South African (JSE) Healthcare Sector Analysis

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
Thu, 01 Dec 2022	R116.9b	R99.6b	R9.0b	13.5x	13x	1.2x
Sat, 29 Oct 2022	R125.2b	R98.6b	R8.8b	14.4x	14.2x	1.3x
Mon, 26 Sep 2022	R111.2b	R99.1b	R8.2b	12.5x	13.6x	1.1x
Wed, 24 Aug 2022	R123.9b	R98.6b	R7.5b	15.2x	16.5x	1.3x
Fri, 22 Jul 2022	R122.4b	R98.6b	R7.5b	14.5x	16.3x	1.2x
Sun, 19 Jun 2022	R115.5b	R98.6b	R7.5b	13.8x	15.4x	1.2x
Tue, 17 May 2022	R127.1b	R97.8b	R7.5b	14.3x	16.8x	1.3x
Thu, 14 Apr 2022	R144.2b	R97.8b	R7.5b	16.8x	19.1x	1.5x
Sat, 12 Mar 2022	R137.3b	R97.3b	R7.5b	16x	18.4x	1.4x
Mon, 07 Feb 2022	R154.8b	R94.5b	R7.8b	19.8x	19.8x	1.6x
Wed, 05 Jan 2022	R170.3b	R94.5b	R7.8b	21.3x	21.7x	1.8x
Fri, 03 Dec 2021	R169.4b	R94.5b	R7.8b	21.6x	21.6x	1.8x
Sun, 31 Oct 2021	R176.8b	R90.5b	R5.4b	23.1x	32.7x	2x
Tue, 28 Sep 2021	R182.9b	R98.4b	R4.2b	24.7x	43.5x	1.9x
Thu, 26 Aug 2021	R150.2b	R98.4b	R4.2b	18x	35.7x	1.5x
Fri, 02 Jul 2021	R133.6b	R98.4b	R4.2b	15.4x	31.8x	1.4x
Mon, 05 Apr 2021	R119.4b	R101.2b	R4.5b	12.7x	26.5x	1.2x
Thu, 07 Jan 2021	R106.4b	R101.6b	R4.4b	12.5x	24.1x	1x
Wed, 30 Sep 2020	R103.4b	R99.8b	R4.6b	11.3x	22.6x	1x
Sat, 04 Jul 2020	R116.9b	R99.2b	R6.9b	15.1x	16.9x	1.2x
Tue, 07 Apr 2020	R96.9b	R101.2b	R7.4b	10.6x	13.1x	1x
Fri, 10 Jan 2020	R126.5b	R94.3b	R4.6b	12.9x	27.5x	1.3x

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 13.0x which is lower than its 3-year average PE of 22.2x.

The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 1.2x.

Past Earnings Growth

The earnings for companies in the Healthcare industry have grown 21% 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?

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 19.6%, which is higher than its past year's earnings growth of 12.7% per year.

Investors are most pessimistic about the Pharma 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 Services industry, expecting annual earnings growth of 20% 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 6.1% 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
LHC Life Healthcare Group Holdings	R17.42	4.0% +R967.3m	-27.4%	PE16.4x
NTC Netcare	R14.70	2.4% +R468.4m	0.1%	PE20.2x
AIP Adcock Ingram Holdings	R52.00	3.1% +R250.7m	11.7%	PE10.5x
AVL Advanced Health	R0.26	30.0% +R29.9m	-31.6%	PS0.2x
ASC Ascendis Health	R0.72	2.9% +R12.5m	-25.8%	PS0.3x