Valeant Stock Analysis (NYSE:VRX)

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$16.4 $0.36 (2.24%) VRX stock closing price Feb 21, 2017 (Closing)
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Valeant
Updated on : Feb 21, 2017
previous close
VRX 16.4 (0%)
S&P 500 2365.4 (0%)
Closing Price On: Feb 21, 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:
-1.1%
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 :
0.6
Industry PS :
4.6
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 (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.

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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