Horizon Pharma PLC

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HZNP : NASDAQ : Health Care
$16.8 | %
Today's Range: 16.75 - 17.11
Avg. Daily Volume: 4104400.0
01/20/17 - 4:00 PM ET

Financial Analysis


HORIZON PHARMA PLC's gross profit margin for the third 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. HORIZON PHARMA PLC has strong liquidity. Currently, the Quick Ratio is 1.65 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 8.23% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)273.7226.54
EBITDA ($mil)112.08107.66
EBIT ($mil)60.1464.37
Net Income ($mil)-5.873.28


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)557.31685.15
Total Assets ($mil)3349.672998.92
Total Debt ($mil)1147.221141.01
Equity ($mil)1361.981258.34


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin91.5493.14
EBITDA Margin40.9547.52
Operating Margin21.9728.41
Sales Turnover0.290.21
Return on Assets-0.36-0.53
Return on Equity-0.9-1.28
Debt Q3 FY16 Q3 FY15
Current Ratio2.012.97
Debt/Capital0.460.48
Interest Expense19.0720.3
Interest Coverage3.153.17


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)161.23159.27
Div / share0.00.0
EPS-0.040.02
Book value / share8.457.9
Institutional Own % n/a n/a
Avg Daily Volume4024478.03626638.0

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 2.05 indicates a discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 65.26. 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, 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 27.12   HZNP 7.62 Peers 18.93

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 7.01 Peers 14.42   HZNP NA Peers 0.50

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 significant 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 2.05 Peers 65.26   HZNP 61.91 Peers -14.61

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

HZNP is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HZNP 2.85 Peers 12.47   HZNP 59.05 Peers 5.05

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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