ENDP Investment Analysis Report & Stock Research, Endo Pharmaceuticals Holdings, Inc.

Endo Pharmaceuticals Holdings, Incorporated (ENDP)

ENDP Stock Report

2-Year Price History

View Larger ENDP Chart
NASDAQ:ENDP
$24.14
(3/17 4:00PM)
+0.5%
Open$24.08 Mkt Cap$2.8 Billion
High$24.57 52Wk High$24.57
Low$23.93 52Wk Low$15.75
Volume1.9 Million Avg Vol 10D1.4 Million

Ockham's Rating/Recommendation Summary

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ENDP 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 ENDP 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 4.73x and 2.68x respectively.

Utilizing this range we can see that ENDP’s current Price to Sales per share ratio of 1.91x is significantly below its average levels historically. In fact, with a current price of $23.82, ENDP is a full 49% 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 ENDP.

ENDP Cash Earnings

As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently ENDP is significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from ENDP. For example, ENDP's Cash Earnings ratio per share has fluctuated between 13.15 and 24.39 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where ENDP is with respect to prior business periods.

So with ENDP's current price (latest close of $23.82) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, ENDP is 60% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with ENDP.

ENDP Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company. Although they may currently pay a dividend, our data source has no historical record of it for ENDP. Since we cannot apply our historical trend analysis to dividends for ENDP we have a neutral score for the dividend portion of our analysis.

Peer Comparison

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Endo Pharmaceuticals Holdings, Inc. Industry Grouping

(3/17/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including ENDP) 20.90 5.32 » 250.77 3.15 1.36 » 19.33 12.89% 23.48%
*10 year range does not include current year values
NBTY, Inc. NTY $3.1 Billion $49.29 11.37 2.91 » 14.98 1.18 0.29 » 1.84 9.34% 14.42%
United Therapeutics Corp. UTHR $3.1 Billion $56.79 66.77 13.39 » 117.77 8.68 4.01 » 64.71 38.12% 13.88%
King Pharmaceuticals, Inc. KG $3.1 Billion $12.44 8.58 4.06 » 1031.00 1.73 0.82 » 13.08 6.37% 5.93%
Endo Pharmaceuticals Holdings, Inc. ENDP $2.8 Billion $24.14 7.63 5.02 » 49.77 1.91 1.26 » 5.82 18.89% 19.16%
Herbalife, Ltd. HLF $2.6 Billion $43.50 9.88 2.77 » 31.79 1.13 0.32 » 1.57 12.16% 69.74%
Biovail Corp BVF $2.5 Billion $15.93 7.88 3.45 » 58.30 3.01 1.38 » 15.44 -1.54% 13.42%
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The Latest Financial News
The most recent Stocks on Financial TV & Blogs from impactful financial news sources
Happy Hour

ENDP's Back in the News After More than a Month on Happy Hour

It's been at least a month since we noticed any major news coverage of ENDP, so the story in Happy Hour may get the ball rolling.

This stock is trading for a price that is well below where we would expect given the fundamental strength, so we have a stance of Greatly Undervalued as of our most recent report. We noticed recently that in comparison to all other stocks we analyze in the news; ENDP has received less coverage from the financial media in business television and blogs. The latest news on ENDP has created quite a stir as the stock is trading $1.18 higher in today's session. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.

“… socialistic. Government, whether private industry administering policies, it is government, my taxpayers ENDP paying for …”

Cavuto

ENDP Back in the News on Cavuto

There has not been much to report from ENDP in the last few weeks at least, but Cavuto talked about the stock recently.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Endo Pharmaceuticals Holdings, Incorporated has actually sunk a bit in comparison to the others. As for Ockham's rating, we currently have our most bullish stance of Greatly Undervalued on this stock as it is currently trading well below the price we would expect given the fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.

“… No, we're ending up, we'll ENDP paying price tag on this one. Will tighten up in the short term and taxpayers pay the. …”

Squawk Box

New Attention Being Paid to Endo Pharmaceuticals Holdings, Incorporated on Squawk Box, The First in Half a Year

ENDP has not been a media darling in the last six months, but they have started to pay attention as you can see by the story on Squawk Box.

We noticed recently that in comparison to all other stocks we analyze in the news; ENDP has received less coverage from the financial media in business television and blogs. Based on our methodology, Endo Pharmaceuticals Holdings, Incorporated should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.

“… He sold all of his shares of ENDO PHARMACEUTICALS. Meantime, he decreased his holdings of yahoo! Now to $50. 3 million from $60. 5 million. …”

Closing Bell

Endo Pharmaceuticals Holdings, Incorporated (ENDP) Discussed on CNBC's Closing Bell

Endo Pharmaceuticals Holdings, Incorporated is in the news. Find out how this impacts ENDP trading on Ockham Research.

And biopharma, one giant step for mankind. That company filing for fda approval this afternoon of inhaleable diabetic inside lins up 7%. ENDO PHARMACEUTICALS up 3% on an analyst upgrade. And on the flip side united therapeutics down about 10% because of an fda delay in make a decision on a drug in its pipeline. Cv therapeutics down 5% because

“… n fda delay in make a decision on a drug in its pipeline. Cv therapeutics down 5% because …”

Squawk On The Street

Endo Pharmaceuticals Holdings, Incorporated (ENDP) Discussed on CNBC's Squawk On The Street

Endo Pharmaceuticals Holdings, Incorporated is in the news. Find out how this impacts ENDP trading on Ockham Research.

Because the tech trader column in "barron's" over the weekend that called ebay a value trap. Those are his words, not mine. We're talking about ENDO PHARMACEUTICALS up 2.5% on an upgrade based on valuation. Then two others with therapeutic in their name that are in need of therapy.

“… hat are in need of therapy. …”

View All Endo Pharmaceuticals Holdings, Inc. Stock News

Key Fundamentals

ENDP - Endo Pharmaceuticals Holdings, Incorporated Fundamentals
Price (3/17 4:00PM) $24.14
Volume (3/17 4:00PM) 1.9 Million
Last Close Price $24.03
10 Day Average Volume 1.4 Million
13 Week Price Range $19.19 - $24.57
52 Week Price Range $15.75 - $24.57
LTM Revenue $1.5 Billion
 
Shares Outstanding (12/2009) 117.3 Million
Market Capitalization $2.8 Billion
Shares Held By Institutions 118.2 Million
Institutional Holders 351
% Shares Held By Institutions %
Earnings Per Share (EPS) $2.27
P/E Ratio 10.60
Book Value Per Share $12.77
 
Gross Margin 81.20%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 0.49
Fiscal Year Ends December

About Endo Pharmaceuticals Holdings, Inc.

Endo Pharmaceuticals Holdings, Incorporated is considered to operate in the Healthcare sector. They specifically operate in the Drug Manufacturers/Other business segment contained within the Drugs industry.

A specialty pharmaceutical company, which is engaged in the research, development, sale and marketing of branded and generic prescription pharmaceuticals used to treat and manage pain.