Shire Stock Analysis (NASDAQ:SHPG)

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$171.94 $0.08 (0.05%) SHPG stock closing price Apr 21, 2017 (Closing)
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Shire
Updated on : Apr 21, 2017
previous close
SHPG 171.9 (0%)
S&P 500 2348.7 (0%)
Closing Price On: Apr 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Drugs
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
21.7%
Operating Profit
Operating Margin:
8.5%
Sector Average:
0.6%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
22.97B
Debt/Equity Ratio:
 0.79
Compared to the industry
Cash Flow
Operating cash flow:
$1.15B
Net Income:
$457.3M
Dividend Yield
SHPG dividend yield:
0.47%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Cash Flow
FCF Margin
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SHPG PS :
4.5
Industry PS :
4.6
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
1.6%
Return on Equity:
1.5%
Free Cash Flow Margin:
23.8%
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Shire Analysis Video

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View Shire stock analysis video. This is our SHPG analyst opinion covering the buy and sell arguments for SHPG stock.

Shire PLC (ADR) Stock Rating (3.5/5)

Our Shire stock opinion is based on fundamentals of the company. This Shire stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy SHPG stock?

  • Shire's revenue growth came in at 121.8% in 2016 Q4.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 21.7%.
  • Shire's average operating margin of 8.5% was exceptional.
  • Net margins stood at a healthy 2.9% (average) for Shire in the Trailing Twelve Months.
  • The company has an operating cash flow which is 2.5 times the net income. We see this as a positive signal.
  • The price to earnings multiple of 13.1 is attractive when compared with the industry average PE ratio of 21.5.
  • The company has a good Free Cash Flow (FCF) margin of 23.8%.

Should you sell SHPG stock?

  • With a debt/equity ratio of  0.79, Shire is highly leveraged in comparison to Medical peers.

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