𝐓𝐡𝐞 𝐬𝐭𝐚𝐭𝐢𝐬𝐭𝐢𝐜𝐬 𝐰𝐚𝐬 𝐦𝐚𝐝𝐞 𝐛𝐲 𝐭𝐡𝐞 𝐔𝐧𝐢𝐭𝐞𝐝 𝐍𝐚𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐈 𝐰𝐚𝐧𝐭𝐞𝐝 𝐭𝐨 𝐬𝐡𝐚𝐫𝐞 𝐢𝐭 𝐰𝐢𝐭𝐡 𝐲𝐨𝐮. 𝐓𝐡𝐞 𝐚𝐯𝐞𝐫𝐚𝐠𝐞 𝐠𝐥𝐨𝐛𝐚𝐥 𝐚𝐠𝐞 𝐢𝐬 𝐧𝐨𝐰 𝟑𝟏, 𝐮𝐩 𝟕 𝐲𝐞𝐚𝐫𝐬 𝐬𝐢𝐧𝐜𝐞 𝟏𝟗𝟓𝟎. 𝐎𝐧𝐞 𝐭𝐡𝐢𝐫𝐝 𝐨𝐟 𝐩𝐞𝐨𝐩𝐥𝐞 𝐚𝐫𝐞 𝐲𝐨𝐮𝐧𝐠𝐞𝐫 𝐭𝐡𝐚𝐧 𝟐𝟎 𝐲𝐞𝐚𝐫𝐬 𝐨𝐥𝐝. 𝟔𝟎𝟎 𝐭𝐡𝐨𝐮𝐬𝐚𝐧𝐝 𝐩𝐞𝐨𝐩𝐥𝐞 𝐚𝐥𝐫𝐞𝐚𝐝𝐲 𝐨𝐯𝐞𝐫 𝟏𝟎𝟎 𝐲𝐞𝐚𝐫𝐬 𝐨𝐥𝐝!
With all the new challenges that an aging society brings, we naturally come to the opportunities: The healthcare sector has been a megatrend of stable growth for the past 30 years, based on consistently increasing demand. Against the backdrop of the pandemic, healthcare issues are continually in the headlines at the moment, but even after the pandemic, ever-improving healthcare will remain a long-term megatrend and become increasingly weighty. Not least because a middle class is emerging in emerging and frontier markets - and with it a need for better healthcare. In the mature economies, in turn, the population is getting older. Because a large proportion of healthcare spending occurs after the age of 60, aging not only necessitates more healthcare, but also requires new solutions and innovations. Japan, for example, is increasingly developing robots that can be used in the care of the elderly.
𝐓𝐡𝐞𝐫𝐞𝐟𝐨𝐫𝐞 𝐧𝐨𝐰 𝐭𝐨 𝐭𝐡𝐞 𝐧𝐞𝐰𝐜𝐨𝐦𝐞𝐫 𝐢𝐧 𝐭𝐡𝐞 𝐩𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨: $ROG.ZU (Roche Holding Ltd)
We have used the price weakness last week for an entry. F. Hoffmann-La Roche AG, headquartered in Basel, is the world's largest pharmaceutical company by sales, with the equivalent of about $65 billion. Roche also manufactures reagents and equipment for medical testing. Currently, Roche conducts research particularly in the areas of oncology, virology, neurology and transplantation medicine and employs over 100,000 people worldwide.
Overall, sales in the first half of the year climbed by five percent to 30.7 billion CHF, an increase of eight percent at constant exchange rates. The company thus performed better than analysts had expected. However, Roche was unable to score points on the stock market, with its shares losing a good two percent.
Net income, however, fell by three percent to 8.2 billion CHF due to the strong CHF; adjusted for currency effects, it rose by two percent. Roche reaffirmed its full-year targets and continues to expect sales to grow at constant exchange rates in the low to mid single-digit percentage range. Earnings per share adjusted for special items are expected to grow at about the same rate. In the first half of the year, it rose by six percent to 10.56 CHF at constant exchange rates.
𝐁𝐞𝐥𝐨𝐰 𝐅𝐚𝐢𝐫 𝐕𝐚𝐥𝐮𝐞: With CHF347.3 Roche is trading substanially below my estimate fair value (>50%). According to the so-called Snowflake Score (0-6) it looks equally good:
𝐅𝐮𝐭𝐮𝐫𝐞 𝐆𝐫𝐨𝐰𝐭𝐡: 𝟐
𝐏𝐚𝐬𝐭 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞: 𝟓
𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐇𝐞𝐚𝐥𝐭𝐡: 𝟔
Have a good start of the week!