Allergan PLC (NYSE:AGN)

The financial data over the five-year period reveal significant volatility and negative trends in profitability measures.

Net Income (loss) attributable to shareholders

This metric shows a strong positive value in 2015 and an even higher spike in 2016, indicating peak profitability during these years. However, from 2017 onwards, net income turned negative and remained so through 2019, indicating sustained net losses over the latter period.

Earnings Before Tax (EBT)

The EBT figures were consistently negative throughout the entire period, demonstrating that earnings before tax were under pressure every year. Notably, the losses deepened substantially in 2017, suggesting increased operational or other expenses adversely affecting profitability. Although the losses narrowed slightly after 2017, they remained significant through 2019.

Earnings Before Interest and Tax (EBIT)

The EBIT trend mirrors that of EBT, showing negative values each year. There was an improvement from 2017 to 2019, but the company did not return to positive operating earnings, signaling ongoing challenges in achieving operational profitability.

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)

EBITDA exhibits considerable fluctuations, starting positive in 2015 and 2016, dropping sharply into negative territory in 2017, and then recovering partially in 2018 and 2019. Despite this recovery, the positive values in the latter years are much lower than the peaks observed in 2015 and 2016, reflecting inconsistent operational cash flow generation during the period.

Overall, the data portrays a company experiencing a period of profitability in the early years, followed by pronounced losses and operational challenges from 2017 onward. Key profitability indicators have shown some signs of recovery towards the end of the period, but none have returned to the profitability levels seen at the beginning.

Enterprise Value (EV)

The enterprise value demonstrated a declining trend from 2015 to 2018, decreasing significantly from approximately 164.2 billion US dollars at the end of 2015 to about 68.2 billion US dollars in 2018. In 2019, however, EV increased to approximately 81.9 billion US dollars, indicating a reversal in the downward trend observed in the previous years.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)

EBITDA experienced considerable volatility throughout the period. It rose sharply from roughly 2.76 billion US dollars in 2015 to approximately 5.09 billion US dollars in 2016. This was followed by a substantial drop into negative territory in 2017, with a loss of about 1.92 billion US dollars. The following years saw a recovery, with EBITDA returning to positive values, reaching nearly 803 million US dollars in 2018 and further increasing to 1.73 billion US dollars in 2019. Despite the recovery, EBITDA in 2019 remained well below the peak achieved in 2016.

EV/EBITDA Ratio

The EV/EBITDA ratio reflected significant fluctuations in line with the volatility in EBITDA and changes in enterprise value. The ratio declined markedly from 59.52 in 2015 to 20.95 in 2016, indicating improved valuation relative to earnings. Data for 2017 is unavailable, likely due to the negative EBITDA figure. In 2018, the ratio surged to 84.9, suggesting a disproportionately high enterprise value relative to EBITDA, likely influenced by the previous year's negative EBITDA. In 2019, the ratio decreased to 47.47, signaling partial normalization but still indicating a relatively elevated valuation compared to EBITDA.