South African (JSE) Healthcare Sector Analysis
UpdatedOct 31, 2023
DataAggregated Company Financials
Companies6
- 7D0.3%
- 3M-11.2%
- 1Y2.5%
- YTD12.6%
The Healthcare is pretty flat in the last 7 days, but Aspen Pharmacare Holdings has stood out, gaining 3.8%. Furthermore, the industry has been flat for the past year as well. As for the next few years, earnings are expected to grow by 19% 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 |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | R127.5b | R105.1b | R8.5b | 14.3x | 15.1x | 1.2x |
| Thu, 28 Sep 2023 | R136.5b | R105.1b | R8.5b | 15.1x | 16.1x | 1.3x |
| Sat, 26 Aug 2023 | R140.1b | R102.8b | R9.1b | 14.7x | 15.5x | 1.4x |
| Mon, 24 Jul 2023 | R142.6b | R102.7b | R9.0b | 15.2x | 15.8x | 1.4x |
| Wed, 21 Jun 2023 | R141.9b | R102.7b | R9.0b | 15.3x | 15.7x | 1.4x |
| Fri, 19 May 2023 | R133.1b | R99.7b | R8.9b | 16x | 15x | 1.3x |
| Sun, 16 Apr 2023 | R139.1b | R99.7b | R8.9b | 16.2x | 15.6x | 1.4x |
| Tue, 14 Mar 2023 | R139.2b | R99.7b | R8.4b | 16.3x | 16.6x | 1.4x |
| Thu, 09 Feb 2023 | R117.7b | R99.6b | R9.0b | 13.2x | 13.1x | 1.2x |
| Sat, 07 Jan 2023 | R117.2b | R99.6b | R9.0b | 13.7x | 13x | 1.2x |
| Mon, 05 Dec 2022 | R116.5b | R99.6b | R9.0b | 13.1x | 12.9x | 1.2x |
| Wed, 02 Nov 2022 | R124.0b | R98.6b | R8.8b | 14.3x | 14x | 1.3x |
| Fri, 30 Sep 2022 | R110.5b | R98.6b | R8.8b | 12.9x | 12.5x | 1.1x |
| Sun, 28 Aug 2022 | R122.9b | R98.6b | R7.5b | 15.1x | 16.4x | 1.2x |
| Tue, 26 Jul 2022 | R124.6b | R98.6b | R7.5b | 14.9x | 16.6x | 1.3x |
| Thu, 23 Jun 2022 | R115.1b | R98.6b | R7.5b | 13.8x | 15.4x | 1.2x |
| Sat, 21 May 2022 | R127.3b | R97.8b | R7.5b | 14.3x | 16.9x | 1.3x |
| Mon, 18 Apr 2022 | R144.8b | R97.8b | R7.5b | 16.8x | 19.2x | 1.5x |
| Wed, 16 Mar 2022 | R138.4b | R97.3b | R7.5b | 16.2x | 18.5x | 1.4x |
| Fri, 11 Feb 2022 | R156.3b | R94.5b | R7.8b | 20x | 19.9x | 1.7x |
| Sun, 09 Jan 2022 | R165.4b | R94.5b | R7.8b | 20.6x | 21.1x | 1.8x |
| Tue, 07 Dec 2021 | R162.0b | R94.5b | R7.8b | 20.7x | 20.7x | 1.7x |
| Thu, 04 Nov 2021 | R176.1b | R90.5b | R5.4b | 22.7x | 32.5x | 1.9x |
| Sat, 02 Oct 2021 | R186.5b | R90.5b | R5.4b | 25.7x | 34.5x | 2.1x |
| Mon, 30 Aug 2021 | R152.8b | R98.4b | R4.2b | 18.2x | 36.3x | 1.6x |
| Tue, 06 Jul 2021 | R133.6b | R98.4b | R4.2b | 15.4x | 31.8x | 1.4x |
| Fri, 09 Apr 2021 | R119.4b | R101.2b | R4.5b | 12.7x | 26.5x | 1.2x |
| Thu, 31 Dec 2020 | R106.4b | R101.6b | R4.4b | 12.5x | 24.1x | 1x |
Price to Earnings Ratio
21x
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 14.9x which is lower than its 3-year average PE of 20.8x.
- 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 23% 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 | -0.87% | |
| Healthcare | 0.31% | |
| Pharma | 3.67% | |
| Medical Equipment | 0% | |
| Healthtech | 0% | |
| Biotech | 0% | |
| Life Sciences | 0% | |
| Healthcare Services | -5.62% | |
Industry PE
- Investors are most optimistic about the Healthcare Services industry which is trading above its 3-year average PE ratio.
- Analysts expect its future annual earnings growth (21.0%) to be largely in line with prior year's earnings growth.
- Investors are most pessimistic about the Pharma industry, which is trading below its 3-year average of 16.0x.
Forecasted Growth
- Analysts are most optimistic on the Healthcare Services industry, expecting annual earnings growth of 21% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- 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 | R169.63 | 3.8% +R2.8b | 12.1% | PE14.4x | |
| AIP Adcock Ingram Holdings | R53.66 | 2.9% +R227.6m | 12.5% | PE9.1x |