Morningstar Magazine - August/September 2017 - 69

Sector Snapshot: Pharmaceuticals
The data on this page represents pharmaceutical companies covered by Morningstar analysts.

Industry Structure
Moat Breakdown*

Key Stats
Pharmaceuticals %

S&P 500 %

Industry Map

Aggregates

Pharmaceuticals

S&P 500
31878.0020

Wide Moat

41.4

23.6

Number of Companies

29

Narrow Moat

17.2

42.0

Total Market Cap $mil

2,168,115

22,868,917

No Moat

41.4

20.6

Total Fair Value $mil

2,256,562

22,522,734

Market
Cap

505

25840.0015
19802.0010
13764.0005

Large

7726.0000

31878.0020
25840.0015
19802.0010

Total Revenue $mil
Stock Type Breakdown

Pharmaceuticals %

2,947,848

10,987,896
13764.0005

Medium

7726.0000

6479.8004

S&P 500 %

5234.6003
3989.4002

High Yield

0.0

2.4

Valuation

Distressed

0.0

5.5

Price/Fair Value

Hard Asset

0.0

0.0

P/E

Cyclical

0.0

42.2

Price/Book

3.43

3.33

10.3

17.4

Price/Sales

3.87

2.55

Classic Growth

6.9

9.9

Price/CF

16.13

13.95

Aggressive Growth

6.9

6.1

Dividend Yield %

2.62

1.96

Pharmaceuticals

S&P 500

ROE %

11.07

14.40

ROA %

4.55

5.12

Slow Growth

Speculative Growth
Not Classified
*Based on Morningstar analyst coverage.

3.4

1.2

72.4

0.0

Pharmaceuticals

S&P 500

2744.2001
1499.0000
1498.0

Small

1282.6

0.96
636.4

Profitability & Financial Health

29.20

1067.2
851.8

421.0

1.02
22.42

Net Margin %

10.60

10.08

Debt/Capital %

36.87

43.08

Undervalued

Overvalued

0
0.5
Price/Fair Value

1

2

1.5

Pharmaceutical firms are plotted based on their
market cap and price/fair value ratio. Companies
with a price/fair value ratio of less than 1 are
undervalued. Companies with a ratio of more than
1 are overvalued. Numbered plots show companies
listed in the table below.

0.0

0.5

1.0

2.0

1.5

Pharmaceuticals
Name/Ticker
1 Johnson & Johnson JNJ

Market
Cap ($mil)

Revenue
TTM ($mil)

Price/
Sales

Economic
Moat

Morningstar Uncertainty
Rating
Rating

358,010.42

72,174.00

5.09

Wide

QQ

Low

ProfitGrowth ability
Grade Grade

Financial Price/
Health
Fair Dividend
Grade
Value Yield %

C

C

X

C

C

C

V

C

C

C

C

V

C

2 Roche ADR RHHBY

219,462.16

50,576.00

4.13

Wide

QQQQQ Low

3 Pfizer PFE

201,832.50

52,598.00

3.91

Wide

QQQQ

Low

4 Novartis ADR NVS

198,808.78

49,411.00

4.05

Wide

QQQ

Low

5 Merck MRK

175,789.02

39,929.00

4.46

Wide

QQQ

Low

6 Sanofi ADR SNY

124,263.43

34,708.00

3.13

Wide

QQQQ

Medium

7 AbbVie ABBV

115,259.36

26,218.00

4.50

Narrow

QQQ

Medium

C

Z

0.0

0.0

0.5

0.5

1.23

2.44

0.77

3.22

21.84

0.91

3.67

28.23

0.96

3.25

31.38

0.99

2.91

40.82

Z

0.89

3.43

24.70

Z

0.99

3.34

18.78

.
1.0

Z
Z

1.0

Price/
Earnings

Z

1.5

1.5

2.0

2.0

22.23

107,115.51

48,159.00

1.99

Narrow

QQQ

Medium

C
0.5

C

X

1.5

0.94

2.30

20.16

9 GlaxoSmithKline ADR GSK

104,335.00

29,044.00

2.80

Wide

QQQQ

Medium

V

Z

Z

0.87

4.66

48.60

10 Bristol-Myers Squibb BMY

92,701.14

19,965.00

4.68

Wide

QQQQ

Medium

C

X

X

0.88

2.74

19.35

8 Bayer ADR BAYRY

0.0

1.0

2.0

11 Eli Lilly LLY

91,250.25

21,585.30

4.04

Wide

QQQ

Medium

C

V

X

0.93

2.49

39.76

12 AstraZeneca ADR AZN

85,072.61

22,292.00

3.87

Wide

QQQ

Medium

C

C

X

1.06

4.13

25.54

13 Allergan AGN

81,944.84

14,744.20

6.10

Wide

QQQQ

Medium

C

X

X

0.81

0.57

-

14 Takeda Pharmaceutical 4502:JP

39,219.11

1,732,051.00

2.59

None

QQ

Medium

C

C

X

1.14

3.17

39.03

15 Teva Pharmaceutical ADR TEVA

34,054.45

22,723.00

1.44

None

QQQQ

High

C

V

.

0.74

4.08 1,661.00

Data as of 06/30/2017.

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