HBI Deals+Insights / News

Stocks of €1bn+ groups almost all down since start of 2022

This week we are publishing our third edition of the Top 100, a list of the 100 largest health care services groups in EMEA by revenue. Out of the 100 companies, 33 are listed entities whose primary operations are in EMEA health care services, and 16 of those have over €1bn revenue. In this infographic we look at how the share prices of those 16 groups have fared since the start of 2022 (since the Top 100 is based on 2022 revenue figures).

They haven’t fared well, for the most part. Out of the 16 companies, Saudi hospital group Dr Sulaiman Al Habib Medical Group is the only one that saw its share price increase over the almost-two-year period. Its share price is currently 47% above where it was at the start of 2022. The company has no doubt been helped by the huge investment boom in Saudi Arabia, as the country privatises large swathes of its health care system.

All the other companies’ share prices fell. Elderly care groups fared worst, with Clariane (formerly Korian) down 81% and Orpea down an eye-watering 98%. This is due to the scandal surrounding Orpea which engulfed the French nursing home sector throughout 2022. Nordic elderly care groups Attendo and Ambea saw drops of 35% and 38% respectively.

Labs groups were the second worse performing: Synlab is down 58%, Eurofins is down 52% and Sonic is down 40%. This is mostly due to the Covid testing windfall coming to an end during the period.

The big established multinational hospital groups didn’t do quite as badly, with drops of 10-30%.

Inflation has hit health care operators hard, with cost increases eating into profit margins for most groups. A dearth of available debt also meant that growing through M&A was much harder throughout the period, while rising interest rates reduced the present value of expected future cash flows and dividends, which hit the value of all types of assets (including stocks).

Members with access to Deals + Insights content can click here to see the Top 100.

We would welcome your thoughts on this story. Email your views to Martin De Benito Gellner or call 0207 183 3779.