Horizon Pharma PLC

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HZNP : NASDAQ : Health Care
$12.39 -0.27 | -2.1%
Today's Range: 12.61 - 13.11
Avg. Daily Volume: 4797300.0
07/28/17 - 2:22 PM ET

Financial Analysis


HORIZON PHARMA 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. HORIZON PHARMA PLC has average liquidity. Currently, the Quick Ratio is 1.41 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.

During the same period, stockholders' equity ("net worth") has decreased by 6.67% 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 ($mil)220.86204.69
EBITDA ($mil)21.7941.9
EBIT ($mil)-49.69-8.74
Net Income ($mil)-90.57-45.41


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)614.74388.63
Total Assets ($mil)4374.763205.49
Total Debt ($mil)1889.261140.18
Equity ($mil)1205.681291.97


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin89.4290.18
EBITDA Margin9.8620.46
Operating Margin-22.5-4.27
Sales Turnover0.240.26
Return on Assets-4.840.42
Return on Equity-17.581.05
Debt Q1 FY17 Q1 FY16
Current Ratio1.671.98
Debt/Capital0.610.47
Interest Expense31.9819.46
Interest Coverage-1.55-0.45


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)162.63160.25
Div / share0.00.0
EPS-0.56-0.28
Book value / share7.418.06
Institutional Own % n/a n/a
Avg Daily Volume4653490.02791613.0

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. To use another comparison, its price-to-book ratio of 1.74 indicates a 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 below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing these and other key valuation criteria, HORIZON PHARMA 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
HZNP NM Peers 90.95   HZNP 6.22 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.

HZNP'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.

HZNP 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
HZNP 11.23 Peers 16.97   HZNP NA Peers 0.67

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

HZNP is trading at a discount 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HZNP 1.74 Peers 12.00   HZNP -1566.66 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.

HZNP 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, HZNP 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
HZNP 1.98 Peers 11.85   HZNP 25.18 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.

HZNP 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.

HZNP has a sales growth rate that significantly exceeds its peers.

 

 

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