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South African (JSE) Healthcare Sector Analysis

UpdatedDec 01, 2022
DataAggregated Company Financials
Companies6
  • 7D-0.8%
  • 3M-5.8%
  • 1Y-30.1%
  • YTD-28.0%

Last week, the Healthcare industry hasn't moved much but Life Healthcare Group Holdings is up 4.0% in that time. As for the longer term, the industry has declined 30% in the last year. As for the next few years, earnings are expected to grow by 11% per annum.

Sector Valuation and Performance

Has the South African Healthcare Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 01 Dec 2022R116.9bR99.6bR9.0b13.5x13x1.2x
Sat, 29 Oct 2022R125.2bR98.6bR8.8b14.4x14.2x1.3x
Mon, 26 Sep 2022R111.2bR99.1bR8.2b12.5x13.6x1.1x
Wed, 24 Aug 2022R123.9bR98.6bR7.5b15.2x16.5x1.3x
Fri, 22 Jul 2022R122.4bR98.6bR7.5b14.5x16.3x1.2x
Sun, 19 Jun 2022R115.5bR98.6bR7.5b13.8x15.4x1.2x
Tue, 17 May 2022R127.1bR97.8bR7.5b14.3x16.8x1.3x
Thu, 14 Apr 2022R144.2bR97.8bR7.5b16.8x19.1x1.5x
Sat, 12 Mar 2022R137.3bR97.3bR7.5b16x18.4x1.4x
Mon, 07 Feb 2022R154.8bR94.5bR7.8b19.8x19.8x1.6x
Wed, 05 Jan 2022R170.3bR94.5bR7.8b21.3x21.7x1.8x
Fri, 03 Dec 2021R169.4bR94.5bR7.8b21.6x21.6x1.8x
Sun, 31 Oct 2021R176.8bR90.5bR5.4b23.1x32.7x2x
Tue, 28 Sep 2021R182.9bR98.4bR4.2b24.7x43.5x1.9x
Thu, 26 Aug 2021R150.2bR98.4bR4.2b18x35.7x1.5x
Fri, 02 Jul 2021R133.6bR98.4bR4.2b15.4x31.8x1.4x
Mon, 05 Apr 2021R119.4bR101.2bR4.5b12.7x26.5x1.2x
Thu, 07 Jan 2021R106.4bR101.6bR4.4b12.5x24.1x1x
Wed, 30 Sep 2020R103.4bR99.8bR4.6b11.3x22.6x1x
Sat, 04 Jul 2020R116.9bR99.2bR6.9b15.1x16.9x1.2x
Tue, 07 Apr 2020R96.9bR101.2bR7.4b10.6x13.1x1x
Fri, 10 Jan 2020R126.5bR94.3bR4.6b12.9x27.5x1.3x
Price to Earnings Ratio

25.2x


Total Market Cap: R127.5bTotal Earnings: R5.1bTotal Revenue: R95.3bTotal Market Cap vs Earnings and Revenue0%0%0%
South African Healthcare Sector Price to Earnings3Y Average 22.2x202020212022
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?

ZA Market1.40%
Healthcare-0.77%
Healthcare Services3.37%
Medical Equipment0%
Healthtech0%
Biotech0%
Life Sciences0%
Pharma-3.19%
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?

CompanyLast Price7D1YValuation
LHC Life Healthcare Group HoldingsR17.424.0%
+R967.3m
-27.4%PE16.4x
NTC NetcareR14.702.4%
+R468.4m
0.1%PE20.2x
AIP Adcock Ingram HoldingsR52.003.1%
+R250.7m
11.7%PE10.5x
AVL Advanced HealthR0.2630.0%
+R29.9m
-31.6%PS0.2x
ASC Ascendis HealthR0.722.9%
+R12.5m
-25.8%PS0.3x
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