ALKERMES PLC (ALKS) Stock Fundamental Analysis
NASDAQ:ALKS - Nasdaq - IE00B56GVS15 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ALKS. ALKS was compared to 560 industry peers in the Biotechnology industry. Both the health and profitability get an excellent rating, making ALKS a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on ALKS. These ratings could make ALKS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year ALKS was profitable.
In the past year ALKS had a positive cash flow from operations.
In multiple years ALKS reported negative net income over the last 5 years.
In the past 5 years ALKS always reported a positive cash flow from operatings.
1.2 Ratios
ALKS has a better Return On Assets (16.91%) than 96.44% of its industry peers.
The Return On Equity of ALKS (23.28%) is better than 96.98% of its industry peers.
ALKS has a better Return On Invested Capital (20.05%) than 97.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.91% | ||
| ROE | 23.28% | ||
| ROIC | 20.05% |
ROA(3y)8.82%
ROA(5y)3.68%
ROE(3y)13.16%
ROE(5y)4.95%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ALKS has a Profit Margin of 23.25%. This is amongst the best in the industry. ALKS outperforms 95.91% of its industry peers.
ALKS's Operating Margin of 25.90% is amongst the best of the industry. ALKS outperforms 96.98% of its industry peers.
ALKS has a better Gross Margin (84.42%) than 87.90% of its industry peers.
In the last couple of years the Gross Margin of ALKS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.9% | ||
| PM (TTM) | 23.25% | ||
| GM | 84.42% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.43%
GM growth 5Y-0.08%
2. Health
2.1 Basic Checks
ALKS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ALKS has been reduced compared to 1 year ago.
ALKS has more shares outstanding than it did 5 years ago.
ALKS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 6.56 indicates that ALKS is not in any danger for bankruptcy at the moment.
ALKS has a better Altman-Z score (6.56) than 81.32% of its industry peers.
There is no outstanding debt for ALKS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.56 |
ROIC/WACC2.61
WACC7.69%
2.3 Liquidity
A Current Ratio of 3.33 indicates that ALKS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.33, ALKS is doing worse than 61.03% of the companies in the same industry.
A Quick Ratio of 2.92 indicates that ALKS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.92, ALKS is doing worse than 64.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.80% over the past year.
ALKS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.50% yearly.
ALKS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.30%.
ALKS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.87% yearly.
EPS 1Y (TTM)48.8%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-37.67%
Revenue 1Y (TTM)-12.3%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%-12.52%
3.2 Future
ALKS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.84% yearly.
ALKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.28% yearly.
EPS Next Y-38.1%
EPS Next 2Y-20.38%
EPS Next 3Y-19.02%
EPS Next 5Y-5.84%
Revenue Next Year-8.07%
Revenue Next 2Y-2.14%
Revenue Next 3Y-1.54%
Revenue Next 5Y1.28%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.05, the valuation of ALKS can be described as very reasonable.
Based on the Price/Earnings ratio, ALKS is valued cheaper than 96.98% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, ALKS is valued rather cheaply.
The Price/Forward Earnings ratio is 16.47, which indicates a correct valuation of ALKS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 94.13% of the companies listed in the same industry.
ALKS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 16.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 97.69% of the companies listed in the same industry.
96.98% of the companies in the same industry are more expensive than ALKS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.35 | ||
| EV/EBITDA | 8.62 |
4.3 Compensation for Growth
The decent profitability rating of ALKS may justify a higher PE ratio.
ALKS's earnings are expected to decrease with -19.02% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-20.38%
EPS Next 3Y-19.02%
5. Dividend
5.1 Amount
ALKS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.28
-0.18 (-0.59%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners107.16%
Inst Owner Change-0.02%
Ins Owners1.66%
Ins Owner Change10.54%
Market Cap4.99B
Analysts79.09
Price Target41.6 (37.38%)
Short Float %6.54%
Short Ratio6.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.25%
Min EPS beat(2)12.02%
Max EPS beat(2)30.49%
EPS beat(4)2
Avg EPS beat(4)8.91%
Min EPS beat(4)-4.37%
Max EPS beat(4)30.49%
EPS beat(8)4
Avg EPS beat(8)1.07%
EPS beat(12)7
Avg EPS beat(12)89.24%
EPS beat(16)11
Avg EPS beat(16)159.67%
Revenue beat(2)1
Avg Revenue beat(2)4.91%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)11.01%
Revenue beat(4)1
Avg Revenue beat(4)1.67%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)11.01%
Revenue beat(8)4
Avg Revenue beat(8)2.78%
Revenue beat(12)6
Avg Revenue beat(12)1.4%
Revenue beat(16)9
Avg Revenue beat(16)1.98%
PT rev (1m)1.6%
PT rev (3m)3.07%
EPS NQ rev (1m)-1.52%
EPS NQ rev (3m)-16.28%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)-4.26%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-1.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 16.47 | ||
| P/S | 3.3 | ||
| P/FCF | 10.35 | ||
| P/OCF | 9.66 | ||
| P/B | 3.3 | ||
| P/tB | 3.5 | ||
| EV/EBITDA | 8.62 |
EPS(TTM)2.74
EY9.05%
EPS(NY)1.84
Fwd EY6.07%
FCF(TTM)2.93
FCFY9.66%
OCF(TTM)3.14
OCFY10.35%
SpS9.18
BVpS9.17
TBVpS8.66
PEG (NY)N/A
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.91% | ||
| ROE | 23.28% | ||
| ROCE | 23.93% | ||
| ROIC | 20.05% | ||
| ROICexc | 43.56% | ||
| ROICexgc | 49.02% | ||
| OM | 25.9% | ||
| PM (TTM) | 23.25% | ||
| GM | 84.42% | ||
| FCFM | 31.86% |
ROA(3y)8.82%
ROA(5y)3.68%
ROE(3y)13.16%
ROE(5y)4.95%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.43%
GM growth 5Y-0.08%
F-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 122.21% | ||
| Cap/Sales | 2.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 122.99% | ||
| Profit Quality | 137.03% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.92 | ||
| Altman-Z | 6.56 |
F-Score6
WACC7.69%
ROIC/WACC2.61
Cap/Depr(3y)75.65%
Cap/Depr(5y)62.81%
Cap/Sales(3y)2.82%
Cap/Sales(5y)2.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.8%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-37.67%
EPS Next Y-38.1%
EPS Next 2Y-20.38%
EPS Next 3Y-19.02%
EPS Next 5Y-5.84%
Revenue 1Y (TTM)-12.3%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%-12.52%
Revenue Next Year-8.07%
Revenue Next 2Y-2.14%
Revenue Next 3Y-1.54%
Revenue Next 5Y1.28%
EBIT growth 1Y-23.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-17.09%
EBIT Next 3Y-5.86%
EBIT Next 5Y5.18%
FCF growth 1Y912.02%
FCF growth 3Y76.61%
FCF growth 5YN/A
OCF growth 1Y2450%
OCF growth 3Y62.82%
OCF growth 5Y43.52%