Ramsay Health Care (ASX:RHC) Could Be Struggling To Allocate Capital
Apr 29
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Australian (ASX) Healthcare Services Industry Analysis
UpdatedMay 11, 2025
DataAggregated Company Financials
Companies14
- 7D-0.3%
- 3M1.1%
- 1Y-7.8%
- YTD4.2%
The Healthcare Services is pretty flat in the last 7 days, but Ramsay Health Care has stood out, gaining 7.0%. As for the longer term, the industry has declined 7.8% in the last year. 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 |
|---|---|---|---|---|---|---|
| Sun, 11 May 2025 | AU$62.4b | AU$37.9b | AU$1.1b | 148.3x | 56.5x | 1.6x |
| Tue, 08 Apr 2025 | AU$57.6b | AU$37.9b | AU$1.1b | 127.6x | 52.1x | 1.5x |
| Thu, 06 Mar 2025 | AU$60.6b | AU$37.9b | AU$1.1b | 61.7x | 54.5x | 1.6x |
| Sat, 01 Feb 2025 | AU$32.8b | AU$36.7b | AU$50.2m | 30.5x | 654.5x | 0.9x |
| Mon, 30 Dec 2024 | AU$31.5b | AU$36.7b | AU$50.2m | 29.1x | 627x | 0.9x |
| Wed, 27 Nov 2024 | AU$33.6b | AU$36.9b | AU$35.3m | 29.5x | 950.8x | 0.9x |
| Fri, 25 Oct 2024 | AU$32.6b | AU$36.9b | AU$35.3m | 30.3x | 922.1x | 0.9x |
| Sun, 22 Sep 2024 | AU$30.4b | AU$36.8b | AU$43.1m | 33x | 704.1x | 0.8x |
| Tue, 20 Aug 2024 | AU$30.5b | AU$33.5b | -AU$278,022,128.00 | 43x | -109.6x | 0.9x |
| Thu, 18 Jul 2024 | AU$30.1b | AU$33.5b | -AU$278,022,128.00 | 43.5x | -108.4x | 0.9x |
| Sat, 15 Jun 2024 | AU$29.2b | AU$33.5b | -AU$278,022,128.00 | 42.5x | -105x | 0.9x |
| Mon, 13 May 2024 | AU$29.9b | AU$31.7b | -AU$280,512,128.00 | 31.6x | -106.6x | 0.9x |
| Wed, 10 Apr 2024 | AU$31.6b | AU$31.7b | -AU$280,512,128.00 | 33x | -112.7x | 1x |
| Fri, 08 Mar 2024 | AU$31.8b | AU$31.8b | -AU$270,491,128.00 | 33.3x | -117.5x | 1x |
| Sun, 04 Feb 2024 | AU$34.8b | AU$32.8b | AU$608.0m | 24.7x | 57.2x | 1.1x |
| Tue, 02 Jan 2024 | AU$34.9b | AU$32.8b | AU$608.0m | 23.9x | 57.4x | 1.1x |
| Thu, 30 Nov 2023 | AU$31.5b | AU$32.8b | AU$608.0m | 23.6x | 51.8x | 1x |
| Sat, 28 Oct 2023 | AU$31.7b | AU$32.8b | AU$608.0m | 24.5x | 52.1x | 1x |
| Mon, 25 Sep 2023 | AU$33.9b | AU$32.8b | AU$608.8m | 26x | 55.6x | 1x |
| Wed, 23 Aug 2023 | AU$35.3b | AU$32.4b | AU$984.1m | 24.6x | 35.9x | 1.1x |
| Fri, 21 Jul 2023 | AU$37.1b | AU$33.0b | AU$1.3b | 26.7x | 28.3x | 1.1x |
| Sun, 18 Jun 2023 | AU$37.6b | AU$33.0b | AU$1.3b | 25.7x | 28.6x | 1.1x |
| Tue, 16 May 2023 | AU$38.8b | AU$32.5b | AU$1.3b | 25.8x | 29.6x | 1.2x |
| Thu, 13 Apr 2023 | AU$40.7b | AU$32.5b | AU$1.3b | 27.2x | 31x | 1.3x |
| Sat, 11 Mar 2023 | AU$38.7b | AU$32.4b | AU$1.3b | 24.8x | 29.7x | 1.2x |
| Mon, 06 Feb 2023 | AU$38.0b | AU$33.1b | AU$2.1b | 23.9x | 17.9x | 1.1x |
| Wed, 04 Jan 2023 | AU$36.4b | AU$33.1b | AU$2.1b | 24.3x | 17.1x | 1.1x |
| Fri, 02 Dec 2022 | AU$37.6b | AU$33.1b | AU$2.1b | 24.9x | 17.7x | 1.1x |
| Sun, 30 Oct 2022 | AU$36.3b | AU$32.8b | AU$2.1b | 24.9x | 17.1x | 1.1x |
| Tue, 27 Sep 2022 | AU$35.5b | AU$32.7b | AU$2.1b | 24.9x | 16.6x | 1.1x |
| Thu, 25 Aug 2022 | AU$41.4b | AU$32.4b | AU$2.2b | 26.7x | 18.8x | 1.3x |
| Sat, 23 Jul 2022 | AU$40.6b | AU$31.9b | AU$2.3b | 26.3x | 17.9x | 1.3x |
| Mon, 20 Jun 2022 | AU$39.1b | AU$31.9b | AU$2.3b | 24.9x | 17.3x | 1.2x |
| Wed, 18 May 2022 | AU$43.3b | AU$31.9b | AU$2.3b | 25.3x | 19.1x | 1.4x |
Price to Earnings Ratio
19.1x
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 industry is trading at a PE ratio of 56.5x which is lower than its 3-year average PE of 145x.
- The 3-year average PS ratio of 1.1x is lower than the industry's current PS ratio of 1.6x.
Past Earnings Growth
- The earnings for companies in the Healthcare industry have declined 21% per year over the last three years.
- Meanwhile revenues for these companies have grown 5.9% 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 industry?
| AU Market | 0.058% | |
| Healthcare | -3.19% | |
| Healthcare Services | -0.28% | |
| Healthcare Facilities | 5.46% | |
| Healthcare Services | 1.01% | |
| Healthcare Distributors | -2.51% | |
Industry PE
- Investors are most optimistic about the Healthcare Facilities industry which is trading above its 3-year average PE ratio of 84.4x.
- Analysts are expecting annual earnings growth of 43.9%, which is higher than its past year's earnings decline of 85.8% per year.
- Investors are most pessimistic about the Healthcare Services 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 Facilities industry, expecting annual earnings growth of 44% over the next 5 years.
- This is better than its past earnings decline of 86% per year.
- In contrast, the Healthcare Services industry is expected to see its earnings grow by 16% 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$36.68 | 7.0% +AU$549.3m | -26.8% | PE1053.8x | |
| SHL Sonic Healthcare | AU$26.80 | 2.8% +AU$355.4m | 0.1% | PE23.6x | |
| IDX Integral Diagnostics | AU$2.56 | 7.1% +AU$63.3m | 3.6% | PE168.3x | |
| REG Regis Healthcare | AU$7.43 | 1.9% +AU$42.2m | 78.6% | PE148.3x | |
| PGC Paragon Care | AU$0.44 | 1.1% +AU$8.3m | n/a | PE50.3x |
