ALKERMES PLC (ALKS) Stock Fundamental Analysis
USA - NASDAQ:ALKS - IE00B56GVS15 - Common Stock
31.01 USD
-0.39 (-1.26%)
30.31 USD
-0.7 (-2.26%)
Taking everything into account, ALKS scores 6 out of 10 in our fundamental rating. ALKS was compared to 531 industry peers in the Biotechnology industry. ALKS gets an excellent profitability rating and is at the same time showing great financial health properties. ALKS has a decent growth rate and is not valued too expensively. These ratings would make ALKS suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ALKS was profitable.
ALKS had a positive operating cash flow in the past year.
In multiple years ALKS reported negative net income over the last 5 years.
ALKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALKS has a Return On Assets of 14.54%. This is amongst the best in the industry. ALKS outperforms 95.10% of its industry peers.
ALKS's Return On Equity of 19.55% is amongst the best of the industry. ALKS outperforms 95.48% of its industry peers.
With an excellent Return On Invested Capital value of 16.21%, ALKS belongs to the best of the industry, outperforming 96.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.54% | ||
| ROE | 19.55% | ||
| ROIC | 16.21% |
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 better Profit Margin (22.27%) than 94.54% of its industry peers.
With an excellent Operating Margin value of 23.57%, ALKS belongs to the best of the industry, outperforming 95.67% of the companies in the same industry.
The Gross Margin of ALKS (85.93%) is better than 88.32% 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 | 23.57% | ||
| PM (TTM) | 22.27% | ||
| GM | 85.93% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALKS is creating value.
ALKS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALKS has more shares outstanding
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.
2.2 Solvency
ALKS has an Altman-Z score of 6.50. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ALKS (6.50) is better than 77.21% of its industry peers.
ALKS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.5 |
ROIC/WACC2.09
WACC7.74%
2.3 Liquidity
A Current Ratio of 3.67 indicates that ALKS has no problem at all paying its short term obligations.
ALKS has a Current ratio (3.67) which is comparable to the rest of the industry.
A Quick Ratio of 3.27 indicates that ALKS has no problem at all paying its short term obligations.
The Quick ratio of ALKS (3.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.27 |
3. Growth
3.1 Past
ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.71%, which is quite good.
The Earnings Per Share has been growing by 32.50% on average over the past years. This is a very strong growth
Looking at the last year, ALKS shows a small growth in Revenue. The Revenue has grown by 1.08% in the last year.
The Revenue has been growing slightly by 5.87% on average over the past years.
EPS 1Y (TTM)19.71%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-31.94%
Revenue 1Y (TTM)1.08%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%4.24%
3.2 Future
The Earnings Per Share is expected to decrease by -4.73% on average over the next years.
ALKS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.56% yearly.
EPS Next Y-48.02%
EPS Next 2Y-31.39%
EPS Next 3Y-19.38%
EPS Next 5Y-4.73%
Revenue Next Year-2.6%
Revenue Next 2Y10.16%
Revenue Next 3Y6.82%
Revenue Next 5Y8.56%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.50, the valuation of ALKS can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 96.80% of the companies listed in the same industry.
ALKS is valuated cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
ALKS is valuated rather expensively with a Price/Forward Earnings ratio of 22.72.
