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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 0.04
ACT's Cash to Debt is ranked lower than
61% of the 750 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.39 vs. ACT: 0.04 )
ACT' s 10-Year Cash to Debt Range
Min: 0.04   Max: 32.29
Current: 0.04

0.04
32.29
Equity to Asset 0.42
ACT's Equity to Asset is ranked higher than
51% of the 712 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 0.60 vs. ACT: 0.42 )
ACT' s 10-Year Equity to Asset Range
Min: 0.27   Max: 0.9
Current: 0.42

0.27
0.9
F-Score: 4
Z-Score: 2.01
M-Score: -2.70
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) -4.88
ACT's Operating margin (%) is ranked higher than
53% of the 710 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 9.34 vs. ACT: -4.88 )
ACT' s 10-Year Operating margin (%) Range
Min: -21.33   Max: 37.1
Current: -4.88

-21.33
37.1
Net-margin (%) -8.65
ACT's Net-margin (%) is ranked higher than
51% of the 710 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 7.48 vs. ACT: -8.65 )
ACT' s 10-Year Net-margin (%) Range
Min: -22.48   Max: 35.15
Current: -8.65

-22.48
35.15
ROE (%) -7.87
ACT's ROE (%) is ranked higher than
51% of the 713 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 7.00 vs. ACT: -7.87 )
ACT' s 10-Year ROE (%) Range
Min: -26.48   Max: 18.58
Current: -7.87

-26.48
18.58
ROA (%) -3.30
ACT's ROA (%) is ranked higher than
53% of the 742 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 3.94 vs. ACT: -3.30 )
ACT' s 10-Year ROA (%) Range
Min: -11.83   Max: 16.62
Current: -3.3

-11.83
16.62
ROC (Joel Greenblatt) (%) -14.30
ACT's ROC (Joel Greenblatt) (%) is ranked higher than
53% of the 732 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 14.50 vs. ACT: -14.30 )
ACT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -34.73   Max: 83.61
Current: -14.3

-34.73
83.61
Revenue Growth (%) 28.50
ACT's Revenue Growth (%) is ranked higher than
90% of the 552 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 5.10 vs. ACT: 28.50 )
ACT' s 10-Year Revenue Growth (%) Range
Min: 6.4   Max: 40.5
Current: 28.5

6.4
40.5
EBITDA Growth (%) -2.90
ACT's EBITDA Growth (%) is ranked higher than
64% of the 507 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.80 vs. ACT: -2.90 )
ACT' s 10-Year EBITDA Growth (%) Range
Min: -4.4   Max: 52.9
Current: -2.9

-4.4
52.9
» ACT's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

ACT Guru Trades in Q2 2013

Andreas Halvorsen 1,419,750 sh (New)
Louis Moore Bacon 20,000 sh (New)
Eric Mindich 500,000 sh (New)
Paul Tudor Jones 103,200 sh (+2006.12%)
Scott Black 114,639 sh (+35.23%)
Pioneer Investments 880,751 sh (-3.85%)
Steven Cohen 407,895 sh (-34.3%)
Francis Chou 185,400 sh (-44.72%)
Mario Gabelli 24,500 sh (-48.96%)
Vanguard Health Care Fund 986,000 sh (-54.55%)
Jim Simons 13,864 sh (-94.66%)
» More
Q3 2013

ACT Guru Trades in Q3 2013

RS Investment Management 180,834 sh (New)
Andreas Halvorsen 3,248,936 sh (+128.84%)
Mario Gabelli 39,659 sh (+61.87%)
Vanguard Health Care Fund 986,000 sh (unchged)
Eric Mindich 500,000 sh (unchged)
Louis Moore Bacon Sold Out
Jim Simons Sold Out
Pioneer Investments 839,291 sh (-4.71%)
Scott Black 90,159 sh (-21.35%)
Francis Chou 76,705 sh (-58.63%)
Steven Cohen 42,936 sh (-89.47%)
Paul Tudor Jones 1,400 sh (-98.64%)
» More
Q4 2013

ACT Guru Trades in Q4 2013

Private Capital 172,950 sh (New)
John Griffin 1,310,000 sh (New)
Diamond Hill Capital 93,086 sh (New)
Jim Simons 197,625 sh (New)
George Soros 25,000 sh (New)
Jeremy Grantham 18,296 sh (New)
RS Investment Management 1,058,482 sh (+485.33%)
Steven Cohen 56,514 sh (+31.62%)
Paul Tudor Jones 1,700 sh (+21.43%)
Daniel Loeb 15,000 sh (unchged)
Vanguard Health Care Fund 986,000 sh (unchged)
Eric Mindich 500,000 sh (unchged)
Mario Gabelli 39,371 sh (-0.73%)
Pioneer Investments 806,036 sh (-3.96%)
Andreas Halvorsen 2,931,923 sh (-9.76%)
Scott Black 81,068 sh (-10.08%)
Francis Chou 35,400 sh (-53.85%)
» More
Q1 2014

