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Health Care

Health Care

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Health Care

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  1. Health Care

    Mike WalingZhao Zhou
  2. Agenda Sector Overview Business Analysis Economic Analysis Financial Analysis Valuation Analysis Recommendation
  3. Sector Overview Size of Sector: 91.2B S&P Breakdown vs. SIM
  4. Sector Overview S&P SIM
  5. Sector Overview Industries Biotechnology HC-Distributors HC-Equipment HC-Facility HC-Managed Care HC-Services HC-Supplies Health Care Tech Life Science Tools Pharmaceuticals
  6. Sector Overview Major Companies:
  7. Sector Overview Performance – Quarter 6/30
  8. Sector Overview Performance – Year-to-Date
  9. Sector Overview Performance vs. Other Sectors: YTD
  10. Sector Overview Performance vs. Other Sectors: Quarter ending 6/30
  11. Sector Overview Industry Performance – YTD
  12. Sector Overview Industry Performance – Quarter Ending 6/30
  13. Business Analysis Porter’s Five Forces
  14. Business Analysis Business Cycle
  15. Business Analysis Demographics – Aging Population Developed economies are ageing rapidly Increased need for medicines, health care facilities, and health care equipment
  16. Economic Analysis Regression: S&P 500 vs. Health Care
  17. Economic Analysis Real Government Purchases vs. Health Care
  18. Economic Analysis CPI vs. Health Care
  19. Economic Analysis CPI – Hospital and Related Services
  20. Financial AnalysisNet profit margin(relative to s&p500)
  21. Financial AnalysisEBITDA margin(relative to s&p500)
  22. ValuationSector overall
  23. Valuation Pharmaceuticals(Trailing P/E relative to S&P500)
  24. Valuation Biotechnology(Trailing P/E relative to S&P500)
  25. Valuation HC-Equipment(Trailing P/E relative to S&P500)
  26. ValuationHC-Distributors (Trailing P/E relative to S&P500)
  27. RecommendationsRisk Legislation Patient Protection and Affordable Care Act Patents Competition Mature market Large amount of capital requirements Competition between existing players
  28. Recommendations Risk Global Economy Uncertainty of future economy Global economy recession Future Possible Reformation Expensive healthcare system Best but inefficient
  29. Recommendations Given Ratios and expected returns, HC looks to be fairly valued to slightly overvalued Keep current weight, or reduce by up to 50 BPS and allocate to higher potential sector Perhaps Financials or Energy?
  30. Questions?