NYSE:AGN

Stock Analysis Report

Executive Summary

Allergan plc, a pharmaceutical company, develops, manufactures, and commercializes branded pharmaceutical, device, biologic, surgical, and regenerative medicine products worldwide.

Rewards

Trading at 40.2% below its fair value

Earnings are forecast to grow 145.36% per year

Risk Analysis

No risks detected for AGN from our risk checks.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.0%

AGN

4.6%

US Pharmaceuticals

2.4%

US Market


1 Year Return

24.8%

AGN

-2.0%

US Pharmaceuticals

-10.0%

US Market

Return vs Industry: AGN exceeded the US Pharmaceuticals industry which returned -3.4% over the past year.

Return vs Market: AGN exceeded the US Market which returned -13.3% over the past year.


Shareholder returns

AGNIndustryMarket
7 Day2.0%4.6%2.4%
30 Day-4.3%-3.1%-11.0%
90 Day-5.6%-7.9%-19.4%
1 Year27.1%24.8%0.5%-2.0%-8.1%-10.0%
3 Year-19.9%-23.9%18.6%10.0%17.3%9.6%
5 Year-35.6%-38.9%18.5%5.4%36.1%21.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

38.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGN ($178.26) is trading below our estimate of fair value ($298.04)

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


Price To Earnings Ratio

PE vs Industry: AGN is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: AGN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AGN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AGN is good value based on its PB Ratio (1x) compared to the US Pharmaceuticals industry average (2.3x).


Next Steps

Future Growth

How is Allergan forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

145.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: AGN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AGN's is expected to become profitable in the next 3 years.

Revenue vs Market: AGN's revenue (1.3% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: AGN's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AGN's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Allergan performed over the past 5 years?

-18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGN is currently unprofitable.

Growing Profit Margin: AGN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AGN is unprofitable, and losses have increased over the past 5 years at a rate of -18% per year.

Accelerating Growth: Unable to compare AGN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AGN is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-0.2%).


Return on Equity

High ROE: AGN has a negative Return on Equity (-9.05%), as it is currently unprofitable.


Next Steps

Financial Health

How is Allergan's financial position?


Financial Position Analysis

Short Term Liabilities: AGN's short term assets ($11.1B) exceed its short term liabilities ($11.1B).

Long Term Liabilities: AGN's short term assets ($11.1B) do not cover its long term liabilities ($25.4B).


Debt to Equity History and Analysis

Debt Level: AGN's debt to equity ratio (38.9%) is considered satisfactory.

Reducing Debt: AGN's debt to equity ratio has reduced from 55% to 38.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable AGN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AGN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 24.1% per year.


Next Steps

Dividend

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

1.63%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AGN's dividend (1.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: AGN's dividend (1.66%) is low compared to the top 25% of dividend payers in the US market (5.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AGN has been paying a dividend for less than 10 years.

Growing Dividend: AGN's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: AGN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: AGN's dividends in 3 years are forecast to be well covered by earnings (17.8% payout ratio).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Brent Saunders (49yo)

5.75s

Tenure

US$6,624,473

Compensation

Mr. Brenton L. Saunders, also known as Brent, J.D., has been the Chairman of the Board at Allergan plc since October 26, 2016 and also has been its Chief Executive Officer and President since July 1, 2014. ...


CEO Compensation Analysis

Compensation vs Market: Brent's total compensation ($USD6.62M) is below average for companies of similar size in the US market ($USD11.96M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brenton Saunders
Chairman5.75yrsUS$6.62m0.070% $41.5m
Matthew Walsh
Executive VP & CFO2.17yrsUS$10.54m0.0037% $2.2m
A. Robert Bailey
Executive VP5.75yrsUS$2.80m0.011% $6.3m
William Meury
Executive VP & Chief Commercial Officer5.75yrsUS$3.71m0.010% $6.1m
C. Nicholson
Executive VP and Chief R&D Officer5.67yrsUS$3.26m0.0093% $5.6m
Wayne Swanton
Executive Vice President of Global Operations2.33yrsno data0.0054% $3.2m
James D'Arecca
Chief Accounting Officer6.67yrsno data0.0022% $1.3m
Manisha Narasimhan
Vice President of Investor Relations & Strategic Initiatives1.33yrsno datano data
John Kelly
Executive VP & Chief Communications Officer5yrsno datano data
Brent Hauser
Vice President of Sales & Marketingno datano datano data

5.7yrs

Average Tenure

51yo

Average Age

Experienced Management: AGN's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brenton Saunders
Chairman5.75yrsUS$6.62m0.070% $41.5m
Christopher Bodine
Independent Director10.83yrsUS$473.87k0.0053% $3.2m
Thomas Freyman
Independent Director1.83yrsUS$397.91k0.00058% $345.5k
Christopher Coughlin
Lead Independent Director3.5yrsUS$499.87k0.0084% $5.0m
Carol Davidson
Independent Director1.92yrsUS$449.87k0.00031% $184.7k
Adriane Brown
Independent Director3.17yrsUS$449.87k0.00056% $333.6k
Nesli Basgoz
Independent Director5.75yrsUS$473.87k0.0019% $1.1m
Peter McDonnell
Independent Director5.08yrsUS$449.87k0.0016% $953.2k
Michael Greenberg
Independent Director1.67yrsUS$331.19k0.00019% $113.2k
Joseph Boccuzi
Independent Director3.25yrsUS$449.87k0.00077% $458.7k

3.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: AGN's board of directors are considered experienced (3.4 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

Allergan plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Allergan plc
  • Ticker: AGN
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$59.576b
  • Shares outstanding: 329.00m
  • Website: https://www.allergan.com

Number of Employees


Location

  • Allergan plc
  • Clonshaugh Business and Technology Park
  • Coolock
  • Dublin
  • Co. Dublin
  • D17 E400
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGNNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1993
A60DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1993
AGN NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 1993
0Y7TLSE (London Stock Exchange)YesCommon StockGBUSDFeb 1993
AGNBASE (Buenos Aires Stock Exchange)CEDEAR EACH 8 REP 1 COM USD0.0001ARARSApr 2019

Biography

Allergan plc, a pharmaceutical company, develops, manufactures, and commercializes branded pharmaceutical, device, biologic, surgical, and regenerative medicine products worldwide. The company operates in three segments: US Specialized Therapeutics, US General Medicine, and International. It offers a portfolio of products in various therapeutic areas, including medical aesthetics and dermatology, eye care, neuroscience, urology, gastrointestinal, central nervous system, women’s health, and anti-infective therapeutic products. The company also offers breast implants and tissue expanders; In addition, it develops medical and cosmetic treatments; treatments for neurodegenerative disorders; and inflammatory and fibrotic diseases. It has a collaboration, option, and license agreement with Lyndra, Inc. to develop orally administered products for the treatment of Alzheimer’s disease; strategic alliance and option agreement with Editas Medicine, Inc.; and Allergan plc also has licensing agreements with Assembly Biosciences, Inc. The company was formerly known as Actavis plc and changed its name to Allergan plc in June 2015. Allergan plc was incorporated in 2013 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 01:03
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.