Allergan’s (AGN) International brands segment includes revenues from branded products and aesthetics products outside the US markets.
The US medical aesthetics segment includes facial aesthetics, medical dermatology products, and a wide range of silicone gel and saline breast implants for US markets only.
The US brands segment is the largest revenue contributor and includes cardiovascular, urology, central nervous system, eye care, women’s health, and infectious diseases.
Allergan (AGN) reported revenues of $15.1 billion in its 2015 results. This converts to a 124% revenue growth in 2015 and a 10% growth on a pro forma basis.
In November 2015, Pfizer (PFE) and Allergan entered into a definite merger agreement with hopes of becoming a new biopharmaceutical leader.
The fundamental factors affecting stock prices and valuation include the performance of the growth platforms as well as the exclusivity of blockbuster drugs.
Schlumberger’s one-year returns were -9% net of dividends but have been better than the VanEck Vectors Oil Services ETF (OIH).
Schlumberger’s EV (approximately the summation of its equity value and net debt), when scaled by TTM adjusted EBITDA, is higher than the peer average.
Schlumberger’s price-to-cash-flow multiple decreased in 2015 compared to 2009. From 2014 to 2015, SLB’s CFO decreased more than its share price.
In 2015, Schlumberger’s DPS increased by 25% to $2.00 compared to its $1.60 per share dividend in 2014. This reflects confidence in its growth prospects.
Schlumberger’s CFO decreased by 44% in 4Q15 over 4Q14. SLB generated about $2.2 billion CFO in 4Q15. But SLB’s revenues declined during the past year.
Schlumberger’s net debt to TTM EBITDA shot up from 4Q14 to 4Q15. In 4Q15, its net-debt-to-EBITDA multiple was 0.84, or 71% higher than one year ago.
Schlumberger’s revenues were in a downtrend from 1Q15 until 4Q15. Geographically, revenues from Schlumberger’s North America region declined the most, by 55%.
Despite the weakness in the energy sector, Schlumberger remains a strong OFS company because its business model is diversified.
Schlumberger’s management continued to restructure its workforce by reducing headcount in 4Q15. In 2015, it spent ~$500 million on technology acquisitions.
As of March 8, Schlumberger was trading at $72.70, which is ~12% lower than its price at the beginning of 2016. But OIH has declined by 22% in one year.
Alcoa’s technical indicators look bearish in the short term, especially as the “risk-on” sentiment has started to fade.
Commodity (GSG) prices are a key driver of Alcoa’s upstream earnings. In particular, investors should keep a close watch on aluminum and alumina prices.
Alcoa’s upstream business generated adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $2.0 billion in fiscal 2015.
As some things are not yet clear, it might be a bit premature to comment on Alcoa’s post-split valuation.