NYSE:AGN
$64.00
(3/19 4:00PM)
+0.5%
| Open | $63.84 |
Mkt Cap | $19.5 Billion |
| High | $64.86 |
52Wk High | $64.86 |
| Low | $63.57 |
52Wk Low | $43.01 |
| Volume | 2.4 Million |
Avg Vol 10D | 1.6 Million |
AGN Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at AGN through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 6.46x and 4.11x respectively.
Utilizing this range we can see that AGN’s current Price to Sales per share ratio of 4.32x is significantly below its average levels historically. In fact, with a current price of $64.00, AGN is a full 19% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for AGN.
AGN Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of AGN, Ockham views their current Cash Earnings as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for AGN, the current level of Cash Earnings compared to its historical levels helps identify where AGN is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 47.42 and a historical low Cash Earnings per share ratio of 29.82, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for AGN? From the Ockham perspective, we are looking specifically at AGN to see if the market is recognizing the huge disparity between AGN's past stock price to Cash Earnings ratio to today's levels. At a difference of 45% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at AGN. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
AGN Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from AGN against the historic high and low levels over an available data range. Because AGN has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In AGN’s case, the estimated annual dividend is $0.20 producing a current dividend yield of 0.31%. The highest dividend yield from AGN in recent history was 0.71% while the lowest dividend yield was 0.28%. It is never a good sign for a company to pay significantly lower dividends, in this case 37.37% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
Interested in AGN? See What the Pundits Said on The Razor's Edge
Allergan, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on The Razor's Edge.
Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards AGN and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Allergan, Incorporated has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on AGN because it trades within the price range that we would expect given current market conditions and fundamentals.
“… “Now, for a long time botox, made by ALLERGAN, a stock you know we like, has been synonymous with smooth skin. But now Medicis we’ve likened, MRX as the Pepsi to ALLERGAN’s Coke, ... …”
What Is The Razor's Edge Saying About AGN's Balance Sheet?
Financial strength is a characteristic of most stocks that our methodology tends to look favorably on, and AGN's balance sheet was recently in the news.
Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards AGN and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Allergan, Incorporated has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on AGN because it trades within the price range that we would expect given current market conditions and fundamentals.
“… But we know dividend hikes are an important sign of strength in a company… It’s still trading at just 12 times 2011 earnings…much cheaper than ALLERGAN at 17 times earnings, even ... …”
Earnings Per Share at AGN Were on the Docket at The Razor's Edge
The Razor's Edge discussed earnings per share, which is one of the metrics we look at most closely. At Ockham, anytime earnings are discussed we must pay attention.
We noticed recently that in comparison to all other stocks we analyze in the news; AGN has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. Allergan, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… Just last week, we wrote about the fact that botox received FDA approval for an actual medical treatment rather than cosmetic uses (ALLERGAN Gets FDA Approval: Botox Has a ... …”
The AGN Balance Sheet Was Discussed on Mad Money
The balance sheet is a key indicator of a company's financial standing; AGN's was discussed not long ago on Mad Money.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Allergan, Incorporated has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on AGN because it trades within the price range that we would expect given current market conditions and fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards AGN and think that it will generally perform in-line with the S&P 500.
“… Much cheaper than ALLERGAN at 17 times earnings. Even though they really have similar growth rates. Although ALLERGAN's got a more diversified portfolio. …”
See More News on AGN from Mad Money
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on AGN from Mad Money.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Allergan, Incorporated has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on AGN because it trades within the price range that we would expect given current market conditions and fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards AGN and think that it will generally perform in-line with the S&P 500.
“… Now, for a long time botox, made by ALLERGAN, a stock you know we like, has been synonymous with smooth skin. But now medicis we've liked, mrx, the pope to ALLERGAN's coke has ... …”
AGN News Mentioned on Zero Hedge Recently
News has broken via the television and viral blogs regarding AGN, so investors should take an interest in learning what was said.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AGN has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Allergan, Incorporated will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AGN.
“… RECENT RATING ACTIONSTEEKAY CORP (TK)KROGER CO/THE (KR)ZIONS BANCORPORATION (ZION)US CONCRETE INC (RMIX)NAVISTAR INTERNATIONAL CORP (NAV)ALLERGAN INC/UNITED STATES (AGN)MARSHALL & ... …”
AGN News Mentioned on The Razor's Edge Recently
News has broken via the television and viral blogs regarding AGN, so investors should take an interest in learning what was said.
The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. Allergan, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; AGN has received less coverage from the financial media in business television and blogs.
“… In fact, recently the ever boisterous Jim Cramer advocated buying ALLERGAN, “as a play on consumer vanity, which is as good a driver for business as any other economic factor. …”
Valuation and Allergan, Incorporated Mentioned on The Razor's Edge
The Razor's Edge covered valuation multiples and metrics related to Allergan, Incorporated. For a full fundamental valuation analysis on AGN visit the Ockham report.
Allergan, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; AGN has received less coverage from the financial media in business television and blogs.
“… ranges as a margin of safety, especially when they continue to show growth. ALLERGAN Gets FDA Approval: Botox Has a Medical …”
Interested in AGN? See What the Pundits Said on National Post Network Blogs
The latest news on National Post Network Blogs in regards to AGN came through on RazorWire recently.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Allergan, Incorporated will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AGN. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AGN has been less covered in the news compared to the rest of our universe of stocks.
“… ALLERGAN gained 2% after the company received FDA approval to market botox for additional health care purposes. Chevron was downgraded Bank of America/Merrill from Buy to ... …”
AGN and Analysts' Opinion Discussed on Fast Money
Analysts' opinions can often carry a lot of weight, especially when they make major news and are covered on Fast Money.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Allergan, Incorporated will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AGN. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AGN has been less covered in the news compared to the rest of our universe of stocks.
“… And then with ALLERGAN, you're talking about spending on something like -- eyelashes being longer and all that. $74 price target. These are barometers of the public. > > …”