Adjusted price targets of individual analysts
GG
Investing in demographic change: senior boom = portfolio boom?
Hello community,
Thank you once again for your positive response to my last article "Climate change - rising temperatures, rising portfolio".
Today I have a no less relevant topic for you: The megatrend of an ageing society.
Boring. Everyone knows it. Not interesting. Or is it?
There are trends that are omnipresent: AI, climate change, the war in Ukraine, etc.. The trend of an ageing society, on the other hand, is hardly ever heard in everyday life.
Why is that? I suspect that the story of an ageing society was already told many years ago. Every year, the population ages a little more. The frog is sitting in water that is slowly heating up. Only when it is too late does he realize how hot it is getting.
That's why it's interesting for me to look at potential profiteers right now. The hype train hasn't started yet - and perhaps it won't due to the linear development of age cohorts. But hardly any other trend is so certain and predictable - and yet still under the radar.
One request in advance: let's stay objective. Ageing is a sensitive topic that can be emotionally charged. However, in my view, moral or political discussions have no added value here as long as no investments can be derived from them. There are other platforms for that.
Background
For anyone who has not yet heard of demographic change: The baby boomer generation (born between 1946 and 1964) are also known as the "baby boomers". These generations can be found in both the USA and Europe. And this age cohort is gradually retiring. In addition, the proportion of young people in the population is decreasing, as birth rates are steadily declining after the baby boomers.
So there will be more "old people". Which companies could benefit from this development?
To keep things interesting for you, I will focus on less obvious players. Nursing homes, Big Pharma and the like, you probably already know that.
I'm interested in profiteers at second glance. Here we go.
1. tourism
An ageing society does not mean care, immobility and illness. Today's older people are much fitter than they were 20 years ago, for example. Tourism can be one of the beneficiaries here. Where do senior citizens hang out? Presumably on cruise ships 😉
Actually less interesting for me because it's "asset heavy". But cruise companies have been heavily penalized since Corona. They are also not interesting for the ESG community because they are dirty. So maybe interesting after all?
The big players $RCL (+1,29 %) Royal Caribbean Cruises, Norwegian Cruise Line and $CCL (+1,45 %) Carnival are probably familiar to most people. Caribbean is now also back above the pre-corona rates - in contrast to the other two. It is possible that they will follow suit.
If that's too hot for you, you could take a closer look at $MAR (+1,99 %) take a closer look at Marriott. This is the largest hotel chain in the world. It can be categorized in the premium segment - which is interesting, as senior citizens can look back on an entire working life. And if they invest their money wisely, they will certainly want to (and be able to) enjoy the last stage of their lives in comfort.
Due to Corona, a look at the development of the key figures is a little distorted. Nevertheless, profits grew by around 13% p.a. over 5 years, while sales growth is estimated at 7.2% p.a..
In addition, there is a dividend yield of just under 1%, although there is still room for improvement with a payout ratio of just under 25% of free cash flow.
In my view, the stock is currently running a little too hot. Definitely something for the watch list if tourism should collapse - that happens regularly.
2. leisure & consumption
Brunswick Corporation
I had never heard of this company before my research. The company is active in the (sports) boat sector and is regarded as a leading manufacturer in this field. They sell boat electronics and drives as well as "finished" boats, from inflatable boats to large yachts.
Sales growth over 5 years: 9.4 % p.a.
Profit growth over 5 years: approx. 14 % p.a.
Plus a dividend yield of currently 2%.
Despite a cyclical industry, profit stability is 0.84.
That is strong. In addition, the share is currently trading at the level of 2022.
The leisure boat market is generally resilient and is also forecast to grow by around 5% p.a. Exciting niche value in my view.
Churchill Downs Incorporated (horse racing tracks)
$CHDN (+0,8 %) Churchill Downs operates horse racing tracks, casinos and betting facilities. They host the famous Kentucky Derby at their racetrack. In itself fun for young and old, although the cliché probably focuses more on the older customer. An exciting candidate that can also remain interesting for young customers due to its segments.
The figures are a real treat:
Sales growth over 5 years: approx. 16 % p.a.
