Capital Allocation Trends At CM Hospitalar S/A (BVMF:VVEO3) Aren't Ideal
Jul 30
Brazilian (BOVESPA) Healthcare Services Industry Analysis
UpdatedAug 10, 2024
DataAggregated Company Financials
Companies12
- 7D4.7%
- 3M-0.1%
- 1Y-18.2%
- YTD-6.1%
In the last week, the Healthcare Services industry is up 4.7%, with Rede D'Or São Luiz up 6.1%. Meanwhile, Kora Saúde Participações actually underperformed within the industry, shrinking 5.2% in the last week. In the past year, the industry is down 18%. As for the next few years, earnings are expected to grow by 28% per annum.
Industry Valuation and Performance
Has the Brazilian Healthcare Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 11 Aug 2024 | R$126.4b | R$132.7b | R$2.4b | 13.1x | 53.7x | 1x |
| Tue, 09 Jul 2024 | R$118.8b | R$132.2b | R$2.4b | 14.2x | 50.6x | 0.9x |
| Thu, 06 Jun 2024 | R$116.5b | R$132.2b | R$2.4b | 14.5x | 49.6x | 0.9x |
| Sat, 04 May 2024 | R$118.4b | R$129.5b | R$1.4b | 16.5x | 85x | 0.9x |
| Mon, 01 Apr 2024 | R$116.0b | R$129.5b | R$1.4b | 18.6x | 84.9x | 0.9x |
| Wed, 28 Feb 2024 | R$116.9b | R$122.1b | R$729.3m | 22.4x | 160.4x | 1x |
| Fri, 26 Jan 2024 | R$131.5b | R$124.2b | R$902.0m | 23.4x | 145.8x | 1.1x |
| Sun, 24 Dec 2023 | R$140.8b | R$124.2b | R$902.0m | 27.5x | 156.1x | 1.1x |
| Tue, 21 Nov 2023 | R$132.2b | R$124.2b | R$903.5m | 23.6x | 146.3x | 1.1x |
| Thu, 19 Oct 2023 | R$118.3b | R$115.3b | R$753.8m | 22.5x | 157x | 1x |
| Sat, 16 Sep 2023 | R$142.6b | R$115.3b | R$753.8m | 25.7x | 189.2x | 1.2x |
| Mon, 14 Aug 2023 | R$154.3b | R$114.3b | R$656.4m | 29x | 235.1x | 1.4x |
| Wed, 12 Jul 2023 | R$150.7b | R$106.3b | R$737.3m | 30.3x | 204.4x | 1.4x |
| Fri, 09 Jun 2023 | R$145.8b | R$106.3b | R$748.7m | 27x | 194.7x | 1.4x |
| Sun, 07 May 2023 | R$111.0b | R$96.2b | R$1.2b | 17.9x | 92.9x | 1.2x |
| Tue, 04 Apr 2023 | R$98.1b | R$96.0b | R$1.2b | 16.8x | 80.9x | 1x |
| Thu, 02 Mar 2023 | R$112.6b | R$88.6b | R$2.2b | 14.7x | 51.6x | 1.3x |
| Sat, 28 Jan 2023 | R$139.0b | R$88.6b | R$2.2b | 15.2x | 63.7x | 1.6x |
| Mon, 26 Dec 2022 | R$132.5b | R$88.6b | R$2.2b | 16.2x | 60.7x | 1.5x |
| Wed, 23 Nov 2022 | R$132.5b | R$88.6b | R$2.2b | 16.1x | 60.7x | 1.5x |
| Fri, 21 Oct 2022 | R$154.2b | R$81.2b | R$2.6b | 16.7x | 58.9x | 1.9x |
| Sun, 18 Sep 2022 | R$160.1b | R$81.2b | R$2.6b | 15.5x | 61.1x | 2x |
| Tue, 16 Aug 2022 | R$180.1b | R$79.8b | R$2.6b | 14.3x | 68.5x | 2.3x |
| Thu, 14 Jul 2022 | R$141.6b | R$75.4b | R$3.2b | 12.2x | 43.8x | 1.9x |
| Sat, 11 Jun 2022 | R$148.7b | R$75.4b | R$3.2b | 12.6x | 46x | 2x |
| Mon, 09 May 2022 | R$170.7b | R$69.9b | R$3.7b | 12.9x | 46.1x | 2.4x |
| Wed, 06 Apr 2022 | R$230.7b | R$68.7b | R$3.5b | 11.9x | 65.3x | 3.4x |
| Fri, 04 Mar 2022 | R$281.8b | R$79.2b | R$3.8b | 16.2x | 75.1x | 3.6x |
| Sun, 30 Jan 2022 | R$235.0b | R$79.1b | R$3.8b | 17.1x | 62.6x | 3x |
| Tue, 28 Dec 2021 | R$220.8b | R$79.1b | R$3.8b | 17.2x | 58.9x | 2.8x |
| Thu, 25 Nov 2021 | R$260.9b | R$79.1b | R$3.8b | 17.6x | 69.5x | 3.3x |
| Sat, 23 Oct 2021 | R$271.1b | R$74.7b | R$4.1b | 30.1x | 65.9x | 3.6x |
| Mon, 20 Sep 2021 | R$325.4b | R$74.7b | R$4.1b | 34.8x | 79.1x | 4.4x |
| Wed, 18 Aug 2021 | R$328.9b | R$74.7b | R$4.1b | 34.5x | 79.9x | 4.4x |
Price to Earnings Ratio
79.9x
Current Industry PE
- Investors are pessimistic on the Brazilian 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 53.7x which is lower than its 3-year average PE of 95.3x.
- The 3-year average PS ratio of 1.9x is higher than the industry's current PS ratio of 0.95x.
Past Earnings Growth
- The earnings for companies in the Healthcare industry have declined 17% per year over the last three years.
- Meanwhile revenues for these companies have grown 21% 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 Brazilian Healthcare industry?
| BR Market | 3.30% | |
| Healthcare | 4.77% | |
| Healthcare Services | 4.68% | |
| Healthcare Distributors | 15.65% | |
| Healthcare Facilities | 5.76% | |
| Healthcare Services | 3.33% | |
| Managed Healthcare | 2.97% | |
Industry PE
- Investors are most optimistic about the Managed Healthcare industry which is trading above its 3-year average PE ratio of 29.8x.
- Analysts are expecting annual earnings growth of 40.8%, which is higher than its past year's earnings growth of 29.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Managed Healthcare industry, expecting annual earnings growth of 41% over the next 5 years.
- This is better than its past earnings growth rate of 29% per year.
- In contrast, the Healthcare Distributors industry is expected to see its earnings decline by 3.7% 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 | |
|---|---|---|---|---|---|
| RDOR3 Rede D'Or São Luiz | R$29.68 | 6.1% +R$3.8b | -5.6% | PE26.3x | |
| HAPV3 Hapvida Participações e Investimentos | R$4.43 | 3.0% +R$974.3m | -15.3% | PS1.2x | |
| FLRY3 Fleury | R$15.85 | 3.1% +R$256.4m | 3.9% | PE17.4x | |
| DASA3 Diagnósticos da América | R$2.98 | 10.4% +R$209.2m | -71.8% | PS0.2x | |
| VVEO3 CM Hospitalar S/A | R$2.71 | 23.2% +R$162.4m | -86.7% | PE2.6x |
