Mallinckrodt Stock Analysis, Valuation (NYSE:MNK)

Add to My Stocks
$19.27 $0.17 (0.87%) MNK stock closing price Jun 22, 2018 (Closing)

View the Mallinckrodt stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for MNK stock.

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.

Mallinckrodt PLC Stock Rating 3.5/5

Amigobulls MNK stock analysis takes into account various financial ratios like relative valuation, Mallinckrodt revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Mallinckrodt dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Mallinckrodt valuation analysis. Mallinckrodt stock rating is our opinion about the business fundamentals of the company.

Should you buy MNK stock?

  • Mallinckrodt's average operating margin of 10.96 was exceptional.
  • LTM Net margins were good at 57.6% for Mallinckrodt.
  • The price to earnings multiple of 2.7 is attractive when compared with the sector average PE ratio of 25.1.
  • The lower PS ratio 0.6 for MNK stock versus Medical sector average of 6.5 is a positive for the company.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Mallinckrodt at 30.3.

Should you sell MNK stock?

  • Mallinckrodt sales shrank by -29.4% year-over-year in 2018-03.
  • Over the last 5 years, the company registered a poor revenue growth of 7.1.
  • Mallinckrodt has a debt/equity ratio of 1.05, which is worse than the average in the -sectordesc- sector.
  • -327.6's negative ROIC of -327.6 indicates operational inefficiency.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -2.9.

Comments on this video and Mallinckrodt stock

Amigobulls Mallinckrodt stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of MNK stock. Company's fundamentals remain one of the key driver of MNK stock and helps investors in making good buy and sell decision.

Mallinckrodt revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Mallinckrodt stock.