NASDAQ:ALKS stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Aug 2, 2024

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.

Valuation Analysis for NASDAQ:ALKS

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:ALKS has earned a 8 for valuation:

98.78% of the companies in the same industry are more expensive than ALKS, based on the Price/Earnings ratio.
ALKS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.11.
ALKS is valuated reasonably with a Price/Forward Earnings ratio of 10.07.
98.08% of the companies in the same industry are more expensive than ALKS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.79, ALKS is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, ALKS is valued cheaper than 98.25% of the companies in the same industry.
99.13% of the companies in the same industry are more expensive than ALKS, based on the Price/Free Cash Flow ratio.
The 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 24.74% in the coming years. This may justify a more expensive valuation.

Profitability Insights: NASDAQ:ALKS

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:

ALKS has a Return On Assets of 13.08%. This is amongst the best in the industry. ALKS outperforms 98.25% of its industry peers.
ALKS's Return On Equity of 22.49% is amongst the best of the industry. ALKS outperforms 97.91% of its industry peers.
ALKS has a Return On Invested Capital of 17.82%. This is amongst the best in the industry. ALKS outperforms 98.08% of its industry peers.
The Profit Margin of ALKS (19.15%) is better than 97.91% of its industry peers.
The Operating Margin of ALKS (25.30%) is better than 98.08% of its industry peers.
Looking at the Gross Margin, with a value of 83.31%, ALKS belongs to the top of the industry, outperforming 88.31% of the companies in the same industry.

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:

An Altman-Z score of 4.05 indicates that ALKS is not in any danger for bankruptcy at the moment.
ALKS's Altman-Z score of 4.05 is fine compared to the rest of the industry. ALKS outperforms 76.79% of its industry peers.
The Debt to FCF ratio of ALKS is 0.88, which is an excellent value as it means it would take ALKS, only 0.88 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.88, ALKS belongs to the best of the industry, outperforming 96.51% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that ALKS is not too dependend on debt financing.
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.
A Current Ratio of 2.99 indicates that ALKS has no problem at all paying its short term obligations.
ALKS has a Quick Ratio of 2.61. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.

Deciphering NASDAQ:ALKS's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:ALKS has earned a 5 for growth:

ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 179.17%, 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 18.41% yearly.
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.
Based on estimates for the next years, ALKS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.51% on average per year.

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

Our latest full fundamental report of ALKS contains the most current fundamental analsysis.

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.