Valeant Stock Analysis (NYSE:VRX)
Valeant Analysis Video
View Valeant stock analysis video. This is our VRX analyst opinion covering the buy and sell arguments for VRX stock.
Valeant Pharmaceuticals Intl Inc Stock Rating (3.1/5)
Our Valeant stock opinion is based on fundamentals of the company. This Valeant stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy VRX stock?
- VRX stock is trading at an earnings multiple of 2.4 which is better than the industry average of 22.5.
- The lower PS ratio 0.6 for VRX stock versus Medical-Drugs industry average of 4.6 is a positive for the company.
- The company has a healthy free cash flow margin of 21.6%.
Should you sell VRX stock?
- Valeant registered a negative operating margin of -5.2% (average) over the Trailing Twelve Months (TTM).
- Valeant posted an average Net loss of -22.2% in the last twelve months.
- With a debt/equity ratio of 7.12, Valeant is highly leveraged in comparison to Medical peers.
- Valeant has a negative ROIC (Return on Invested Capital) of -1.4%.
- Valeant has a negative return on equity of -39.9%. This indicates that the firm is inefficient at generating profits.