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Healthcare Sector Report

Healthcare Services Industry Report

Market Cap: $214.1B
Stocks: 57
Median P/E: 11.6x
Median ROIC: 1.0%

Data sourced from SEC EDGAR filings. Report refreshed weekly.

Part of the Healthcare sector.

Performance Dashboard

PeriodSector (MCW)Sector (Median)
1 Day+0.6%+0.0%
1 Week+0.6%-0.2%
1 Month
3 Months
6 Months
YTD+1.9%+0.4%
1 Year+36.5%+8.6%
3 Years+106.5%+2.5%
5 Years+40.4%-56.0%

Today's Breadth: 28 advancing · 18 declining · 10 flat

Valuation Summary

MetricMedianP25P75vs 5Y Avg
P/E11.6x0.0x24.2x-27%
P/B2.6x0.7x4.5x-9%
P/S0.9x0.2x2.0x
P/FCF16.5x6.6x28.8x
EV/EBITDA13.8x8.6x24.3x
EV/EBIT17.8x13.1x39.4x
Earnings Yield
4.2%
FCF Yield
2.9%
Below Fair Value
38% of stocks

Profitability Profile

Margins

MetricMedian5Y AvgP25P75
Gross Margin47.0%38.7%27.8%64.6%
Operating Margin2.5%-9.2%9.5%
Net Margin-2.3%-4.2%-10.3%5.6%
FCF Margin6.5%-1.0%9.6%

Returns on Capital

MetricMedian5Y AvgP25P75
ROE-1.4%-15.6%10.7%
ROA-3.9%-24.7%4.4%
ROIC1.0%-1.7%-16.1%8.9%

Growth Metrics

Metric1Y3Y CAGR5Y CAGR
Revenue+10.4%+7.8%+13.2%
EPS+23.8%+15.7%-2.4%
Free Cash Flow+16.5%+10.0%-1.5%

All values represent sector median growth rates.

Balance Sheet Health

Debt / Equity
0.7x
Net Debt / EBITDA
2.6x
Interest Coverage
0.5x
Current Ratio
1.6x

Altman Z-Score

Safe (>3): 19 (37%)
Gray (1.8–3): 5 (10%)
Distress (<1.8): 27 (53%)

Piotroski F-Score

Strong (7–9): 13 (23%)
Moderate (4–6): 30 (54%)
Weak (0–3): 13 (23%)

Top Companies

Symbol#Mkt CapP/EEV/EBITDAROICNet MgnRev Gr.Div YldYTDQual.
NTRA1$27.6B-13.1%-9.0%+35.9%+4.2%1/9
LH2$22.1B24.2x12.5x6.5%6.3%+7.3%1.1%+2.9%3/9
DGX3$21.9B20.0x11.8x9.2%9.0%+11.8%1.8%-1.1%3/9
EXAS4$19.8B-4.4%-6.4%+17.7%0.0%3/9
FMS5$13.2B7.0%6.1%+6.4%+1.1%1/9
FMCQF6$12.4B7.0%6.1%+6.4%0.0%1/9
DVA7$11.5B11.6x6.6x15.5%5.5%+6.5%-2.0%4/9
GH8$10.3B-34.6%-42.4%+32.9%+5.6%0/9
BTSG9$10.1B43.4x15.2x5.2%1.5%+28.2%+12.4%0/9
AGL10$8.6B-120.7%-6.6%-2.1%+1.5%0/9
CHE11$5.6B23.5x25.4%10.5%+4.1%0.5%-4.6%5/9
HIMS12$5.3B67.3x56.4x16.8%5.5%+59.0%+0.8%2/9
OPCH13$4.7B25.6x14.9x11.1%3.7%+13.0%+1.6%5/9
SHC14$4.5B65.6x26.5x3.9%6.7%+5.7%+2.5%2/9
RDNT15$4.2B23.5x2.2%-0.9%+11.5%-0.2%0/9
CAI16$3.2B6.1%-66.3%+97.0%2/9
BKD17$3.2B17.3x0.3%-8.2%+2.2%+4.7%0/9
CON18$2.8B15.4x2.1x12.9%7.6%+13.8%1.3%+1.9%3/9
VCYT19$2.6B51.8x6.9%12.8%+16.0%+3.6%3/9
ACHC20$2.4B53.0x-23.5%-33.3%+5.0%-1.4%2/9

Industry Composition

IndustryStocksMarket Cap%
Services-Medical Laboratories21$117.5B54.9%
Services-Misc Health & Allied Services, Nec12$52.2B24.4%
Services-Home Health Care Services7$25.7B12.0%
Services-Offices & Clinics Of Doctors Of Medicine10$8.2B3.8%
Services-Specialty Outpatient Facilities, Nec4$5.3B2.5%
Services-Nursing & Personal Care Facilities3$5.1B2.4%

Quality Distribution

0
1
2
3
4
5
6
7
8
9

Quality Score (0-9)

High Quality (7+)
2%
Median Piotroski F
5/9
Profitable Years
2 of 10

Dividends & Shareholder Returns

Paying Dividends
19%
Median Div Yield
1.3%
Median Buyback Yield
0.5%
Shareholder Yield
1.0%
Payout Ratio
35.5%
Div Growth (3Y)
14.1%
Div Growth (5Y)
3.9%

Strengths & Weaknesses

Strengths

  • +[Growth]Strong secular growth with a median 5-year revenue CAGR of 13.2%, outpacing nominal GDP.
  • +[Valuation]Attractive valuations: current median P/E of 11.6x is 27.4% below the 5-year average, presenting potential value opportunity.

Weaknesses

  • [Financial Health]52.9% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
  • [Leverage]Tight interest coverage at 0.5x, leaving limited cushion for debt servicing if earnings decline.
  • [Profitability]Below-average capital returns with a median ROIC of 1.0%, suggesting limited pricing power or capital-intensive operations.
  • [Quality]Only 1.8% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.

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