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6 Health Care Companies Boosting Book Value

Centene makes the list

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Tiziano Frateschi
Apr 02, 2020
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According to the GuruFocus All-in-One Screener, a Premium feature, the following companies have grown their book value per share over the past decade through April 2.

Book value per share is calculated as total equity minus preferred stock, divided by shares outstanding. Theoretically, it is what shareholders will receive if a company is liquidated. Total equity is a balance sheet item and is equal to total assets minus total liabilities.

Since the book value per share may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.

Alexion Pharmaceuticals

The book value per share of Alexion Pharmaceuticals Inc. (ALXN) has grown 32.50% over the past 10 years. The price-book ratio is 1.77 and the price-tangible book ratio is 6.89.

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The developer and marketer of drugs for rare medical conditions has a market cap and enterprise value of $19 billion.

According to the discounted cash flow calculator, the stock is undervalued and is trading with a 42% margin of safety at $90. The share price has been as high as $141.86 and as low as $72.67 in the last 52 weeks. As of Thursday, the stock was trading 36.61% below its 52-week high and 23.75% above its 52-week low. The price-earnings ratio is 8.38.

With 1.69% of outstanding shares,

Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.34% and David Carlson (Trades, Portfolio) with 0.24%.

Anthem

Anthem Inc.'s (ANTM) book value per share has grown 7.6% over the past decade. The price-book ratio is 1.71 and the price-tangible book ratio is 21.28.

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The provider of health care insurance has a market cap of $54 billion and an enterprise value of $48 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 9.76% margin of safety at $214.30. The share price has been as high as $315.97 and as low as $171.03 in the last 52 weeks. As of Thursday, the stock was trading 32.18% below its 52-week high and 25.30% above its 52-week low. The price-earnings ratio is 11.62.

With 1.66% of outstanding shares, the

Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by Andreas Halvorsen (Trades, Portfolio)’s Viking Global Investors with 1.22% and First Eagle Investment (Trades, Portfolio) with 0.79%.

Biogen

Biogen Inc.'s (BIIB) book value per share has grown 13.9% over the past decade. The price-book ratio is 3.83 and the price-tangible book ratio is 12.59.

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The biotech company has a market cap of $51 billion and an enterprise value of $53 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 67.27% margin of safety at $293. The share price has been as high as $375 and as low as $215 in the last 52 weeks. As of Thursday, the stock was trading 21.79% below its 52-week high and 35.91% above its 52-week low. The price-earnings ratio is 9.32.

PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder with 8.73% of outstanding shares, followed by Simons’ firm with 2.63% and the Vanguard Health Care Fund (Trades, Portfolio) with 1.60%.

Centene

The book value per share of Centene Corp. (CNC) has grown 24.9% over the past 10 years. The price-book ratio is 2.62 and the price to tangible book ratio is 9.05.

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The health care plans provider has a market cap of $32.93 billion and an enterprise value of $33.78 billion.

According to the DCF calculator, the stock is undervalued and is trading with a 37.22% margin of safety at $56.12. The share price has been as high as $68.64 and as low as $41.62 in the last 52 weeks. As of Thursday, the stock was trading 18.24% below its 52-week high and 34.84% above its 52-week low. The price-earnings ratio is 17.87.

With 1.86% of outstanding shares, Viking Global Investors is the company's largest guru shareholder, followed by the

Vanguard Health Care Fund (Trades, Portfolio) with 1.48% and Lee Ainslie (Trades, Portfolio)’s Maverick Capital with 0.54%.

Icon

Icon PLC's (ICLR) book value per share has grown 11% over the past decade. The price-book ratio is 4.43 and the price-tangible book ratio is 10.74.

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The researcher and provider of services to the pharmaceutical and biotechnology industries has a market cap of $7.09 billion and an enterprise value of $6.97 billion.

According to the DCF calculator, the stock is undervalued with a 31.71% margin of safety at $132.20. The share price has been as high as $178.99 and as low as $104.28 in the last 52 weeks. As of Thursday, the stock was trading 26.14% below its 52-week high and 26.77% above its 52-week low. The price-earnings ratio is 19.44.

Renaissance Technologies is a company's most notable shareholder with 4.38% of outstanding shares, followed by

Ron Baron (Trades, Portfolio) with 1.36% and the Vanguard Health Care Fund (Trades, Portfolio) with 0.32%.

Universal Health Services

Universal Health Services Inc.’s (UHS) book value per share has grown 13.7% over the past decade. The price-book ratio is 1.40 and the price-tangible book ratio is 4.71.

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The provider of medical care facilities has a market cap of $7.6 billion and an enterprise value of $11.95 billion.

According to the DCF calculator, the stock is undervalued with a 49.68% margin of safety at $87.92. The share price has been as high as $157.79 and as low as $65.20 in the last 52 weeks. As of Thursday, the stock was trading 44.28% below its 52-week high and 34.85% above its 52-week low. The price-earnings ratio is 9.64.

First Eagle Investment (Trades, Portfolio) is the most notable shareholder with 3.38% of outstanding shares, followed by Simons’ firm with 0.22% and Larry Robbins (Trades, Portfolio)’ Glenview Capital Management with 0.19%.

Disclosure: I do not own any stocks mentioned.

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