Aspen Pharmacare Holdings Limited's (JSE:APN) CEO Compensation Is Looking A Bit Stretched At The Moment
Dec 01
South African (JSE) Healthcare Sector Analysis
UpdatedDec 04, 2023
DataAggregated Company Financials
Companies6
- 7D1.5%
- 3M3.5%
- 1Y17.4%
- YTD20.2%
In the last week, the Healthcare industry is up 1.5%, with Aspen Pharmacare Holdings up 3.6%. This means that the industry has gained 17% over the past year. As for the next few years, earnings are expected to grow by 18% per annum.
Sector Valuation and Performance
Has the South African Healthcare Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 04 Dec 2023 | R135.7b | R98.7b | R8.3b | 15.1x | 16.3x | 1.4x |
| Wed, 01 Nov 2023 | R128.5b | R105.1b | R8.5b | 14.5x | 15.2x | 1.2x |
| Fri, 29 Sep 2023 | R133.8b | R105.1b | R8.5b | 14.9x | 15.8x | 1.3x |
| Sun, 27 Aug 2023 | R140.1b | R102.8b | R9.1b | 14.7x | 15.5x | 1.4x |
| Tue, 25 Jul 2023 | R143.8b | R102.7b | R9.0b | 15.2x | 15.9x | 1.4x |
| Thu, 22 Jun 2023 | R139.6b | R102.7b | R9.0b | 15.2x | 15.4x | 1.4x |
| Sat, 20 May 2023 | R132.6b | R99.7b | R8.9b | 16x | 14.9x | 1.3x |
| Mon, 17 Apr 2023 | R139.1b | R99.7b | R8.9b | 16.2x | 15.6x | 1.4x |
| Wed, 15 Mar 2023 | R136.4b | R99.7b | R8.4b | 15.9x | 16.2x | 1.4x |
| Fri, 10 Feb 2023 | R117.7b | R99.6b | R9.0b | 13.2x | 13.1x | 1.2x |
| Sun, 08 Jan 2023 | R117.2b | R99.6b | R9.0b | 13.7x | 13x | 1.2x |
| Tue, 06 Dec 2022 | R116.2b | R99.6b | R9.0b | 13.2x | 12.9x | 1.2x |
| Thu, 03 Nov 2022 | R123.4b | R98.6b | R8.8b | 14.3x | 14x | 1.3x |
| Sat, 01 Oct 2022 | R111.3b | R98.6b | R8.8b | 12.7x | 12.6x | 1.1x |
| Mon, 29 Aug 2022 | R122.9b | R98.6b | R7.5b | 15.1x | 16.4x | 1.2x |
| Wed, 27 Jul 2022 | R127.0b | R98.6b | R7.5b | 15.1x | 17x | 1.3x |
| Fri, 24 Jun 2022 | R113.6b | R98.6b | R7.5b | 13.9x | 15.2x | 1.2x |
| Sun, 22 May 2022 | R127.3b | R97.8b | R7.5b | 14.3x | 16.9x | 1.3x |
| Tue, 19 Apr 2022 | R144.8b | R97.8b | R7.5b | 16.8x | 19.2x | 1.5x |
| Thu, 17 Mar 2022 | R147.8b | R97.3b | R7.5b | 17x | 19.8x | 1.5x |
| Sat, 12 Feb 2022 | R155.3b | R94.5b | R7.8b | 19.9x | 19.8x | 1.6x |
| Mon, 10 Jan 2022 | R165.4b | R94.5b | R7.8b | 20.6x | 21.1x | 1.8x |
| Wed, 08 Dec 2021 | R162.0b | R94.5b | R7.8b | 20.7x | 20.7x | 1.7x |
| Fri, 05 Nov 2021 | R173.0b | R90.5b | R5.4b | 22.3x | 31.9x | 1.9x |
| Sun, 03 Oct 2021 | R186.5b | R90.5b | R5.4b | 25.7x | 34.5x | 2.1x |
| Tue, 31 Aug 2021 | R155.8b | R98.4b | R4.2b | 18.6x | 37.1x | 1.6x |
| Wed, 07 Jul 2021 | R133.6b | R98.4b | R4.2b | 15.4x | 31.8x | 1.4x |
| Sat, 10 Apr 2021 | R119.4b | R101.2b | R4.5b | 12.7x | 26.5x | 1.2x |
| Fri, 01 Jan 2021 | R106.4b | R101.6b | R4.4b | 12.5x | 24.1x | 1x |
Price to Earnings Ratio
22.5x
Current Industry PE
- Investors are pessimistic on the South African 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 16.3x which is lower than its 3-year average PE of 20.6x.
- The industry is trading close to its 3-year average PS ratio of 1.4x.
Past Earnings Growth
- The earnings for companies in the Healthcare industry have grown 22% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the South African Healthcare sector?
| ZA Market | -0.84% | |
| Healthcare | 1.53% | |
| Pharma | 2.36% | |
| Medical Equipment | 0% | |
| Healthtech | 0% | |
| Biotech | 0% | |
| Life Sciences | 0% | |
| Healthcare Services | -0.14% | |
Industry PE
- Investors are most optimistic about the Healthcare Services industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 18.2%, which is higher than its past year's earnings growth of 13.0% per year.
- Investors are most pessimistic about the Pharma industry, which is trading close to its 3-year average of 16.1x.
Forecasted Growth
- Analysts are most optimistic on the Healthcare Services industry, expecting annual earnings growth of 18% over the next 5 years.
- This is better than its past earnings growth rate of 13% per year.
- In contrast, the Pharma industry is expected to see its earnings grow by 18% 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 | |
|---|---|---|---|---|---|
| APN Aspen Pharmacare Holdings | R188.90 | 5.7% +R4.5b | 32.3% | PE16.1x | |
| NTC Netcare | R14.01 | 1.7% +R313.3m | -2.2% | PE14.6x |