Profit growth over 5 years: approx. 22 % p.a.
Despite strong price growth, the share is fundamentally fairly valued according to my research and still offers some potential due to the growth prospects.
If I wasn't already heavily invested in gambling, this would be a hot candidate for me.
Animal welfare is of course a critical point here. But please remember: This is supposed to be about shares and investments, not about moral debates.
Acushnet Holdings Corp
If horse racing is too exciting for you, you can take a look at Acushnet Holdings Corp. $GOLF (+1,32 %) . As the ticker says, it's all about golf (products). The company sells everything related to the sport.
And they have an impressive 14/15 points in the Traderfox quality check.
If you ask around in golf, you know how expensive the equipment can be. And the sport can be played well into old age.
Unfortunately, the candidate wasn't included in the share finder, so I haven't included that many key figures for you here. If you are interested, you can research the company in more detail (and perhaps share your findings here?).
3. medical care
Having dealt with two positive areas, we will now turn to the other side of the coin of ageing: the increased need for medical care. There is, of course, a wide range of companies here. I have brought along two candidates that I have repeatedly come across in my research:
Resmed
$RMD (+2,52 %) Resmed's main business lies in the treatment of sleeping disorders and respiratory diseases. However, a second - currently small - segment is very exciting for the trend discussed here: software solutions, which include remote monitoring tools to make patient care more efficient. There are not only more old people - there are also fewer young people. There will certainly be resource bottlenecks (shortage of specialists) when it comes to covering the increasing need for treatment. Efficiency-enhancing options are important here.
Resmed's main business is developing magnificently. Another strong branch could be established with Software Solutions. A very exciting candidate for me.
The figures:
Sales growth over 5 years: 12.6 % p.a.
Profit growth over 5 years: 21 % p.a.
Was still very cheap six months ago. Will be on my watch list. I will get in if there is a setback.
Stryker
I have been looking for alternatives to $SYK (+0,63 %) Stryker for a long time, as Stryker is probably not one of the "second glance" profiteers. They are simply too well known for that. But there's no getting around the company. Even when I was specifically looking for specialists in hip and joint implants, no other company could come close to matching the quality of Stryker's figures. In the event of a setback, I would consider buying in. Or do you know of any alternatives?
4. nursing & patient care
Let's move on to the last category: care. Sooner or later, you will need care in old age. Care is not only provided on an inpatient basis, but also on an outpatient basis. You will no doubt have seen various small cars from outpatient care services in cities. There are no monopolistic structures here; there are many small providers on the market. So how can you benefit from care? I looked around for "shovel manufacturers":
Nexus AG
$NXU (+1,69 %) Nexus AG is a company for software systems for hospitals, care centers and medical practices. They optimize processes there and aim to improve patient care. In my view, this is more exciting than, for example, a player from its US counterpart ($MCK (-1,08 %) ), as Europe is more affected by demographic change than the USA. And Nexus AG has not yet performed as strongly as McKesson recently.
Estimated sales growth of just under 13% p.a., estimated earnings growth of 26% p.a.
For me, it is on the watch list alongside McKesson.
Cintas
The company $CTAS (+0,15 %) specializes in workwear and textiles. As boring as it sounds, the figures are impressive, as is the performance. Congratulations to all those who got in early.
In my view, the company is interesting because everyone involved needs (clean) workwear to create (care) value. And with blue-collar jobs like this, there is probably little risk that AI will make them obsolete in the next few years. After all, the company is not only active in the care textile industry.
However, despite its high quality, the company is far too expensive in my view. A P/E ratio of 44 with sales growth of <10% p.a. is high.
But: The company is also subject to a certain cyclicality. I will definitely put it on my watch list - I will get in if there is a significant setback.
That's it, my ride through the demographic stocks.
Now it's your turn:
If you don't have an opinion on this, I would be delighted to receive any feedback on my article:
I'm looking forward to your comments.
Your Money Man
Share analysis/share presentation ⬇️
Today we are talking about the company McKesson: $MCK (-1,08 %)
What is McKesson and what does it do?
