ALKERMES PLC (ALKS) Stock Fundamental Analysis
NASDAQ:ALKS - Nasdaq - IE00B56GVS15 - Common Stock - Currency: USD
ALKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 556 industry peers in the Biotechnology industry. ALKS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ALKS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make ALKS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
ALKS had positive earnings in the past year.
In the past year ALKS had a positive cash flow from operations.
In multiple years ALKS reported negative net income over the last 5 years.
In the past 5 years ALKS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 16.91%, ALKS belongs to the best of the industry, outperforming 96.40% of the companies in the same industry.
The Return On Equity of ALKS (23.28%) is better than 96.94% of its industry peers.
ALKS's Return On Invested Capital of 20.05% is amongst the best of the industry. ALKS outperforms 97.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.91% | ||
| ROE | 23.28% | ||
| ROIC | 20.05% |
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
ALKS's Profit Margin of 23.25% is amongst the best of the industry. ALKS outperforms 96.04% of its industry peers.
Looking at the Operating Margin, with a value of 25.90%, ALKS belongs to the top of the industry, outperforming 96.94% of the companies in the same industry.
ALKS has a better Gross Margin (84.42%) than 87.95% 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 | 25.9% | ||
| PM (TTM) | 23.25% | ||
| GM | 84.42% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALKS is creating value.
Compared to 1 year ago, ALKS has less shares outstanding
Compared to 5 years ago, ALKS has more shares outstanding
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
ALKS has an Altman-Z score of 5.84. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
ALKS has a better Altman-Z score (5.84) than 78.78% of its industry peers.
ALKS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.84 |
ROIC/WACC2.61
WACC7.68%
2.3 Liquidity
ALKS has a Current Ratio of 3.33. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
ALKS has a worse Current ratio (3.33) than 61.33% of its industry peers.
ALKS has a Quick Ratio of 2.92. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
ALKS has a Quick ratio of 2.92. This is in the lower half of the industry: ALKS underperforms 64.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.80% over the past year.
ALKS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.50% yearly.
Looking at the last year, ALKS shows a very negative growth in Revenue. The Revenue has decreased by -12.30% in the last year.
The Revenue has been growing slightly by 5.87% on average over the past years.
EPS 1Y (TTM)48.8%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-37.67%
Revenue 1Y (TTM)-12.3%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%-12.52%
3.2 Future
ALKS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.84% yearly.
The Revenue is expected to grow by 1.28% on average over the next years.
EPS Next Y-38.1%
EPS Next 2Y-20.38%
EPS Next 3Y-19.02%
EPS Next 5Y-5.84%
Revenue Next Year-8.07%
Revenue Next 2Y-2.14%
Revenue Next 3Y-1.54%
Revenue Next 5Y1.28%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.54, which indicates a very decent valuation of ALKS.
ALKS's Price/Earnings ratio is rather cheap when compared to the industry. ALKS is cheaper than 97.30% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.04. ALKS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 14.21, ALKS is valued correctly.
Based on the Price/Forward Earnings ratio, ALKS is valued cheaply inside the industry as 94.42% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ALKS to the average of the S&P500 Index (37.64), we can say ALKS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 14.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALKS is valued cheaply inside the industry as 98.20% of the companies are valued more expensively.
ALKS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALKS is cheaper than 97.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.93 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
ALKS has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ALKS's earnings are expected to decrease with -19.02% in the coming years.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-20.38%
EPS Next 3Y-19.02%
5. Dividend
5.1 Amount
ALKS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.13
-0.4 (-1.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners107.16%
Inst Owner Change0.49%
Ins Owners1.66%
Ins Owner Change10.54%
Market Cap4.31B
Analysts79.09
Price Target42.3 (61.88%)
Short Float %7.34%
Short Ratio7.01
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)21.25%
Min EPS beat(2)12.02%
Max EPS beat(2)30.49%
EPS beat(4)2
Avg EPS beat(4)8.91%
Min EPS beat(4)-4.37%
Max EPS beat(4)30.49%
EPS beat(8)4
Avg EPS beat(8)1.07%
EPS beat(12)7
Avg EPS beat(12)89.24%
EPS beat(16)11
Avg EPS beat(16)159.67%
Revenue beat(2)1
Avg Revenue beat(2)4.91%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)11.01%
Revenue beat(4)1
Avg Revenue beat(4)1.67%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)11.01%
Revenue beat(8)4
Avg Revenue beat(8)2.78%
Revenue beat(12)6
Avg Revenue beat(12)1.4%
Revenue beat(16)9
Avg Revenue beat(16)1.98%
PT rev (1m)1.67%
PT rev (3m)3.47%
EPS NQ rev (1m)-2.15%
EPS NQ rev (3m)-16.81%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)-1.68%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 14.21 | ||
| P/S | 2.85 | ||
| P/FCF | 8.93 | ||
| P/OCF | 8.33 | ||
| P/B | 2.85 | ||
| P/tB | 3.02 | ||
| EV/EBITDA | 7 |
EPS(TTM)2.74
EY10.49%
EPS(NY)1.84
Fwd EY7.04%
FCF(TTM)2.93
FCFY11.19%
OCF(TTM)3.14
OCFY12%
SpS9.18
BVpS9.17
TBVpS8.66
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.91% | ||
| ROE | 23.28% | ||
| ROCE | 23.93% | ||
| ROIC | 20.05% | ||
| ROICexc | 43.56% | ||
| ROICexgc | 49.02% | ||
| OM | 25.9% | ||
| PM (TTM) | 23.25% | ||
| GM | 84.42% | ||
| 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-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 122.21% | ||
| Cap/Sales | 2.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 122.99% | ||
| Profit Quality | 137.03% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.92 | ||
| Altman-Z | 5.84 |
F-Score6
WACC7.68%
ROIC/WACC2.61
Cap/Depr(3y)75.65%
Cap/Depr(5y)62.81%
Cap/Sales(3y)2.82%
Cap/Sales(5y)2.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.8%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-37.67%
EPS Next Y-38.1%
EPS Next 2Y-20.38%
EPS Next 3Y-19.02%
EPS Next 5Y-5.84%
Revenue 1Y (TTM)-12.3%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%-12.52%
Revenue Next Year-8.07%
Revenue Next 2Y-2.14%
Revenue Next 3Y-1.54%
Revenue Next 5Y1.28%
EBIT growth 1Y-23.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-17.09%
EBIT Next 3Y-5.86%
EBIT Next 5Y5.18%
FCF growth 1Y912.02%
FCF growth 3Y76.61%
FCF growth 5YN/A
OCF growth 1Y2450%
OCF growth 3Y62.82%
OCF growth 5Y43.52%