ACT Guru Trades in Q1 2014

Scott Black 67,883 sh (-16.26%)
» More
» Details

Insider Trades

Latest Guru Trades with ACT

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Scott Black 2014-03-31 Reduce -16.26%0.24%$165.64 - $227.26 $ 203.514%67883
John Griffin 2013-12-31 New Buy2.3%$137.3 - $166.73 $ 203.5130%1310000
Scott Black 2013-12-31 Reduce -10.08%0.15%$137.3 - $166.73 $ 203.5130%81068
George Soros 2013-12-31 New Buy0.04%$137.3 - $166.73 $ 203.5130%25000
Scott Black 2013-09-30 Reduce -21.35%0.36%$122.08 - $144.3 $ 203.5153%90159
Mario Gabelli 2013-09-30 Add 61.87%0.01%$122.08 - $144.3 $ 203.5153%39659
Scott Black 2013-06-30 Add 35.23%0.44%$92.46 - $130.2 $ 203.5180%114639
Vanguard Health Care Fund 2013-06-30 Reduce -54.55%0.43%$92.46 - $130.2 $ 203.5180%986000
Mario Gabelli 2013-06-30 Reduce -48.96%0.01%$92.46 - $130.2 $ 203.5180%24500
Leon Cooperman 2013-03-31 Sold Out 1.5%$83.1 - $92.11 $ 203.51134%0
Vanguard Health Care Fund 2013-03-31 Add 44.63%0.24%$83.1 - $92.11 $ 203.51134%2169400
Scott Black 2013-03-31 Reduce -16.42%0.21%$83.1 - $92.11 $ 203.51134%84775
Mario Gabelli 2013-03-31 New Buy0.03%$83.1 - $92.11 $ 203.51134%48000
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Actavis PLC

Francis Chou Comments on Actavis Inc. - Sep 05, 2013

Another big winner was Actavis Inc. (ACT), formerly Watson Pharmaceutical. We first purchased Actavis in 2006 at $25. We kept buying the shares in 2007, and on June 30, 2013, it was priced at $126.22. It shows that when you are accurate in your estimation of intrinsic value and buy them at a significant discount, add in good management and respectable growth in intrinsic value, the investment works out really well. This is true even if you bought them when the market indices were trading at an all-time high. "Value traps" generally occur when you are wrong in your estimation of intrinsic value, pay too much and the company's intrinsic value is static and/or decreasing in value.

From Francis Chou's semi-annual report 2013.

Check out Francis Chou latest stock trades

Top Ranked Articles about Actavis PLC

Weekly 52-Week Highs Highlight: ACT, NVO, NXPI, WYNN
According to GuruFocus list of 52-week highs; Actavis PLC, Novo Nordisk A/S, NXP Semiconductor NV and Wynn Resorts Ltd. have all reached their 52 week highs. Read more...
Francis Chou Comments on Actavis Inc.
Another big winner was Actavis Inc. (ACT), formerly Watson Pharmaceutical. We first purchased Actavis in 2006 at $25. We kept buying the shares in 2007, and on June 30, 2013, it was priced at $126.22. It shows that when you are accurate in your estimation of intrinsic value and buy them at a significant discount, add in good management and respectable growth in intrinsic value, the investment works out really well. This is true even if you bought them when the market indices were trading at an all-time high. "Value traps" generally occur when you are wrong in your estimation of intrinsic value, pay too much and the company's intrinsic value is static and/or decreasing in value. Read more...

