(BME) BlackRock Health Sciences - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NYSE (USA) | Market Cap: 499m USD | Total Return: 21.5% in 12m
Avg Turnover: 2.29M
Qual. Beats: 0
Rev. Trend: 0.2%
Warnings
No concerns identified
Tailwinds
No distinct edge detected
BlackRock Health Sciences Trust (BME) is a closed-ended equity mutual fund managed by BlackRock Advisors, LLC. The fund focuses on the U.S. healthcare sector, targeting companies engaged in pharmaceuticals, biotechnology, medical equipment, and healthcare services. Its investment strategy combines long equity positions with an option-writing component designed to generate income and manage volatility.
The trust utilizes the Russell 3000 Healthcare Index as its primary performance benchmark. Unlike open-ended mutual funds, closed-ended funds like BME issue a fixed number of shares that trade on an exchange, often resulting in the share price trading at a premium or discount to the underlying Net Asset Value (NAV).
Investors should examine the historical yield and premium-to-NAV trends on ValueRay to better understand the funds valuation. Domestic healthcare spending currently accounts for approximately 17% of U.S. GDP, providing a broad universe of large-cap and mid-cap equities for the funds portfolio construction.
- Covered call strategy yields decline during periods of low volatility
- Pharmaceutical and biotech sector performance drives underlying net asset value
- Rising interest rates pressure valuations of growth-oriented healthcare holdings
- Distribution stability depends on realized gains and option premium income
| Net Income: 100.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -0.27 > 1.0 |
| NWC/Revenue: 8.48% < 20% (prev -14.32%; Δ 22.80% < -1%) |
| CFO/TA -0.02 > 3% & CFO -10.1m > Net Income 100.4m |
| Net Debt (-4.02m) to EBITDA (105.0m): -0.04 < 3 |
| Current Ratio: error (cannot be calculated; needs correct Total Current Assets and Liabilities) |
| Outstanding Shares: last quarter (12.9m) vs 12m ago -7.31% < -2% |
| Gross Margin: 80.99% > 18% (prev 0.77%; Δ 8.02k% > 0.5%) |
| Asset Turnover: 10.55% > 50% (prev 6.22%; Δ 4.33% > 0%) |
| Interest Coverage Ratio: 4.94k > 6 (EBITDA TTM 105.0m / Interest Expense TTM 21.2k) |
| A: 0.01 (Total Current Assets 5.34m - Total Current Liabilities 0.0) / Total Assets 570.1m |
| B: 0.37 (Retained Earnings 210.7m / Total Assets 570.1m) |
| C: 0.18 (EBIT TTM 105.0m / Avg Total Assets 597.7m) |
| D: 424.9 (Book Value of Equity 779.0m / Total Liabilities 1.83m) |
| Altman-Z'' = 448.6 = AAA |
As of May 24, 2026, the stock is trading at USD 39.61 with a total of 62,919 shares traded.
Over the past week, the price has changed by +2.43%,
over one month by +0.67%,
over three months by -4.27% and
over the past year by +21.53%.
BlackRock Health Sciences has no consensus analysts rating.
P/S = 64.5391
P/B = 0.8862
Revenue TTM = 63.0m USD
EBIT TTM = 105.0m USD
EBITDA TTM = 105.0m USD
Long Term Debt = unknown (none)
Short Term Debt = 1.41m USD (from shortTermDebt, two quarters ago)
Debt = 894k USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -4.02m USD (calculated: Debt 894k - CCE 4.92m)
Enterprise Value = 495.2m USD (499.3m + Debt 894k - CCE 4.92m)
Interest Coverage Ratio = 4.94k (Ebit TTM 105.0m / Interest Expense TTM 21.2k)
EV/FCF = 25.90x (Enterprise Value 495.2m / FCF TTM 19.1m)
FCF Yield = 3.86% (FCF TTM 19.1m / Enterprise Value 495.2m)
FCF Margin = 30.33% (FCF TTM 19.1m / Revenue TTM 63.0m)
Net Margin = 159.3% (Net Income TTM 100.4m / Revenue TTM 63.0m)
Gross Margin = 80.99% ((Revenue TTM 63.0m - Cost of Revenue TTM 12.0m) / Revenue TTM)
Gross Margin QoQ = 87.41% (prev 30.20%)
Tobins Q-Ratio = 0.87 (Enterprise Value 495.2m / Total Assets 570.1m)
Interest Expense / Debt = 2.37% (Interest Expense 21.2k / Debt 894k)
Taxrate = 21.0% (US default 21%)
NOPAT = 83.0m (EBIT 105.0m * (1 - 21.00%))
Current Ratio = unknown (Total Current Assets 5.34m / Total Current Liabilities 0.0)
Debt / Equity = 0.00 (Debt 894k / totalStockholderEquity, last quarter 568.3m)
Debt / EBITDA = -0.04 (Net Debt -4.02m / EBITDA 105.0m)
Debt / FCF = -0.21 (Net Debt -4.02m / FCF TTM 19.1m)
Total Stockholder Equity = 615.3m (last 4 quarters mean from totalStockholderEquity)
RoA = 16.80% (Net Income 100.4m / Total Assets 570.1m)
RoE = 16.32% (Net Income TTM 100.4m / Total Stockholder Equity 615.3m)
RoCE = 18.42% (EBIT 105.0m / Capital Employed (Total Assets 570.1m - Current Liab 0.0))
RoIC = 18.58% (EBIT 105.0m / (Assets 570.1m - Curr.Liab 0.0 - Cash 4.92m))
WACC = 7.54% (E(499.3m)/V(500.2m) * Re(7.55%) + D(894k)/V(500.2m) * Rd(2.37%) * (1-Tc(0.21)))
Discount Rate = 7.55% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -47.06 | Cagr: -3.06%
[DCF] Terminal Value 73.10% ; FCFF base≈20.5m ; Y1≈18.0m ; Y5≈14.5m
[DCF] Fair Price = 18.37 (EV 233.4m - Net Debt -4.02m = Equity 237.4m / Shares 12.9m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.09 | # QB: 0
Revenue Correlation: 0.18 | Revenue CAGR: 0.09% | SUE: N/A | # QB: 0