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ALKERMES PLC (ALKS) Stock Fundamental Analysis

NASDAQ:ALKS - Nasdaq - IE00B56GVS15 - Common Stock - Currency: USD

27.3116  +0.31 (+1.15%)

Fundamental Rating

6

ALKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 568 industry peers in the Biotechnology industry. ALKS gets an excellent profitability rating and is at the same time showing great financial health properties. ALKS is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, ALKS could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

ALKS had positive earnings in the past year.
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.
In the past 5 years ALKS always reported a positive cash flow from operatings.
ALKS Yearly Net Income VS EBIT VS OCF VS FCFALKS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M

1.2 Ratios

With an excellent Return On Assets value of 17.86%, ALKS belongs to the best of the industry, outperforming 97.89% of the companies in the same industry.
ALKS has a Return On Equity of 25.06%. This is amongst the best in the industry. ALKS outperforms 98.06% of its industry peers.
ALKS has a Return On Invested Capital of 22.18%. This is amongst the best in the industry. ALKS outperforms 98.94% of its industry peers.
Industry RankSector Rank
ROA 17.86%
ROE 25.06%
ROIC 22.18%
ROA(3y)8.82%
ROA(5y)3.68%
ROE(3y)13.16%
ROE(5y)4.95%
ROIC(3y)N/A
ROIC(5y)N/A
ALKS Yearly ROA, ROE, ROICALKS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

1.3 Margins

ALKS has a Profit Margin of 23.57%. This is amongst the best in the industry. ALKS outperforms 96.65% of its industry peers.
With an excellent Operating Margin value of 27.00%, ALKS belongs to the best of the industry, outperforming 97.18% of the companies in the same industry.
ALKS's Gross Margin of 84.25% is amongst the best of the industry. ALKS outperforms 86.80% 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 RankSector Rank
OM 27%
PM (TTM) 23.57%
GM 84.25%
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%
ALKS Yearly Profit, Operating, Gross MarginsALKS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

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8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALKS is creating value.
ALKS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALKS has more shares outstanding
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.
ALKS Yearly Shares OutstandingALKS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
ALKS Yearly Total Debt VS Total AssetsALKS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

An Altman-Z score of 5.84 indicates that ALKS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.84, ALKS belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.84
ROIC/WACC2.82
WACC7.87%
ALKS Yearly LT Debt VS Equity VS FCFALKS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

A Current Ratio of 3.04 indicates that ALKS has no problem at all paying its short term obligations.
ALKS has a Current ratio of 3.04. This is in the lower half of the industry: ALKS underperforms 64.44% of its industry peers.
A Quick Ratio of 2.65 indicates that ALKS has no problem at all paying its short term obligations.
ALKS's Quick ratio of 2.65 is on the low side compared to the rest of the industry. ALKS is outperformed by 67.25% of its industry peers.
Industry RankSector Rank
Current Ratio 3.04
Quick Ratio 2.65
ALKS Yearly Current Assets VS Current LiabilitesALKS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

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4

3. Growth

3.1 Past

ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.23%, which is quite impressive.
Measured over the past years, ALKS shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.50% on average per year.
ALKS shows a decrease in Revenue. In the last year, the revenue decreased by -6.36%.
The Revenue has been growing slightly by 5.87% on average over the past years.
EPS 1Y (TTM)104.23%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%377.27%
Revenue 1Y (TTM)-6.36%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%13.91%

3.2 Future

Based on estimates for the next years, ALKS will show a decrease in Earnings Per Share. The EPS will decrease by -6.60% on average per year.
Based on estimates for the next years, ALKS will show a small growth in Revenue. The Revenue will grow by 0.21% on average per year.
EPS Next Y-37.04%
EPS Next 2Y-20.23%
EPS Next 3Y-18.86%
EPS Next 5Y-6.6%
Revenue Next Year-7.75%
Revenue Next 2Y-1.87%
Revenue Next 3Y-1.83%
Revenue Next 5Y0.21%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
ALKS Yearly Revenue VS EstimatesALKS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500M 1B 1.5B
ALKS Yearly EPS VS EstimatesALKS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 1 2 3 4

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7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 9.42, the valuation of ALKS can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 97.89% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. ALKS is valued rather cheaply when compared to this.
ALKS is valuated correctly with a Price/Forward Earnings ratio of 14.96.
Based on the Price/Forward Earnings ratio, ALKS is valued cheaply inside the industry as 95.42% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.32. ALKS is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 9.42
Fwd PE 14.96
ALKS Price Earnings VS Forward Price EarningsALKS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

