Odontoprev's (BVMF:ODPV3) Solid Profits Have Weak Fundamentals
May 14
Brazilian (BOVESPA) Healthcare Sector Analysis
UpdatedMay 19, 2024
DataAggregated Company Financials
Companies17
- 7D2.7%
- 3M6.4%
- 1Y-6.9%
- YTD-4.5%
In the last week, the Healthcare industry is up 2.7%, with Hapvida Participações e Investimentos up 11%. Meanwhile, Diagnósticos da América actually underperformed within the industry, shrinking 12% in the last week. In contrast, the industry has lost 6.9% in the last 12 months. As for the next few years, earnings are expected to grow by 26% per annum.
Sector Valuation and Performance
Has the Brazilian Healthcare Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 19 May 2024 | R$154.4b | R$142.7b | R$4.2b | 12x | 36.9x | 1.1x |
| Tue, 16 Apr 2024 | R$132.6b | R$140.0b | R$3.2b | 11.6x | 41.8x | 0.9x |
| Thu, 14 Mar 2024 | R$145.8b | R$133.5b | R$2.8b | 14.7x | 52.8x | 1.1x |
| Sat, 10 Feb 2024 | R$148.3b | R$132.9b | R$2.7b | 17x | 54.7x | 1.1x |
| Mon, 08 Jan 2024 | R$164.7b | R$135.0b | R$2.9b | 20.2x | 57.1x | 1.2x |
| Wed, 06 Dec 2023 | R$160.2b | R$135.0b | R$2.9b | 20.3x | 55.5x | 1.2x |
| Fri, 03 Nov 2023 | R$142.0b | R$126.2b | R$2.8b | 17.4x | 51.1x | 1.1x |
| Sun, 01 Oct 2023 | R$161.9b | R$126.1b | R$2.7b | 19.1x | 58.9x | 1.3x |
| Tue, 29 Aug 2023 | R$175.5b | R$126.1b | R$2.7b | 20.3x | 63.9x | 1.4x |
| Thu, 27 Jul 2023 | R$199.3b | R$116.7b | R$2.8b | 16.8x | 70.7x | 1.7x |
| Sat, 24 Jun 2023 | R$183.0b | R$116.7b | R$2.8b | 16.3x | 64.9x | 1.6x |
| Mon, 22 May 2023 | R$161.2b | R$110.8b | R$2.8b | 14.9x | 58.6x | 1.5x |
| Wed, 19 Apr 2023 | R$132.5b | R$106.3b | R$3.3b | 14.7x | 39.9x | 1.2x |
| Fri, 17 Mar 2023 | R$139.1b | R$103.8b | R$3.8b | 14.6x | 37x | 1.3x |
| Sun, 12 Feb 2023 | R$169.4b | R$98.3b | R$4.2b | 15.1x | 40.6x | 1.7x |
| Tue, 10 Jan 2023 | R$161.3b | R$98.3b | R$4.2b | 14.9x | 38.7x | 1.6x |
| Thu, 08 Dec 2022 | R$163.2b | R$98.3b | R$4.2b | 15.4x | 39.2x | 1.7x |
| Sat, 05 Nov 2022 | R$205.4b | R$90.9b | R$4.6b | 17.3x | 44.6x | 2.3x |
| Mon, 03 Oct 2022 | R$190.5b | R$90.4b | R$4.6b | 16.2x | 41.4x | 2.1x |
| Wed, 31 Aug 2022 | R$198.3b | R$90.2b | R$4.4b | 13.9x | 44.8x | 2.2x |
| Fri, 29 Jul 2022 | R$175.5b | R$84.2b | R$5.2b | 13.4x | 33.6x | 2.1x |
| Sun, 26 Jun 2022 | R$167.1b | R$84.2b | R$5.2b | 12.7x | 31.9x | 2x |
| Tue, 24 May 2022 | R$188.2b | R$80.2b | R$5.7b | 13.3x | 32.8x | 2.3x |
| Thu, 21 Apr 2022 | R$237.3b | R$78.1b | R$5.6b | 14.4x | 42x | 3x |
| Sat, 19 Mar 2022 | R$308.5b | R$87.8b | R$5.8b | 13.5x | 53.5x | 3.5x |
| Mon, 14 Feb 2022 | R$262.9b | R$87.0b | R$5.7b | 14.4x | 46x | 3x |
| Wed, 12 Jan 2022 | R$225.1b | R$87.0b | R$5.7b | 15.4x | 39.3x | 2.6x |
| Fri, 10 Dec 2021 | R$271.3b | R$87.0b | R$5.7b | 16.8x | 47.4x | 3.1x |
| Sun, 07 Nov 2021 | R$301.3b | R$82.7b | R$6.1b | 19.4x | 49.8x | 3.6x |
| Tue, 05 Oct 2021 | R$327.4b | R$82.0b | R$6.0b | 21.2x | 54.9x | 4x |
| Thu, 02 Sep 2021 | R$357.1b | R$82.0b | R$6.0b | 24.1x | 59.9x | 4.4x |
| Sat, 31 Jul 2021 | R$337.4b | R$73.0b | R$5.8b | 23.1x | 58.1x | 4.6x |
Price to Earnings Ratio
69.9x
Current Industry PE
- Investors are pessimistic on the Brazilian 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 36.9x which is lower than its 3-year average PE of 49.5x.
- The 3-year average PS ratio of 2.3x is higher than the industry's current PS ratio of 1.1x.
Past Earnings Growth
- The earnings for companies in the Healthcare industry have declined 6.1% per year over the last three years.
- Meanwhile revenues for these companies have grown 29% 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 Brazilian Healthcare sector?
| BR Market | 0.32% | |
| Healthcare | 2.66% | |
| Healthcare Services | 3.16% | |
| Pharma | 0.92% | |
| Medical Equipment | 0.19% | |
| Healthtech | 0% | |
| Life Sciences | 0% | |
| Biotech | -5.36% | |
Industry PE
- Investors are most optimistic about the Healthcare Services industry even though it's trading below its 3-year average PE ratio of 98.1x.
- Analysts are expecting annual earnings growth of 28.0%, which is lower than the prior year's growth of 63.3% per year.
- Investors are most pessimistic about the Medical Equipment 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 28% over the next 5 years.
- However this is lower than its past earnings growth rate of 63% per year.
- In contrast, the Biotech 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 | |
|---|---|---|---|---|---|
| HAPV3 Hapvida Participações e Investimentos | R$4.51 | 11.4% +R$3.4b | 24.9% | PS1.2x | |
| RDOR3 Rede D'Or São Luiz | R$31.10 | 1.6% +R$1.1b | 7.6% | PE27.5x | |
| HYPE3 Hypera | R$30.33 | 1.0% +R$189.9m | -23.1% | PE11.3x | |
| FLRY3 Fleury | R$14.56 | 0.8% +R$60.0m | -8.9% | PE15.9x | |
| ONCO3 Oncoclínicas do Brasil Serviços Médicos | R$7.07 | 1.3% +R$45.7m | -34.9% | PE17.8x |