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Allergan PLC
AGN : NYSE : Health Care
$216.66 -2.20 | -1.00%
Today's Range: 214.06 - 219.40
Avg. Daily Volume: 4,709,400
04/29/16 - 3:59 PM ET

Financial Analysis


ALLERGAN PLC's gross profit margin for the fourth quarter of its fiscal year 2015 has increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. ALLERGAN PLC has very weak liquidity. Currently, the Quick Ratio is 0.42 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 170.34% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)4197.52415.6
EBITDA ($mil)2075.51025.4
EBIT ($mil)453.8191.2
Net Income ($mil)-630.9-732.9


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)1105.3251.0
Total Assets ($mil)135840.752529.1
Total Debt ($mil)42726.215543.7
Equity ($mil)76591.428331.1


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin83.8667.4
EBITDA Margin49.4442.44
Operating Margin10.817.92
Sales Turnover0.110.0
Return on Assets2.880.0
Return on Equity-4.050.0
Debt Q4 FY15 Q4 FY14
Current Ratio1.031.37
Debt/Capital0.360.35
Interest Expense341.3127.8
Interest Coverage1.331.5


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)394.5265.9
Div / share0.00.0
EPS-2.13-3.72
Book value / share194.15106.55
Institutional Own % n/a n/a
Avg Daily Volume4573734.04088415.0

Valuation


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. For additional comparison, its price-to-book ratio of 1.17 indicates a significant discount versus the S&P 500 average of 2.76 and a significant discount versus the industry average of 6.81. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AGN NM Peers 31.16   AGN 19.81 Peers 22.99

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.

 

Discount. 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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AGN 13.19 Peers 15.80   AGN NA Peers 0.53

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AGN 1.17 Peers 6.81   AGN 12.80 Peers 9.17

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

AGN is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AGN 5.95 Peers 20.15   AGN 123.64 Peers 11.57

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 significant 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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