Investors should take notice of NASDAQ:ALKS—it offers a great deal for the fundamentals it presents.

Take a closer look at ALKERMES PLC (NASDAQ:ALKS), a remarkable value stock uncovered by our stock screener. NASDAQ:ALKS excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

How We Gauge Valuation for NASDAQ:ALKS

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:ALKS was assigned a score of 9 for valuation:

• Based on the Price/Earnings ratio, ALKS is valued cheaper than 97.95% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 28.11, ALKS is valued rather cheaply.
• Based on the Price/Forward Earnings ratio of 9.00, the valuation of ALKS can be described as reasonable.
• Based on the Price/Forward Earnings ratio, ALKS is valued cheaply inside the industry as 99.15% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.39, ALKS is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, ALKS is valued cheaper than 98.63% of the companies in the same industry.
• 98.80% 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.
• ALKS's earnings are expected to grow with 25.25% in the coming years. This may justify a more expensive valuation.

Analyzing Profitability Metrics

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:ALKS has achieved a 6:

• With an excellent Return On Assets value of 20.46%, ALKS belongs to the best of the industry, outperforming 99.49% of the companies in the same industry.
• The Return On Equity of ALKS (34.63%) is better than 98.97% of its industry peers.
• With an excellent Return On Invested Capital value of 24.24%, ALKS belongs to the best of the industry, outperforming 99.49% of the companies in the same industry.
• ALKS has a better Profit Margin (25.17%) than 98.46% of its industry peers.
• ALKS has a better Operating Margin (29.60%) than 98.46% of its industry peers.
• ALKS has a better Gross Margin (85.31%) than 89.91% of its industry peers.

Assessing Health for NASDAQ:ALKS

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:ALKS has earned a 7 out of 10:

• ALKS has an Altman-Z score of 4.19. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
• ALKS has a better Altman-Z score (4.19) than 76.58% of its industry peers.
• ALKS has a debt to FCF ratio of 0.74. This is a very positive value and a sign of high solvency as it would only need 0.74 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.74, ALKS belongs to the top of the industry, outperforming 96.41% of the companies in the same industry.
• ALKS has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
• 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.
• A Current Ratio of 3.20 indicates that ALKS has no problem at all paying its short term obligations.
• A Quick Ratio of 2.77 indicates that ALKS has no problem at all paying its short term obligations.

What does the Growth looks like for NASDAQ:ALKS

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:ALKS boasts a 5 out of 10:

• ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 704.35%, which is quite impressive.
• Measured over the past years, ALKS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.41% on average per year.
• Looking at the last year, ALKS shows a very strong growth in Revenue. The Revenue has grown by 54.00%.
• Measured over the past years, ALKS shows a quite strong growth in Revenue. The Revenue has been growing by 8.74% on average per year.
• The Earnings Per Share is expected to grow by 10.51% on average over the next years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.