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Express Scripts Holding Company Message Board

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  • whygoelswhere whygoelswhere Dec 12, 2009 12:30 PM Flag

    Question for seasoned shareholders

    GAAP financials mask true profitability. Look at script growth and EBITDA per script. The reason the valuation is expanding is because the NextRx acquisition is going to be a huge driver of earnings growth and by the time its integrated the biggest year ever for patent expirations will be upon us. they are going to go from earning under $4 this year to around $7.5 by 2012. What other large cap has that kind of earnings ramp ahead of it?

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    • Thank you, those are some strong supporting points for the price. Does it make you a little leery that the current price is so high that even if it doubled it's earnings the p/e ratio would still be higher than many large caps with 20+ years of steady dividend records and massively larger book values? (example HON) I just wonder if recent price action has made put ESRX in a position to where it would have to meet the loftiest expectations to even be fairly valued compared to many other large caps.

      • 1 Reply to chrishasty_1982
      • This stock was 79 dollars a share almost 2 years ago without NextRx accretive earnings in 2010 and generic expirations in 2011. I think since the price is only about 10 bucks over the price it was almost 2 years ago...that we have more room to grow,,,but mostly thanks to NextRx lofty integration expectations.
        That is why we have had so many upgrades. I would have been long gone if it wasn't for NextRx.

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