NasdaqGS:MYL

Stock Analysis Report

Executive Summary

Mylan N.V., together with its subsidiaries, develops, licenses, manufactures, markets, and distributes generic, branded-generic, brand-name, and over-the-counter (OTC) pharmaceutical products in North America, Europe, and internationally.

Rewards

Trading at 52.6% below its fair value

Earnings are forecast to grow 27.81% per year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Profit margins (0.4%) are lower than last year (4.7%)



Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Mylan's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MYL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

MYL

-1.9%

US Pharmaceuticals

1.5%

US Market


1 Year Return

-31.2%

MYL

6.7%

US Pharmaceuticals

20.1%

US Market

Return vs Industry: MYL underperformed the US Pharmaceuticals industry which returned 6.7% over the past year.

Return vs Market: MYL underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

MYLIndustryMarket
7 Day-3.2%-1.9%1.5%
30 Day1.1%-2.8%1.4%
90 Day26.8%8.1%8.7%
1 Year-31.2%-31.2%9.4%6.7%22.7%20.1%
3 Year-47.9%-47.9%28.6%19.4%50.1%40.5%
5 Year-62.0%-62.0%24.6%11.8%73.1%54.1%

Price Volatility Vs. Market

How volatile is Mylan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mylan undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MYL ($21.9) is trading below our estimate of fair value ($46.17)

Significantly Below Fair Value: MYL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MYL is poor value based on its PE Ratio (237.6x) compared to the Pharmaceuticals industry average (21.7x).

PE vs Market: MYL is poor value based on its PE Ratio (237.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MYL is poor value based on its PEG Ratio (8.5x)


Price to Book Ratio

PB vs Industry: MYL is good value based on its PB Ratio (1x) compared to the US Pharmaceuticals industry average (3x).


Next Steps

Future Growth

How is Mylan forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

27.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MYL's forecast earnings growth (27.8% per year) is above the savings rate (1.7%).

Earnings vs Market: MYL's earnings (27.8% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MYL's revenue (1.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MYL's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MYL's Return on Equity is forecast to be low in 3 years time (18.4%).


Next Steps

Past Performance

How has Mylan performed over the past 5 years?

-24.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MYL has a large one-off loss of $919.8M impacting its September 30 2019 financial results.

Growing Profit Margin: MYL's current net profit margins (0.4%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: MYL's earnings have declined by -24.5% per year over the past 5 years.

Accelerating Growth: MYL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MYL had negative earnings growth (-91.3%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (2.4%).


Return on Equity

High ROE: MYL's Return on Equity (0.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mylan's financial position?


Financial Position Analysis

Short Term Liabilities: MYL's short term assets ($6.6B) exceed its short term liabilities ($4.6B).

Long Term Liabilities: MYL's short term assets ($6.6B) do not cover its long term liabilities ($14.9B).


Debt to Equity History and Analysis

Debt Level: MYL's debt to equity ratio (113.5%) is considered high.

Reducing Debt: MYL's debt to equity ratio has reduced from 235.8% to 113.5% over the past 5 years.

Debt Coverage: MYL's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: MYL's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: MYL has a low level of unsold assets or inventory.

Debt Coverage by Assets: MYL's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Mylan's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MYL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MYL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MYL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MYL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MYL is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MYL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Heather Bresch (50yo)

8.1yrs

Tenure

US$13,332,368

Compensation

Ms. Heather Bresch has been the Chief Executive Officer of Mylan N.V. since January 1, 2012 and its Executive Director since March 01, 2011. Ms. Bresch served as the President of Mylan N.V. from July, 2009 ...


