ALKERMES PLC (ALKS) Stock Fundamental Analysis
NASDAQ:ALKS - Nasdaq - IE00B56GVS15 - Common Stock - Currency: USD
Taking everything into account, ALKS scores 6 out of 10 in our fundamental rating. ALKS was compared to 559 industry peers in the Biotechnology industry. Both the health and profitability get an excellent rating, making ALKS a very profitable company, without any liquidiy or solvency issues. ALKS may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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's Return On Assets of 16.91% is amongst the best of the industry. ALKS outperforms 96.42% of its industry peers.
ALKS has a better Return On Equity (23.28%) than 96.96% of its industry peers.
With an excellent Return On Invested Capital value of 20.05%, ALKS belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
| 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
The Profit Margin of ALKS (23.25%) is better than 95.89% of its industry peers.
ALKS's Operating Margin of 25.90% is amongst the best of the industry. ALKS outperforms 96.96% of its industry peers.
Looking at the Gross Margin, with a value of 84.42%, ALKS belongs to the top of the industry, outperforming 87.84% 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 | 25.9% | ||
| 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.
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 6.71 indicates that ALKS is not in any danger for bankruptcy at the moment.
ALKS has a Altman-Z score of 6.71. This is amongst the best in the industry. ALKS outperforms 81.40% 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 | 6.71 |
ROIC/WACC2.56
WACC7.84%
2.3 Liquidity
A Current Ratio of 3.33 indicates that ALKS has no problem at all paying its short term obligations.
ALKS has a worse Current ratio (3.33) than 61.90% of its industry peers.
A Quick Ratio of 2.92 indicates that ALKS has no problem at all paying 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 64.94% 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.
The Earnings Per Share has been growing by 32.50% on average over the past years. This is a very strong growth
Looking at the last year, ALKS shows a very negative growth in Revenue. The Revenue has decreased by -12.30% in the last 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)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 -6.40% yearly.
ALKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.18% yearly.
EPS Next Y-37.8%
EPS Next 2Y-20.18%
EPS Next 3Y-19.29%
EPS Next 5Y-6.4%
Revenue Next Year-8.07%
Revenue Next 2Y-2.14%
Revenue Next 3Y-1.43%
Revenue Next 5Y1.18%
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
ALKS is valuated reasonably with a Price/Earnings ratio of 11.34.
ALKS's Price/Earnings ratio is rather cheap when compared to the industry. ALKS is cheaper than 96.96% of the companies in the same industry.
ALKS is valuated cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.81, which indicates a correct valuation of ALKS.
ALKS's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALKS is cheaper than 93.92% of the companies in the same industry.
ALKS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 16.81 |
4.2 Price Multiples
97.50% of the companies in the same industry are more expensive than ALKS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ALKS is valued cheaply inside the industry as 97.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.62 | ||
| EV/EBITDA | 8.96 |
4.3 Compensation for Growth
The decent profitability rating of ALKS may justify a higher PE ratio.
A cheap valuation may be justified as ALKS's earnings are expected to decrease with -19.29% in the coming years.
PEG (NY)N/A
PEG (5Y)0.35
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 |
31.06
-0.08 (-0.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners105.48%
Inst Owner Change3.35%
Ins Owners1.62%
Ins Owner Change10.31%
Market Cap5.12B
Analysts78.18
Price Target40.95 (31.84%)
Short Float %6.97%
Short Ratio6.25
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)0.94%
PT rev (3m)10.2%
EPS NQ rev (1m)-4.6%
EPS NQ rev (3m)-14.73%
EPS NY rev (1m)-1.2%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)-1.66%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 16.81 | ||
| P/S | 3.38 | ||
| P/FCF | 10.62 | ||
| P/OCF | 9.9 | ||
| P/B | 3.39 | ||
| P/tB | 3.59 | ||
| EV/EBITDA | 8.96 |
EPS(TTM)2.74
EY8.82%
EPS(NY)1.85
Fwd EY5.95%
FCF(TTM)2.93
FCFY9.42%
OCF(TTM)3.14
OCFY10.1%
SpS9.18
BVpS9.17
TBVpS8.66
PEG (NY)N/A
PEG (5Y)0.35
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 | 6.71 |
F-Score6
WACC7.84%
ROIC/WACC2.56
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-37.8%
EPS Next 2Y-20.18%
EPS Next 3Y-19.29%
EPS Next 5Y-6.4%
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-1.43%
Revenue Next 5Y1.18%
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 5Y4.5%
FCF growth 1Y912.02%
FCF growth 3Y76.61%
FCF growth 5YN/A
OCF growth 1Y2450%
OCF growth 3Y62.82%
OCF growth 5Y43.52%