NASDAQ:ALKS: good value for what you're paying.

Last update: Nov 18, 2024

Discover ALKERMES PLC (NASDAQ:ALKS), an undervalued stock highlighted by our stock screener. NASDAQ:ALKS showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Assessment of 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 8 for valuation:

Based on the Price/Earnings ratio, ALKS is valued cheaper than 97.50% of the companies in the same industry.
ALKS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 96.08% of the companies listed in the same industry.
ALKS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 98.57% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALKS is valued cheaply inside the industry as 97.15% of the companies are valued more expensively.
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.
A more expensive valuation may be justified as ALKS's earnings are expected to grow with 18.61% in the coming years.

A Closer Look at Profitability for NASDAQ:ALKS

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:ALKS scores a 6 out of 10:

The Return On Assets of ALKS (15.47%) is better than 97.68% of its industry peers.
ALKS has a Return On Equity of 25.80%. This is amongst the best in the industry. ALKS outperforms 97.86% of its industry peers.
With an excellent Return On Invested Capital value of 20.27%, ALKS belongs to the best of the industry, outperforming 97.86% of the companies in the same industry.
ALKS has a Profit Margin of 22.15%. This is amongst the best in the industry. ALKS outperforms 96.97% of its industry peers.
ALKS has a better Operating Margin (29.00%) than 97.86% of its industry peers.
With an excellent Gross Margin value of 83.17%, ALKS belongs to the best of the industry, outperforming 87.52% of the companies in the same industry.

Health Analysis for NASDAQ:ALKS

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:ALKS, the assigned 7 for health provides valuable insights:

An Altman-Z score of 4.43 indicates that ALKS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.43, ALKS is doing good in the industry, outperforming 78.61% of the companies in the same industry.
The Debt to FCF ratio of ALKS is 0.92, which is an excellent value as it means it would take ALKS, only 0.92 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ALKS (0.92) is better than 96.08% of its industry peers.
ALKS has a Debt/Equity ratio of 0.22. 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 3.45. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
ALKS has a Quick Ratio of 3.03. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.

Assessing Growth for NASDAQ:ALKS

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:ALKS has achieved a 4 out of 10:

ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.48%, 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.
ALKS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.74% yearly.
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.

For an up to date full fundamental analysis you can check the fundamental report of ALKS

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.