Mylan (MYL) Stock Climbs on $1 Billion Stock Buyback
NEW YORK (TheStreet) -- Mylan (MYL) - Get Report stock is gaining by 2.89% to $50.19 in afternoon trading on Monday, after the company announced that it will buy back as much as $1 billion of its stock.
The share repurchase program will expire on August 27, 2016.
"As indicated last week, we remain focused on utilizing the optionality provided by Mylan's strong balance sheet and ample financial flexibility in pursuit of external opportunities that further build on our existing platform and position us for continued growth and value creation, and we have already identified a number of potential opportunities," Executive Chairman Robert Coury said in a statement.
Additionally, last week Mylan's proposed takeover of rival Perrigo (PRGO) failed to gain Perrigo shareholder approval.
Mylan stock soared by 13% following the bid's expiration on Friday morning, according to MarketWatch.
Mylan is a global pharmaceutical company based in the United Kingdom.
Separately, TheStreet Ratings team rates MYLAN NV as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate MYLAN NV (MYL) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 3.7%. Since the same quarter one year prior, revenues rose by 29.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 121.19% to $974.80 million when compared to the same quarter last year. In addition, MYLAN NV has also vastly surpassed the industry average cash flow growth rate of -0.70%.
- The gross profit margin for MYLAN NV is rather high; currently it is at 59.48%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MYL's net profit margin of 15.90% significantly trails the industry average.
- The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
- You can view the full analysis from the report here: MYL
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.