All the employees will be dumping their shares tomorrow. GAAP EPS is barely up YoY and it is trading at 100x GAAP EPS. I predicted this for REGN as well this morning.
Proforma results are nonsense. Look at GAAP figures. Barely $8 of EPS means stock is selling at 75x multiple, which is ridiculous. All the employees will be dumping their shares like last quarter.
Company is just shifting cash payments to stock comp and then pro-forma'ing out the latter. GAAP income is down and is now a loss. All the employees will be selling their shares tomorrow and ongoing. Good luck buying the stock at this price. Worth only $180 at best.
Looks like they are paying 30x taxed operating income for IDC, which is a huge price. 15-20x would have been a fair multiple, meaning they are overpaying by $2 billion. When will public companies stop enriching private equity firms with their shareholders' money?
Generates $1 billion of cash my friend. And keeps buying back stock. Can easily support $5 billion more of debt in this low interest rate environment. You will have to cover your short at a loss.
I expect next year's EPS estimate to trend towards $4. So a 30x multiple on that is not unreasonable. Growth like this exposed to secular drivers is hard to obtain. People will pay up and shorts will cover.
14x GAAP EPS would give you $30. Company should start buying back its stock with FCF. OK, so they were sticking one time gains in their earnings last year. Not much different from companies backing out "one time" costs from their proforma earnings.