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ALKERMES PLC (ALKS) Stock Fundamental Analysis

NASDAQ:ALKS - Nasdaq - IE00B56GVS15 - Common Stock - Currency: USD

31.3  +0.54 (+1.76%)

After market: 31.28 -0.02 (-0.06%)

Fundamental Rating

6

Taking everything into account, ALKS scores 6 out of 10 in our fundamental rating. ALKS was compared to 572 industry peers in the Biotechnology industry. ALKS has an excellent financial health rating, but there are some minor concerns on its profitability. ALKS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make ALKS suitable for value investing!


Dividend Valuation Growth Profitability Health

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6

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.
ALKS had negative earnings in 4 of the past 5 years.
In the past 5 years ALKS always reported a positive cash flow from operatings.
ALKS Yearly Net Income VS EBIT VS OCF VS FCFALKS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M

1.2 Ratios

The Return On Assets of ALKS (15.47%) is better than 97.70% of its industry peers.
ALKS has a better Return On Equity (25.80%) than 98.05% of its industry peers.
ALKS's Return On Invested Capital of 20.27% is amongst the best of the industry. ALKS outperforms 98.41% of its industry peers.
Industry RankSector Rank
ROA 15.47%
ROE 25.8%
ROIC 20.27%
ROA(3y)2.07%
ROA(5y)-2.07%
ROE(3y)3.36%
ROE(5y)-3.68%
ROIC(3y)N/A
ROIC(5y)N/A
ALKS Yearly ROA, ROE, ROICALKS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

1.3 Margins

ALKS has a better Profit Margin (22.15%) than 97.17% of its industry peers.
ALKS has a Operating Margin of 29.00%. This is amongst the best in the industry. ALKS outperforms 98.23% of its industry peers.
ALKS has a better Gross Margin (83.17%) than 87.96% 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 RankSector Rank
OM 29%
PM (TTM) 22.15%
GM 83.17%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.78%
GM growth 5Y0.22%
ALKS Yearly Profit, Operating, Gross MarginsALKS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60 80

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7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALKS is creating value.
ALKS has more shares outstanding than it did 1 year ago.
ALKS has more shares outstanding than it did 5 years ago.
ALKS has a better debt/assets ratio than last year.
ALKS Yearly Shares OutstandingALKS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
ALKS Yearly Total Debt VS Total AssetsALKS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

ALKS has an Altman-Z score of 4.72. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
ALKS has a Altman-Z score of 4.72. This is amongst the best in the industry. ALKS outperforms 80.53% of its industry peers.
ALKS has a debt to FCF ratio of 0.92. This is a very positive value and a sign of high solvency as it would only need 0.92 years to pay back of all of its debts.
ALKS has a better Debt to FCF ratio (0.92) than 95.93% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that ALKS is not too dependend on debt financing.
The Debt to Equity ratio of ALKS (0.22) is worse than 70.62% of its industry peers.
Although ALKS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 0.92
Altman-Z 4.72
ROIC/WACC2.86
WACC7.08%
ALKS Yearly LT Debt VS Equity VS FCFALKS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

2.3 Liquidity

A Current Ratio of 3.45 indicates that ALKS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.45, ALKS is in line with its industry, outperforming 41.06% of the companies in the same industry.
A Quick Ratio of 3.03 indicates that ALKS has no problem at all paying its short term obligations.
With a Quick ratio value of 3.03, ALKS is not doing good in the industry: 63.19% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 3.45
Quick Ratio 3.03
ALKS Yearly Current Assets VS Current LiabilitesALKS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 54.48% over the past year.
ALKS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.41% yearly.
The Revenue has decreased by -5.37% in the past year.
ALKS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.74% yearly.
EPS 1Y (TTM)54.48%
EPS 3Y48.92%
EPS 5Y18.41%
EPS Q2Q%12.5%
Revenue 1Y (TTM)-5.37%
Revenue growth 3Y16.99%
Revenue growth 5Y8.74%
Sales Q2Q%-0.73%

3.2 Future

The Earnings Per Share is expected to grow by 5.55% on average over the next years.
The Revenue is expected to decrease by -2.28% on average over the next years.
EPS Next Y91.65%
EPS Next 2Y16.54%
EPS Next 3Y15.44%
EPS Next 5Y5.55%
Revenue Next Year-8.56%
Revenue Next 2Y-7.51%
Revenue Next 3Y-3.53%
Revenue Next 5Y-2.28%

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.
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.
ALKS Yearly Revenue VS EstimatesALKS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500M 1B 1.5B
ALKS Yearly EPS VS EstimatesALKS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 1 2 3

