Here's Why Ramsay Health Care (ASX:RHC) Has A Meaningful Debt Burden
May 06
Australian (ASX) Healthcare Sector Analysis
UpdatedMay 07, 2024
DataAggregated Company Financials
Companies142
- 7D-0.005%
- 3M-4.0%
- 1Y-3.4%
- YTD-1.8%
The Healthcare industry has stayed flat over the last week. As for the longer term, the industry has declined 3.4% in the last year. Earnings are forecast to grow by 18% annually.
Sector Valuation and Performance
Has the Australian Healthcare Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 08 May 2024 | AU$222.0b | AU$61.2b | AU$2.6b | 26.5x | 84.8x | 3.6x |
| Fri, 05 Apr 2024 | AU$225.2b | AU$61.2b | AU$2.6b | 27.6x | 86.2x | 3.7x |
| Sun, 03 Mar 2024 | AU$223.2b | AU$61.7b | AU$2.7b | 26.1x | 84x | 3.6x |
| Tue, 30 Jan 2024 | AU$228.8b | AU$60.4b | AU$2.8b | 25.1x | 80.5x | 3.8x |
| Thu, 28 Dec 2023 | AU$224.9b | AU$59.6b | AU$2.7b | 24.9x | 82.9x | 3.8x |
| Sat, 25 Nov 2023 | AU$202.1b | AU$60.5b | AU$2.9b | 24.9x | 70.2x | 3.3x |
| Mon, 23 Oct 2023 | AU$187.0b | AU$61.4b | AU$3.0b | 24.9x | 62x | 3x |
| Wed, 20 Sep 2023 | AU$206.0b | AU$61.1b | AU$2.9b | 25.3x | 71.7x | 3.4x |
| Fri, 18 Aug 2023 | AU$211.7b | AU$60.5b | AU$2.8b | 27.6x | 74.6x | 3.5x |
| Sun, 16 Jul 2023 | AU$210.0b | AU$57.2b | AU$2.8b | 27.6x | 74.4x | 3.7x |
| Tue, 13 Jun 2023 | AU$230.0b | AU$57.5b | AU$2.9b | 25.5x | 80.5x | 4x |
| Thu, 11 May 2023 | AU$230.7b | AU$57.0b | AU$2.8b | 27.8x | 81.2x | 4x |
| Sat, 08 Apr 2023 | AU$230.6b | AU$57.2b | AU$2.9b | 26.6x | 80.2x | 4x |
| Mon, 06 Mar 2023 | AU$222.5b | AU$56.8b | AU$2.8b | 28.6x | 78.8x | 3.9x |
| Wed, 01 Feb 2023 | AU$225.7b | AU$55.1b | AU$3.9b | 24.9x | 57.6x | 4.1x |
| Fri, 30 Dec 2022 | AU$215.3b | AU$55.8b | AU$4.1b | 25.5x | 52.8x | 3.9x |
| Sun, 27 Nov 2022 | AU$225.8b | AU$55.7b | AU$4.1b | 26.9x | 55.6x | 4.1x |
| Tue, 25 Oct 2022 | AU$204.6b | AU$56.7b | AU$4.3b | 27.3x | 48.1x | 3.6x |
| Thu, 22 Sep 2022 | AU$212.5b | AU$55.5b | AU$4.1b | 26.8x | 51.7x | 3.8x |
| Sat, 20 Aug 2022 | AU$226.1b | AU$54.1b | AU$4.7b | 29.1x | 47.7x | 4.2x |
| Mon, 18 Jul 2022 | AU$223.2b | AU$54.3b | AU$4.9b | 24.1x | 45.6x | 4.1x |
| Wed, 15 Jun 2022 | AU$203.3b | AU$54.0b | AU$4.8b | 25.1x | 42x | 3.8x |
| Fri, 13 May 2022 | AU$214.8b | AU$53.9b | AU$4.9b | 25x | 44.1x | 4x |
| Sun, 10 Apr 2022 | AU$211.8b | AU$56.7b | AU$4.6b | 27.7x | 46.3x | 3.7x |
| Tue, 08 Mar 2022 | AU$200.2b | AU$57.1b | AU$4.7b | 24.4x | 42.4x | 3.5x |
| Thu, 03 Feb 2022 | AU$215.0b | AU$55.7b | AU$4.7b | 30.2x | 45.6x | 3.9x |
| Sat, 01 Jan 2022 | AU$240.9b | AU$55.4b | AU$4.6b | 32x | 51.8x | 4.4x |
| Mon, 29 Nov 2021 | AU$239.5b | AU$56.1b | AU$4.7b | 30.4x | 51x | 4.3x |
| Wed, 27 Oct 2021 | AU$232.5b | AU$55.2b | AU$4.5b | 30.6x | 51.6x | 4.2x |
| Fri, 24 Sep 2021 | AU$243.5b | AU$55.7b | AU$4.6b | 31x | 52.9x | 4.4x |
| Sun, 22 Aug 2021 | AU$238.0b | AU$55.1b | AU$4.5b | 29.3x | 53x | 4.3x |
| Fri, 09 Jul 2021 | AU$226.8b | AU$55.1b | AU$4.5b | 30.7x | 50.2x | 4.1x |
Price to Earnings Ratio
57.4x
Current Industry PE
- Investors are optimistic on the Australian Healthcare industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 84.8x which is higher than its 3-year average PE of 60.8x.
- The industry is trading close to its 3-year average PS ratio of 3.9x.
Past Earnings Growth
- The earnings for companies in the Healthcare industry have declined 12% per year over the last three years.
- Meanwhile revenues for these companies have grown 4.8% per year.
- This means that although more sales are being generated, 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 Australian Healthcare sector?
| AU Market | 0.54% | |
| Healthcare | -0.0047% | |
| Pharma | 10.28% | |
| Biotech | 0.15% | |
| Healthtech | 0.067% | |
| Medical Equipment | -0.69% | |
| Life Sciences | -1.65% | |
| Healthcare Services | -1.95% | |
Industry PE
- Investors are most optimistic about the Medical Equipment industry which is trading above its 3-year average PE ratio of 147x.
- Analysts are expecting annual earnings growth of 16.6%, which is higher than its past year's earnings growth of 10.1% per year.
Forecasted Growth
- Analysts are most optimistic on the Life Sciences industry, expecting annual earnings growth of 73% over the next 5 years.
- This is better than its past earnings growth rate of 32% per year.
- In contrast, the Biotech industry is expected to see its earnings grow by 16% 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 | |
|---|---|---|---|---|---|
| CSL CSL | AU$279.56 | 1.0% +AU$1.4b | -6.8% | PE36.1x | |
| CU6 Clarity Pharmaceuticals | AU$3.70 | 32.1% +AU$279.7m | 413.9% | PS121.2x | |
| MSB Mesoblast | AU$1.18 | 18.7% +AU$211.1m | 13.0% | PS118.6x | |
| COH Cochlear | AU$327.81 | 0.8% +AU$177.5m | 34.9% | PE61.3x | |
| PME Pro Medicus | AU$113.10 | 1.5% +AU$176.5m | 88.8% | PE169.4x |
