December 3, 2018

MYL – Management is confident about their portfolio, market share, and costs, which coupled with overly bearish market expectations, suggests that upside remains warranted


  • Mylan N.V. (MYL:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 10.2x Uniform P/E. At these levels, the market is pricing in expectations for the firm to see profitability fall to near historically low levels, but management’s confidence in their ability to improve their product mix, capture market share, and lower costs suggest this is overly bearish. As such, longer-term outperformance is likely warranted
  • Specifically, management generated an excitement marker when saying that they will continue to differentiate MYL by leveraging their platform size and adding more complex products to their portfolio over the long term. Additionally, they are confident in their ability to continue to capture market share, and that they will further reduce their overall G&A cost through their integration initiatives
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