CEO Compensation Analysis

Compensation vs Market: Heather's total compensation ($USD13.33M) is about average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Heather's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Heather Bresch
CEO & Executive Director8.1yrsUS$13.33m0.097% $11.0m
Rajiv Malik
President & Executive Director7yrsUS$9.51m0.096% $10.9m
Kenneth Parks
Chief Financial Officer3.7yrsUS$4.41m0.0029% $331.2k
Anthony Mauro
Chief Commercial Officer4.1yrsUS$4.45m0.020% $2.2m
Daniel Gallagher
0.8yrsUS$5.28m0.0033% $373.0k
Paul Campbell
Chief Accounting Officer0yrsno data0.0050% $564.0k
Melissa Trombetta
Head of Global Investor Relations0yrsno datano data
Dennis Zeleny
Chief Human Relations Officer2.4yrsno datano data
Deborah Autor
Senior VP6.8yrsno datano data
Joseph Haggerty
Corporate Secretary0yrsno datano data

4.1yrs

Average Tenure

53yo

Average Age

Experienced Management: MYL's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Heather Bresch
CEO & Executive Director8.1yrsUS$13.33m0.097% $11.0m
Rajiv Malik
President & Executive Director7yrsUS$9.51m0.096% $10.9m
JoEllen Dillon
Independent Non-Executive Director5.8yrsUS$405.04k0.0023% $263.4k
Neil Dimick
Independent Non-Executive Director14.3yrsUS$391.29k0.0091% $1.0m
Harry Korman
Non-Executive Director1.7yrsUS$285.02k0.0044% $501.9k
Melina Higgins
Independent Non-Executive Director7yrsUS$365.04k0.021% $2.3m
Robert Coury
Chairman of The Board3.7yrsUS$1.80m0.27% $30.3m
Randall Vanderveen
Non-Executive Director17.9yrsUS$335.04k0.0086% $967.6k
Mark Parrish
Vice Chairman & Lead Independent Director2.5yrsUS$468.79k0.0077% $871.5k
Robert Cindrich
Independent Non-Executive Director8.9yrsUS$358.79k0.0042% $470.2k

7.0yrs

Average Tenure

60yo

Average Age

Experienced Board: MYL's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mylan N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mylan N.V.
  • Ticker: MYL
  • Exchange: NasdaqGS
  • Founded: 1961
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$11.303b
  • Shares outstanding: 516.13m
  • Website: https://www.mylan.com

Number of Employees


Location

  • Mylan N.V.
  • Building 4
  • Trident Place
  • Hatfield
  • Herefordshire
  • AL10 9UL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MYLNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDFeb 1973
6MYDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 1973
MYL1SWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFFeb 1973
0R5PLSE (London Stock Exchange)YesOrdinary SharesGBUSDFeb 1973
MYLWBAG (Wiener Boerse AG)YesOrdinary SharesATEURFeb 1973
6MYETLX (Eurotlx)YesOrdinary SharesITEURFeb 1973
MYL NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNFeb 1973

Biography

Mylan N.V., together with its subsidiaries, develops, licenses, manufactures, markets, and distributes generic, branded-generic, brand-name, and over-the-counter (OTC) pharmaceutical products in North America, Europe, and internationally. It offers active pharmaceutical ingredients and finished dosage forms; and antiretroviral medicines to treat HIV/AIDS. The company also provides prescription products, such as EpiPen Auto-Injector; Perforomist Inhalation Solution; Dymista; Creon; and Influvac, as well as YUPELRI, an inhalation solution for the maintenance treatment of patients with chronic obstructive pulmonary diseases. In addition, it markets OTC products, including Cold-EEZE, MidNite, Vivarin, Brufen, CB12, and EndWarts. The company offers its products to therapeutic areas, such as cardiovascular, CNS and anesthesia, dermatology, diabetes and metabolism, gastroenterology, immunology, infectious disease, oncology, respiratory and allergy, and women’s health. Its customers include retail pharmacies, wholesalers and distributors, payers, and insurers and governments, as well as institutions, such as hospitals. Mylan N.V. has collaboration and license agreements with Pfizer Inc.; Momenta Pharmaceuticals, Inc.; TB Alliance; Theravance Biopharma, Inc.; Biocon Ltd.; and Fujifilm Kyowa Kirin Biologics Co. Ltd. The company was founded in 1961 and is based in Hatfield, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:12
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.