33.42 USD
-0.53 (-1.56%)
ALKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 525 industry peers in the Biotechnology industry. ALKS gets an excellent profitability rating and is at the same time showing great financial health properties. ALKS is not valued too expensively and it also shows a decent growth rate.
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
- Looking at the Return On Assets, with a value of 14.57%, ALKS belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
- ALKS has a Return On Equity of 19.58%. This is amongst the best in the industry. ALKS outperforms 96.00% of its industry peers.
- With an excellent Return On Invested Capital value of 16.22%, ALKS belongs to the best of the industry, outperforming 96.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.57% | ||
| ROE | 19.58% | ||
| ROIC | 16.22% |
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
- With an excellent Profit Margin value of 22.30%, ALKS belongs to the best of the industry, outperforming 94.48% of the companies in the same industry.
- With an excellent Operating Margin value of 23.59%, ALKS belongs to the best of the industry, outperforming 95.81% of the companies in the same industry.
- The Gross Margin of ALKS (86.04%) is better than 88.76% of its industry peers.
- ALKS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.59% | ||
| PM (TTM) | 22.3% | ||
| GM | 86.04% |
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.
- ALKS has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ALKS has more shares outstanding
- 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 6.99 indicates that ALKS is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.99, ALKS is in the better half of the industry, outperforming 76.76% of the companies in the same industry.
- 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 | 6.99 |
ROIC/WACC2.08
WACC7.8%
2.3 Liquidity
- A Current Ratio of 3.67 indicates that ALKS has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.67, ALKS is in line with its industry, outperforming 44.76% of the companies in the same industry.
- A Quick Ratio of 3.27 indicates that ALKS has no problem at all paying its short term obligations.
- With a Quick ratio value of 3.27, ALKS perfoms like the industry average, outperforming 41.52% of the companies in the same 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.
- ALKS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.87% yearly.
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
- ALKS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.55% yearly.
- Based on estimates for the next years, ALKS will show a small growth in Revenue. The Revenue will grow by 7.72% on average per year.
EPS Next Y-48.04%
EPS Next 2Y-27.54%
EPS Next 3Y-19.2%
EPS Next 5Y-1.55%
Revenue Next Year-2.21%
Revenue Next 2Y9.45%
Revenue Next 3Y6.91%
Revenue Next 5Y7.72%
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
- With a Price/Earnings ratio of 13.48, ALKS is valued correctly.
- ALKS's Price/Earnings ratio is rather cheap when compared to the industry. ALKS is cheaper than 97.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, ALKS is valued rather cheaply.
- ALKS is valuated rather expensively with a Price/Forward Earnings ratio of 21.95.
- 93.14% 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 24.32. ALKS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 21.95 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ALKS is valued cheaper than 97.14% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ALKS is valued cheaper than 98.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 10.28 |
4.3 Compensation for Growth
- ALKS has a very decent profitability rating, which may justify a higher PE ratio.
- ALKS's earnings are expected to decrease with -19.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y-27.54%
EPS Next 3Y-19.2%
5. Dividend
5.1 Amount
- No dividends for ALKS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 of ALKERMES PLC (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.
Can you provide the expected EPS growth for ALKS stock?
The Earnings per Share (EPS) of ALKERMES PLC (ALKS) is expected to decline by -48.04% in the next year.