Switch to:

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 : 7/10

vs
industry
vs
history
Cash to Debt 0.72
FRX's Cash to Debt is ranked lower than
68% of the 700 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.66 vs. FRX: 0.72 )
Ranked among companies with meaningful Cash to Debt only.
FRX' s 10-Year Cash to Debt Range
Min: 0.72  Med: 10000.00 Max: No Debt
Current: 0.72
Equity to Asset 0.51
FRX's Equity to Asset is ranked lower than
67% of the 562 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 0.63 vs. FRX: 0.51 )
Ranked among companies with meaningful Equity to Asset only.
FRX' s 10-Year Equity to Asset Range
Min: 0.51  Med: 0.83 Max: 0.92
Current: 0.51
0.51
0.92
F-Score: 6
Z-Score: 4.43
M-Score: -3.04
WACC vs ROIC
1.89%
2.79%
WACC
ROIC
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 : 5/10

vs
industry
vs
history
Operating margin (%) 3.38
FRX's Operating margin (%) is ranked lower than
62% of the 658 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 7.76 vs. FRX: 3.38 )
Ranked among companies with meaningful Operating margin (%) only.
FRX' s 10-Year Operating margin (%) Range
Min: -23.98  Med: 25.87 Max: 37.5
Current: 3.38
-23.98
37.5
Net-margin (%) 4.52
FRX's Net-margin (%) is ranked lower than
56% of the 659 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 5.90 vs. FRX: 4.52 )
Ranked among companies with meaningful Net-margin (%) only.
FRX' s 10-Year Net-margin (%) Range
Min: -8.41  Med: 20.34 Max: 27.7
Current: 4.52
-8.41
27.7
ROE (%) 2.79
FRX's ROE (%) is ranked lower than
62% of the 685 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 6.19 vs. FRX: 2.79 )
Ranked among companies with meaningful ROE (%) only.
FRX' s 10-Year ROE (%) Range
Min: -3.29  Med: 17.52 Max: 31.28
Current: 2.79
-3.29
31.28
ROA (%) 1.88
FRX's ROA (%) is ranked lower than
58% of the 705 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 3.10 vs. FRX: 1.88 )
Ranked among companies with meaningful ROA (%) only.
FRX' s 10-Year ROA (%) Range
Min: -2.95  Med: 13.58 Max: 25.54
Current: 1.88
-2.95
25.54
ROC (Joel Greenblatt) (%) 17.44
FRX's ROC (Joel Greenblatt) (%) is ranked higher than
59% of the 703 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 11.97 vs. FRX: 17.44 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
FRX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -23.07  Med: 88.52 Max: 192.34
Current: 17.44
-23.07
192.34
Revenue Growth (3Y)(%) -4.20
FRX's Revenue Growth (3Y)(%) is ranked lower than
78% of the 541 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 5.80 vs. FRX: -4.20 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
FRX' s 10-Year Revenue Growth (3Y)(%) Range
Min: -5.6  Med: 13.20 Max: 44.6
Current: -4.2
-5.6
44.6
EBITDA Growth (3Y)(%) -31.60
FRX's EBITDA Growth (3Y)(%) is ranked lower than
89% of the 483 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 6.80 vs. FRX: -31.60 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
FRX' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -57.6  Med: 7.25 Max: 71
Current: -31.6
-57.6
71
EPS Growth (3Y)(%) -44.60
FRX's EPS Growth (3Y)(%) is ranked lower than
92% of the 451 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 5.40 vs. FRX: -44.60 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
FRX' s 10-Year EPS Growth (3Y)(%) Range
Min: -44.6  Med: 10.80 Max: 75
Current: -44.6
-44.6
75
» FRX's 10-Y Financials

