ESRX
Express Scripts Holding Company
Healthcare
03/22/2013
Presented
| Date | 03/19/2013 |
| Price | $59.19 |
| Market Cap | $48.40B |
| Ent Value | $61.58B |
| P/E Ratio | 31.12x |
| Book Value | $27.62 |
| Div Yield | N/A |
| Shares O/S | 818.50M |
| Ave Daily Vol | 5,970,000 |
| Short Int | 1.15% |
Current
| Price | $92.33 |
| Market Cap | $52.06B |
| Express Scripts Holding Company operates as a pharmacy benefit management (PBM) company in the United States and Canada. The company operates through two segments, PBM and Other Business Operations. The companys PBM segments services include clinical solutions to enhance health outcomes, such as adherence, case coordination, and personalized medicine; specialized pharmacy care; home delivery pharmacy; specialty pharmacy, including the distribution of fertility pharmaceuticals that require special handling or packaging; and retail network pharmacy administration. It also provides benefit design consultation; drug utilization review; drug formulary management; an array of Medicare, Medicaid, and health insurance marketplace; administration of a group purchasing organization; and consumer health and drug information services. In addition, the company distributes specialty pharmaceuticals and medical supplies to providers, clinics, and hospitals; and offers consulting services for pharmaceutical manufacturers to collect scientific evidence to guide the use of medicines, as well as case management approach to manage care by integrating pre-certification, case management, and discharge planning services for patients. It serves managed care organizations, health insurers, third-party administrators, employers, union-sponsored benefit plans, workers compensation plans, government health programs, office-based oncologists, renal dialysis clinics, ambulatory surgery centers, primary care physicians, retina specialists, and others. The company was formerly known as Aristotle Holding, Inc. and changed its name to Express Scripts Holding Company in April 2012. Express Scripts Holding Company was founded in 1986 and is headquartered in St. Louis, Missouri. |
Highlights
ESRX’s management team caused a lot of concern among investors on its November 6, 2012 earnings call when they warned on 2013 earnings due to macro issues. The result was an abrupt decline of over $12 in just two trading days, and the presenter believes there is still an overhang on the stock due to the CEO’s comments. However, he is bullish on the outlook for ESRX and sees a lot of value in its shares. He outlined the thesis and relatively clear path to $5.40 in earnings for the company in 2014 as follows:
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