Celgene Corporation [NASDAQ: CELG] shares went lower by -1.43% from its previous closing of $93.59, now trading at the price of $92.25, also adding -1.34 points. Is CELG stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 2.08 million contracts. Compared to the average trading volume of CELG shares, the company saw a far better performance. Moreover, the stock has a float and a -2.24% run over in the last seven days. CELG share price has been hovering between $98.97 and $58.59 lately, and is definitely worthy of attention.
Celgene Corporation [NASDAQ:CELG]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Celgene Corporation [CELG], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give CELG an Hold rating. Its stock price has been found in the range of 58.59 to 98.97. This is compared to its latest closing price of $93.59.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Celgene Corporation [CELG] is sitting at 2.85. This is compared to 1 month ago, when its average rating was 2.86.
For the quarter ending in Mar-19 Celgene Corporation [CELG] generated $4.03 billion in sales. That’s 0.41% 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 an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Thu 25 Jul (In 14 Days).
Fundamental Analysis of Celgene Corporation [CELG]
Now let’s turn to look at profitability: with a current Operating Margin for Celgene Corporation [CELG] sitting at +44.38 and its Gross Margin at +93.10, this company’s Net Margin is now 30.10%. These measurements indicate that Celgene Corporation [CELG] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 27.59, and its Return on Invested Capital has reached 16.50%. Its Return on Equity is 61.86, and its Return on Assets is 12.33. These metrics all suggest that Celgene Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Celgene Corporation [CELG] has generated a Total Debt to Total Equity ratio of 329.01. Similarly, its Total Debt to Total Capital is 76.69, while its Total Debt to Total Assets stands at 57.13. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 320.87, and its Long-Term Debt to Total Capital is 74.79. 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 10.82 and its Total Debt to EBITDA Value is 2.73. The Enterprise Value to Sales for this firm is now 5.11, and its Total Debt to Enterprise Value stands at 0.33. Celgene Corporation [CELG] has a Price to Book Ratio of 7.28, a Price to Cash Flow Ratio of 9.09 and P/E Ratio of 14.03. These metrics all suggest that Celgene Corporation is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Celgene Corporation [CELG] earns $1,727,406 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 7.25 and its Total Asset Turnover is 0.47. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.12 and its Current Ratio is 2.23. 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.
Celgene Corporation [CELG] has 704.57M shares outstanding, amounting to a total market cap of $65.94B. Its stock price has been found in the range of 58.59 to 98.97. At its current price, it has moved down by -6.79% from its 52-week high, and it has moved up 57.45% from its 52-week low.
This stock’s Relative Strength Index (RSI) is at 38.73. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Celgene Corporation [CELG] a Reliable Buy?
Shares of Celgene Corporation [CELG], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.