Allergan Stock Analysis, Valuation (NYSE:AGN)

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$191.31 $1.2 (0.62%) AGN stock closing price Sep 21, 2018 (Closing)

Take a look at Amigobulls Allergan stock analysis video. Our analyst opinion covering the buy and sell arguments for AGN stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Allergan plc Ordinary Shares Stock Rating 3.3/5

Amigobulls AGN stock analysis relies on business fundamentals such as Allergan revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. We also use relative valuation metrics like PE ratio and price to sales ratio for Allergan valuation analysis. Our Allergan stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy AGN stock?

  • AGN stock is trading at an earnings multiple of 11.1 which is better than the sector average of 24.7.
  • AGN stock is trading at a favorable price to sales multiple of 4 as against the Medical sector average multiple of 6.6.
  • Allergan has a healthy FCF (Free Cash Flow) margin of 28.6.

Should you sell AGN stock?

  • Allergan reported an average operating margin of -32.39 over the Last Twelve Months (LTM).
  • Allergan posted an average Net loss of -10.3% in the last twelve months.
  • Allergan has a negative ROIC (Return on Invested Capital) of -0.9.
  • Allergan has a negative ROE (Return On Equity) of -2.3, indicating the company is not profitable.

Comments on this video and Allergan stock

Amigobulls Allergan stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

Allergan revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about AGN stock.