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 gets an excellent profitability rating and is at the same time showing great financial health properties. ALKS may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ALKS suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ALKS was profitable.
In the past year ALKS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ALKS reported negative net income in multiple years.
ALKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALKS (16.91%) is better than 96.40% of its industry peers.
Looking at the Return On Equity, with a value of 23.28%, ALKS belongs to the top of the industry, outperforming 96.94% of the companies in the same industry.
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 has a Profit Margin of 23.25%. This is amongst the best in the industry. ALKS outperforms 95.86% of its industry peers.
With an excellent Operating Margin value of 25.90%, ALKS belongs to the best of the industry, outperforming 96.94% of the companies in the same industry.
With an excellent Gross Margin value of 84.42%, ALKS belongs to the best of the industry, outperforming 87.95% of the companies in the same industry.
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.
ALKS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ALKS has been increased compared to 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 5.91 indicates that ALKS is not in any danger for bankruptcy at the moment.
ALKS has a Altman-Z score of 5.91. This is in the better half of the industry: ALKS outperforms 78.96% 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 | 5.91 |
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 worse Quick ratio (2.92) than 64.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.92 |
3. Growth
3.1 Past
ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.80%, 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.
Looking at the last year, ALKS shows a very negative growth in Revenue. The Revenue has decreased by -12.30% in the last year.
ALKS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.87% yearly.
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
Based on estimates for the next years, ALKS will show a decrease in Earnings Per Share. The EPS will decrease by -5.84% on average per year.
ALKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.28% yearly.
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
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
A Price/Earnings ratio of 9.54 indicates a reasonable valuation of ALKS.
Based on the Price/Earnings ratio, ALKS is valued cheaper than 97.30% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.04, ALKS is valued rather cheaply.
A Price/Forward Earnings ratio of 14.21 indicates a correct valuation of ALKS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 94.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.64, 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 cheaper than 98.20% of the companies in the same industry.
97.84% 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 | 8.93 | ||
| EV/EBITDA | 7.15 |
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 -19.02% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-20.38%
EPS Next 3Y-19.02%
5. Dividend
5.1 Amount
No dividends for ALKS!.
| 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 Change0.51%
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)3.3%
PT rev (3m)4.79%
EPS NQ rev (1m)-1.52%
EPS NQ rev (3m)-16.28%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)-1.68%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-1.5%
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 | 7.15 |
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 | 5.91 |
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%