Exploring the Big Six in Medical Ultrasound: Revenue Breakdown and Valuation Insights
GE HealthCare - With a commanding 30% market share in medical ultrasound, GE Healthcare emerges as the leader. However, ultrasound constitutes just 20% of its revenue, as GE boasts a strong presence in various imaging modalities. With an annual revenue of approximately $20B, GE holds a market valuation of around $30B, translating to a revenue multiple of 1.5.
Philips Healthcare - Ranked second in ultrasound, Philips Healthcare commands nearly 20% market share. Beyond ultrasound, Philips is a major player in medical imaging and cardiology, boasting revenue comparable to that of GE and Siemens. Despite this, Philips faces a lower valuation due to a smaller operating margin and a lack of robust revenue growth, reflected in its revenue multiple.
hashtag Fujifilm - Once a giant in digital cameras and photo-related businesses, Fujifilm strategically pivoted towards healthcare as those markets declined. Acquisitions of hashtag Sonosite and hashtag HitachiMedical exemplify this shift. Today, healthcare constitutes 33% of Fujifilm's revenue, showcasing a successful transition. The prospect of a potential spin-off, akin to industry trends, adds an intriguing dimension to Fujifilm's trajectory.
hashtag Canon - Historically prominent in printing and digital cameras, Canon diversified into healthcare with the acquisition of hashtag ToshibaMedical for $6B. While boasting the highest revenue among its peers, Canon faces a lower multiple due to a significant portion of its business still coming from printing and imaging.
Mindray - A unique case, Mindray stands out with the smallest revenue among the Big Six but boasts the second-highest valuation. With a remarkable profit margin exceeding 30% and a robust year-over-year growth of 20%, hashtag Mindray's valuation, if scaled to the revenue of its counterparts, would surpass all others combined.
Siemens Healthineers - Leading in valuation among the six, the hashtag Siemens Healthineers may not dominate the ultrasound market but asserts its dominance in various medical imaging modalities and healthcare. The recent $16B acquisition of Varian underscores its commitment to growth, resulting in a valuation double that of GE and triple that of Philips.
