Shire Stock Analysis, Valuation (NASDAQ:SHPG)
View the Shire stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for SHPG 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.
Shire PLC (ADR) Stock Rating 4.1/5
Amigobulls SHPG stock analysis takes into account various financial ratios like relative valuation, Shire revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Shire dividend performance. Shire valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our Shire stock rating is based on company's fundamentals like balance sheet risk and cash flow position.
Should you buy SHPG stock?
- Shire's average operating margin of 17.27 was exceptional.
- LTM Net margins were good at 29% for Shire.
- The operating cash flow looks good at 1.8349 times the net income.
- The price to earnings multiple of 11 is attractive when compared with the sector average PE ratio of 24.5.
- The lower PS ratio 3.4 for SHPG stock versus Medical sector average of 6.2 is a positive for the company.
- Shire generates a high return on invested capital of 3.1.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Shire at 13.3.
- The company has a good Free Cash Flow (FCF) margin of 22.1.
Amigobulls Shire stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of SHPG stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
While doing a study of the company financials, Shire revenue growth and profit or net income are two main metrics which help in identifying whether SHPG stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about SHPG stock.