BlackRock Health Sciences Trust Fundamental Analysis (NYSE: BME)
BlackRock Health Sciences Trust Fundamental Analysis (NYSE: BME)
BlackRock Health Sciences Trust (NYSE: BME) shows moderate financial fundamentals with a PE ratio of 7.71, profit margin of 2.88%, and ROE of 14.30%. The company generates $0.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BME's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBME demonstrates superior asset utilization.
Valuation Score
ExcellentBME trades at attractive valuation levels.
Growth Score
ModerateBME shows steady but slowing expansion.
Financial Health Score
ModerateBME shows balanced financial health with some risks.
Profitability Score
WeakBME struggles to sustain strong margins.
Key Financial Metrics
Is BME Expensive or Cheap?
P/E Ratio
BME trades at 7.71 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BME's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values BlackRock Health Sciences Trust at 1.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.26 times EBITDA. This is generally considered low.
How Well Does BME Make Money?
Net Profit Margin
For every $100 in sales, BlackRock Health Sciences Trust keeps $2.88 as profit after all expenses.
Operating Margin
Core operations generate 3.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.30 in profit for every $100 of shareholder equity.
ROA
BlackRock Health Sciences Trust generates $13.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BlackRock Health Sciences Trust generates strong operating cash flow of $24.86M, reflecting robust business health.
Free Cash Flow
BlackRock Health Sciences Trust generates strong free cash flow of $24.86M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.92 in free cash annually.
FCF Yield
BME converts 4.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
22.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How BME Stacks Against Its Sector Peers
| Metric | BME Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.71 | 21.07 | Better (Cheaper) |
| ROE | 14.30% | 647.00% | Weak |
| Net Margin | 288.16% | -1594.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 912.43 | Weak Liquidity |
| ROA | 13.50% | -579.00% (disorted) | Strong |
BME outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BlackRock Health Sciences Trust's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical