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Interested in adding some growth to your portfolio? We ran a screen with this idea in mind.

We began by screening the healthcare sector for stocks with high growth projections, with 5-year projected EPS growth rates above 15%.

Then to analyze these companies' profitability, we ran DuPont analysis on the names. DuPont analyzes profitability by breaking up return on equity (net income/equity) into three components:

ROE

= (Net Profit/Equity)

= (Net profit/Sales)*(Sales/Assets)*(Assets/Equity)

= (Net Profit margin)*(Asset turnover)*(Leverage ratio)

Because increases in net margin and asset turnover are considered good things, DuPont focuses on companies with these positive characteristics: Increasing ROE along with,

•Decreasing leverage, (i.e. decreasing Asset/Equity ratio)

•Improving asset use efficiency (i.e. increasing Sales/Assets ratio) and improving net profit margin (i.e. increasing Net Income/Sales ratio)

Those companies that pass DuPont are seeing positive trends in the sources of their increasing profitability, which adds further weight to the idea that these names are profitable.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall.

Do you think these companies will meet their high growth expectations? Use this list as a starting point for your own analysis.

List sorted by 5-year projected EPS growth rate.

1. Questcor Pharmaceuticals, Inc. (QCOR): Provides prescription drugs for central nervous system and inflammatory disorders. Market cap at $2.75B, most recent closing price at $43.37. 5-year projected EPS growth at 38.75%. MRQ net profit margin at 40.16% vs. 30.46% y/y. MRQ sales/assets at 0.317 vs. 0.228 y/y. MRQ assets/equity at 1.293 vs. 1.314 y/y.

2. Cyberonics Inc. (CYBX): Engages in the design, development, manufacture, sale, and marketing of implantable medical devices that provide vagus nerve stimulation therapy for the treatment of refractory epilepsy and treatment-resistant depression. Market cap at $1.14B, most recent closing price at $41.84. 5-year projected EPS growth at 26.25%. MRQ net profit margin at 17.42% vs. 15.27% y/y. MRQ sales/assets at 0.276 vs. 0.227 y/y. MRQ assets/equity at 1.142 vs. 1.197 y/y.

3. MEDTOX Scientific Inc. (MTOX): Provides forensic and clinical laboratory services, and offers diagnostic devices. Market cap at $239.5M, most recent closing price at $26.72. 5-year projected EPS growth at 20.00%. MRQ net profit margin at 5.25% vs. 3.11% y/y. MRQ sales/assets at 0.362 vs. 0.332 y/y. MRQ assets/equity at 1.334 vs. 1.411 y/y.

4. Synergetics USA, Inc. (SURG): Engages in the design, manufacture, and marketing of microsurgical instruments and consumables primarily for ophthalmology and neurosurgery markets in the United States and internationally. Market cap at $108.02M, most recent closing price at $4.26. 5-year projected EPS growth at 20.00%. MRQ net profit margin at 12.4% vs. 9.94% y/y. MRQ sales/assets at 0.196 vs. 0.176 y/y. MRQ assets/equity at 1.438 vs. 1.615 y/y.

5. PAREXEL International Corporation (PRXL): Provides clinical research, medical communications, and consulting services, as well as advanced technology products and services to the pharmaceutical, biotechnology, and medical device industries worldwide. Market cap at $1.61B, most recent closing price at $26.72. 5-year projected EPS growth at 15.93%. MRQ net profit margin at 5.55% vs. 4.46% y/y. MRQ sales/assets at 0.277 vs. 0.244 y/y. MRQ assets/equity at 2.501 vs. 2.584 y/y.

6. WellCare Health Plans, Inc. (WCG): Provides managed care services for government-sponsored healthcare programs in the United States. Market cap at $2.35B, most recent closing price at $56.68. 5-year projected EPS growth at 15.93%. MRQ net profit margin at 2.86% vs. 1.45% y/y. MRQ sales/assets at 0.666 vs. 0.656 y/y. MRQ assets/equity at 2.276 vs. 2.623 y/y.

7. Universal Health Services Inc. (UHS): Operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. Market cap at $3.78B, most recent closing price at $39.18. 5-year projected EPS growth at 15.84%. MRQ net profit margin at 7.05% vs. 6.5% y/y. MRQ sales/assets at 0.235 vs. 0.231 y/y. MRQ assets/equity at 3.207 vs. 3.635 y/y.

8. Thoratec Corp. (THOR): Develops, manufactures, and markets proprietary medical devices used for circulatory support. Market cap at $1.86B, most recent closing price at $31.92. 5-year projected EPS growth at 15.19%. MRQ net profit margin at 20.11% vs. 16.54% y/y. MRQ sales/assets at 0.177 vs. 0.124 y/y. MRQ assets/equity at 1.16 vs. 1.351 y/y.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 8 High-Growth Healthcare Stocks With Strong Sources Of Profitability