Aralez Pharma Stock Analysis (NASDAQ:ARLZ)

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$2.19 $0.04 (1.79%) ARLZ stock closing price Mar 24, 2017 (Closing)
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Aralez Pharma
Updated on : Mar 24, 2017
previous close
ARLZ 2.2 (0%)
S&P 500 2344 (0%)
Closing Price On: Mar 24, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Drugs
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2016-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-1.3%
Operating Profit
Operating Margin:
-219.9%
Sector Average:
-1.1%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Debt/Equity Ratio
Debt:
74.5M
Debt/Equity Ratio:
 0.5
Compared to the industry
Cash Flow
Operating cash flow:
-$10.9M
Net Income:
-$20.6M
PROS      CONS
Recent Growth
PS Valuation
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
ARLZ PS :
2.6
Industry PS :
4.7
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-93.3%
Return on Equity:
-77.7%
Free Cash Flow Margin:
-90.2%
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Aralez Pharma Analysis Video

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View Aralez Pharma stock analysis video. This is our ARLZ analyst opinion covering the buy and sell arguments for ARLZ stock.

Aralez Pharmaceuticals Inc Stock Rating (2/5)

Our Aralez Pharma stock opinion is based on fundamentals of the company. This Aralez Pharma stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy ARLZ stock?

  • Aralez Pharma's revenue growth came in at 134.2% in 2016 Q3.
  • ARLZ stock is trading at a favorable price to sales multiple of 2.6 as against the Medical-Drugs industry average multiple of 4.7.

Should you sell ARLZ stock?

  • The company saw an average annual sales decline of -1.3% in sales over the last 5 years.
  • Over the last twelve months, Aralez Pharma posted an average operating loss margin of -219.9%.
  • Over the last 12 months, Aralez Pharma had an average Net loss of -211.7%.
  • With a debt/equity ratio of  0.5, Aralez Pharma is highly leveraged in comparison to Medical peers.
  • The lack of profits renders the PE ratio useless for ARLZ stock.
  • Aralez Pharma's negative ROIC of -93.3% indicates operational inefficiency.
  • A negative ROE of -77.7% indicates that the company is not able to generate profits with the money shareholders have invested.
  • Aralez Pharma has a negative FCF (Free Cash Flow) margin of -90.2%.

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