ALKERMES PLC (ALKS) Stock Fundamental Analysis
USA - NASDAQ:ALKS - IE00B56GVS15 - Common Stock
26.52 USD
-0.45 (-1.67%)
26.52 USD
0 (0%)
ALKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 540 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. ALKS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ALKS had positive earnings in the past year.
ALKS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ALKS reported negative net income in multiple years.
In the past 5 years ALKS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ALKS (15.45%) is better than 95.56% of its industry peers.
ALKS has a better Return On Equity (21.42%) than 96.11% of its industry peers.
ALKS has a better Return On Invested Capital (17.98%) than 97.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.45% | ||
| ROE | 21.42% | ||
| ROIC | 17.98% |
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
Looking at the Profit Margin, with a value of 23.12%, ALKS belongs to the top of the industry, outperforming 95.37% of the companies in the same industry.
The Operating Margin of ALKS (24.88%) is better than 95.56% of its industry peers.
Looking at the Gross Margin, with a value of 85.13%, ALKS belongs to the top of the industry, outperforming 87.96% of the companies in the same industry.
ALKS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.88% | ||
| PM (TTM) | 23.12% | ||
| GM | 85.13% |
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.
Compared to 1 year ago, ALKS has less shares outstanding
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
ALKS has an Altman-Z score of 5.53. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
ALKS has a Altman-Z score of 5.53. This is in the better half of the industry: ALKS outperforms 76.67% 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 | 5.53 |
ROIC/WACC2.34
WACC7.68%
2.3 Liquidity
A Current Ratio of 3.23 indicates that ALKS has no problem at all paying its short term obligations.
The Current ratio of ALKS (3.23) is worse than 61.48% of its industry peers.
A Quick Ratio of 2.85 indicates that ALKS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.85, ALKS is doing worse than 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 2.85 |
3. Growth
3.1 Past
ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.08%, which is quite impressive.
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 decrease in Revenue. The Revenue has decreased by -0.17% in the last year.
The Revenue has been growing slightly by 5.87% on average over the past years.
EPS 1Y (TTM)36.08%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-4.29%
Revenue 1Y (TTM)-0.17%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%-2.12%
3.2 Future
ALKS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.62% yearly.
The Revenue is expected to grow by 1.44% on average over the next years.
EPS Next Y-55.79%
EPS Next 2Y-37.6%
EPS Next 3Y-33.6%
EPS Next 5Y-4.62%
Revenue Next Year-5.79%
Revenue Next 2Y-2.17%
Revenue Next 3Y-2.08%
Revenue Next 5Y1.44%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.79, which indicates a very decent valuation of ALKS.
Compared to the rest of the industry, the Price/Earnings ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 97.04% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. ALKS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 23.49, which indicates a rather expensive current valuation of ALKS.
Based on the Price/Forward Earnings ratio, ALKS is valued cheaper than 91.48% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ALKS to the average of the S&P500 Index (22.77), we can say ALKS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 23.49 |
4.2 Price Multiples
ALKS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALKS is cheaper than 97.41% of the companies in the same industry.
98.33% 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 | 9.13 | ||
| EV/EBITDA | 7.3 |
4.3 Compensation for Growth
ALKS has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ALKS's earnings are expected to decrease with -33.60% in the coming years.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-37.6%
EPS Next 3Y-33.6%
5. Dividend
5.1 Amount
No dividends for ALKS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.52
-0.45 (-1.67%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners106.47%
Inst Owner Change-6.72%
Ins Owners1.66%
Ins Owner Change1.63%
Market Cap4.38B
Analysts79.13
Price Target42.84 (61.54%)
Short Float %8.56%
Short Ratio7.64
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)38.58%
Min EPS beat(2)12.02%
Max EPS beat(2)65.13%
EPS beat(4)3
Avg EPS beat(4)25.82%
Min EPS beat(4)-4.37%
Max EPS beat(4)65.13%
EPS beat(8)4
Avg EPS beat(8)7.12%
EPS beat(12)7
Avg EPS beat(12)34.35%
EPS beat(16)11
Avg EPS beat(16)154.85%
Revenue beat(2)1
Avg Revenue beat(2)5.47%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)12.13%
Revenue beat(4)2
Avg Revenue beat(4)4.84%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)12.13%
Revenue beat(8)4
Avg Revenue beat(8)2.44%
Revenue beat(12)6
Avg Revenue beat(12)2.36%
Revenue beat(16)9
Avg Revenue beat(16)2.29%
PT rev (1m)0%
PT rev (3m)4.63%
EPS NQ rev (1m)2.12%
EPS NQ rev (3m)-36.85%
EPS NY rev (1m)-28.58%
EPS NY rev (3m)-28.93%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)2.55%
Revenue NY rev (3m)2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 23.49 | ||
| P/S | 2.91 | ||
| P/FCF | 9.13 | ||
| P/OCF | 8.4 | ||
| P/B | 2.69 | ||
| P/tB | 2.84 | ||
| EV/EBITDA | 7.3 |
EPS(TTM)2.71
EY10.22%
EPS(NY)1.13
Fwd EY4.26%
FCF(TTM)2.9
FCFY10.95%
OCF(TTM)3.16
OCFY11.9%
SpS9.12
BVpS9.84
TBVpS9.33
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.45% | ||
| ROE | 21.42% | ||
| ROCE | 21.44% | ||
| ROIC | 17.98% | ||
| ROICexc | 42.95% | ||
| ROICexgc | 48.52% | ||
| OM | 24.88% | ||
| PM (TTM) | 23.12% | ||
| GM | 85.13% | ||
| 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-Score8
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 144.62% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 129.24% | ||
| Profit Quality | 137.77% | ||
| Current Ratio | 3.23 | ||
| Quick Ratio | 2.85 | ||
| Altman-Z | 5.53 |
F-Score8
WACC7.68%
ROIC/WACC2.34
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)36.08%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-4.29%
EPS Next Y-55.79%
EPS Next 2Y-37.6%
EPS Next 3Y-33.6%
EPS Next 5Y-4.62%
Revenue 1Y (TTM)-0.17%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%-2.12%
Revenue Next Year-5.79%
Revenue Next 2Y-2.17%
Revenue Next 3Y-2.08%
Revenue Next 5Y1.44%
EBIT growth 1Y-1.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-10.49%
EBIT Next 3Y-3.57%
EBIT Next 5Y12.15%
FCF growth 1Y201.78%
FCF growth 3Y76.56%
FCF growth 5YN/A
OCF growth 1Y165.89%
OCF growth 3Y62.84%
OCF growth 5Y43.53%