McKesson is a large American healthcare company. They play an important role in the supply chain of drugs and medical products. McKesson offers services such as the distribution of medicines to pharmacies and hospitals. They also help healthcare facilities manage their inventory and optimize the supply chain. The company is committed to improving patient care and works closely with healthcare providers to develop innovative solutions. McKesson is also committed to sustainability and social responsibility to have a positive impact on the healthcare industry and the community.
Market Capitalization:
McKesson currently has a market capitalization of around 67.5 billion euros.
Strengths of the share:
Some strengths of McKesson:
- Broad network: McKesson has an extensive network of suppliers, pharmacies and healthcare facilities, which allows them to build an efficient supply chain.
- Experience and expertise: The company has many years of experience and extensive expertise in the healthcare industry, which helps them provide innovative solutions.
- Technological solutions: McKesson relies on advanced technologies to improve efficiency and accuracy in the supply chain and optimize patient care.
- Sustainability: The company is committed to sustainability and social responsibility by promoting environmentally friendly practices and working to have a positive impact on the community.
- Customer focus: McKesson places a high value on customer satisfaction and works closely with customers to understand their individual needs and provide customized solutions.
Share Weaknesses:
Here are some of McKesson's weaknesses:
- Complexity: Healthcare is a complex environment with many different players and regulations. McKesson must continually adapt and stay current to operate effectively.
- Competition: The healthcare industry is highly competitive and McKesson is in direct competition with other large companies. This can result in them losing market share or having to deal with lower margins.
- Dependence on suppliers: McKesson relies on a reliable supply chain to provide drugs and medical products. Problems with suppliers or bottlenecks can have a negative impact on its business activities.
- Regulatory challenges: The healthcare industry is subject to strict regulations and compliance requirements. McKesson must ensure that they meet all regulatory requirements, which can result in additional costs and challenges.
- Technological challenges: Although McKesson utilizes advanced technologies, technical issues or cybersecurity risks may impact their business.
A little more about the business model:
McKesson is a global leader in healthcare and has a diverse business model based on different pillars. One of its main areas is drug distribution. McKesson works with manufacturers to source drugs and then deliver them to pharmacies, hospitals and other healthcare facilities. They have an extensive network of distribution centers that ensure fast and efficient delivery.
Another important area for McKesson is the provision of information and technology solutions. They offer software solutions and IT systems that enable healthcare facilities to optimize their operations, manage patient data and improve the quality of care. These solutions include electronic health records, pharmacy management systems and more.
McKesson also offers consulting services to help healthcare facilities optimize their business processes and improve patient care. They work closely with their clients to develop customized solutions and help them achieve their goals.
Another important aspect of McKesson's business model is their involvement in healthcare management. They provide services to support health insurers and other payers to control healthcare costs and improve the quality of care. They also work with pharmaceutical companies to develop programs to promote drug safety and improve patient outcomes.
A little more about the industry:
The healthcare industry is an extremely important and diverse sector that deals with the provision of medical care and services. It encompasses various areas such as drug manufacturing, medical devices, hospitals, pharmacies, healthcare providers and much more. The industry faces many challenges, but also opportunities, especially in the area of technology and digital innovation. Companies like McKesson play a crucial role in improving patient care, controlling costs and developing new solutions to meet people's needs.
When and where was McKesson founded?
McKesson was founded in New York City in 1833 by John McKesson and Charles Olcott. It began as a small company that distributed medical products and pharmaceuticals. Over time, McKesson has evolved into a global company operating in the healthcare industry. It now offers a wide range of services, including the supply of pharmaceuticals, clinical care support and the development of healthcare technology solutions.
McKesson's goal:
McKesson aims to improve patient care by providing innovative solutions and services. The company strives to improve the quality of healthcare, control costs and increase efficiency in the healthcare system. McKesson is committed to ensuring that patients have easier access to medicines and medical products and that healthcare providers can work more effectively. The company also pursues sustainable and ethical business practices to have a positive impact on society and the environment. McKesson is committed to helping people around the world get better healthcare solutions and live healthier lives.
Your opinion:
Now I would like to hear your opinion on this stock in the comments.