Financials


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

» Details

Guru Trades

Q4 2013

FRX Guru Trades in Q4 2013

Ray Dalio 201,461 sh (New)
Paul Tudor Jones 16,758 sh (New)
Dodge & Cox 7,647,837 sh (+122.23%)
First Eagle Investment 964,630 sh (+48.83%)
Murray Stahl 9,185 sh (+20.60%)
Carl Icahn 30,662,005 sh (unchged)
Bill Nygren 4,950,000 sh (unchged)
Bernard Horn 62,200 sh (unchged)
Vanguard Health Care Fund 26,666,866 sh (unchged)
Richard Pzena Sold Out
Jim Simons Sold Out
Jeremy Grantham 13,948 sh (-24.68%)
Diamond Hill Capital 413,694 sh (-50.82%)
Steven Cohen 8,344 sh (-81.96%)
» More
Q1 2014

FRX Guru Trades in Q1 2014

Joel Greenblatt 11,598 sh (New)
Jim Simons 704,874 sh (New)
Mario Gabelli 247,700 sh (New)
Jeremy Grantham 252,000 sh (+1706.71%)
Steven Cohen 22,457 sh (+169.14%)
Bernard Horn 62,200 sh (unchged)
Carl Icahn 30,662,005 sh (unchged)
Diamond Hill Capital Sold Out
Ray Dalio Sold Out
Murray Stahl 8,432 sh (-8.20%)
First Eagle Investment 806,230 sh (-16.42%)
Vanguard Health Care Fund 20,583,766 sh (-22.81%)
Dodge & Cox 3,888,618 sh (-49.15%)
Bill Nygren 1,950,000 sh (-60.61%)
Paul Tudor Jones 2,200 sh (-86.87%)
» More
Q2 2014

FRX Guru Trades in Q2 2014

Louis Moore Bacon 15,810 sh (New)
Jim Simons 834,300 sh (+18.36%)
First Eagle Investment 806,230 sh (unchged)
Bernard Horn 62,200 sh (unchged)
Bill Nygren Sold Out
Paul Tudor Jones Sold Out
Joel Greenblatt Sold Out
Murray Stahl Sold Out
Carl Icahn Sold Out
Vanguard Health Care Fund 15,716,666 sh (-23.65%)
Mario Gabelli 183,200 sh (-26.04%)
Jeremy Grantham 170,000 sh (-32.54%)
Dodge & Cox 45,100 sh (-98.84%)
» More
Q3 2014

FRX Guru Trades in Q3 2014

Bernard Horn Sold Out
Vanguard Health Care Fund Sold Out
First Eagle Investment Sold Out
Dodge & Cox Sold Out
Jeremy Grantham Sold Out
Jim Simons Sold Out
Louis Moore Bacon Sold Out
Mario Gabelli Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with FRX

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

No Entry found in the selected group of Gurus. You can
  • 1. Modify your Personalized List of Gurus, or
  • 2. Click on Premium Premium Tools above to check out all the Gurus, or
  • 3. Click on Premium Plus Premium Plus above for the stocks picks of all the institutional investment advisors (>4000)
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Forest Laboratories Inc

Bernard Horn Comments on Forest Laboratories - Aug 26, 2014

Pharmaceutical maker Forest Laboratories (FRX) had double digit returns on news of its acquisition by Actavis PLC, the world’s second largest generic drug maker. Prior to this transaction, Forest Labs conducted a company restructuring, increased its product pipeline and initiated a stock buyback, all of which helped boost the stock valuation at the time of Actavis’ $25 billion acquisition bid.

From Bernard Horn (Trades, Portfolio)’s Polaris Global Value Fund 2Q 2014 Message to Our Shareholders.

Check out Bernard Horn latest stock trades

Bernard Horn Comments on Forest Laboratories - Aug 07, 2014

Forest Laboratories (FRX) continued to benefit from the news of its acquisition by Actavis PLC, the world’s second largest generic drug maker.



From Bernard Horn (Trades, Portfolio)’s Polaris Global Value Fund Second Quarter 2014 Shareholder Letter.



Check out Bernard Horn latest stock trades

Diamond Hill Capital Comments on Forest Laboratories Inc - Jun 26, 2014

We closed our position in drug manufacturer Forest Laboratories, Inc. (FRX) as the market reacted positively to the news that Actavis, Inc. PLC would buy Forest Laboratories at a significant premium, and the share price approached our estimate of intrinsic value.



