South African (JSE) Healthcare Sector Analysis
- 7D-0.5%
- 3M6.6%
- 1Y58.8%
- YTD53.9%
Over the last 7 days, the Healthcare industry has remained flat, although notably Netcare declined by 4.3%. The past year has been better, since the industry has gained 59% in that time.
Sector Valuation and Performance
Has the South African Healthcare Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Tue, 30 Nov 2021 | R155.7b | R94.5b | R7.8b | 19.9x |
| Thu, 28 Oct 2021 | R177.9b | R90.5b | R5.4b | 23.6x |
| Sat, 25 Sep 2021 | R179.6b | R98.4b | R4.2b | 23.7x |
| Mon, 23 Aug 2021 | R149.2b | R98.4b | R4.2b | 17.7x |
| Sat, 10 Jul 2021 | R133.6b | R98.4b | R4.2b | 15.4x |
| Fri, 02 Apr 2021 | R119.4b | R101.2b | R4.5b | 12.7x |
| Mon, 04 Jan 2021 | R106.4b | R101.6b | R4.4b | 12.5x |
| Thu, 08 Oct 2020 | R103.4b | R99.8b | R4.6b | 11.3x |
| Wed, 01 Jul 2020 | R116.9b | R99.2b | R6.9b | 15.1x |
| Sat, 04 Apr 2020 | R96.9b | R101.2b | R7.4b | 10.6x |
| Tue, 07 Jan 2020 | R126.5b | R94.3b | R4.6b | 12.9x |
| Mon, 30 Sep 2019 | R107.7b | R95.3b | R5.1b | 13.4x |
| Thu, 04 Jul 2019 | R115.3b | R95.7b | R4.7b | 16.2x |
| Sun, 07 Apr 2019 | R125.3b | R95.9b | R6.4b | 15.2x |
| Wed, 09 Jan 2019 | R148.9b | R94.4b | R8.5b | 19.1x |
19.7x
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 20.8x which is higher than its 3-year average PE of 14.7x. It appears they are confident that earnings will grow faster in the future than they have historically.
Past Earnings Growth: The earnings for companies in the Healthcare industry have declined 3.0% per year over the last three years, while revenues have remained mostly flat. This means that although sales have remained flat, 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 South African Healthcare sector?
| Pharma | 0.077% | |
| Healthcare Services | -1.61% | |
Industry PE: Investors are most optimistic about the Healthcare Services industry even though it's trading below its 3-year average PE ratio of 50.6x. However analysts are expecting annual earnings growth of 25%, which is lower than the prior year's growth of 115% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Pharma industry, which is trading close to its 3-year average of 16.8x.
Forecasted Growth: Analysts are most optimistic on the Healthcare Services industry, expecting annual earnings growth of 25% over the next 5 years. However this is lower than its past earnings growth rate of 115% per year. Meanwhile, the Pharma industry is expected to see its earnings grow by 24% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| APN Aspen Pharmacare Holdings | 0.5%+R464.3m | 84.4% | PE21.3x |