Allergan PLCFind Ratings Reports
ALLERGAN PLC's gross profit margin for the second quarter of its fiscal year 2016 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 very weak liquidity. Currently, the Quick Ratio is 0.34 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 6.34% 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||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||3684.8||3628.7|
|Net Income ($mil)||-501.7||-243.1|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||506.6||1526.4|
|Total Assets ($mil)||132619.1||138411.1|
|Total Debt ($mil)||39581.7||42870.3|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||88.92||90.33|
|Return on Assets||3.33||-1.82|
|Return on Equity||-3.16||-4.88|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||395.8||393.1|
|Div / share||0.0||0.0|
|Book value / share||193.64||183.34|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3086780.0||5237629.0|
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.26 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 19.66. 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.
|AGN NM||Peers 29.47||AGN 18.51||Peers 20.98|
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.
|AGN 14.33||Peers 15.05||AGN NA||Peers 0.54|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
AGN is trading at a premium to 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.
|AGN 1.26||Peers 19.66||AGN 50.33||Peers -20.56|
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.
|AGN 6.27||Peers 12.73||AGN 51.01||Peers 5.56|
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.