From Diamond Hill Capital's Select Fund Commentary – First Quarter 2014.



Check out Diamond Hill Capital latest stock trades

Bill Nygren Comments on Forest Laboratories - Apr 14, 2014

After returning 40% last quarter, Forest (NYSE:FRX) returned another 52% in the first quarter as the company agreed to be acquired by Actavis for both cash and stock. We believe the acquisition price was full and fair. While our investment thesis – that Forest’s new drug launches would be successful and leverage the company’s expenses – did not have the chance to transpire, we are more than pleased that the stock price reached our estimated value in short order. It’s not uncommon for the management of companies in transition to resist being acquired before their strategies to create value are fully realized. We applaud the leaders at Forest for their willingness to pull forward this value, even if it denied them the personal satisfaction of seeing their efforts realized in the coming years. We believe this could serve as a lesson for the leadership of other public companies. If someone wants to pay a fair price on a risk-adjusted basis for ‘what could be’ in your business, you owe it to your shareholders to realize this value so that they can recycle their capital into other attractively valued investments.

From Bill Nygren (Trades, Portfolio)'s Oakmark Select Fund first quarter 2014 investor letter.

Check out Bill Nygren latest stock trades

Bill Nygren Comments on Forest Laboratories - Apr 10, 2014

The best performing stock in the quarter was Forest Laboratories (Forest), up 54%. Forest has been an incredibly successful investment for the Oakmark Fund, and we offer our congratulations to the company’s board and management team for maximizing per-share value for shareholders. It has only been one year since we first wrote about our purchase of Forest, and since then, the share price has increased 149%. Please refer to the Oakmark Select commentary for a more detailed description of our tax-efficient sale strategy for Forest.

From Bill Nygren (Trades, Portfolio)'s Oakmark Fund first quarter 2014 commentary.

Check out Bill Nygren latest stock trades

Diamond Hill Capital Comments on Forest Laboratories Inc. - Mar 07, 2014

Drug manufacturer Forest Laboratories, Inc. (FRX) announced results for the most recent quarter that surpassed expectations. More importantly, the company's new CEO announced aggressive cost cutting targets and a $1 billion share buyback plan.

From Diamond Hill Capital (Trades, Portfolio)'s Select Fund Commentary for fourth quarter 2013.

Check out Diamond Hill Capital latest stock trades

Bill Nygren Comments on Forest Labs - Jan 09, 2014

As value investors with a long-term horizon, we are happy to patiently wait for undervalued securities to appreciate toward our estimates of intrinsic value.  Occasionally, we are pleased to see the value gap close more rapidly, which is what has happened with Forest Labs over the past three quarters.  Forest Labs appointed a new CEO, who quickly introduced a substantial cost-cutting program and a more shareholder-friendly capital allocation strategy.  These measures helped Forest Labs enjoy a 60% increase in stock price since January 2013.

 

From Bill Nygren (Trades, Portfolio)'s fourth quarter 2013 commentary.

Check out Bill Nygren latest stock trades

Bill Nygren Comments on Forest Laboratories - Oct 08, 2013

In the past fiscal year, we purchased Forest Laboratories, Kennametal, and Oracle, which were all discussed in prior letters. Forest (FRX)’s many new drug launches remain on track with our original estimates and we look forward to this value being demonstrated in the income statement as sales ramp relative to expenses over the next several years.

