Morningstar Magazine - February/March 2014 - 73

Sector Snapshot:
Health Care
The data on this page represents heath-care companies covered by Morningstar analysts.

Industry Map

Key Stats

Industry Structure

6 7145 12 10
1121 13 15
84
3
9

Aggregates

Moat Breakdown*
% Breakdown

S&P 500

Wide Moat

20.8%

22.8%

Total Market Cap

54.1%

51.0%

Total Fair Value

$4,283,536 million

No Moat

25.2%

17.0%

Total Revenue

Market
Cap

$4,742,486 million

Narrow Moat

Number of Companies

159

Large

31878.001953
25840.001465
19802.000977
13764.000488

$2,806,466 million

Medium

7726.000000

6479.800293
5234.600220
3989.400146

Stock Type Breakdown

Valuation
% Breakdown

2744.200073
1499.000000

S&P 500

1067.200027

High Yield

0.0%

1.0%

Distressed

4.4%

0.6%

Hard Asset

0.0%

Cyclical

0.0%

0.0%

45.0%

12.6%

14.0%

1.9%

3.4%

Aggressive Growth

23.9%

16.0%

Speculative Growth

11.3%

4.2%

Slow Growth
Classic Growth

Price/Fair Value

Sector

1.11

636.400009

P/E

1282.600037

1.06

421.000000

25.45

420

20.79
336
252

3.87

Price/Sales

2.87

1.92

17.04

13.50

1.51

Dividend Yield %

0

Profitability and Financial Health

0
0.5
Price/Fair Value

1

2

1.5

Health-care companies are plotted based on their
market cap and price/fair value ratio. Companies with a
price/fair value ratio of less than 1 are undervalued.
Companies with a ratio of more than 1 are overvalued.
Numbered plots show companies listed in the
table below.

0.0

Sector

15.06
6.64

2.0

9.91

29.00

2.0

1.5

5.68

9.79

1.5

1.0

14.41

ROA %

1.0

0.5

S&P 500

ROE %

0.5

0.0

37.08

0.0%

*Based on Morningstar analyst coverage.

Overvalued

1.85

Price/CF

3.07

84

Debt/Capital %

0.0%

Undervalued

168

Price/Book

Net Margin %

Not Classified

Small

S&P 500

851.800018

Health Care
Name/Ticker

Market
Cap ($mil)

Revenue
TTM ($mil)

Price/
Sales

Economic
Moat

Morningstar
Rating

Uncertainty
Rating

Growth
Grade

Profitability
Grade

Financial
Health
Grade

Price/Fair
Value

Dividend
Yield %

Price/
Earnings

20.41

1

Johnson & Johnson JNJ

268,205.94

70,515.00

3.73

Wide

QQQ

Low

C

V

X

1.06

2.72

2

Roche Holding AG ROG

237,124.12

50,659.31

4.63

Wide

QQQ

Low

-

-

-

1.00

1.91

3

Pfizer Inc PFE

201,496.49

56,246.00

3.87

Wide

QQQ

Medium

C

C

4

Novartis AG NOVN

197,606.11

58,536.00

3.36

Wide

QQQ

Low

C

C

-

1.01

2.03

5

Merck & Co Inc MRK

151,794.21

44,450.00

3.40

Wide

QQQ

Medium

C

V

X

1.00

3.33

6

Sanofi SAN

136,376.86

44,065.92

3.08

Wide

QQQQ

Medium

C

C

7

GlaxoSmithKline PLC GSK

132,567.41

42,914.50

3.01

Wide

QQQ

Medium

C

8

Gilead Sciences Inc GILD

120,214.57

10,670.15

11.78

Wide

QQQ

Medium

X

9

Bayer AG BAYN

114,462.85

52,930.78

2.10

Narrow

QQ

Medium

10

Amgen Inc AMGN

89,854.14

18,086.00

4.84

Wide

QQQ

Medium

0.0

0.0

0.5

0.5

Z

1.0

1.0

1.04

1.5

1.5

18.62

3.09

2.0

20.37
20.96

2.0

33.44

X

0.79

3.67

32.89

Z

Z

0.94

4.63

20.41

V

-

1.02

-

41.49

C

C

-

1.33

-

26.81

X

C

X

0.95

1.58

0.94

2.29

18.08
12.63

11

Bristol-Myers Squibb Company BMY

89,506.07

16,135.00

5.47

Wide

QQ

Medium

C

V

X

1.26

2.59

31.95

12

AstraZeneca PLC AZN

80,919.96

26,149.00

2.82

Wide

QQ

Medium

C

C

X

1.15

4.58

15.87

13

AbbVie Inc ABBV

79,638.54

18,885.00

4.46

Narrow

QQ

Medium

X

-

X

1.11

3.20

18.55

14

UnitedHealth Group Inc UNH

73,010.10

120,141.00

0.64

Narrow

QQQ

Medium

X

C

X

0.95

1.45

14.22

15

Biogen Idec Inc BIIB

70,268.62

6,384.29

10.45

Wide

QQ

Medium

X

C

Z

1.34

-

39.22

Data as of Dec. 31, 2014

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Morningstar Magazine - February/March 2014

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