I personally find the company very interesting and will continue to monitor it. It was an unknown company to me until recently, but that's exactly why I wanted to introduce the share to you.
What do you think of McKesson and were you already familiar with this company?
Do you perhaps already have the share in your portfolio?
Please let me know in the comments.
Of course, this is not investment advice but just my own opinion that I would like to share with you.
Stock analysis/Share presentation ⬇️
Today we are talking about the company McKesson: $MCK (-1,08 %)
What is and does McKesson anyway: 🤔
McKesson is a company that specializes in providing healthcare solutions and services. The company offers a wide range of products and services, including pharmaceuticals, medical devices, clinical services, and IT solutions for the healthcare industry. McKesson works closely with healthcare providers, manufacturers and other partners to develop innovative solutions that improve the quality of patient care while reducing costs.
How many employees does the company have: 🙋🏽♂️🙋🏻♀️
Currently, McKesson has a total of more than 48,000 employees.
P/E RATIO:
Medpace has a current P/E ratio of just under 16.5, which is not high in my opinion.
Market capitalization: 🏦
Currently, McKesson has a market capitalization of around 52 billion euros.
Dividend yield: 💰
The company pays its shareholders a nice dividend of currently over 0.5%. This payout is made on a quarterly basis. McKesson shareholders receive their dividends in January, April, July and October.
Strengths of the share: 📈
Some of McKesson's strengths include:
Weaknesses of the share: 📉
Some of McKesson's potential weaknesses include:
Industry of McKesson:
McKesson is active in medical and pharmaceutical wholesale. The demand for medical services and therefore products is not cyclical and shows a growth trend especially in chronic diseases and diseases of aging. This is due to the changing demographics of society, which, while a testament to rising living standards and overall progress, is also experiencing tremendous pressures from the increased need for healthcare. As a result, McKesson is ideally positioned and has already proven its value as the market leader in the USA.
A little more about the business model: ⬇️
McKesson connects drug and medical device manufacturers with patients and physicians.
Therefore, the company can be categorized into divisions:
1. Pharmacy Services & Solutions:
This division encompasses all of the company's activities in the distribution of medications. Across America, the company has 29 distribution centers, which are delivered from there to pharmacies, hospitals and clinics. In the healthcare industry, fast action is usually required. With its complex supply network, the company can deliver the right medicines to appropriate facilities in the shortest possible time.
The portfolio includes branded products, but also generic medications with lower prices.
McKesson negotiates prices with manufacturers on behalf of its customers, ensures optimally stocked inventories and solid warehouse logistics, handles the invoicing of deliveries and carries out quality checks.
In addition to direct cooperation, the company is also active in the consulting business and advises customers through its subcontractor McKesson RxO.
2. medical-surgical:
In addition to the drugs themselves, treatment usually requires medical equipment and general consumables, such as bandages. For any type of treatment, McKesson is adapted and can accommodate a wide variety of customers. This means that equipment for surgery, laboratory equipment, as well as products for longer-term follow-up treatment by doctors' offices are available. 95% of customers receive their orders the very next day, which also speaks for the Group's efficient logistics network.
3. specialty Practice Solutions:
Some treatments require highly specialized approaches. The Group therefore offers specific treatment solutions for patients in oncology, rheumatology, gastroenterology, neurology and ophthalmology. These typically involve the precise planning and coordination of treatments with the individual needs of patients and other services, relieving treating physicians of time-consuming research and enabling more patients to be treated.
4th Pharmacy Systems:
Pharmacies are small logistics centers that store hundreds of different products, whose dispensing must be strictly monitored and not allow for mix-ups or errors. Therefore, McKesson develops IT solutions for companies to record inventory more efficiently. The systems can be customized for each individual pharmacy, and customers can choose from a range of features those they actually need. This is also crucial, as the software can be used both when starting a new business and for optimization in already established operations.
5. Prescription Automation:
Once a doctor identifies a disease or condition, he or she usually prescribes medication for it. This is a complex process, as the choice of active ingredients and manufacturers is usually very large and requires extensive knowledge. In addition, dosages must be adjusted for age, health status and often gender.
