Skip to main content

Trade-Ideas LLC identified

Mallinckrodt

(

MNK

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Mallinckrodt as such a stock due to the following factors:

  • MNK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $377.6 million.
  • MNK traded 26,254 shares today in the pre-market hours as of 8:30 AM.
  • MNK is up 8.2% today from yesterday's close.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in MNK with the Ticky from Trade-Ideas. See the FREE profile for MNK NOW at Trade-Ideas

More details on MNK:

Mallinckrodt Public Limited Company develops, manufactures, markets, and distributes specialty pharmaceutical products and medical imaging agents worldwide. The company operates through two segments, Specialty Pharmaceuticals and Global Medical Imaging. Currently there are 9 analysts that rate Mallinckrodt a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Recommends

The average volume for Mallinckrodt has been 3.3 million shares per day over the past 30 days. Mallinckrodt has a market cap of $6.8 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.80 and a short float of 8.3% with 1.69 days to cover. Shares are down 39.3% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Mallinckrodt as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from the ratings report include:

  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Pharmaceuticals industry and the overall market, MALLINCKRODT PLC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio of 1.01 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, MNK's quick ratio is somewhat strong at 1.12, demonstrating the ability to handle short-term liquidity needs.
  • MNK's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.13%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • MALLINCKRODT PLC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MALLINCKRODT PLC swung to a loss, reporting -$3.57 versus $0.06 in the prior year. This year, the market expects an improvement in earnings ($7.31 versus -$3.57).
  • The gross profit margin for MALLINCKRODT PLC is currently very high, coming in at 74.34%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, MNK's net profit margin of 6.00% significantly trails the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.