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South African (JSE) Healthcare Sector Analysis
UpdatedDec 20, 2024
DataAggregated Company Financials
Companies6
- 7D-2.7%
- 3M-7.0%
- 1Y-8.5%
- YTD-11.2%
Over the last 7 days, the Healthcare industry has dropped 2.7%, driven by pullbacks in Aspen Pharmacare Holdings and Life Healthcare Group Holdings of 2.2% and 5.6%, respectively. Meanwhile, Ascendis Health actually outperformed within the industry, gaining 6.8% in the last week. Overall the industry is down 8.5% in 12 months. Earnings are forecast to grow by 18% annually.
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 |
|---|---|---|---|---|---|---|
| Sat, 21 Dec 2024 | R126.5b | R106.8b | R8.7b | 12.7x | 14.6x | 1.2x |
| Mon, 18 Nov 2024 | R129.1b | R103.8b | R8.0b | 15.7x | 16.2x | 1.2x |
| Wed, 16 Oct 2024 | R139.3b | R103.8b | R8.0b | 15.9x | 17.5x | 1.3x |
| Fri, 13 Sep 2024 | R133.4b | R103.8b | R8.0b | 13.9x | 16.8x | 1.3x |
| Sun, 11 Aug 2024 | R147.4b | R101.3b | R8.4b | 13.2x | 17.6x | 1.5x |
| Tue, 09 Jul 2024 | R146.4b | R101.3b | R8.4b | 12.8x | 17.5x | 1.4x |
| Thu, 06 Jun 2024 | R143.4b | R101.3b | R8.4b | 11.5x | 17.1x | 1.4x |
| Sat, 04 May 2024 | R139.3b | R100.0b | R8.2b | 11.8x | 17x | 1.4x |
| Mon, 01 Apr 2024 | R146.7b | R100.0b | R8.2b | 16x | 17.9x | 1.5x |
| Wed, 28 Feb 2024 | R137.5b | R98.0b | R8.3b | 15.2x | 16.5x | 1.4x |
| Fri, 26 Jan 2024 | R140.3b | R98.7b | R8.3b | 15.5x | 16.8x | 1.4x |
| Sun, 24 Dec 2023 | R142.4b | R98.7b | R8.3b | 15.6x | 17.1x | 1.4x |
| Tue, 21 Nov 2023 | R130.9b | R97.8b | R8.3b | 15.1x | 15.9x | 1.3x |
| Thu, 19 Oct 2023 | R128.8b | R105.1b | R8.5b | 14.4x | 15.2x | 1.2x |
| Sat, 16 Sep 2023 | R130.8b | R105.1b | R8.5b | 14.5x | 15.4x | 1.2x |
| Mon, 14 Aug 2023 | R145.0b | R102.7b | R9.0b | 15.3x | 16x | 1.4x |
| Wed, 12 Jul 2023 | R137.2b | R102.7b | R9.0b | 14.9x | 15.2x | 1.3x |
| Fri, 09 Jun 2023 | R135.8b | R102.7b | R9.0b | 15.1x | 15x | 1.3x |
| Sun, 07 May 2023 | R140.5b | R99.7b | R8.9b | 16.7x | 15.8x | 1.4x |
| Tue, 04 Apr 2023 | R137.5b | R99.7b | R8.9b | 16.1x | 15.5x | 1.4x |
| Thu, 02 Mar 2023 | R129.6b | R99.9b | R9.1b | 14.8x | 14.3x | 1.3x |
| Sat, 28 Jan 2023 | R122.1b | R99.6b | R9.0b | 13.5x | 13.5x | 1.2x |
| Mon, 26 Dec 2022 | R115.3b | R99.6b | R9.0b | 13.1x | 12.8x | 1.2x |
| Wed, 23 Nov 2022 | R115.6b | R99.4b | R8.8b | 12.7x | 13.1x | 1.2x |
| Fri, 21 Oct 2022 | R120.5b | R98.6b | R8.8b | 13.8x | 13.6x | 1.2x |
| Sun, 18 Sep 2022 | R114.5b | R99.1b | R8.2b | 13.3x | 14x | 1.2x |
| Tue, 16 Aug 2022 | R131.3b | R98.6b | R7.5b | 16.1x | 17.5x | 1.3x |
| Thu, 14 Jul 2022 | R117.0b | R98.6b | R7.5b | 14x | 15.6x | 1.2x |
| Sat, 11 Jun 2022 | R118.6b | R98.6b | R7.5b | 14.5x | 15.8x | 1.2x |
| Mon, 09 May 2022 | R128.6b | R97.8b | R7.5b | 14.8x | 17x | 1.3x |
| Wed, 06 Apr 2022 | R153.5b | R97.3b | R7.5b | 17.6x | 20.6x | 1.6x |
| Fri, 04 Mar 2022 | R150.7b | R96.5b | R6.4b | 19.1x | 23.6x | 1.6x |
| Sun, 30 Jan 2022 | R154.8b | R94.5b | R7.8b | 19.7x | 19.8x | 1.6x |
| Tue, 28 Dec 2021 | R163.3b | R94.5b | R7.8b | 20.5x | 20.8x | 1.7x |
Price to Earnings Ratio
20.8x
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 14.6x which is lower than its 3-year average PE of 16.4x.
- The 3-year average PS ratio of 1.4x 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 3.4% per year over the last three years.
- Revenues for these companies have grown 4.2% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the South African Healthcare sector?
| ZA Market | -2.90% | |
| Healthcare | -2.65% | |
| Medical Equipment | 0% | |
| Healthtech | 0% | |
| Biotech | 0% | |
| Life Sciences | 0% | |
| Pharma | -2.16% | |
| Healthcare Services | -3.62% | |
Industry PE
- Investors are most optimistic about the Pharma industry, which is trading close to its 3-year average PE ratio of 15.9x.
- Analysts are expecting annual earnings growth of 21.9%, which is higher than its past year's earnings decline of 12.6% per year.
- Investors are most pessimistic about the Healthcare Services industry, which is trading below its 3-year average of 18.0x.
Forecasted Growth
- Analysts are most optimistic on the Pharma industry, expecting annual earnings growth of 22% over the next 5 years.
- This is better than its past earnings decline of 13% per year.
- In contrast, the Healthcare Services industry is expected to see its earnings grow by 11% 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 | R173.78 | 2.6% +R2.0b | -11.8% | PE17.5x | |
| ASC Ascendis Health | R0.90 | 12.5% +R62.6m | 13.9% | PE13.5x |