Orange County’s 100 biggest public companies combine for more than $207 billion in market capitalization, a gain of 62% from a year earlier.
The total comes from this week’s Business Journal list, the centerpiece of the special issue that highlights the top publicly traded companies with headquarters here, ranked by market cap as of March 31.
The jump in market cap came in large part on strong gains by Irvine-based drugmaker Allergan Inc., whose market value nearly doubled during a monthslong run-up that ended last month with a $72.5 billion sale to Actavis PLC.
This year’s list includes 45 companies that had increases in their market caps and 40 that had decreases. It also has a number of companies that recently went public and some that grew to land in the top 100 for the first time.
The annual list includes figures such as revenue, net income and number of local employees, which don’t affect the rankings.
Allergan has been the perennial leader of the list in recent years, and it ranked No. 1 again after nearly doubling its market cap from $37 billion a year earlier. The drugmaker’s effect on the list is substantial—its market cap accounted for about 35% of the list’s total, and the year-over-year hike of $35.5 billion made up 45% of the list’s overall increase.
Allergan fought a hostile takeover bid for a stretch of seven months in 2014, a period when its stock price rose sharply.
The company was acquired in November by white-knight buyer Actavis for a cash-and-stock combination.
You won’t find Allergan on our list next year, since Actavis is based in Dublin, Ireland, and operates from New Jersey. The combined company is expected to take the Allergan name, and Allergan’s Irvine campus is expected to be a specialty drug unit.
Allergan had $7.2 billion in revenue last year, up 15% from $6.3 billion in 2013. Its net income was $1.5 billion, up 55%. It employs 2,085 in Orange County, down 15% year-over-year.
The entries on the list had a total of $113.2 billion in revenue, a 7% increase over the year. Net income for the overall list was $6.8 billion, up 36% year-over-year.
The companies combined for more than 28,000 jobs in OC, down 1%. Their companywide total increased 5% year-over-year to about 295,700.
The list’s total market cap would have been higher—by 48%—even without Allergan, from $91.2 billion to $134.6 billion.
A handful of companies—including one that moved back to OC after 10 years with headquarters in Long Beach—accounted for the bulk of the gain in addition to the Allergan effect.
Broadcom
• Other companies that had significant market cap increases include Irvine-based chipmaker Broadcom Corp., which had $25.9 billion, up 42% year-over-year. The increase pushed the company up one spot to No. 2, passing Western Digital Corp.
Broadcom had $8.4 billion in revenue last year, up about 1% from 2013. It has 2,400 employees in OC out of 11,000 companywide. Both figures are unchanged from a year ago.
• Disk drive maker Western Digital, which slipped from No. 2 to 3 this year, had a 3% decrease in its market cap to $21 billion.
• No. 4 was HCP Inc., a real estate investment trust that has medical offices, senior housing and other facilities in its portfolio. It is a newcomer to the list, with new headquarters in Irvine. HCP had $19.9 billion in market cap at the end of the first quarter.
• Edwards Lifesciences Corp., which had a 93% increase in its market cap to $15.4 billion, rounds out the top five.
The five had a combined market cap that made up about 75% of the list’s total. They’re also based in Irvine, as are 44 others on the list (see Data Drill, page 45).
A handful of homebuilder companies made the list.
• TRI Pointe Group, formerly called TRI Pointe Homes Inc., landed at No. 11 with $2.5 billion in market cap. That compared with $513 million a year earlier and reflected a 385% jump, marking the highest percentage gain on the list.
• Newport Beach-based William Lyon Homes Inc. came in at No. 26 with $811.8 million in market cap, down about 6%. The homebuilder had $896.7 million in revenue last year, up 57% year-over-year. Net income dropped about 65% to $44.6 million.
Banks
• A dozen or so banking companies were on the list, with No. 25, Opus Bank, leading the group by market cap with $869 million as of the end of March. Opus, which is among the largest banks with headquarters in OC, went public last April via an initial public offering.
• Other banks with market cap increases included Irvine-based Banc of California Inc., No. 38, which had about $430 million in market cap, up 73% year-over-year; and Costa Mesa-based Pacific Mercantile Bancorp, No. 54, whose market cap grew 20% to $142 million. Westminster-based Saigon National Bank, at No. 98, had a 39% decrease in its market cap over the past year, to nearly $8 million.
A crop of newly public companies debuted on the list this year.
• El Pollo Loco Holdings Inc. in Costa Mesa went public in July via an IPO. The Mexican-style fast-food chain raised $107 million after initial pricing. Its market cap at the end of the first quarter was $958.3 million, good for the No. 23 spot.
• Irvine-based Habit Restaurants Inc. is another restaurant company that went public last year. The burger chain debuted on the Nasdaq in November and closed the first quarter with $288.4 million in market cap. Habit ranked No. 43.
• No. 31, Boot Barn Holdings Inc., began trading on the New York Stock Exchange in October. The Irvine-based retailer focuses on Western-themed apparel and footwear. Its stock price has risen 37% since its IPO to a market cap of $615 million as of the end of March.
• San Clemente-based CareTrust REIT Inc. debuted at No. 39 with $428 million in market cap.
The company was spun off from Mission Viejo-based nursing home operator Ensign Group Inc. CareTrust owns skilled-nursing, assisted-living and other properties that are leased to Ensign.
