Warner Chilcott PLC Stock Upgraded (WCRX)

NEW YORK ( TheStreet) -- Warner Chilcott (Nasdaq: WCRX) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, good cash flow from operations, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • Compared to other companies in the Pharmaceuticals industry and the overall market, WARNER CHILCOTT PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for WARNER CHILCOTT PLC is currently very high, coming in at 89.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.00% is above that of the industry average.
  • Net operating cash flow has increased to $393.90 million or 18.58% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.44%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 484.3% when compared to the same quarter one year prior, rising from $15.45 million to $90.26 million.
  • WARNER CHILCOTT PLC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, WARNER CHILCOTT PLC reported lower earnings of $0.67 versus $0.68 in the prior year. This year, the market expects an improvement in earnings ($3.68 versus $0.67).
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Warner Chilcott plc, a specialty pharmaceutical company, focuses on the development, manufacture, and promotion of branded pharmaceutical products in women's healthcare, gastroenterology, dermatology, and urology segments in North America and western Europe markets. The company has a P/E ratio of 13.3, below the average drugs industry P/E ratio of 44.5 and below the S&P 500 P/E ratio of 17.7. Warner Chilcott has a market cap of $4.19 billion and is part of the health care sector and drugs industry. Shares are down 2.1% year to date as of the close of trading on Friday.

You can view the full Warner Chilcott Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff

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