NASDAQ:ALKS is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Feb 12, 2024

Our stock screener has singled out ALKERMES PLC (NASDAQ:ALKS) as a stellar value proposition. NASDAQ:ALKS not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Assessing Valuation Metrics for NASDAQ:ALKS

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:ALKS boasts a 8 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 96.62% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.94. ALKS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 11.53, which indicates a very decent valuation of ALKS.
Based on the Price/Forward Earnings ratio, ALKS is valued cheaper than 98.14% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.56, ALKS is valued a bit cheaper.
Based on the Enterprise Value to EBITDA ratio, ALKS is valued cheaply inside the industry as 96.62% of the companies are valued more expensively.
97.12% of the companies in the same industry are more expensive than ALKS, based on the Price/Free Cash Flow ratio.
ALKS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ALKS may justify a higher PE ratio.
A more expensive valuation may be justified as ALKS's earnings are expected to grow with 97.17% in the coming years.

Assessing Profitability for NASDAQ:ALKS

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:ALKS has earned a 6 out of 10:

ALKS has a better Return On Assets (9.42%) than 97.46% of its industry peers.
ALKS has a better Return On Equity (15.85%) than 97.46% of its industry peers.
ALKS has a Return On Invested Capital of 9.83%. This is amongst the best in the industry. ALKS outperforms 96.11% of its industry peers.
The Profit Margin of ALKS (13.50%) is better than 96.95% of its industry peers.
With an excellent Operating Margin value of 13.89%, ALKS belongs to the best of the industry, outperforming 96.11% of the companies in the same industry.
ALKS has a better Gross Margin (85.10%) than 88.16% of its industry peers.

How We Gauge Health for NASDAQ:ALKS

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:ALKS, the assigned 6 reflects its health status:

An Altman-Z score of 3.59 indicates that ALKS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.59, ALKS is doing good in the industry, outperforming 73.10% of the companies in the same industry.
ALKS has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
ALKS's Debt to FCF ratio of 1.15 is amongst the best of the industry. ALKS outperforms 95.94% of its industry peers.
ALKS has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
Even though the debt/equity ratio score it not favorable for ALKS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
ALKS has a Current Ratio of 2.91. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
ALKS has a Quick Ratio of 2.53. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.

Growth Assessment of NASDAQ:ALKS

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:ALKS was assigned a score of 7 for growth:

ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 211.63%, which is quite impressive.
ALKS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.87% yearly.
ALKS shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.56%.
ALKS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 52.71% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of ALKS for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.