Biotechnology Industry Report
Market Cap: $627.8B
Stocks: 116
Median P/E: 4.5x
Median ROIC: -38.9%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
Part of the Healthcare sector.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | -0.2% | +0.5% |
| 1 Week | -1.5% | +1.5% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | -0.5% | +1.4% |
| 1 Year | +39.2% | +12.6% |
| 3 Years | +98.2% | -41.1% |
| 5 Years | +95.4% | -81.8% |
Today's Breadth: 52 advancing · 41 declining · 7 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 4.5x | 0.0x | 23.0x | -18% |
| P/B | 2.5x | 0.5x | 5.9x | -27% |
| P/S | 2.6x | 0.0x | 5.5x | — |
| P/FCF | 15.7x | 6.6x | 29.6x | — |
| EV/EBITDA | 19.3x | 10.8x | 38.9x | — |
| EV/EBIT | 19.3x | 9.8x | 24.2x | — |
Earnings Yield
4.5%
FCF Yield
-13.2%
Below Fair Value
22% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 67.3% | 70.5% | 52.3% | 87.3% |
| Operating Margin | 8.0% | — | -17.7% | 37.5% |
| Net Margin | 6.0% | -40.2% | -21.1% | 28.9% |
| FCF Margin | 13.8% | — | -20.1% | 39.4% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | -45.7% | — | -101.2% | -18.2% |
| ROA | -33.3% | — | -48.6% | -8.7% |
| ROIC | -38.9% | -48.5% | -60.1% | -10.6% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +16.4% | +11.7% | +16.2% |
| EPS | +28.6% | +21.1% | +2.3% |
| Free Cash Flow | +9.3% | +20.4% | +11.0% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.2x
Net Debt / EBITDA
-0.5x
Interest Coverage
-0.4x
Current Ratio
3.8x
Altman Z-Score
Safe (>3): 24 (27%)
Gray (1.8–3): 6 (7%)
Distress (<1.8): 60 (67%)
Piotroski F-Score
Strong (7–9): 8 (7%)
Moderate (4–6): 27 (24%)
Weak (0–3): 78 (69%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| AMGN | 1 | $189.6B | 23.2x | 15.4x | 16.4% | 21.0% | +9.9% | 2.9% | -1.8% | 4/9 |
| GILD | 2 | $174.5B | 18.4x | 17.0x | 21.6% | 28.9% | +2.4% | 2.5% | -0.6% | 5/9 |
| ARGX | 3 | $36.7B | — | — | — | — | — | — | -7.2% | 0/9 |
| BIIB | 4 | $25.9B | 20.1x | 10.8x | 7.0% | 13.1% | +2.2% | — | +0.2% | 3/9 |
| RVMD | 5 | $25.9B | — | — | -58.1% | — | — | — | +4.1% | 0/9 |
| MRNA | 6 | $19.7B | — | — | -28.0% | -145.2% | -39.9% | — | +1.0% | 1/9 |
| NBIX | 7 | $12.9B | 31.1x | — | 22.4% | 16.7% | +21.4% | — | +0.7% | 5/9 |
| EXEL | 8 | $12.7B | 15.3x | — | — | 33.7% | +7.0% | — | +1.4% | 5/9 |
| TECH | 9 | $9.2B | 112.2x | 38.9x | 3.6% | 6.0% | +5.2% | 0.6% | +3.2% | 5/9 |
| HALO | 10 | $8.3B | 26.9x | 21.6x | 16.7% | 22.7% | +37.5% | — | -0.0% | 8/9 |
| KRYS | 11 | $8.0B | 36.9x | — | 14.9% | 52.6% | +33.9% | — | +3.7% | 3/9 |
| KYMR | 12 | $7.5B | — | — | -25.7% | — | — | — | +4.8% | 0/9 |
| RGEN | 13 | $7.0B | 193.3x | 68.9x | 2.3% | 6.6% | +16.4% | — | +3.0% | 2/9 |
| ABVX-PA | 14 | $6.8B | -2.4x | — | — | — | — | — | — | 0/9 |
| IBRX | 15 | $6.8B | — | — | -51.0% | — | — | — | +5.0% | 0/9 |
| ACLX | 16 | $6.5B | — | — | -53.4% | — | — | — | +0.2% | 0/9 |
| SRRK | 17 | $5.7B | — | — | -98.9% | — | — | — | -2.6% | 0/9 |
| CGON | 18 | $5.2B | — | — | -24.1% | — | — | — | +9.0% | 0/9 |
| CRSP | 19 | $4.9B | — | — | -30.2% | — | — | — | +2.5% | 1/9 |
| IMVT | 20 | $3.5B | — | — | -52.9% | — | — | — | +0.4% | 0/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Biological Products, (No Diagnostic Substances) | 102 | $615.3B | 98.0% | |
| Biotechnology | 14 | $12.5B | 2.0% |
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
1%
Median Piotroski F
2/9
Profitable Years
0 of 10
Dividends & Shareholder Returns
Paying Dividends
3%
Median Div Yield
2.5%
Median Buyback Yield
0.0%
Shareholder Yield
0.0%
Payout Ratio
67.9%
Div Growth (3Y)
2.7%
Div Growth (5Y)
1.5%
Strengths & Weaknesses
Strengths
- +[Balance Sheet]Conservative balance sheets with a median Debt/Equity of 0.2x, providing financial flexibility for opportunistic investment.
- +[Growth]Strong secular growth with a median 5-year revenue CAGR of 16.2%, outpacing nominal GDP.
- +[Profitability]High pricing power with a median gross margin of 67.3%, reflecting differentiated products or strong brand moats.
- +[Valuation]Attractive valuations: current median P/E of 4.5x is 17.9% below the 5-year average, presenting potential value opportunity.
Weaknesses
- −[Financial Health]66.7% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Leverage]Tight interest coverage at -0.4x, leaving limited cushion for debt servicing if earnings decline.
- −[Profitability]Below-average capital returns with a median ROIC of -38.9%, suggesting limited pricing power or capital-intensive operations.
- −[Quality]Only 0.9% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.