Ratios

vs
industry
vs
history
P/B 3.72
ACT's P/B is ranked higher than
56% of the 700 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.84 vs. ACT: 3.72 )
ACT' s 10-Year P/B Range
Min: 1.08   Max: 5.9
Current: 3.72

1.08
5.9
P/S 3.34
ACT's P/S is ranked higher than
50% of the 722 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.99 vs. ACT: 3.34 )
ACT' s 10-Year P/S Range
Min: 0.99   Max: 4
Current: 3.34

0.99
4
PFCF 33.92
ACT's PFCF is ranked higher than
61% of the 330 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 24.86 vs. ACT: 33.92 )
ACT' s 10-Year PFCF Range
Min: 6.64   Max: 119.1
Current: 33.92

6.64
119.1
EV-to-EBIT -105.27
ACT's EV-to-EBIT is ranked lower than
76% of the 593 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 19.45 vs. ACT: -105.27 )
ACT' s 10-Year EV-to-EBIT Range
Min: 8.8   Max: 144.6
Current: -105.27

8.8
144.6
Shiller P/E 351.75
ACT's Shiller P/E is ranked lower than
73% of the 362 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 25.59 vs. ACT: 351.75 )
ACT' s 10-Year Shiller P/E Range
Min: 15.1   Max: 391.83
Current: 351.75

15.1
391.83

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 2.34
ACT's Price/DCF (Projected) is ranked higher than
59% of the 346 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.70 vs. ACT: 2.34 )
ACT' s 10-Year Price/DCF (Projected) Range
Min: 0.59   Max: 2.96
Current: 2.34

0.59
2.96
Price/Median PS Value 1.83
ACT's Price/Median PS Value is ranked lower than
62% of the 665 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.10 vs. ACT: 1.83 )
ACT' s 10-Year Price/Median PS Value Range
Min: 0.67   Max: 5.41
Current: 1.83

0.67
5.41
Earnings Yield (Greenblatt) 0.70
ACT's Earnings Yield (Greenblatt) is ranked lower than
68% of the 595 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 4.80 vs. ACT: 0.70 )
ACT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.7   Max: 11.4
Current: 0.7

0.7
11.4
Forward Rate of Return (Yacktman) 4.68
ACT's Forward Rate of Return (Yacktman) is ranked higher than
77% of the 532 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.45 vs. ACT: 4.68 )
ACT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -4.4   Max: 16.2
Current: 4.68

-4.4
16.2

Business Description

Industry: Drug Manufacturers » Drug Manufacturers - Specialty & Generic
Compare:TKPYY, TEVA, AGN, FRX, MRX » details
Traded in other countries:WAP1.Germany
Actavis, Inc. was is incorporated in 1985. The company's initial public offering was in February 1993. It is a global, integrated specialty pharmaceutical company focused on developing, manufacturing and distributing generic, brand and biosimilar products. The Company has global and U.S. headquarters in Parsippany, New Jersey, USA, and international headquarters in Zug, Switzerland. On October 31, 2012, Watson Pharmaceuticals, Inc. completed the acquisition of the company's Group. Watson Pharmaceuticals, Inc. common stock was traded on the New York Stock Exchange under the symbol WPI until close of trading on January 23, 2013, at which time Watson Pharmaceuticals, Inc. changed its corporate name to Actavis, Inc. and changed its ticker symbol to ACT. The Company develops and out-license generic pharmaceutical products primarily in Europe through its Medis third-party business. Following the renaming, the Company also changed the name of its three reporting segments. The Global Generics segment has become Actavis Pharma, Global Brands has become Actavis Specialty Brands, and Distribution has become Anda Distribution. The Actavis Pharma segment includes off-patent pharmaceutical products that are therapeutically equivalent to proprietary products. The Actavis Specialty Brands segment includes patent-protected products and certain trademarked off-patent products that the Company sells and markets as brand pharmaceutical products. The Anda Distribution segment mainly distributes generic pharmaceutical products manufactured by third parties, as well as by the Company, primarily to independent pharmacies, pharmacy chains, pharmacy buying groups and physicians' offices. The Anda Distribution segment operating results exclude sales by Anda of products developed, acquired, or licensed by the Company's Actavis Pharma and Actavis Specialty Brands segments. The Actavis Pharma segment develops, manufactures, markets, sells and distributes generic, branded generic and OTC products. The Actavis Specialty Brands segment includes key promoted products such as Rapaflo, Gelnique, Crinone, Trelstar, GeneressTM Fe, Androderm, and Kadian and a number of non-promoted products. All pharmaceutical manufacturers, including the Company, are subject to extensive, complex and evolving regulation by the federal government, principally the FDA, and to a lesser extent, by the U.S. Drug Enforcement Administration Occupational Safety and Health Administration and state government agencies, as well as by various regulatory agencies in foreign countries where its products or product candidates are being manufactured and/or marketed. The Federal Food, Drug and Cosmetic Act, the Controlled Substances Act and other federal statutes and regulations govern or influence the testing, manufacturing, packing, labeling, storing, record keeping, safety, approval, advertising, promotion, sale and distribution of its products.

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