Allergan plc [NYSE:AGN]: Analyst Rating and Earnings
Equities traders oftentimes stay updated on what leading stock market analysts say about a potential stock purchase. When it comes to Allergan plc [AGN], the most recently available average analyst rating is from the quarter that ends in December. On average, stock market experts give AGN an Outperform rating. Its stock price has been found in the range of 125.84 to 197.00. This is compared to its latest closing price of $146.10.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Allergan plc [AGN] is sitting at 2.09. This is compared to 1 month ago, when its average rating was 2.10.
For the quarter ending in Dec-18 Allergan plc [AGN] generated $4.08 billion in sales. That’s 1.85% higher than the average estimate of $4.01 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep looking out for the next-scheduled quarterly financial results that this company is expected to put out, which is slated to occur on Tue 7 May (In 25 Days).
Fundamental Analysis of Allergan plc [AGN]
Now let’s turn to look at profitability: with a current Operating Margin for Allergan plc [AGN] sitting at +2.11 and its Gross Margin at +44.18, this company’s Net Margin is now -32.60%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 0.35, and its Return on Invested Capital has reached -4.80%. Its Return on Equity is -7.34, and its Return on Assets is -4.63. These metrics suggest that this Allergan plc 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, Allergan plc [AGN] has generated a Total Debt to Total Equity ratio of 36.55. Similarly, its Total Debt to Total Capital is 26.77, while its Total Debt to Total Assets stands at 23.38. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 35.21, and its Long-Term Debt to Total Capital is 25.79. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 9.92 and its Total Debt to EBITDA Value is 3.36. The Enterprise Value to Sales for this firm is now 4.45, and its Total Debt to Enterprise Value stands at 0.36. Allergan plc [AGN] has a Price to Book Ratio of 0.68, a Price to Cash Flow Ratio of 7.99.
Shifting the focus to workforce efficiency, Allergan plc [AGN] earns $934,166 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.34 and its Total Asset Turnover is 0.14. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.98 and its Current Ratio is 1.13. 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.
Allergan plc [AGN] has 332.09M shares outstanding, amounting to a total market cap of $48.17B. Its stock price has been found in the range of 125.84 to 197.00. At its current price, it has moved by -26.38% from its 52-week high, and it has moved 15.26% from its 52-week low.
This stock’s Beta value is currently 1.34, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 45.94. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Allergan plc [AGN] a Reliable Buy?
Allergan plc [AGN] 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.