McKesson assists in prescribing medications with software developed in-house. This also enables improved cost optimization and compliance with constantly changing government regulations and rules.
These services are also widely offered internationally, particularly in Canada, England and Australia.
Sales are therefore divided into four categories:
1. distribution of pharmaceutical products: 80.4 % of sales
2. distribution of medical and surgical equipment: 4.4 % of sales
3. software and IT solutions: 1.5 % of sales
4. international activities: 13.8 % of sales
What is McKesson's target: 🏁
McKesson is a healthcare company with a mission to improve healthcare and optimize patient outcomes. The company offers a wide range of products and services designed to help improve the efficiency and quality of healthcare. In doing so, McKesson relies on innovative technologies and solutions to transform healthcare and improve the patient experience.
Your opinion 🧐🤔
Now I'd love to hear your thoughts on this stock in the comments.
What do you think of McKesson and did you already know this company?
Do you have this stock in your portfolio?
This is of course no investment advice and only my own opinion. ✌🏽
𝗠𝗮𝗿𝗸𝗲𝘁 𝗡𝗲𝘄𝘀 🗞️
𝗚𝗲𝘁𝗾𝘂𝗶𝗻 𝟮.𝟬 𝗶𝘀 𝗼𝘂𝘁 / 𝗗𝗮𝘅 𝗶𝗺 𝗢𝗺𝗶𝗸𝗿𝗼𝗻-𝗦𝗼𝗴 / 𝗕𝗶𝗼𝗡𝗧𝗲𝗰𝗵 𝗹𝗶𝗲𝗳𝗲𝗿𝘁
𝗘𝘅-𝗗𝗮𝘁𝗲𝘀 📅
As of today, among others, The Coca-Cola Company ($KO (-1,76 %)), Ball Corporation ($BLL (+0,48 %)), eBay ($EBAY (-0,53 %)), Lockheed Martin ($LMT (-0,72 %)), Manulife Financial ($MFC (+1,85 %)), McDonald's ($MCD (+0,17 %)), McKesson ($MCK (-1,08 %)), Old Dominion Freight Line ($ODFL (+3,53 %)), Realty Income Corporation ($O (-2,72 %)), Schlumberger ($SLB (+2,41 %)) and Stanley Black & Decker ($SWK (+2,61 %)) traded ex-dividend.
𝗤𝘂𝗮𝗿𝘁𝗮𝗹𝘀𝘇𝗮𝗵𝗹𝗲𝗻 📈
Today, among others, Scotiabank ($BNS (+0,85 %)), Globalfoundries ($GFS (+4,28 %)), Salesforce.com ($CRM (+5,04 %)) and Zscaler ($ZS (+2,26 %)) presented their figures.
𝗠𝗮𝗿𝗸𝗲𝘁𝘀 🏛️
Dax ($GDAXI) - The Dax is again in the wake of Omikron and the 15,000 mark is in sight. There is no recovery in sight for the German stock market as the Omikron mutation continues to unsettle investors. Asian markets had already reacted to the warning from Moderna ($MRNA (-3,36 %)) chief, Stephane Bancel, and drove the stock markets into the red. According to Bancel, current vaccines are less effective against the new COVID-19 mutation.
BioNTech ($BNTX (-3,32 %)) - Mainz-based vaccine manufacturer BioNTech is bringing forward a shipment of 2.9 million vaccine doses to Germany in response to strong demand for vaccines. This means that a total of 5.8 million vaccine doses will be delivered to the federal government. With this delivery, BioNTech is responding to the skyrocketing demand for booster vaccines. In Germany, more than 20 million booster vaccinations are targeted by the end of the year. The share price of the pharmaceutical company rose in the meantime to 323.95 euros.
𝗚𝗲𝘁𝗾𝘂𝗶𝗻 𝟮.𝟬 🚀
Today at 1pm, our new version of the getquin 2.0 app was released.
Due to a completely new native programming, the app now runs faster and smoother. This leads to a lightning fast and error free usage. Also, the long-awaited darkmode is now available, making it much more pleasant to use at night.
Take off your sunglasses and dive into the wonderful world of getquin 2.0.
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