BlackRock Health Sciences Trust (BME) AI Stock Analysis
BME AI stock analysis summary
AI ResearchBlackRock Health Sciences Trust (BME) is a closed-ended equity mutual fund investing in healthcare and health sciences equities. In FY2025, the fund generated $36.2M in revenue and $77.0M in net income, while delivering a 26.8% 1-year total return. It currently offers a forward dividend yield of 7.15% with a 39.0% payout ratio.
- Market cap
- $578.0M
- Revenue (TTM)
- $7.6M
- P/E
- 5.5x
- 1Y return
- 26.8% S&P 500 16.8%
- Avg. target
- —
Bull case
- The trust provides an attractive 7.15% forward dividend yield backed by 22 consecutive years of dividend distributions.
- BME outperformed the broader market over the past year, gaining 26.8% versus 16.8% for the S&P 500.
- The balance sheet is solid with $19.0M in net cash and a debt-to-equity ratio of 0.00.
Bear case
- Over a 5-year period, BME's return of 31.8% substantially lagged the S&P 500 return of 83.0%.
- Revenue growth has been negative over the medium term, with a 5-year CAGR of -14.7% from FY2020 to FY2025.
- The fund recorded negative cash generation in FY2025, with free cash flow of -$4.4M.
What BlackRock Health Sciences does
BlackRock Health Sciences Trust operates as a closed-ended equity mutual fund managed by BlackRock Advisors, LLC. Established on March 31, 2005, the fund invests in public equity markets in the United States, targeting companies within the health sciences and related sectors. These include businesses involved in researching, developing, producing, distributing, or delivering medical, dental, optical, pharmaceutical, or biotechnology products, equipment, and services. The fund utilizes equity investments and equity derivatives, with an emphasis on option writing to optimize risk-adjusted returns. It benchmarks its performance against the Russell 3000 Healthcare Index, seeking long-term capital appreciation.
Growth and profitability
Top-line results reflect significant variability across fiscal years. Revenue stood at $59.7M in FY2021 before declining to -$26.0M in FY2022, then rebounding to $34.9M in FY2023, $24.1M in FY2024, and rising 50.2% to $36.2M in FY2025. Over the 5-year span from FY2020 to FY2025, revenue posted a CAGR of -14.7%. Net income was $77.0M in FY2025, resulting in an operating margin of 212.9%. Trailing twelve-month revenue through June 30, 2026, was $7.6M with EPS of $8.06. In the latest quarter ended June 30, 2026, quarterly revenue fell 3.8% year-over-year, while quarterly earnings grew 306.2%.
Balance sheet and cash flow
As of June 30, 2026, BlackRock Health Sciences Trust held $19.7M in cash and short-term investments against total debt of $688,351, providing net cash of $19.0M. Shareholders' equity was $571.5M out of $574.6M in total assets, with a current ratio of 39210.63 and a debt-to-equity ratio of 0.00. For FY2025, operating cash flow and free cash flow were both -$4.4M. Cash usage in FY2025 included $4 in capital expenditures, $14.0M in share buybacks, and $40.6M paid in dividends.
Valuation and performance
At a market capitalization of $578.0M and enterprise value of $569.5M, BME trades at a trailing P/E of 5.5x, below the 12.1x median of its US-listed Financial Services peers. Its price-to-sales ratio is 5.9x, compared to the peer median of 3.2x, while its price-to-book ratio is 1.0x. Over the past year, BME gained 26.8%, outperforming the S&P 500 return of 16.8%. Over a 5-year period, BME's return of 31.8% trailed the S&P 500 return of 83.0%. The fund has a beta of 0.60.
BME dividend
BlackRock Health Sciences Trust pays a monthly distribution with an annual forward dividend of $3.15, equal to a dividend yield of 7.15%. The trust has paid dividends for 22 consecutive years, supported by a payout ratio of 39.0%. Its 5-year annualized dividend growth rate is 5.5%, and the last ex-dividend date listed was December 11, 2026.
What analysts expect
Analyst recommendation counts and price targets are not reported for BlackRock Health Sciences Trust. Regarding earnings delivery, the fund posted 2 EPS beats over the last 4 quarters. As of June 30, 2026, trailing twelve-month EPS stood at $8.06, and the fund's last close of $44.01 on October 16, 2026, sat 8.4% above its 200-day moving average.
Key risks and what to watch
- Annual revenue has displayed severe volatility, falling from $59.7M in FY2021 to -$26.0M in FY2022.
- Quarterly revenue fell 3.8% year-over-year in the latest quarter ended June 30, 2026.
- Dividend distributions of $40.6M in FY2025 exceeded the year's operating cash flow of -$4.4M.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this BME AI stock analysis
This page is an AI-written research summary of BlackRock Health Sciences Trust (BME). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: BME income statement, BME balance sheet, BME key metrics, BME chart. See the BME stock overview for the latest quote and news.
BME AI stock analysis FAQ
What is BlackRock Health Sciences Trust's dividend yield and schedule?
The trust pays dividends on a monthly schedule with an annualized forward dividend of $3.15, corresponding to a yield of 7.15%. It has maintained dividend distributions for 22 consecutive years.
How has BME performed relative to the S&P 500?
BME gained 26.8% over the past year, outperforming the S&P 500 return of 16.8%. Over 5 years, BME returned 31.8%, trailing the S&P 500 return of 83.0%.
What are BME's key valuation multiples?
BME trades at a trailing P/E of 5.5x and a price-to-sales ratio of 5.9x, compared to the US-listed Financial Services peer medians of 12.1x and 3.2x, respectively. Its price-to-book ratio is 1.0x.
What is BlackRock Health Sciences Trust's investment focus?
The trust invests primarily in equity securities of companies engaged in healthcare, biotechnology, pharmaceuticals, and medical devices. It also writes options as part of its strategy to optimize risk-adjusted returns.