It is priced at 50 cents on the dollar compared to its peers. In 2018 it bought Monsanto and the Roundup litigation halved the company. However it is being dealt with. It has three new drugs on the pharma side, one with no near term competitors when it comes off patent. It will probably spin out the herbicide business and sits at a very attractive price. Buy 18 Hold 8 Sell 1
Their last quarter wasn't great; there was some positive news in their pharma pipeline. They sold assets from BASF to reduce net debt, which is now at Euros 36.5 billion. The debt-to-cash flow is still high, so they have a low credit rating. Their chemical side isn't growing. EPS are down 18%, which pressured the stock. JNJ has a better phrama pipeline and credit rating.
On these big Chemicals you are always best to wait for an opportunity to get in. There isn't an urgent rush. This company is a monstrously big company.
It is priced at 50 cents on the dollar compared to its peers. In 2018 it bought Monsanto and the Roundup litigation halved the company. However it is being dealt with. It has three new drugs on the pharma side, one with no near term competitors when it comes off patent. It will probably spin out the herbicide business and sits at a very attractive price. Buy 18 Hold 8 Sell 1