Pharmaceuticals Industry Report
Market Cap: $5.5T
Stocks: 344
Median P/E: 0.0x
Median ROIC: -19.3%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
Part of the Healthcare sector.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | -1.4% | 0.0% |
| 1 Week | -0.6% | -0.3% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | -4.0% | 0.0% |
| 1 Year | +19.8% | +12.0% |
| 3 Years | +72.0% | -2.8% |
| 5 Years | +121.2% | -61.7% |
Today's Breadth: 141 advancing · 155 declining · 37 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 0.0x | 0.0x | 18.2x | -100% |
| P/B | 1.7x | 0.0x | 4.2x | -42% |
| P/S | 1.3x | 0.0x | 3.9x | — |
| P/FCF | 10.9x | 3.9x | 29.1x | — |
| EV/EBITDA | 12.0x | 6.8x | 19.1x | — |
| EV/EBIT | 15.0x | 9.5x | 24.5x | — |
Earnings Yield
5.0%
FCF Yield
-6.4%
Below Fair Value
44% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 65.3% | 61.6% | 39.2% | 82.0% |
| Operating Margin | 4.3% | — | -18.9% | 17.2% |
| Net Margin | 0.6% | -2.5% | -17.6% | 14.7% |
| FCF Margin | 6.2% | — | -12.8% | 19.0% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | -26.7% | — | -61.6% | 7.8% |
| ROA | -18.4% | — | -44.9% | 2.3% |
| ROIC | -19.3% | -33.2% | -57.2% | 8.6% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +8.7% | +5.4% | +7.1% |
| EPS | +33.3% | -3.0% | +4.1% |
| Free Cash Flow | +8.0% | -1.0% | +0.3% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.3x
Net Debt / EBITDA
0.3x
Interest Coverage
0.8x
Current Ratio
3.1x
Altman Z-Score
Safe (>3): 79 (30%)
Gray (1.8–3): 21 (8%)
Distress (<1.8): 162 (62%)
Piotroski F-Score
Strong (7–9): 32 (9%)
Moderate (4–6): 116 (34%)
Weak (0–3): 192 (56%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| LLY | 1 | $836.0B | 46.9x | 34.8x | 41.6% | 31.7% | +44.7% | 0.6% | -4.8% | 6/9 |
| BMYMP | 2 | $815.5B | — | — | 15.1% | 14.6% | -0.2% | — | -18.7% | 3/9 |
| JNJ | 3 | $578.3B | 18.7x | 12.9x | 28.3% | 28.5% | +6.0% | 2.5% | -1.6% | 5/9 |
| ABBV | 4 | $369.7B | 96.7x | 20.3x | 15.6% | 6.9% | +8.6% | 2.9% | -5.2% | 4/9 |
| AZNCF | 5 | $314.2B | — | — | 16.8% | 17.4% | +8.6% | — | -0.3% | 4/9 |
| NVS | 6 | $301.7B | 18.9x | 14.4x | 43.1% | — | — | 3.0% | +0.8% | 5/9 |
| MRK | 7 | $301.3B | 14.7x | 12.0x | 23.9% | 28.1% | +1.3% | 3.1% | -0.0% | 6/9 |
| ABT | 8 | $176.6B | 33.4x | 20.1x | 10.8% | 14.7% | +5.7% | 1.9% | +0.4% | 7/9 |
| AZN | 9 | $158.2B | — | — | 16.8% | 17.4% | +8.6% | — | -0.6% | 5/9 |
| PFE | 10 | $156.2B | 18.1x | 11.6x | 7.3% | 12.4% | -1.6% | 7.0% | +2.2% | 3/9 |
| NVO | 11 | $127.9B | 11.4x | 8.0x | 38.9% | 33.1% | +11.5% | 4.5% | +0.7% | 6/9 |
| BMY | 12 | $118.4B | 15.6x | 9.6x | 15.1% | 14.6% | -0.2% | 4.6% | +1.3% | 5/9 |
| GSK | 13 | $118.0B | — | — | 23.9% | 19.3% | +7.4% | — | -1.6% | 3/9 |
| GLAXF | 14 | $117.1B | — | — | 23.9% | 19.3% | +7.4% | — | 0.0% | 3/9 |
| VRTX | 15 | $113.6B | 30.2x | — | 29.1% | 32.9% | +8.9% | — | -3.3% | 5/9 |
| REGN | 16 | $81.1B | 18.9x | 19.1x | 13.1% | 31.4% | +1.0% | 0.4% | -1.8% | 6/9 |
| TAK | 17 | $56.2B | 68.3x | 7.2x | 2.5% | 2.4% | +9.2% | 4.1% | -0.3% | 4/9 |
| ZTS | 18 | $53.3B | 20.9x | 15.4x | 27.2% | 28.2% | +2.3% | 1.6% | +5.4% | 7/9 |
| ALNY | 19 | $44.8B | 171.9x | 93.4x | 113.8% | 8.4% | +65.2% | — | +1.0% | 3/9 |
| TEVA | 20 | $36.3B | 26.4x | 15.4x | 13.2% | 8.2% | +4.3% | — | -0.1% | 1/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Pharmaceutical Preparations | 328 | $5.5T | 99.1% | |
| Drug Manufacturers - Specialty & Generic | 3 | $46.9B | 0.9% | |
| Medicinal Chemicals & Botanical Products | 13 | $1.1B | 0.0% |
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
2%
Median Piotroski F
3/9
Profitable Years
1 of 10
Dividends & Shareholder Returns
Paying Dividends
9%
Median Div Yield
2.0%
Median Buyback Yield
0.0%
Shareholder Yield
0.0%
Payout Ratio
40.8%
Div Growth (3Y)
4.1%
Div Growth (5Y)
5.6%
Strengths & Weaknesses
Strengths
- +[Balance Sheet]Conservative balance sheets with a median Debt/Equity of 0.3x, providing financial flexibility for opportunistic investment.
- +[Profitability]High pricing power with a median gross margin of 65.3%, reflecting differentiated products or strong brand moats.
- +[Valuation]Attractive valuations: current median P/E of 0.0x is 100.0% below the 5-year average, presenting potential value opportunity.
Weaknesses
- −[Financial Health]61.8% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Leverage]Tight interest coverage at 0.8x, leaving limited cushion for debt servicing if earnings decline.
- −[Profitability]Below-average capital returns with a median ROIC of -19.3%, suggesting limited pricing power or capital-intensive operations.
- −[Profitability]Razor-thin net margins at a median of 0.6%, leaving little room for execution error or economic downturn.