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 561 industry peers in the Biotechnology industry. ALKS gets an excellent profitability rating and is at the same time showing great financial health properties. ALKS has a correct valuation and a medium growth rate.
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.
In multiple years ALKS reported negative net income over the last 5 years.
ALKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALKS has a better Return On Assets (16.94%) than 96.79% of its industry peers.
ALKS has a better Return On Equity (23.33%) than 97.68% of its industry peers.
ALKS has a Return On Invested Capital of 20.02%. This is amongst the best in the industry. ALKS outperforms 97.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.94% | ||
| ROE | 23.33% | ||
| ROIC | 20.02% |
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 has a better Profit Margin (23.30%) than 96.08% of its industry peers.
The Operating Margin of ALKS (25.84%) is better than 96.43% of its industry peers.
With an excellent Gross Margin value of 84.42%, ALKS belongs to the best of the industry, outperforming 87.34% of the companies in the same industry.
ALKS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.84% | ||
| PM (TTM) | 23.3% | ||
| 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
ALKS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ALKS has been reduced compared to 1 year ago.
ALKS has more shares outstanding than it did 5 years ago.
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.
2.2 Solvency
An Altman-Z score of 6.76 indicates that ALKS is not in any danger for bankruptcy at the moment.
The Altman-Z score of ALKS (6.76) is better than 82.53% 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 | 6.76 |
ROIC/WACC2.55
WACC7.84%
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.
Looking at the Current ratio, with a value of 3.33, ALKS is doing worse than 61.14% of the companies in the same industry.
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's Quick ratio of 2.92 is on the low side compared to the rest of the industry. ALKS is outperformed by 64.88% 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.
ALKS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.30%.
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)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
The Earnings Per Share is expected to decrease by -6.60% on average over the next years.
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-37.8%
EPS Next 2Y-20.18%
EPS Next 3Y-19.29%
EPS Next 5Y-6.6%
Revenue Next Year-8.07%
Revenue Next 2Y-2.17%
Revenue Next 3Y-1.99%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.56, the valuation of ALKS can be described as very reasonable.
Based on the Price/Earnings ratio, ALKS is valued cheaply inside the industry as 96.79% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.60, ALKS is valued rather cheaply.
ALKS is valuated rather expensively with a Price/Forward Earnings ratio of 17.14.
ALKS's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALKS is cheaper than 93.58% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. ALKS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 17.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 97.15% of the companies listed in the same industry.
97.50% of the companies in the same industry are more expensive than ALKS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.84 | ||
| EV/EBITDA | 9.11 |
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 -19.29% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-20.18%
EPS Next 3Y-19.29%
5. Dividend
5.1 Amount
ALKS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.67
+0.22 (+0.7%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners105.48%
Inst Owner Change2.81%
Ins Owners1.62%
Ins Owner Change8.03%
Market Cap5.22B
Analysts78.1
Price Target40.56 (28.07%)
Short Float %7.9%
Short Ratio6.87
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)0.5%
PT rev (3m)16.7%
EPS NQ rev (1m)-14.98%
EPS NQ rev (3m)-16.04%
EPS NY rev (1m)-1.2%
EPS NY rev (3m)-4.56%
Revenue NQ rev (1m)-1.35%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 17.14 | ||
| P/S | 3.45 | ||
| P/FCF | 10.84 | ||
| P/OCF | 10.1 | ||
| P/B | 3.45 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 9.11 |
EPS(TTM)2.74
EY8.65%
EPS(NY)1.85
Fwd EY5.83%
FCF(TTM)2.92
FCFY9.22%
OCF(TTM)3.14
OCFY9.9%
SpS9.18
BVpS9.17
TBVpS8.66
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.94% | ||
| ROE | 23.33% | ||
| ROCE | 23.87% | ||
| ROIC | 20.02% | ||
| ROICexc | 43.49% | ||
| ROICexgc | 48.93% | ||
| OM | 25.84% | ||
| PM (TTM) | 23.3% | ||
| GM | 84.42% | ||
| FCFM | 31.81% |
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 | 126.36% | ||
| Cap/Sales | 2.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 123.34% | ||
| Profit Quality | 136.54% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.92 | ||
| Altman-Z | 6.76 |
F-Score6
WACC7.84%
ROIC/WACC2.55
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)48.8%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-37.67%
EPS Next Y-37.8%
EPS Next 2Y-20.18%
EPS Next 3Y-19.29%
EPS Next 5Y-6.6%
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-2.17%
Revenue Next 3Y-1.99%
Revenue Next 5Y0.21%
EBIT growth 1Y-23.44%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-42.06%
EBIT Next 3Y-26.11%
EBIT Next 5Y4.56%
FCF growth 1Y910.73%
FCF growth 3Y76.56%
FCF growth 5YN/A
OCF growth 1Y2449.21%
OCF growth 3Y62.84%
OCF growth 5Y43.53%