The Medicines Company [NASDAQ:MDCO]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For The Medicines Company [MDCO], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give MDCO an Outperform rating. Its stock price has been found in the range of 18.83 to 36.75. This is compared to its latest closing price of $23.84.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Medicines Company [MDCO] is sitting at 1.54. This is compared to 1 month ago, when its average rating was 1.54.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Wed 20 Feb (In 10 Days).
Fundamental Analysis of The Medicines Company [MDCO]
Now let’s turn to look at profitability: with a current Operating Margin for The Medicines Company [MDCO] sitting at -616.86 and its Gross Margin at -5.37.
This company’s Return on Total Capital is -27.58, and its Return on Invested Capital has reached -65.60%. Its Return on Equity is -179.42, and its Return on Assets is -47.14. These metrics suggest that this The Medicines Company does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, The Medicines Company [MDCO] has generated a Total Debt to Total Equity ratio of 2,605.76. Similarly, its Total Debt to Total Capital is 96.30, while its Total Debt to Total Assets stands at 74.37. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 2,605.76, and its Long-Term Debt to Total Capital is 96.30. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is -8.84. The Enterprise Value to Sales for this firm is now 152.61, and its Total Debt to Enterprise Value stands at 0.26. The Medicines Company [MDCO] has a Price to Book Ratio of 80.31.
Shifting the focus to workforce efficiency, The Medicines Company [MDCO] earns $263,465 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 3.50 and its Total Asset Turnover is 0.03. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 3.18 and its Current Ratio is 3.21. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: The Medicines Company [MDCO] has 73.54M shares outstanding, amounting to a total market cap of $1.75B. Its stock price has been found in the range of 16.69 to 41.57. At its current price, it has moved by -42.80% from its 52-week high, and it has moved 42.48% from its 52-week low.
This stock’s Beta value is currently 1.02, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 66.63. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is The Medicines Company [MDCO] a Reliable Buy?
The Medicines Company [MDCO] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.