ALLERGAN PLC's gross profit margin for the first quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ALLERGAN PLC has weak liquidity. Currently, the Quick Ratio is 0.80 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 641.89% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||4234.2||2655.1|
|Net Income ($mil)||-512.0||96.5|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||2130.9||340.2|
|Total Assets ($mil)||139460.7||22403.9|
|Total Debt ($mil)||44324.6||8720.5|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||68.8||58.24|
|Return on Assets||-1.6||-2.45|
|Return on Equity||-3.16||-5.72|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||392.3||174.41|
|Div / share||0.0||0.0|
|Book value / share||182.02||55.18|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2340182.0||3206868.0|
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 1.70 indicates a discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 10.52. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, ALLERGAN PLC proves to trade at a discount to investment alternatives within the industry.
|AGN NM||Peers 31.28||AGN 40.66||Peers 22.21|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
AGN's P/E is negative making this valuation measure meaningless.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
AGN is trading at a significant premium to its peers.
|AGN 14.37||Peers 18.41||AGN NA||Peers 0.96|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
AGN is trading at a valuation on par with its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|AGN 1.70||Peers 10.52||AGN -102.44||Peers 24.23|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
AGN is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, AGN is expected to significantly trail its peers on the basis of its earnings growth rate.
|AGN 8.28||Peers 9.57||AGN 55.14||Peers 9.19|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
AGN is trading at a discount to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
AGN has a sales growth rate that significantly exceeds its peers.
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