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8

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 15.12, the valuation of ALKS can be described as correct.
Based on the Price/Earnings ratio, ALKS is valued cheaply inside the industry as 96.81% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.47, ALKS is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.23 indicates a correct valuation of ALKS.
Based on the Price/Forward Earnings ratio, ALKS is valued cheaply inside the industry as 95.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, ALKS is valued rather cheaply.
Industry RankSector Rank
PE 15.12
Fwd PE 16.23
ALKS Price Earnings VS Forward Price EarningsALKS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 98.41% of the companies listed in the same industry.
ALKS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALKS is cheaper than 97.17% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.07
EV/EBITDA 8.06
ALKS Per share dataALKS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

ALKS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ALKS has a very decent profitability rating, which may justify a higher PE ratio.
ALKS's earnings are expected to grow with 15.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)0.82
EPS Next 2Y16.54%
EPS Next 3Y15.44%

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0

5. Dividend

5.1 Amount

No dividends for ALKS!.
Industry RankSector Rank
Dividend Yield N/A

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ALKERMES PLC

NASDAQ:ALKS (2/4/2025, 8:26:11 PM)

After market: 31.28 -0.02 (-0.06%)

31.3

+0.54 (+1.76%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)10-24 2024-10-24/bmo
Earnings (Next)02-13 2025-02-13/amc
Inst Owners112.37%
Inst Owner Change-0.58%
Ins Owners1.52%
Ins Owner Change-2.31%
Market Cap5.06B
Analysts78
Price Target34.76 (11.05%)
Short Float %7.16%
Short Ratio7.55
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.43%
Min EPS beat(2)-4.37%
Max EPS beat(2)-2.48%
EPS beat(4)0
Avg EPS beat(4)-23.14%
Min EPS beat(4)-57.99%
Max EPS beat(4)-2.48%
EPS beat(8)4
Avg EPS beat(8)42.49%
EPS beat(12)7
Avg EPS beat(12)187.39%
EPS beat(16)11
Avg EPS beat(16)203.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.57%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)-0.53%
Revenue beat(4)1
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-4.65%
Max Revenue beat(4)2.22%
Revenue beat(8)4
Avg Revenue beat(8)1.9%
Revenue beat(12)7
Avg Revenue beat(12)1.58%
Revenue beat(16)10
Avg Revenue beat(16)1.85%
PT rev (1m)0%
PT rev (3m)-2.41%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)-3.26%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.06%
Valuation
Industry RankSector Rank
PE 15.12
Fwd PE 16.23
P/S 3.36
P/FCF 16.07
P/OCF 14.23
P/B 3.92
P/tB 4.19
EV/EBITDA 8.06
EPS(TTM)2.07
EY6.61%
EPS(NY)1.93
Fwd EY6.16%
FCF(TTM)1.95
FCFY6.22%
OCF(TTM)2.2
OCFY7.03%
SpS9.3
BVpS7.99
TBVpS7.47
PEG (NY)0.16
PEG (5Y)0.82
Profitability
Industry RankSector Rank
ROA 15.47%
ROE 25.8%
ROCE 25.65%
ROIC 20.27%
ROICexc 43.5%
ROICexgc 48.65%
OM 29%
PM (TTM) 22.15%
GM 83.17%
FCFM 20.94%
ROA(3y)2.07%
ROA(5y)-2.07%
ROE(3y)3.36%
ROE(5y)-3.68%
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 3Y0.78%
GM growth 5Y0.22%
F-Score7
Asset Turnover0.7
Health
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 0.92
Debt/EBITDA 0.6
Cap/Depr 101.36%
Cap/Sales 2.71%
Interest Coverage 250
Cash Conversion 74.67%
Profit Quality 94.56%
Current Ratio 3.45
Quick Ratio 3.03
Altman-Z 4.72
F-Score7
WACC7.08%
ROIC/WACC2.86
Cap/Depr(3y)49.62%
Cap/Depr(5y)62.69%
Cap/Sales(3y)2.91%
Cap/Sales(5y)4.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)54.48%
EPS 3Y48.92%
EPS 5Y18.41%
EPS Q2Q%12.5%
EPS Next Y91.65%
EPS Next 2Y16.54%
EPS Next 3Y15.44%
EPS Next 5Y5.55%
Revenue 1Y (TTM)-5.37%
Revenue growth 3Y16.99%
Revenue growth 5Y8.74%
Sales Q2Q%-0.73%
Revenue Next Year-8.56%
Revenue Next 2Y-7.51%
Revenue Next 3Y-3.53%
Revenue Next 5Y-2.28%
EBIT growth 1Y97.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year56.73%
EBIT Next 3Y-7.27%
EBIT Next 5Y-0.03%
FCF growth 1Y2119.87%
FCF growth 3Y105.69%
FCF growth 5Y63.87%
OCF growth 1Y598%
OCF growth 3Y69.24%
OCF growth 5Y32.23%