MNK- Embedded Expectations Analysis - 2019 03 27
Mallinckrodt Public Limited Company (MNK:USA) currently trades near historical lows relative to UAFRS-based (Uniform) Earnings, with a 6.5x Uniform P/E, implying bearish expectations for the firm. However, management is confident in Acthar sales growth, the potential of ongoing studies, and their ability to sustain free cash flow.Specifically, management is confident in the growth trajectory and stability of Acthar sales, and in the potential of rheumatoid arthritis and multiple sclerosis studies. Additionally, they are confident about their focus on maximizing their in-line portfolio value, international growth potential for INOMAX in cardiovascular surgeries, and the advantages of unit dosage studies for Acthar. Moreover, they are confident in their ability to sustain free cash flow, and pay down debt using proceeds from the separation of their Specialties and Generics business. Finally, they are confident in the transition of key customers from direct buying to wholesale, and in their CPP-1X/sulindac research potential.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.