StockStory Cites Debt, Margins and Growth at Three Healthcare Firms

StockStory identified BioMarin Pharmaceutical, STERIS and Agilent as healthcare companies that may face trouble. It cited concerns about debt, margins, growth and returns on capital, despite the healthcare industry’s 46.9% gain over six months.

For BioMarin, the publisher said adjusted operating margin fell 5.5 percentage points over two years, while net debt stood at six times EBITDA. It also pointed to below-average returns on capital.

StockStory said STERIS’s annual revenue growth was 7.4% over two years, below its standards for healthcare companies. Its adjusted operating margin was unchanged over five years, and its return on invested capital was 5.7%.

For Agilent, the publisher cited annual revenue growth of 3.7% over five years and said recent organic sales performance may require strategic changes or acquisitions to speed growth. It also said the company’s returns on capital were shrinking.