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 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ALKS very considerable 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.
Each year in the past 5 years ALKS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ALKS (16.91%) is better than 96.40% of its industry peers.
With an excellent Return On Equity value of 23.28%, ALKS belongs to the best of the industry, outperforming 96.94% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.05%, ALKS belongs to the best of the industry, outperforming 97.48% 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
Looking at the Profit Margin, with a value of 23.25%, ALKS belongs to the top of the industry, outperforming 95.86% of the companies in the same industry.
ALKS has a Operating Margin of 25.90%. This is amongst the best in the industry. ALKS outperforms 96.94% of its industry peers.
ALKS's Gross Margin of 84.42% is amongst the best of the industry. ALKS outperforms 87.95% of its industry peers.
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
ALKS has an Altman-Z score of 5.91. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.91, ALKS is in the better half of the industry, outperforming 78.96% of the companies in the same industry.
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 | 5.91 |
ROIC/WACC2.61
WACC7.68%
2.3 Liquidity
A Current Ratio of 3.33 indicates that ALKS has no problem at all paying its short term obligations.
With a Current ratio value of 3.33, ALKS is not doing good in the industry: 61.33% of the companies in the same industry are doing better.
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 Quick ratio of 2.92. This is in the lower half of the industry: ALKS underperforms 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.
The Earnings Per Share has been growing by 32.50% on average over the past years. This is a very strong growth
ALKS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.30%.
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
ALKS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.84% yearly.
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
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 9.54, which indicates a very decent valuation of ALKS.
Based on the Price/Earnings ratio, ALKS is valued cheaper than 97.30% of the companies in the same industry.
When comparing the Price/Earnings ratio of ALKS to the average of the S&P500 Index (28.04), we can say ALKS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 14.21, the valuation of ALKS can be described as correct.
Based on the Price/Forward Earnings ratio, ALKS is valued cheaply inside the industry as 94.42% of the companies are valued more expensively.
ALKS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 14.21 |
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 98.20% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALKS is valued cheaply inside the industry as 97.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.93 | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
ALKS has a very decent profitability rating, which 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%