ALKERMES PLC (ALKS) Stock Fundamental Analysis
USA - NASDAQ:ALKS - IE00B56GVS15 - Common Stock
30.26 USD
-0.54 (-1.75%)
30.26 USD
0 (0%)
ALKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 536 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 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.
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
ALKS has a Return On Assets of 15.45%. This is amongst the best in the industry. ALKS outperforms 95.71% of its industry peers.
With an excellent Return On Equity value of 21.42%, ALKS belongs to the best of the industry, outperforming 96.08% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.98%, ALKS belongs to the best of the industry, outperforming 97.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.45% | ||
| ROE | 21.42% | ||
| ROIC | 17.98% |
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
With an excellent Profit Margin value of 23.12%, ALKS belongs to the best of the industry, outperforming 95.34% of the companies in the same industry.
With an excellent Operating Margin value of 24.88%, ALKS belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
The Gross Margin of ALKS (85.13%) is better than 87.87% of its industry peers.
ALKS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.88% | ||
| PM (TTM) | 23.12% | ||
| GM | 85.13% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALKS is creating value.
Compared to 1 year ago, ALKS has less shares outstanding
ALKS has more shares outstanding than it did 5 years ago.
ALKS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ALKS has an Altman-Z score of 6.14. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
ALKS has a better Altman-Z score (6.14) than 75.93% 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 | 6.14 |
ROIC/WACC2.32
WACC7.75%
2.3 Liquidity
A Current Ratio of 3.23 indicates that ALKS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.23, ALKS is doing worse than 61.75% of the companies in the same industry.
ALKS has a Quick Ratio of 2.85. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
ALKS's Quick ratio of 2.85 is on the low side compared to the rest of the industry. ALKS is outperformed by 63.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 2.85 |
3. Growth
3.1 Past
ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.08%, which is quite impressive.
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 decrease in Revenue. In the last year, the revenue decreased by -0.17%.
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)36.08%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-4.29%
Revenue 1Y (TTM)-0.17%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%-2.12%
3.2 Future
ALKS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.18% yearly.
ALKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.50% yearly.
EPS Next Y-55.52%
EPS Next 2Y-35.99%
EPS Next 3Y-31.02%
EPS Next 5Y-5.18%
Revenue Next Year-5.79%
Revenue Next 2Y-2.17%
Revenue Next 3Y-2.08%
Revenue Next 5Y1.5%
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
The Price/Earnings ratio is 11.17, which indicates a very decent valuation of ALKS.
Based on the Price/Earnings ratio, ALKS is valued cheaper than 97.57% of the companies in the same industry.
ALKS is valuated cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
ALKS is valuated quite expensively with a Price/Forward Earnings ratio of 25.46.
Based on the Price/Forward Earnings ratio, ALKS is valued cheaper than 91.60% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, ALKS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 25.46 |
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 96.83% of the companies listed 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 97.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.42 | ||
| EV/EBITDA | 8.86 |
4.3 Compensation for Growth
ALKS has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ALKS's earnings are expected to decrease with -31.02% in the coming years.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-35.99%
EPS Next 3Y-31.02%
5. Dividend
5.1 Amount
ALKS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.26
-0.54 (-1.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners104.46%
Inst Owner Change0.04%
Ins Owners1.66%
Ins Owner Change1.48%
Market Cap5.00B
Analysts80
Price Target42.97 (42%)
Short Float %9.33%
Short Ratio7.42
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)38.58%
Min EPS beat(2)12.02%
Max EPS beat(2)65.13%
EPS beat(4)3
Avg EPS beat(4)25.82%
Min EPS beat(4)-4.37%
Max EPS beat(4)65.13%
EPS beat(8)4
Avg EPS beat(8)7.12%
EPS beat(12)7
Avg EPS beat(12)34.35%
EPS beat(16)11
Avg EPS beat(16)154.85%
Revenue beat(2)1
Avg Revenue beat(2)5.47%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)12.13%
Revenue beat(4)2
Avg Revenue beat(4)4.84%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)12.13%
Revenue beat(8)4
Avg Revenue beat(8)2.44%
Revenue beat(12)6
Avg Revenue beat(12)2.36%
Revenue beat(16)9
Avg Revenue beat(16)2.29%
PT rev (1m)0.3%
PT rev (3m)3.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-36.17%
EPS NY rev (1m)0.62%
EPS NY rev (3m)-28.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 25.46 | ||
| P/S | 3.32 | ||
| P/FCF | 10.42 | ||
| P/OCF | 9.59 | ||
| P/B | 3.07 | ||
| P/tB | 3.24 | ||
| EV/EBITDA | 8.86 |
EPS(TTM)2.71
EY8.96%
EPS(NY)1.19
Fwd EY3.93%
FCF(TTM)2.9
FCFY9.6%
OCF(TTM)3.16
OCFY10.43%
SpS9.12
BVpS9.84
TBVpS9.33
PEG (NY)N/A
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.45% | ||
| ROE | 21.42% | ||
| ROCE | 21.44% | ||
| ROIC | 17.98% | ||
| ROICexc | 42.95% | ||
| ROICexgc | 48.52% | ||
| OM | 24.88% | ||
| PM (TTM) | 23.12% | ||
| GM | 85.13% | ||
| 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-Score8
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 144.62% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 129.24% | ||
| Profit Quality | 137.77% | ||
| Current Ratio | 3.23 | ||
| Quick Ratio | 2.85 | ||
| Altman-Z | 6.14 |
F-Score8
WACC7.75%
ROIC/WACC2.32
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)36.08%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-4.29%
EPS Next Y-55.52%
EPS Next 2Y-35.99%
EPS Next 3Y-31.02%
EPS Next 5Y-5.18%
Revenue 1Y (TTM)-0.17%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%-2.12%
Revenue Next Year-5.79%
Revenue Next 2Y-2.17%
Revenue Next 3Y-2.08%
Revenue Next 5Y1.5%
EBIT growth 1Y-1.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-10.49%
EBIT Next 3Y-3.56%
EBIT Next 5Y11.16%
FCF growth 1Y201.78%
FCF growth 3Y76.56%
FCF growth 5YN/A
OCF growth 1Y165.89%
OCF growth 3Y62.84%
OCF growth 5Y43.53%