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 (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.