AMAG Pharmaceuticals Inc

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AMAG : NASDAQ : Health Care
$17.4 -0.3 | -1.7%
Today's Range: 17.45 - 17.75
Avg. Daily Volume: 859800.0
08/23/17 - 3:37 PM ET

Financial Analysis


AMAG PHARMACEUTICALS INC's gross profit margin for the second quarter of its fiscal year 2017 has increased 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. AMAG PHARMACEUTICALS INC has average liquidity. Currently, the Quick Ratio is 1.38 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.41% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)158.4127.42
EBITDA ($mil)42.9954.4
EBIT ($mil)11.4232.82
Net Income ($mil)-14.07-0.6


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)399.21546.47
Total Assets ($mil)2318.652480.81
Total Debt ($mil)769.76989.11
Equity ($mil)947.45916.17


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin93.7986.87
EBITDA Margin27.1442.69
Operating Margin7.2125.76
Sales Turnover0.260.18
Return on Assets-1.94-0.86
Return on Equity-4.74-2.34
Debt Q2 FY17 Q2 FY16
Current Ratio1.512.24
Debt/Capital0.450.52
Interest Expense17.2618.25
Interest Coverage0.661.8


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)35.2734.15
Div / share0.00.0
EPS-0.4-0.02
Book value / share26.8626.82
Institutional Own % n/a n/a
Avg Daily Volume898808.01177557.0

Valuation


SELL. 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 0.63 indicates a significant discount versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 10.65. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, AMAG PHARMACEUTICALS INC 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
AMAG NM Peers 37.70   AMAG 3.03 Peers 25.05

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.

AMAG'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.

AMAG is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AMAG NM Peers 24.88   AMAG NA Peers 0.44

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

AMAG's ratio is negative making this valuation measure meaningless.

 

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
AMAG 0.63 Peers 10.65   AMAG -103.03 Peers 12.57

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.

AMAG 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, AMAG 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
AMAG 1.01 Peers 143.41   AMAG 34.33 Peers 358.36

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.

AMAG 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.

AMAG significantly trails its peers on the basis of sales growth

 

 

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