In this article, we discuss the 5 most valuable health and fitness companies in the world. If you want to read our detailed analysis of the health and fitness industry, go directly to the 15 Most Valuable Health and Fitness Companies in the World.
5. Dexcom, Inc. (NASDAQ: DXCM)
Market Cap: $50.212 billion
Dexcom, Inc is one of the top five companies on our list. It is a San Diego, California-based corporation that was founded in 1999. It is a diabetes management company that produces and hands out constant glucose monitoring systems. The company’s revenue increased by 26% to $500.9 million in the third quarter of 2020, compared to the same quarter in 2019.
Carillon Tower Advisers, in its Q4 2020 investor letter, mentioned DexCom, Inc. (NASDAQ: DXCM). Here is what the fund said:
“DexCom, a developer and manufacturer of continuous glucose monitors (CGMs) for people with diabetes, saw its share price suffer in the quarter after an announcement from its largest competitor that it had finally developed a CGM that appears to be competitive with Dexcom’s flagship G6 sensor. Until the competitive dynamics are sorted out, we feel as though the firm’s shares could remain range-bound, leading us to exit the position.”
4. Lululemon Athletica Inc. (NASDAQ: LULU)
Market Cap: $52.97 billion
Lululemon Athletica (NASDAQ: LULU) is a Canadian-American multinational company that was founded in 1998. It creates high-quality fitness products for both genders with a company focus on Yoga. It has 521 company-operated stores in the US, Canada, Europe, Asia, and Australia.
With a strong five-year forecast, the company has continued to excel with the highest net income reported in 2019 at 645.6 million US dollars. Relatively, the US region reported the highest revenue followed by Canada and outside North American regions. The company generated $3.1 billion net revenue from US-based stores alone, making it one of the most valuable health and fitness companies in the world.
The company produces and markets technical athletic wear for yoga, running, and working out.
3. ANTA Sports Products Limited (HKSE: 2020.HK)
Market Cap: $56.87 billion
Anta sports (HKG: 2020. HK) is a Chinese company that was first established in 1991. Its product range includes sports footwear, apparel, and accessories. It has enjoyed massive growth over the last 5 years which has put it in direct competition against Nike, Inc. (NYSE: NKE) and Adidas AG (OTCMKTS: ADDDF).
The company’s particularly prominent multi-brand approach has resulted in its pronounced victory and allowed it to quickly expand outside of Asia. Having a global market share of 3.6% and 5.02 billion US dollars in sales revenue by 2019, the company ranks 3rd in our list of the most valuable health and fitness companies in the world.
2. Adidas AG (OTC: ADDYY)
Market Cap: $70.12 billion
Adidas AG (OTCMKTS: ADDDF) is a Germany-based multinational corporation that was founded in 1949. Today it has a product portfolio that is not only huge but ranges from footwear and clothing to sports-related equipment. Employing more than 60,000 people including 170 subsidiaries that include Reebok, Rockport, and CCM-hockey as part of the Adidas Group.
Adidas’s highest ever sales recorded was in 2019 when it had net sales of 23.64 billion US dollars. Only its prime competitor Nike, Inc rivals it. Additionally, the brand was rated among the most valuable German brands in 2019, making it one of the most valuable health and fitness companies in the world.
In the Q2 2021 investor letter of Polen Capital, the fund mentioned Adidas AG (NYSE: ADDYY). Here is what the fund said:
“During the second quarter, the leading absolute contributors to performance (includes) Adidas. Shares of Adidas, the German athletic footwear and apparel maker, outperformed in the quarter as the company’s recently announced “Own the Game” strategy rolled out globally. This plan will leverage Adidas’ digitalization capabilities and innovation. In last quarter’s commentary, we discussed the potential impact increasing digitalization and customer connectivity can have on Adidas in the coming years. On product innovation, a robust product pipeline has helped drive strong growth across categories. Management optimism about the pipeline is a sign that recent trends could continue. Innovation runs the gamut from sustainable or recyclable materials to high performance footwear. A steady stream of new product launches, called activations, evenly spaced out across a calendar year has drawn digitally connected consumers to check in and stay abreast of the latest developments. This connectivity is further supported by steady spending on marketing and endorsements. Together, these drivers delivered strong brand momentum across the business as sales grew.
Margins have nearly fully recovered to pre-pandemic levels, and nearterm results indicate to us that Adidas is continuing to recover from the pandemic impact a year ago. We remain focused on the next five years and applaud management for navigating a tough environment while simultaneously putting a strategy in place for 2025. We believe Adidas could grow earnings at a high teens rate from 2021-2025 after normalizing from the extremes of COVID-19.”
1. Nike, Inc. (NYSE: NKE)
Market Cap: $267.24 billion
Nike, Inc. (NYSE: NKE) is by far the largest sporting goods company in terms of its market cap. It is an American multinational company that pioneers in footwear, equipment, accessories, and services related to health and fitness.
The company’s net income faced a drastic decrease in the year 2020 dropping to 2.53 billion US dollars from 4.02 billion in 2019 (38% decrease). This was largely due to the COVID-19 pandemic. Regardless, the company managed to pick itself back up, generating 5.73 billion US dollars the following year, 2021, making it the most valuable health and fitness company in the world.
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