From Bill Nygren's Oakmark Select Fund third quarter 2013 commentary.
Check out Bill Nygren latest stock trades

Top Ranked Articles about Forest Laboratories Inc

Bernard Horn Comments on Forest Laboratories
Pharmaceutical maker Forest Laboratories (FRX) had double digit returns on news of its acquisition by Actavis PLC, the world’s second largest generic drug maker. Prior to this transaction, Forest Labs conducted a company restructuring, increased its product pipeline and initiated a stock buyback, all of which helped boost the stock valuation at the time of Actavis’ $25 billion acquisition bid. Read more...
Bernard Horn’s Polaris Global Value Fund 2Q 2014 Message to Our Shareholders
Dear Fellow Shareholder, Read more...
Bernard Horn Comments on Forest Laboratories
Forest Laboratories (FRX) continued to benefit from the news of its acquisition by Actavis PLC, the world’s second largest generic drug maker. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 161.20
FRX's P/E(ttm) is ranked lower than
90% of the 472 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 34.90 vs. FRX: 161.20 )
Ranked among companies with meaningful P/E(ttm) only.
FRX' s 10-Year P/E(ttm) Range
Min: 6.55  Med: 16.60 Max: 165.09
Current: 161.2
6.55
165.09
Forward P/E 29.59
FRX's Forward P/E is ranked lower than
63% of the 233 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 24.27 vs. FRX: 29.59 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 162.30
FRX's PE(NRI) is ranked lower than
90% of the 472 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 35.00 vs. FRX: 162.30 )
Ranked among companies with meaningful PE(NRI) only.
FRX' s 10-Year PE(NRI) Range
Min: 6.55  Med: 16.62 Max: 165.37
Current: 162.3
6.55
165.37
P/B 4.37
FRX's P/B is ranked lower than
58% of the 671 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 3.55 vs. FRX: 4.37 )
Ranked among companies with meaningful P/B only.
FRX' s 10-Year P/B Range
Min: 1.4  Med: 2.32 Max: 8.7
Current: 4.37
1.4
8.7
P/S 7.39
FRX's P/S is ranked lower than
74% of the 649 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 3.43 vs. FRX: 7.39 )
Ranked among companies with meaningful P/S only.
FRX' s 10-Year P/S Range
Min: 1.49  Med: 3.24 Max: 10.93
Current: 7.39
1.49
10.93
PFCF 341.38
FRX's PFCF is ranked lower than
92% of the 275 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 49.38 vs. FRX: 341.38 )
Ranked among companies with meaningful PFCF only.
FRX' s 10-Year PFCF Range
Min: 5.83  Med: 16.02 Max: 574
Current: 341.38
5.83
574
POCF 57.89
FRX's POCF is ranked lower than
71% of the 384 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 29.86 vs. FRX: 57.89 )
Ranked among companies with meaningful POCF only.
FRX' s 10-Year POCF Range
Min: 5.46  Med: 15.08 Max: 745.17
Current: 57.89
5.46
745.17
EV-to-EBIT 224.98
FRX's EV-to-EBIT is ranked lower than
94% of the 486 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 25.52 vs. FRX: 224.98 )
Ranked among companies with meaningful EV-to-EBIT only.
FRX' s 10-Year EV-to-EBIT Range
Min: -325.5  Med: 8.10 Max: 232.1
Current: 224.98
-325.5
232.1
Shiller P/E 44.64
FRX's Shiller P/E is ranked lower than
54% of the 310 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 39.83 vs. FRX: 44.64 )
Ranked among companies with meaningful Shiller P/E only.
FRX' s 10-Year Shiller P/E Range
Min: 8.17  Med: 16.26 Max: 78.55
Current: 44.64
8.17
78.55
Current Ratio 2.73
FRX's Current Ratio is ranked higher than
58% of the 608 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.29 vs. FRX: 2.73 )
Ranked among companies with meaningful Current Ratio only.
FRX' s 10-Year Current Ratio Range
Min: 2.73  Med: 4.32 Max: 6.06
Current: 2.73
2.73
6.06
Quick Ratio 2.32
FRX's Quick Ratio is ranked higher than
61% of the 607 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.68 vs. FRX: 2.32 )
Ranked among companies with meaningful Quick Ratio only.
FRX' s 10-Year Quick Ratio Range
Min: 2.06  Med: 3.64 Max: 5.38
Current: 2.32
2.06
5.38
Days Inventory 229.58
FRX's Days Inventory is ranked lower than
88% of the 621 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 114.49 vs. FRX: 229.58 )
Ranked among companies with meaningful Days Inventory only.
FRX' s 10-Year Days Inventory Range
Min: 137.04  Med: 283.80 Max: 414.25
Current: 229.58
137.04
414.25
Days Sales Outstanding 57.55
FRX's Days Sales Outstanding is ranked higher than
63% of the 592 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 72.86 vs. FRX: 57.55 )
Ranked among companies with meaningful Days Sales Outstanding only.
FRX' s 10-Year Days Sales Outstanding Range
Min: 26.5  Med: 40.05 Max: 208.02
Current: 57.55
26.5
208.02

