ALKERMES PLC (ALKS)
IE00B56GVS15 - Common Stock
Taking everything into account, ALKS scores 6 out of 10 in our fundamental rating. ALKS was compared to 588 industry peers in the Biotechnology industry. While ALKS has a great health rating, its profitability is only average at the moment. A decent growth rate in combination with a cheap valuation! Better keep an eye on ALKS. 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.
ALKS had negative earnings in 4 of the past 5 years.
Each year in the past 5 years ALKS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 16.66%, ALKS belongs to the best of the industry, outperforming 99.14% of the companies in the same industry.
ALKS's Return On Equity of 29.59% is amongst the best of the industry. ALKS outperforms 98.29% of its industry peers.
With an excellent Return On Invested Capital value of 20.54%, ALKS belongs to the best of the industry, outperforming 99.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.66% | ||
| ROE | 29.59% | ||
| ROIC | 20.54% |
ROA(3y)2.07%
ROA(5y)-2.07%
ROE(3y)3.36%
ROE(5y)-3.68%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ALKS (21.39%) is better than 97.77% of its industry peers.
The Operating Margin of ALKS (25.25%) is better than 97.77% of its industry peers.
Looking at the Gross Margin, with a value of 84.78%, ALKS belongs to the top of the industry, outperforming 89.73% 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 | 25.25% | ||
| PM (TTM) | 21.39% | ||
| GM | 84.78% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.78%
GM growth 5Y0.22%
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 increased compared to 1 year ago.
The number of shares outstanding for ALKS has been increased compared to 5 years ago.
The debt/assets ratio for ALKS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.74 indicates that ALKS is not in any danger for bankruptcy at the moment.
ALKS has a Altman-Z score of 3.74. This is in the better half of the industry: ALKS outperforms 77.74% of its industry peers.
ALKS has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.82, ALKS belongs to the top of the industry, outperforming 96.23% of the companies in the same industry.
ALKS has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
ALKS has a worse Debt to Equity ratio (0.24) than 68.84% of its industry peers.
Although ALKS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 3.74 |
ROIC/WACC2.8
WACC7.34%
2.3 Liquidity
A Current Ratio of 2.86 indicates that ALKS has no problem at all paying its short term obligations.
The Current ratio of ALKS (2.86) is worse than 68.15% of its industry peers.
A Quick Ratio of 2.50 indicates that ALKS has no problem at all paying its short term obligations.
ALKS has a worse Quick ratio (2.50) than 71.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 317.65% over the past year.
The Earnings Per Share has been growing by 18.41% on average over the past years. This is quite good.
Looking at the last year, ALKS shows a very strong growth in Revenue. The Revenue has grown by 49.61%.
The Revenue has been growing by 8.74% on average over the past years. This is quite good.
EPS 1Y (TTM)317.65%
EPS 3Y48.92%
EPS 5Y18.41%
EPS growth Q2Q57.14%
Revenue 1Y (TTM)49.61%
Revenue growth 3Y16.99%
Revenue growth 5Y8.74%
Revenue growth Q2Q23.88%
3.2 Future
The Earnings Per Share is expected to grow by 17.76% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.18% on average over the next years.
EPS Next Y100.77%
EPS Next 2Y38.71%
EPS Next 3Y25.25%
EPS Next 5Y17.76%
Revenue Next Year-7.19%
Revenue Next 2Y-3.42%
Revenue Next 3Y-2.31%
Revenue Next 5Y0.18%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 17.21, which indicates a rather expensive current valuation of ALKS.
Based on the Price/Earnings ratio, ALKS is valued cheaply inside the industry as 97.09% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ALKS to the average of the S&P500 Index (25.25), we can say ALKS is valued slightly cheaper.
The Price/Forward Earnings ratio is 8.57, which indicates a very decent valuation of ALKS.
Based on the Price/Forward Earnings ratio, ALKS is valued cheaply inside the industry as 99.32% of the companies are valued more expensively.
ALKS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALKS is valued cheaper than 98.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALKS is valued cheaper than 98.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.56 | ||
| EV/EBITDA | 5.99 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ALKS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ALKS's earnings are expected to grow with 25.25% in the coming years.
PEG (NY)0.17
PEG (5Y)0.93
EPS Next 2Y38.71%
EPS Next 3Y25.25%
5. Dividend
5.1 Amount
No dividends for ALKS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALKERMES PLC
NASDAQ:ALKS (4/25/2024, 3:20:00 PM)
After market: 24.44 0 (0%)24.44
-0.21 (-0.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 8.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.17
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.66% | ||
| ROE | 29.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.25% | ||
| PM (TTM) | 21.39% | ||
| GM | 84.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)317.65%
EPS 3Y48.92%
EPS 5Y
EPS growth Q2Q
EPS Next Y100.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)49.61%
Revenue growth 3Y16.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y