Allergan PLC

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AGN : NYSE : Health Care
$255.13 up 0.51 | 0.2%
Today's Range: 253.67 - 256.225
Avg. Daily Volume: 2217600.0
07/26/17 - 12:42 PM ET

Financial Analysis


ALLERGAN PLC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged 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 average liquidity. Currently, the Quick Ratio is 1.11 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.92% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)3572.93399.3
EBITDA ($mil)1639.41716.6
EBIT ($mil)-138.284.8
Net Income ($mil)-2565.2255.7


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)8951.12273.8
Total Assets ($mil)126836.9136073.7
Total Debt ($mil)31749.442567.5
Equity ($mil)75188.477450.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin88.4288.81
EBITDA Margin45.8850.49
Operating Margin-3.872.49
Sales Turnover0.120.1
Return on Assets9.583.44
Return on Equity-4.9-3.24
Debt Q1 FY17 Q1 FY16
Current Ratio1.320.99
Debt/Capital0.30.35
Interest Expense289.7332.8
Interest Coverage-0.480.25


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)335.6395.4
Div / share0.70.0
EPS-7.85-0.41
Book value / share224.04195.88
Institutional Own % n/a n/a
Avg Daily Volume2209395.02977441.0

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 1.11 indicates a significant discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 12.00. 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 90.95   AGN 74.81 Peers 20.53

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AGN 13.88 Peers 16.97   AGN NA Peers 0.67

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 1.11 Peers 12.00   AGN -65.77 Peers 18.85

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AGN 5.67 Peers 11.85   AGN 4.53 Peers 6.08

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AGN significantly trails its peers on the basis of sales growth

 

 

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