ALKS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALKS is cheaper than 98.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 97.71% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.1
EV/EBITDA 7.21
ALKS Per share dataALKS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

ALKS has a very decent profitability rating, which may justify a higher PE ratio.
ALKS's earnings are expected to decrease with -18.86% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-20.23%
EPS Next 3Y-18.86%

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0

5. Dividend

5.1 Amount

No dividends for ALKS!.
Industry RankSector Rank
Dividend Yield N/A

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ALKERMES PLC

NASDAQ:ALKS (4/21/2025, 1:31:41 PM)

27.3116

+0.31 (+1.15%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)02-12 2025-02-12/bmo
Earnings (Next)05-01 2025-05-01/bmo
Inst Owners105.48%
Inst Owner Change0.12%
Ins Owners1.62%
Ins Owner Change7.19%
Market Cap4.50B
Analysts78.18
Price Target40.36 (47.78%)
Short Float %8.82%
Short Ratio8.21
Dividend
Industry RankSector 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)1
Avg EPS beat(2)13.06%
Min EPS beat(2)-4.37%
Max EPS beat(2)30.49%
EPS beat(4)1
Avg EPS beat(4)-1.02%
Min EPS beat(4)-27.71%
Max EPS beat(4)30.49%
EPS beat(8)4
Avg EPS beat(8)21.14%
EPS beat(12)7
Avg EPS beat(12)175.19%
EPS beat(16)11
Avg EPS beat(16)203.08%
Revenue beat(2)1
Avg Revenue beat(2)4.2%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)11.01%
Revenue beat(4)1
Avg Revenue beat(4)0.81%
Min Revenue beat(4)-4.65%
Max Revenue beat(4)11.01%
Revenue beat(8)4
Avg Revenue beat(8)2.89%
Revenue beat(12)7
Avg Revenue beat(12)2.18%
Revenue beat(16)10
Avg Revenue beat(16)2.39%
PT rev (1m)8.63%
PT rev (3m)16.12%
EPS NQ rev (1m)-11.34%
EPS NQ rev (3m)-42.09%
EPS NY rev (1m)-1.53%
EPS NY rev (3m)-7.34%
Revenue NQ rev (1m)-1.59%
Revenue NQ rev (3m)-6.59%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-1.6%
Valuation
Industry RankSector Rank
PE 9.42
Fwd PE 14.96
P/S 2.89
P/FCF 11.1
P/OCF 10.25
P/B 3.07
P/tB 3.26
EV/EBITDA 7.21
EPS(TTM)2.9
EY10.62%
EPS(NY)1.83
Fwd EY6.69%
FCF(TTM)2.46
FCFY9.01%
OCF(TTM)2.66
OCFY9.75%
SpS9.45
BVpS8.89
TBVpS8.38
PEG (NY)N/A
PEG (5Y)0.29
Profitability
Industry RankSector Rank
ROA 17.86%
ROE 25.06%
ROCE 26.45%
ROIC 22.18%
ROICexc 42.06%
ROICexgc 46.74%
OM 27%
PM (TTM) 23.57%
GM 84.25%
FCFM 26.04%
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-Score7
Asset Turnover0.76
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 117.35%
Cap/Sales 2.15%
Interest Coverage 18.28
Cash Conversion 97.76%
Profit Quality 110.51%
Current Ratio 3.04
Quick Ratio 2.65
Altman-Z 5.84
F-Score7
WACC7.87%
ROIC/WACC2.82
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)104.23%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%377.27%
EPS Next Y-37.04%
EPS Next 2Y-20.23%
EPS Next 3Y-18.86%
EPS Next 5Y-6.6%
Revenue 1Y (TTM)-6.36%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%13.91%
Revenue Next Year-7.75%
Revenue Next 2Y-1.87%
Revenue Next 3Y-1.83%
Revenue Next 5Y0.21%
EBIT growth 1Y0.13%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-42.06%
EBIT Next 3Y-26.11%
EBIT Next 5Y4.56%
FCF growth 1Y14.81%
FCF growth 3Y76.56%
FCF growth 5YN/A
OCF growth 1Y9.41%
OCF growth 3Y62.84%
OCF growth 5Y43.53%