Valuation & Return

vs
industry
vs
history
Earnings Yield (Greenblatt) (%) 0.40
FRX's Earnings Yield (Greenblatt) (%) is ranked lower than
66% of the 687 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.30 vs. FRX: 0.40 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
FRX' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 0.4  Med: 9.70 Max: 30.1
Current: 0.4
0.4
30.1
Forward Rate of Return (Yacktman) (%) -31.29
FRX's Forward Rate of Return (Yacktman) (%) is ranked lower than
93% of the 308 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 6.88 vs. FRX: -31.29 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
FRX' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -31.3  Med: 15.10 Max: 58.2
Current: -31.29
-31.3
58.2

Business Description

Industry: Drug Manufacturers » Drug Manufacturers - Specialty & Generic
Compare:TKPYY, TEVA, AGN, MRX, ESALF » details
Traded in other countries:FQX.Germany,
Forest Laboratories, Inc. is a Delaware corporation organized in 1956. The Company develops, manufactures and sells branded forms of ethical drug products most of which require a physician's prescription. The Company's most important United States products are marketed directly, or 'detailed,' to physicians by its salesforces. It emphasizes detailing to physicians of those branded ethical drugs which have the most potential for growth and benefit to patients. The Company also develops and introduces new products, including products developed in collaboration with licensing partners. The Company's products include those developed by it and those acquired from other pharmaceutical companies and integrated into its marketing and distribution systems. It actively promotes in the United States those branded products which have the most potential for growth and patient benefit, and which enable its salesforces to concentrate on groups of physicians who are high prescribers of its products. Such products include: Lexapro, its SSRI for the treatment of major depression in adults and adolescents and GAD in adults; Namenda, its NMDA antagonist for the treatment of moderate and severe Alzheimer's disease; Bystolic, its beta-blocker for the treatment of hypertension; and Savella, its newest product, an SNRI for the management of fibromyalgia. The Company's United Kingdom and Ireland subsidiaries sell both ethical products and over-the-counter preparations. Their most important products include Sudocrem, a topical preparation for the treatment of diaper rash; Colomycin, an antibiotic used in the treatment of cystic fibrosis; Infacol, used to treat infant colic; and Exorex, used in the treatment of eczema and psoriasis. The pharmaceutical industry is subject to comprehensive government regulation which substantially increases the difficulty and cost incurred in obtaining the approval to market newly proposed drug products and maintaining the approval to market existing drugs.
» More Articles for FRX

Headlines

Articles On GuruFocus.com
Bill Nygren's Fourth Quarter Commentary – Oakmark Fund Jan 09 2015 
Bill Nygren’s 4Q 2014 Market Commentary Jan 08 2015 
Fennec Pharmaceuticals Announces Completion of Patient Enrollment in Sodium Thiosulfate Phase 3 SIOP Jan 05 2015 
Fennec Announces Private Placement of Units Dec 03 2014 
Bernard Horn Comments on Forest Laboratories Aug 26 2014 
Bernard Horn’s Polaris Global Value Fund 2Q 2014 Message to Our Shareholders Aug 26 2014 
Global Guru Bernard Horn Reports his Top Five from the Second Quarter Aug 22 2014 
Guru of the Year – Carl Icahn’s Top Five Holdings Aug 17 2014 
Bernard Horn Comments on Forest Laboratories Aug 07 2014 
Diamond Hill Capital Comments on Forest Laboratories Inc Jun 26 2014 

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK