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

Our stock screener has spotted ALKERMES PLC (NASDAQ:ALKS) as an undervalued stock with solid fundamentals. NASDAQ:ALKS shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Valuation Insights: NASDAQ:ALKS

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:ALKS has received 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 96.46% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 29.39. ALKS is valued slightly cheaper when compared to this.
• ALKS's Price/Forward Earnings ratio is rather cheap when compared to the industry. ALKS is cheaper than 95.75% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 94.38, ALKS is valued rather cheaply.
• ALKS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALKS is cheaper than 98.05% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 97.17% of the companies listed in the same industry.
• ALKS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• ALKS has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as ALKS's earnings are expected to grow with 15.44% in the coming years.

What does the Profitability looks like for NASDAQ:ALKS

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:ALKS, the assigned 6 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 15.47%, ALKS belongs to the top of the industry, outperforming 97.70% of the companies in the same industry.
• ALKS's Return On Equity of 25.80% is amongst the best of the industry. ALKS outperforms 98.05% of its industry peers.
• ALKS has a Return On Invested Capital of 20.27%. This is amongst the best in the industry. ALKS outperforms 98.41% of its industry peers.
• ALKS's Profit Margin of 22.15% is amongst the best of the industry. ALKS outperforms 97.17% of its industry peers.
• ALKS has a better Operating Margin (29.00%) than 98.23% of its industry peers.
• The Gross Margin of ALKS (83.17%) is better than 87.96% of its industry peers.

Assessing Health Metrics for NASDAQ:ALKS

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:ALKS scores a 7 out of 10:

• ALKS has an Altman-Z score of 4.85. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.85, ALKS belongs to the best of the industry, outperforming 80.53% of the companies in the same industry.
• ALKS has a debt to FCF ratio of 0.92. This is a very positive value and a sign of high solvency as it would only need 0.92 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 0.92, ALKS belongs to the best of the industry, outperforming 95.93% of the companies in the same industry.
• A Debt/Equity ratio of 0.22 indicates that ALKS is not too dependend on debt financing.
• 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.
• 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.
• A Quick Ratio of 3.03 indicates that ALKS has no problem at all paying its short term obligations.

Unpacking 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 4 for growth:

• The Earnings Per Share has grown by an impressive 54.48% over the past year.
• 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.
• The Revenue has been growing by 8.74% on average over the past years. This is quite good.

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.