatedSep 26, 2023
DataAggregated Company Financials
Companies21
- 7D-0.6%
- 3M-9.6%
- 1Y-4.5%
- YTD-6.4%
In the last week, the Healthcare Services industry is flat overall, with Sigma Healthcare standing out by going down 11%. Unfortunately though, the industry is down 4.5% over the past 12 months. Looking forward, earnings are forecast to grow by 21% 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 |
|---|---|---|---|---|---|---|
| Tue, 26 Sep 2023 | AU$33.6b | AU$32.8b | AU$608.8m | 25.8x | 55.3x | 1x |
| Thu, 24 Aug 2023 | AU$35.2b | AU$32.4b | AU$979.2m | 25.8x | 35.9x | 1.1x |
| Sat, 22 Jul 2023 | AU$37.3b | AU$33.0b | AU$1.3b | 25.9x | 28.4x | 1.1x |
| Mon, 19 Jun 2023 | AU$37.6b | AU$33.0b | AU$1.3b | 25.7x | 28.6x | 1.1x |
| Wed, 17 May 2023 | AU$38.5b | AU$33.0b | AU$1.3b | 25.5x | 29.4x | 1.2x |
| Fri, 14 Apr 2023 | AU$40.3b | AU$32.5b | AU$1.3b | 26.9x | 30.7x | 1.2x |
| Sun, 12 Mar 2023 | AU$38.7b | AU$32.4b | AU$1.3b | 24.8x | 29.7x | 1.2x |
| Tue, 07 Feb 2023 | AU$37.5b | AU$33.1b | AU$2.1b | 23.7x | 17.6x | 1.1x |
| Thu, 05 Jan 2023 | AU$36.8b | AU$33.1b | AU$2.1b | 23.8x | 17.3x | 1.1x |
| Sat, 03 Dec 2022 | AU$37.9b | AU$33.1b | AU$2.1b | 24.9x | 17.8x | 1.1x |
| Mon, 31 Oct 2022 | AU$36.3b | AU$32.8b | AU$2.1b | 24.9x | 17.1x | 1.1x |
| Wed, 28 Sep 2022 | AU$35.2b | AU$32.8b | AU$2.1b | 24.9x | 16.5x | 1.1x |
| Fri, 26 Aug 2022 | AU$42.0b | AU$32.3b | AU$2.2b | 28.4x | 19.1x | 1.3x |
| Sun, 24 Jul 2022 | AU$40.8b | AU$31.9b | AU$2.3b | 26.4x | 18x | 1.3x |
| Tue, 21 Jun 2022 | AU$39.7b | AU$31.9b | AU$2.3b | 24.8x | 17.5x | 1.2x |
| Thu, 19 May 2022 | AU$44.0b | AU$31.9b | AU$2.3b | 26.5x | 19.4x | 1.4x |
| Sat, 16 Apr 2022 | AU$41.8b | AU$35.9b | AU$2.3b | 28.8x | 18.5x | 1.2x |
| Mon, 14 Mar 2022 | AU$40.1b | AU$36.0b | AU$2.3b | 25.7x | 17x | 1.1x |
| Wed, 09 Feb 2022 | AU$42.9b | AU$34.9b | AU$2.1b | 24.7x | 20.6x | 1.2x |
| Fri, 07 Jan 2022 | AU$49.5b | AU$34.9b | AU$2.1b | 20x | 23.8x | 1.4x |
| Sun, 05 Dec 2021 | AU$46.0b | AU$35.3b | AU$2.1b | 24.9x | 22.2x | 1.3x |
| Tue, 02 Nov 2021 | AU$46.3b | AU$35.3b | AU$2.1b | 27.3x | 22.4x | 1.3x |
| Thu, 30 Sep 2021 | AU$44.9b | AU$35.2b | AU$2.1b | 26.2x | 21.9x | 1.3x |
| Sat, 28 Aug 2021 | AU$46.5b | AU$35.1b | AU$2.1b | 25.8x | 22.6x | 1.3x |
| Sun, 04 Jul 2021 | AU$42.6b | AU$35.1b | AU$2.1b | 24.9x | 20.8x | 1.2x |
| Wed, 07 Apr 2021 | AU$40.9b | AU$33.4b | AU$1.4b | 23.1x | 28.4x | 1.2x |
| Sat, 09 Jan 2021 | AU$37.4b | AU$32.4b | AU$851.2m | 24.5x | 43.9x | 1.2x |
| Fri, 02 Oct 2020 | AU$37.5b | AU$31.6b | AU$616.5m | 25.3x | 60.9x | 1.2x |
Price to Earnings Ratio
60.9x
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 55.3x which is higher than its 3-year average PE of 28.1x.
- The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 1.0x.
Past Earnings Growth
- Both revenue and earnings for companies in the Healthcare industry have remained mostly flat over the last three years.
- This means that sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.
Industry Trends
Which industries have driven the changes within the Australian Healthcare industry?
| AU Market | -1.89% | |
| Healthcare | -3.32% | |
| Healthcare Services | -0.64% | |
| Healthcare Facilities | 0.41% | |
| Managed Healthcare | 0% | |
| Healthcare Services | -1.19% | |
| Healthcare Distributors | -6.87% | |
Industry PE
- Investors are most optimistic about the Healthcare Facilities industry which is trading above its 3-year average PE ratio of 30.2x.
- Analysts are expecting annual earnings growth of 26.9%, which is higher than its past year's earnings growth of 18.7% per year.
- Investors are most pessimistic about the Healthcare Distributors industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Healthcare Distributors industry, expecting annual earnings growth of 35% over the next 5 years.
- However this is lower than its past earnings growth rate of 111% per year.
- In contrast, the Healthcare Services industry is expected to see its earnings grow by 15% 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$51.86 | 1.5% +AU$171.1m | -9.0% | PE44.6x | |
| ACL Australian Clinical Labs | AU$2.86 | 2.9% +AU$16.0m | -20.1% | PE16x | |
| SHL Sonic Healthcare | AU$30.48 | 0.1% +AU$14.2m | 0.2% | PE21.1x | |
| REG Regis Healthcare | AU$2.69 | 1.1% +AU$9.4m | 56.4% | PS1x | |
| MAP Microba Life Sciences | AU$0.37 | 5.7% +AU$6.9m | 94.7% | PS23.5x |