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NEW STEVE JOBS IN JAIL: IS THE BLOOD TEST MARKET UNDER THREAT?

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👨‍⚖️ 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.

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