Mallinckrodt (MNK) Marked As Today's Post-Market Laggard
Trade-Ideas LLC identified
(
) as a post-market laggard 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 $146.8 million.
- MNK is down 2.2% today from today'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 and biopharmaceutical products, and nuclear imaging agents in the United States, Europe, the Middle East, Africa, and internationally. MNK has a PE ratio of 2. Currently there are 11 analysts that rate Mallinckrodt a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Mallinckrodt has been 2.8 million shares per day over the past 30 days. Mallinckrodt has a market cap of $7.3 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 11.5% with 4.66 days to cover. Shares are down 15.5% year-to-date as of the close of trading on Wednesday.
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.
Analysis:
rates Mallinckrodt as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- MNK's revenue growth has slightly outpaced the industry average of 5.3%. Since the same quarter one year prior, revenues rose by 12.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MALLINCKRODT PLC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, MALLINCKRODT PLC turned its bottom line around by earning $2.61 versus -$3.57 in the prior year. This year, the market expects an improvement in earnings ($8.08 versus $2.61).
- The gross profit margin for MALLINCKRODT PLC is rather high; currently it is at 52.54%. Regardless of MNK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 12.88% trails the industry average.
- 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 43.23%, 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. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The debt-to-equity ratio of 1.26 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, MNK maintains a poor quick ratio of 0.95, which illustrates the inability to avoid short-term cash problems.
- You can view the full Mallinckrodt Ratings Report.
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.
