ALKERMES PLC (ALKS) Stock Fundamental Analysis
NASDAQ:ALKS - Nasdaq - IE00B56GVS15 - Common Stock - Currency: USD
ALKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 568 industry peers in the Biotechnology industry. ALKS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ALKS is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make ALKS a good candidate for value 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.
The reported net income has been mixed in the past 5 years: ALKS reported negative net income in multiple years.
Each year in the past 5 years ALKS had a positive operating cash flow.
1.2 Ratios
ALKS has a Return On Assets of 17.86%. This is amongst the best in the industry. ALKS outperforms 97.89% of its industry peers.
With an excellent Return On Equity value of 25.06%, ALKS belongs to the best of the industry, outperforming 98.06% of the companies in the same industry.
ALKS has a better Return On Invested Capital (22.18%) than 98.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.86% | ||
| ROE | 25.06% | ||
| ROIC | 22.18% |
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 23.57%, ALKS belongs to the best of the industry, outperforming 96.65% of the companies in the same industry.
ALKS has a Operating Margin of 27.00%. This is amongst the best in the industry. ALKS outperforms 97.18% of its industry peers.
ALKS has a better Gross Margin (84.25%) than 86.80% of its industry peers.
ALKS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27% | ||
| PM (TTM) | 23.57% | ||
| GM | 84.25% |
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
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
ALKS has an Altman-Z score of 5.84. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ALKS (5.84) is better than 82.92% 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 | 5.84 |
ROIC/WACC2.94
WACC7.54%
2.3 Liquidity
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 Current ratio of 3.04. This is in the lower half of the industry: ALKS underperforms 64.44% of its industry peers.
A Quick Ratio of 2.65 indicates that ALKS has no problem at all paying its short term obligations.
ALKS has a worse Quick ratio (2.65) than 67.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.04 | ||
| Quick Ratio | 2.65 |
3. Growth
3.1 Past
ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.23%, 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
The Revenue has decreased by -6.36% in the past 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)104.23%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%377.27%
Revenue 1Y (TTM)-6.36%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%13.91%
3.2 Future
Based on estimates for the next years, ALKS will show a decrease in Earnings Per Share. The EPS will decrease by -6.60% on average per year.
ALKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.21% yearly.
EPS Next Y-35.34%
EPS Next 2Y-19.24%
EPS Next 3Y-16.98%
EPS Next 5Y-6.6%
Revenue Next Year-7.75%
Revenue Next 2Y-1.87%
Revenue Next 3Y-1.83%
Revenue Next 5Y0.21%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 9.31, the valuation of ALKS can be described as reasonable.
ALKS's Price/Earnings ratio is rather cheap when compared to the industry. ALKS is cheaper than 97.89% of the companies in the same industry.
ALKS is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.40 indicates a correct valuation of ALKS.
Based on the Price/Forward Earnings ratio, ALKS is valued cheaper than 95.25% of the companies in the same industry.
ALKS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 14.4 |
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 98.24% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ALKS is valued cheaper than 97.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.97 | ||
| EV/EBITDA | 7.21 |
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 -16.98% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-19.24%
EPS Next 3Y-16.98%
5. Dividend
5.1 Amount
ALKS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27
-0.2 (-0.74%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners105.48%
Inst Owner Change0%
Ins Owners1.62%
Ins Owner Change7.06%
Market Cap4.45B
Analysts78.18
Price Target40.36 (49.48%)
Short Float %8.82%
Short Ratio8.21
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)1
Avg EPS beat(2)13.06%
Min EPS beat(2)-4.37%
Max EPS beat(2)30.49%
EPS beat(4)1
Avg EPS beat(4)-1.02%
Min EPS beat(4)-27.71%
Max EPS beat(4)30.49%
EPS beat(8)4
Avg EPS beat(8)21.14%
EPS beat(12)7
Avg EPS beat(12)175.19%
EPS beat(16)11
Avg EPS beat(16)203.08%
Revenue beat(2)1
Avg Revenue beat(2)4.2%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)11.01%
Revenue beat(4)1
Avg Revenue beat(4)0.81%
Min Revenue beat(4)-4.65%
Max Revenue beat(4)11.01%
Revenue beat(8)4
Avg Revenue beat(8)2.89%
Revenue beat(12)7
Avg Revenue beat(12)2.18%
Revenue beat(16)10
Avg Revenue beat(16)2.39%
PT rev (1m)8.63%
PT rev (3m)16.12%
EPS NQ rev (1m)-9.97%
EPS NQ rev (3m)-41.19%
EPS NY rev (1m)1.13%
EPS NY rev (3m)-4.84%
Revenue NQ rev (1m)-1.34%
Revenue NQ rev (3m)-6.35%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 14.4 | ||
| P/S | 2.86 | ||
| P/FCF | 10.97 | ||
| P/OCF | 10.14 | ||
| P/B | 3.04 | ||
| P/tB | 3.22 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)2.9
EY10.74%
EPS(NY)1.88
Fwd EY6.94%
FCF(TTM)2.46
FCFY9.11%
OCF(TTM)2.66
OCFY9.87%
SpS9.45
BVpS8.89
TBVpS8.38
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.86% | ||
| ROE | 25.06% | ||
| ROCE | 26.45% | ||
| ROIC | 22.18% | ||
| ROICexc | 42.06% | ||
| ROICexgc | 46.74% | ||
| OM | 27% | ||
| PM (TTM) | 23.57% | ||
| GM | 84.25% | ||
| FCFM | 26.04% |
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-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 117.35% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 18.28 | ||
| Cash Conversion | 97.76% | ||
| Profit Quality | 110.51% | ||
| Current Ratio | 3.04 | ||
| Quick Ratio | 2.65 | ||
| Altman-Z | 5.84 |
F-Score7
WACC7.54%
ROIC/WACC2.94
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)104.23%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%377.27%
EPS Next Y-35.34%
EPS Next 2Y-19.24%
EPS Next 3Y-16.98%
EPS Next 5Y-6.6%
Revenue 1Y (TTM)-6.36%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%13.91%
Revenue Next Year-7.75%
Revenue Next 2Y-1.87%
Revenue Next 3Y-1.83%
Revenue Next 5Y0.21%
EBIT growth 1Y0.13%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-42.06%
EBIT Next 3Y-26.11%
EBIT Next 5Y4.56%
FCF growth 1Y14.81%
FCF growth 3Y76.56%
FCF growth 5YN/A
OCF growth 1Y9.41%
OCF growth 3Y62.84%
OCF growth 5Y43.53%