In a market where value is scarce, ALKERMES PLC (NASDAQ:ALKS) offers a refreshing opportunity with its solid fundamentals.

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

Analyzing Valuation Metrics

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. ALKS has achieved a 7 out of 10:

• A Price/Earnings ratio of 9.38 indicates a reasonable valuation of ALKS.
• Based on the Price/Earnings ratio, ALKS is valued cheaply inside the industry as 97.89% of the companies are valued more expensively.
• ALKS is valuated cheaply when we compare the Price/Earnings ratio to 28.13, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio, ALKS is valued cheaply inside the industry as 95.25% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.03, ALKS is valued a bit cheaper.
• ALKS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALKS is cheaper than 98.24% of the companies in the same industry.
• ALKS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALKS is cheaper than 97.54% of the companies in the same industry.
• ALKS has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Analysis for 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, ALKS has achieved a 7:

• ALKS's Return On Assets of 17.86% is amongst the best of the industry. ALKS outperforms 97.89% of its industry peers.
• ALKS's Return On Equity of 25.06% is amongst the best of the industry. ALKS outperforms 98.06% of its industry peers.
• ALKS has a Return On Invested Capital of 22.18%. This is amongst the best in the industry. ALKS outperforms 98.94% of its industry peers.
• ALKS's Profit Margin of 23.57% is amongst the best of the industry. ALKS outperforms 96.65% of its industry peers.
• With an excellent Operating Margin value of 27.00%, ALKS belongs to the best of the industry, outperforming 97.18% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 84.25%, ALKS belongs to the top of the industry, outperforming 86.80% of the companies in the same industry.

A Closer Look at Health for 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. ALKS has earned a 8 out of 10:

• ALKS has an Altman-Z score of 5.88. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.88, ALKS belongs to the top of the industry, outperforming 83.63% of the companies in the same industry.
• ALKS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• ALKS has a Current Ratio of 3.04. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
• ALKS has a Quick Ratio of 2.65. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.

Growth Assessment of ALKS

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of ALKS, the assigned 4 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 104.23% over the past year.
• Measured over the past years, ALKS shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.50% on average per year.

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.

Disclaimer

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.