Morningstar - Summer 2019 - 93

Sector Snapshot: Healthcare
The data on this page represents healthcare companies covered by Morningstar Research Services.

Industry Structure
Moat Breakdown*

Key Stats
Healthcare %

S&P 500 %

Wide Moat

23.1

24.2

Narrow Moat

54.6

No Moat

22.3

Industry Map

Aggregates

Healthcare

S&P 500

Number of Companies

130

500

41.6

Total Market Cap $mil

4,845,326

25,452,681

22.0

Total Fair Value $mil

4,960,563

25,598,960

5,658,775

11,832,083

Total Revenue $mil
Stock Type Breakdown

Healthcare %

Market
Cap
Large

31878.0020
31878.0020
25840.0015
25840.0015
19802.0010
19802.0010
13764.0005
13764.0005

7726.0000
7726.0000

Medium

6479.8004

S&P 500 %

5234.6003
3989.4002

High Yield

1.5

2.8

Valuation

Distressed

1.5

1.0

Price/Fair Value

Hard Asset

0.0

0.0

P/E

Cyclical

0.0

44.2

Price/Book

4.02

Slow Growth

16.2

14.4

Price/Sales

3.82

Classic Growth

13.8

12.6

Price/CF

19.81

13.95

Aggressive Growth

11.5

5.4

1.71

2.20

Speculative Growth

13.1

2.4

Not Classified

42.3

0.0

Healthcare

S&P 500

*Based on Morningstar analyst coverage.

2744.2001
1499.0000
1498.0

Healthcare

S&P 500

Small

1282.6

0.98
636.4

Dividend Yield %
Profitability & Financial Health

27.74

1067.2
851.8

421.0

0.99
21.44
420
336

3.22

252

Undervalued

168
84

2.68

Overvalued

0

ROE %

13.82

16.75

ROA %

5.91

6.22

Net Margin %

9.81

11.21

Debt/Capital %

33.27

43.05

0
0.5
Price/Fair Value

1

2

1.5

Healthcare firms 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

0.5

1.0

1.5

2.0

0.0

0.5

1.0

1.5

2.0

Healthcare
Name/Ticker

Market
Cap ($mil)

Morningstar
Rating

Price ($)

Fair Value ($)

Price/Fair
Value

Fair Value
Uncertainty

Johnson & Johnson JNJ

360,992.02

QQQ

139.79

130.00

1.08

High

2

UnitedHealth Group UNH

237,380.23

QQQQ

247.26

300.00

0.82

High

3

Pfizer PFE

237,284.14

QQQQ

42.47

46.00

0.92

Medium

4

Roche Holding ADR RHHBY

234,034.58

QQQQQ

34.39

42.00

0.82

High

5

Novartis ADR NVS

218,271.78

QQ

96.14

87.00

1.11

Medium

6

Merck MRK

211,272.88

1

7 Abbott Laboratories ABT

Economic
Moat

Price/ Dividend
Earnings Yield %

Wide

24.92

Wide
0.0

Wide

20.28
0.5

Wide
0.0

Wide

22.83

1.0

22.42
0.5

17.87

1.0

Net
ROE % Margin %

Debt/
Capital

2.66

25.51

18.75

31.66

1.46

24.10

5.33

40.08

3.23

16.56

20.79

34.17

3.13

38.84

18.47

36.79

3.01

16.51

23.72

22.23

1.5

1.5

2.0

2.0

QQQ

83.17

78.00

1.07

Medium

Wide

35.85

2.52

20.38

14.71

42.59

138,093.69

QQ

79.94

64.00

1.25

Medium

Narrow

61.02

1.48

7.71

7.74

38.81

8

AbbVie ABBV

122,406.82

QQQQ

9

Eli Lilly LLY

121,894.18

QQ

10

Novo Nordisk ADR NVO

121,371.56

11

Amgen AMGN

12

Medtronic MDT

80.59

102.00

0.79

Very High

Narrow

22.02

4.77

-

17.27

89.69

129.76

117.00

1.11

Medium

Wide

42.46

1.86

30.18

13.16

54.22

QQQ

52.31

53.00

0.99

Medium

Wide

21.83

2.47

76.00

34.54

-

119,682.73

QQQ

189.98

205.00

0.93

Medium

Wide

15.05

2.81

44.48

35.35

70.25

119,670.90

QQQQ

91.08

110.00

0.83

High

Wide

25.23

2.24

9.83

16.10

32.21
27.21

0.0

0.5

1.0

1.5

2.0

13

Sanofi ADR SNY

110,089.25

QQQQ

44.28

52.00

0.85

High

Wide

22.78

4.22

7.36

12.07

14

Thermo Fisher Scientific TMO

109,745.96

QQ

273.72

203.00

1.35

Medium

Narrow

37.81

0.25

11.09

12.06

39.11

15

AstraZeneca ADR AZN

105,734.30

QQ

40.43

35.00

1.16

Medium

Wide

47.56

3.45

-

9.76

60.68

Data as of 03/31/2019.

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Morningstar - Summer 2019

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