NEW STEVE JOBS IN JAIL: IS THE BLOOD TEST MARKET UNDER THREAT?
🩸
👨⚖️ Just the other day Elizabeth Holmes, founder of Theranos, received an 11-year sentence. Her company turned out to be a fraud and her investors suffered huge losses.
🎙 Even recently in an interview Jim Cramer called her the new Steve Jobs. Its funny, since Elizabeth Holmes did try to copy the Apple founder in many aspects.
🤑 Did you know what potential hides in the blood test market today? According to certain studies, it's estimated to be worth $150 billion. A crazy number.
👉 Every company on the list below has a different degree and quality of interaction in the blood test market. Some produce the tests and some produce the equipment. We will go into more detail below:
1️⃣ Danaher
🔹 Market cap: large
🇺🇸 Country: USA
🟢 Ranks: 87% out of 100
💉 In 2013, Danaher bought out HemoCue, manufacturer of the popular hemoglobin analyser, in 2004, Radiometer, one of the oldest blood testing device companies. Overall, diagnostics generates almost ⅓ of the company's revenue.
💬 What about the fundamentals: the financial position is more than excellent (gross profit margin of 60%, Financial position, Rank 81%). Danaher may seem expensive according to ratios (P/E 28), but this is balanced out by the excellent growth dynamics of the business.
2️⃣ Thermo Fisher
🔹Market Cap: large
🇺🇸 Country: USA
🟢 Ranks: 86%
💉Thermo Fisher is also developing strongly in the blood test market. The company has over 50 products in this field.
💬 Thermo Fisher also has a good financial position and business growth dynamics (assets up 23 y/y, revenues up 13% y/y). It is also important to note that 75% of analysts have set a buy rating for the stock. On the downside, it is worth noting again the high valuation by major ratios, which can be explained by good investor expectations.
3️⃣ Biomerieux
🔹 Market Cap: Middle
🇫🇷 Country: France
🟢 Ranks: 80%
💉The smallest company on our list. Biomerieux specializes in blood culture (30% of the company's total revenue).
💬 Despite its small capitalization, the company has a better financial position: high gross profit margin (55%) and current ratio (2.02). In addition, Biomerieux stands out with strong earnings per share QoQ growth, as much as 59%. Only weak analyst support is worrying.
4️⃣ Cardinal Health
🔹Market cap: large
🇺🇸 Country: USA
🟡 Ranks: 62%
💬 Though Cardinal Health has a wide range of products for blood banking, analysis and collection, its financial position is not the best: very low net margin (0.2%), high liability-to-asset ratio (104%). Moreover, only 25% of analysts recommend the stock as a buy. A good dividend policy and the company's low valuation mitigate the situation.
5️⃣ Becton
🔹Market cap: large
🇺🇸 Country: USA
🟡 Ranks: 52%
💉 Closing our top is Becton, a manufacturer of blood collection and storage equipment.
💬 Financial position is weak, business growth is not too pleasing, high valuation by ratios, low expectations from analysts - this is how we can characterise the company at the moment. Not a good option.