92.28% of the companies in the same industry are more expensive than ALKS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.57. ALKS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 22.72 |
4.2 Price Multiples
ALKS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALKS is cheaper than 97.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALKS is valued cheaply inside the industry as 98.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.43 | ||
| EV/EBITDA | 9.05 |
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 -19.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-31.39%
EPS Next 3Y-19.38%
5. Dividend
5.1 Amount
ALKS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.01
-0.39 (-1.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners104.46%
Inst Owner Change-0.23%
Ins Owners1.66%
Ins Owner Change1.24%
Market Cap5.12B
Revenue(TTM)1.52B
Net Income(TTM)338.83M
Analysts80.91
Price Target44.61 (43.86%)
Short Float %8.93%
Short Ratio7.1
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)66.1%
Min EPS beat(2)59.84%
Max EPS beat(2)72.36%
EPS beat(4)4
Avg EPS beat(4)43.68%
Min EPS beat(4)12.02%
Max EPS beat(4)72.36%
EPS beat(8)4
Avg EPS beat(8)10.27%
EPS beat(12)8
Avg EPS beat(12)42.89%
EPS beat(16)11
Avg EPS beat(16)151.46%
Revenue beat(2)2
Avg Revenue beat(2)10.32%
Min Revenue beat(2)8.51%
Max Revenue beat(2)12.13%
Revenue beat(4)3
Avg Revenue beat(4)7.62%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)12.13%
Revenue beat(8)4
Avg Revenue beat(8)3.11%
Revenue beat(12)7
Avg Revenue beat(12)3.8%
Revenue beat(16)10
Avg Revenue beat(16)3.09%
PT rev (1m)3.82%
PT rev (3m)4.13%
EPS NQ rev (1m)1.26%
EPS NQ rev (3m)-25.1%
EPS NY rev (1m)16.87%
EPS NY rev (3m)-16.02%
Revenue NQ rev (1m)3.22%
Revenue NQ rev (3m)2.27%
Revenue NY rev (1m)3.39%
Revenue NY rev (3m)6.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 22.72 | ||
| P/S | 3.36 | ||
| P/FCF | 10.43 | ||
| P/OCF | 9.47 | ||
| P/B | 2.95 | ||
| P/tB | 3.1 | ||
| EV/EBITDA | 9.05 |
EPS(TTM)2.48
EY8%
EPS(NY)1.37
Fwd EY4.4%
FCF(TTM)2.97
FCFY9.59%
OCF(TTM)3.28
OCFY10.56%
SpS9.22
BVpS10.5
TBVpS9.99
PEG (NY)N/A
PEG (5Y)0.38
Graham Number24.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.54% | ||
| ROE | 19.55% | ||
| ROCE | 19.33% | ||
| ROIC | 16.21% | ||
| ROICexc | 40.41% | ||
| ROICexgc | 45.55% | ||
| OM | 23.57% | ||
| PM (TTM) | 22.27% | ||
| GM | 85.93% | ||
| FCFM | 32.27% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 167.24% | ||
| Cap/Sales | 3.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 139.24% | ||
| Profit Quality | 144.88% | ||
| Current Ratio | 3.67 | ||
| Quick Ratio | 3.27 | ||
| Altman-Z | 6.5 |
F-Score6
WACC7.74%
ROIC/WACC2.09
Cap/Depr(3y)76.88%
Cap/Depr(5y)63.55%
Cap/Sales(3y)2.83%
Cap/Sales(5y)2.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.71%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-31.94%
EPS Next Y-48.02%
EPS Next 2Y-31.39%
EPS Next 3Y-19.38%
EPS Next 5Y-4.73%
Revenue 1Y (TTM)1.08%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%4.24%
Revenue Next Year-2.6%
Revenue Next 2Y10.16%
Revenue Next 3Y6.82%
Revenue Next 5Y8.56%
EBIT growth 1Y-17.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-10.49%
EBIT Next 3Y-3.56%
EBIT Next 5Y16.39%
FCF growth 1Y93.26%
FCF growth 3Y76.56%
FCF growth 5YN/A
OCF growth 1Y83.26%
OCF growth 3Y62.84%
OCF growth 5Y43.53%
ALKERMES PLC / ALKS FAQ
What is the fundamental rating for ALKS stock?
ChartMill assigns a fundamental rating of 6 / 10 to ALKS.
What is the valuation status for ALKS stock?
ChartMill assigns a valuation rating of 6 / 10 to ALKERMES PLC (ALKS). This can be considered as Fairly Valued.
Can you provide the profitability details for ALKERMES PLC?
ALKERMES PLC (ALKS) has a profitability rating of 7 / 10.
What is the valuation of ALKERMES PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALKERMES PLC (ALKS) is 12.5 and the Price/Book (PB) ratio is 2.95.
What is the expected EPS growth for ALKERMES PLC (ALKS) stock?
The Earnings per Share (EPS) of ALKERMES PLC (ALKS) is expected to decline by -48.02% in the next year.