The following health care companies have grown their earnings per share over a five-year period. According to the GuruFocus discounted cash flow calculator as of March 31, all of them also trade with a margin of safety.
Select Medical Holdings
Select Medical Holdings Corp.'s (SEM, Financial) earnings per share have grown 11.40% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 10.87% margin of safety at $33.93 per share. The price-earnings ratio is 17.49. The share price has been as high as $37.42 and as low as $10 in the last year; it is currently 9.33% below its 52-week high and 239.30% above its 52-week low.
The company, which operates in critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics and Concentra institutions, has a market cap of $4.58 billion and an enterprise value of $8.69 billion.
The company's largest guru shareholder is Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 1.12% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.34% and Jeremy Grantham (Trades, Portfolio) with 0.13%.
Emergent BioSolutions
The earnings per share of Emergent BioSolutions Inc. (EBS, Financial) have grown 12.20% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 27.02% margin of safety at $93.88 per share. The price-earnings ratio is 16.59. The share price has been as high as $137.61 and as low as $46.37 in the last year; it is currently 31.78% below its 52-week high and 102.46% above its 52-week low.
The company, which provides public health products, has a market cap of $5 billion and an enterprise value of $5.26 billion.
The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.92% of outstanding shares, followed by Ron Baron (Trades, Portfolio) with 0.35% and Royce with 0.35%.
Chemed
Chemed Corp.'s (CHE, Financial) earnings per share have risen 27.60% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 29.68% margin of safety at $458.22 per share. The price-earnings ratio is $23.51. The share price has been as high as $560 and as low as $330 in the last year; it is currently 18.18% below its 52-week high and 38.85% above its 52-week low.
The company, which provides hospice and palliative care services to patients, has a market cap of $7.35 billion and an enterprise value of $7.32 billion.
With a 1.64% stake, Simons' firm is the company's largest guru shareholder, followed by Fisher with 1.10% and Mario Gabelli (Trades, Portfolio) with 0.37%.
Icon
The earnings per share of Icon PLC (ICLR, Financial) have climbed 10.40% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 28.91% margin of safety at $183.86 per share. The price-earnings ratio is 29.94. The share price has been as high as $223 and as low as $104 in the last year; it is currently 17.78% below its 52-week high and 76.32% above its 52-week low.
The company, which provides drug development and clinical trial services, has a market cap of $9.71 billion and an enterprise value of $9.30 billion.
The company's largest guru shareholder is Simons' firm with 4.43% of outstanding shares, followed by Baron with 1.19% and the Invesco European Growth Fund (Trades, Portfolio) with 0.20%.
DaVita
DaVita Inc.'s (DVA, Financial) earnings per share have climbed 21.30% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 16.85% margin of safety at $110.86 per share. The price-earnings ratio is $17.62. The share price has been as high as $125.28 and as low as $62.2 in the last year; it is currently 11.51% below its 52-week high and 78.23% above its 52-week low.
The dialysis services provider has a market cap of $12.07 billion and an enterprise value of $23.10 billion.
With a 33.15% stake, Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.22% and Larry Robbins (Trades, Portfolio) with 0.13%.
Disclosure: I do not own any stocks mentioned.
Read more here:
- 5 Companies Trading With Low Price-Book Ratios
- 5 Retailers Trading With Low Price-Earnings Ratios
- 5 Profitable Companies With Growing Margins
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