ALKERMES PLC (ALKS) Stock Fundamental Analysis
NASDAQ:ALKS - IE00B56GVS15 - Common Stock
29.75 USD
+0.69 (+2.37%)
29.75 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ALKS. ALKS was compared to 547 industry peers in the Biotechnology industry. ALKS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ALKS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALKS was profitable.
ALKS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ALKS reported negative net income in multiple years.
Each year in the past 5 years ALKS had a positive operating cash flow.
1.2 Ratios
ALKS has a better Return On Assets (15.45%) than 95.63% of its industry peers.
With an excellent Return On Equity value of 21.42%, ALKS belongs to the best of the industry, outperforming 96.17% of the companies in the same industry.
The Return On Invested Capital of ALKS (17.98%) is better than 97.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.45% | ||
| ROE | 21.42% | ||
| ROIC | 17.98% |
ROA(3y)8.82%
ROA(5y)3.68%
ROE(3y)13.16%
ROE(5y)4.95%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 23.12%, ALKS belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
ALKS has a Operating Margin of 24.88%. This is amongst the best in the industry. ALKS outperforms 95.63% of its industry peers.
ALKS's Gross Margin of 85.13% is amongst the best of the industry. ALKS outperforms 88.34% of its industry peers.
In the last couple of years the Gross Margin of ALKS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.88% | ||
| PM (TTM) | 23.12% | ||
| GM | 85.13% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.43%
GM growth 5Y-0.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALKS is creating value.
The number of shares outstanding for ALKS has been reduced compared to 1 year ago.
The number of shares outstanding for ALKS has been increased compared to 5 years ago.
ALKS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 5.97 indicates that ALKS is not in any danger for bankruptcy at the moment.
The Altman-Z score of ALKS (5.97) is better than 78.51% of its industry peers.
There is no outstanding debt for ALKS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.97 |
ROIC/WACC2.35
WACC7.66%
2.3 Liquidity
ALKS has a Current Ratio of 3.23. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
ALKS has a worse Current ratio (3.23) than 61.02% of its industry peers.
A Quick Ratio of 2.85 indicates that ALKS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.85, ALKS is doing worse than 63.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 2.85 |
3. Growth
3.1 Past
ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.08%, which is quite impressive.
The Earnings Per Share has been growing by 32.50% on average over the past years. This is a very strong growth
The Revenue has decreased by -0.17% in the past year.
Measured over the past years, ALKS shows a small growth in Revenue. The Revenue has been growing by 5.87% on average per year.
EPS 1Y (TTM)36.08%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-4.29%
Revenue 1Y (TTM)-0.17%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%-2.12%
3.2 Future
Based on estimates for the next years, ALKS will show a decrease in Earnings Per Share. The EPS will decrease by -4.62% on average per year.
ALKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.44% yearly.
EPS Next Y-55.79%
EPS Next 2Y-37.6%
EPS Next 3Y-33.6%
EPS Next 5Y-4.62%
Revenue Next Year-5.66%
Revenue Next 2Y-2.07%
Revenue Next 3Y-1.99%
Revenue Next 5Y1.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.98, the valuation of ALKS can be described as very reasonable.
Based on the Price/Earnings ratio, ALKS is valued cheaper than 96.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. ALKS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 26.35 indicates a quite expensive valuation of ALKS.
91.80% of the companies in the same industry are more expensive than ALKS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ALKS to the average of the S&P500 Index (22.81), we can say ALKS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 26.35 |
4.2 Price Multiples
ALKS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALKS is cheaper than 96.72% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALKS is valued cheaper than 98.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.24 | ||
| EV/EBITDA | 8.43 |
4.3 Compensation for Growth
The decent profitability rating of ALKS may justify a higher PE ratio.
ALKS's earnings are expected to decrease with -33.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-37.6%
EPS Next 3Y-33.6%
5. Dividend
5.1 Amount
No dividends for ALKS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.75
+0.69 (+2.37%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners106.47%
Inst Owner Change-6.72%
Ins Owners1.66%
Ins Owner Change2.08%
Market Cap4.91B
Analysts79.13
Price Target42.84 (44%)
Short Float %8.55%
Short Ratio7.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.58%
Min EPS beat(2)12.02%
Max EPS beat(2)65.13%
EPS beat(4)3
Avg EPS beat(4)25.82%
Min EPS beat(4)-4.37%
Max EPS beat(4)65.13%
EPS beat(8)4
Avg EPS beat(8)7.12%
EPS beat(12)7
Avg EPS beat(12)34.35%
EPS beat(16)11
Avg EPS beat(16)154.85%
Revenue beat(2)1
Avg Revenue beat(2)5.47%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)12.13%
Revenue beat(4)2
Avg Revenue beat(4)4.84%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)12.13%
Revenue beat(8)4
Avg Revenue beat(8)2.44%
Revenue beat(12)6
Avg Revenue beat(12)2.36%
Revenue beat(16)9
Avg Revenue beat(16)2.29%
PT rev (1m)1.29%
PT rev (3m)5.61%
EPS NQ rev (1m)-38.27%
EPS NQ rev (3m)-38.83%
EPS NY rev (1m)-28.58%
EPS NY rev (3m)-28.93%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)2.62%
Revenue NY rev (3m)2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 26.35 | ||
| P/S | 3.26 | ||
| P/FCF | 10.24 | ||
| P/OCF | 9.42 | ||
| P/B | 3.02 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 8.43 |
EPS(TTM)2.71
EY9.11%
EPS(NY)1.13
Fwd EY3.8%
FCF(TTM)2.9
FCFY9.76%
OCF(TTM)3.16
OCFY10.61%
SpS9.12
BVpS9.84
TBVpS9.33
PEG (NY)N/A
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.45% | ||
| ROE | 21.42% | ||
| ROCE | 21.44% | ||
| ROIC | 17.98% | ||
| ROICexc | 42.95% | ||
| ROICexgc | 48.52% | ||
| OM | 24.88% | ||
| PM (TTM) | 23.12% | ||
| GM | 85.13% | ||
| FCFM | 31.86% |
ROA(3y)8.82%
ROA(5y)3.68%
ROE(3y)13.16%
ROE(5y)4.95%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.43%
GM growth 5Y-0.08%
F-Score8
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 144.62% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 129.24% | ||
| Profit Quality | 137.77% | ||
| Current Ratio | 3.23 | ||
| Quick Ratio | 2.85 | ||
| Altman-Z | 5.97 |
F-Score8
WACC7.66%
ROIC/WACC2.35
Cap/Depr(3y)76.88%
Cap/Depr(5y)63.55%
Cap/Sales(3y)2.83%
Cap/Sales(5y)2.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)36.08%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-4.29%
EPS Next Y-55.79%
EPS Next 2Y-37.6%
EPS Next 3Y-33.6%
EPS Next 5Y-4.62%
Revenue 1Y (TTM)-0.17%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%-2.12%
Revenue Next Year-5.66%
Revenue Next 2Y-2.07%
Revenue Next 3Y-1.99%
Revenue Next 5Y1.44%
EBIT growth 1Y-1.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-10.49%
EBIT Next 3Y-3.57%
EBIT Next 5Y12.15%
FCF growth 1Y201.78%
FCF growth 3Y76.56%
FCF growth 5YN/A
OCF growth 1Y165.89%
OCF growth 3Y62.84%
OCF growth 5Y43.53%