Horizon Pharma PLC

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HZNP : NASDAQ : Health Care
$20.08 -2.30 | -10.00%
Today's Range: 19.88 - 22.76
Avg. Daily Volume: 4,103,100
08/24/16 - 3:59 PM ET

Financial Analysis


HORIZON PHARMA 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. HORIZON PHARMA PLC has strong liquidity. Currently, the Quick Ratio is 1.75 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 6.71% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)257.38172.82
EBITDA ($mil)92.7354.54
EBIT ($mil)40.8522.13
Net Income ($mil)14.9831.81


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)430.0667.66
Total Assets ($mil)3227.462942.69
Total Debt ($mil)1143.691136.9
Equity ($mil)1338.211253.97


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin91.8392.76
EBITDA Margin36.0231.55
Operating Margin15.8712.81
Sales Turnover0.290.16
Return on Assets-0.09-0.58
Return on Equity-0.23-1.38
Debt Q2 FY16 Q2 FY15
Current Ratio2.243.09
Debt/Capital0.460.48
Interest Expense19.2319.45
Interest Coverage2.121.14


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)160.74158.35
Div / share0.00.0
EPS0.090.2
Book value / share8.337.92
Institutional Own % n/a n/a
Avg Daily Volume4027121.05273806.0

Valuation


SELL. 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. To use another comparison, its price-to-book ratio of 2.78 indicates valuation on par with the S&P 500 average of 2.83 and a significant discount versus the industry average of 20.24. 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 29.72   HZNP 11.40 Peers 21.39

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 8.77 Peers 15.44   HZNP NA Peers 0.57

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 2.78 Peers 20.24   HZNP 90.48 Peers -21.30

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 3.99 Peers 12.00   HZNP 100.70 Peers 5.66

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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