Valeant Stock Analysis (NYSE:VRX)

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$15.24 $0.09 (0.59%) VRX stock closing price Jan 17, 2017 (Closing)
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Valeant
Updated on : Jan 17, 2017
previous close
VRX 15.2 (0%)
S&P 500 2267.9 (0%)
Closing Price On: Jan 17, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Drugs
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2016-Q3
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-5.2%
Sector Average:
-1.3%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Debt/Equity Ratio
Debt:
30.45B
Debt/Equity Ratio:
 7.12
Compared to the industry
Cash Flow
Operating cash flow:
$568.3M
Net Income:
-$1.22B
PROS      CONS
FCF Margin
PE Valuation
PS Valuation
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
VRX PS :
0.5
Industry PS :
4.5
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-1.4%
Return on Equity:
-39.9%
Free Cash Flow Margin:
21.6%
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Valeant Analysis Video

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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 (2.9/5)

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?

  • The price to earnings multiple of 2.3 is attractive when compared with the industry average PE ratio of 21.9.
  • VRX stock is trading at a favorable price to sales multiple of 0.5 as against the Medical-Drugs industry average multiple of 4.5.
  • The company has a good Free Cash Flow (FCF) margin of 21.6%.

Should you sell VRX stock?

  • Over the last twelve months, Valeant posted an average operating loss margin of -5.2%.
  • Valeant registered an average TTM Net loss of -22.2%.
  • Valeant has a debt/equity ratio of  7.12, which is worse than the average in the Medical sector.
  • 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.

Comments on this video and Valeant stock

arnulacroix22 on Valeant stock analysis ($173.26)
bullish
Watch Valeant Pharmaceuticals (VRX) stock @ current levels. The company said that it will acquire Salix Pharmaceuticals for $158.00 per share in cash. Check this out http://drstockpick.com/27356/stock-alert...
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