The healthcare sector is a big and essential part of the economy - there are 547 companies listed on the US capital markets and they have a total market capitalization of $42.5 trillion. The average sector yield amounts to 3.50% and the average P/E ratio is 22.33.
One of the industries with the highest dividend yield is the major drug manufacturing industry, which constitutes 35 stocks - of which 10 pay dividends. I screened all of these dividend payers by the cheapest stocks, measured by a low P/E ratio of less than 15. These are the detailed results:
1. AstraZeneca Group plc (AZN) has a market capitalization of $59.00 billion. The company generates revenue of $33,591.00 million and has a net income of $10,016.00 million. The company's EBITDA amounts to $14,792.00 million. The EBITDA margin is 44.04% (operating margin 38.09% and net profit margin 29.82%).
The total debt represents 17.66% of the company's assets and the total debt in relation to the equity amounts to 40.13%. Last fiscal year, a return on equity of 42.98% was realized. Twelve trailing months earnings per share reached a value of $6.24. Last fiscal year, the company paid $2.80 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 7.56, Price/Sales 1.77 and Price/Book ratio 2.62. Dividend Yield: 6.05%. The beta ratio is 0.65.
2. GlaxoSmithKline (GSK) has a market capitalization of $113.49 billion. The company generates revenue of $42,545.55 million and has a net income of $8,478.97 million. The company's EBITDA amounts to $14,304.58 million. The EBITDA margin is 33.62% (operating margin 28.50% and net profit margin 19.93%).
The total debt represents 36.27% of the company's assets and the total debt in relation to the equity amounts to 185.52%. Last fiscal year, a return on equity of 62.19% was realized. Twelve trailing months earnings per share reached a value of $3.25. Last fiscal year, the company paid $2.17 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 14.24, Price/Sales 2.73 and Price/Book ratio 9.35. Dividend Yield: 4.94%. The beta ratio is 0.63.
3. Eli Lilly and Company (LLY) has a market capitalization of $50.90 billion. The company generates revenue of $24,286.50 million and has a net income of $4,347.70 million. The company's EBITDA amounts to $6,657.00 million. The EBITDA margin is 27.41% (operating margin 22.03% and net profit margin 17.90%).
The total debt represents 20.76% of the company's assets and the total debt in relation to the equity amounts to 51.60%. Last fiscal year, a return on equity of 33.49% was realized. Twelve trailing months earnings per share reached a value of $3.61. Last fiscal year, the company paid $1.96 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 12.15, Price/Sales 2.10 and Price/Book ratio 3.75. Dividend Yield: 4.47%. The beta ratio is 0.67.
4. Sanofi (SNY) has a market capitalization of $106.94 billion. The company generates revenue of $42,855.05 million and has a net income of $5,945.77 million. The company's EBITDA amounts to $12,508.86 million. The EBITDA margin is 29.19% (operating margin 16.18% and net profit margin 13.87%).
The total debt represents 15.41% of the company's assets and the total debt in relation to the equity amounts to 27.46%. Last fiscal year, a return on equity of 10.42% was realized. Twelve trailing months earnings per share reached a value of $2.99. Last fiscal year, the company paid $1.62 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 13.54, Price/Sales 2.53 and Price/Book ratio 1.56. Dividend Yield: 4.18%. The beta ratio is 0.91.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
