ALKERMES PLC (ALKS) Stock Fundamental Analysis
NASDAQ:ALKS - Nasdaq - IE00B56GVS15 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ALKS. ALKS was compared to 572 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 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.
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 (17.86%) is better than 98.25% of its industry peers.
ALKS has a Return On Equity of 25.06%. This is amongst the best in the industry. ALKS outperforms 97.73% of its industry peers.
ALKS has a better Return On Invested Capital (22.18%) than 98.43% 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
The Profit Margin of ALKS (23.57%) is better than 96.86% of its industry peers.
The Operating Margin of ALKS (27.00%) is better than 97.38% of its industry peers.
With an excellent Gross Margin value of 84.25%, ALKS belongs to the best of the industry, outperforming 87.43% of the companies in the same industry.
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 | 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
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 7.00. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
ALKS's Altman-Z score of 7.00 is amongst the best of the industry. ALKS outperforms 83.94% 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 | 7 |
ROIC/WACC2.93
WACC7.58%
2.3 Liquidity
A Current Ratio of 3.04 indicates that ALKS has no problem at all paying its short term obligations.
ALKS has a worse Current ratio (3.04) than 64.05% of its industry peers.
ALKS has a Quick Ratio of 2.65. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.65, ALKS is doing worse than 67.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.04 | ||
| Quick Ratio | 2.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 104.23% over the past year.
Measured over the past years, ALKS shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.50% on average per year.
ALKS shows a decrease in Revenue. In the last year, the revenue decreased by -6.36%.
Measured over the past years, ALKS shows a small growth in Revenue. The Revenue has been growing by 5.87% on average per year.
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
ALKS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.12% yearly.
Based on estimates for the next years, ALKS will show a small growth in Revenue. The Revenue will grow by 0.39% on average per year.
EPS Next Y-36.06%
EPS Next 2Y-18.88%
EPS Next 3Y-16.9%
EPS Next 5Y-3.12%
Revenue Next Year-7.55%
Revenue Next 2Y-1.77%
Revenue Next 3Y-1.61%
Revenue Next 5Y0.39%
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
ALKS is valuated reasonably with a Price/Earnings ratio of 11.84.
ALKS's Price/Earnings ratio is rather cheap when compared to the industry. ALKS is cheaper than 97.56% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, ALKS is valued rather cheaply.
ALKS is valuated rather expensively with a Price/Forward Earnings ratio of 18.53.
Based on the Price/Forward Earnings ratio, ALKS is valued cheaply inside the industry as 94.76% of the companies are valued more expensively.
ALKS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 18.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALKS is valued cheaper than 97.91% of the companies in the same industry.
ALKS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALKS is cheaper than 97.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.77 | ||
| EV/EBITDA | 9.74 |
4.3 Compensation for Growth
The decent profitability rating of ALKS may justify a higher PE ratio.
A cheap valuation may be justified as ALKS's earnings are expected to decrease with -16.90% in the coming years.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-18.88%
EPS Next 3Y-16.9%
5. Dividend
5.1 Amount
ALKS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.35
-0.3 (-0.87%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners105.48%
Inst Owner Change-5.09%
Ins Owners1.62%
Ins Owner Change7.06%
Market Cap5.59B
Analysts78.1
Price Target37.16 (8.18%)
Short Float %7.26%
Short Ratio6.85
Dividend
| Industry Rank | Sector 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)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)6.9%
PT rev (3m)6.9%
EPS NQ rev (1m)-24.77%
EPS NQ rev (3m)-27.85%
EPS NY rev (1m)-3.86%
EPS NY rev (3m)-5.91%
Revenue NQ rev (1m)-4.51%
Revenue NQ rev (3m)-4.16%
Revenue NY rev (1m)-0.98%
Revenue NY rev (3m)-1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 18.53 | ||
| P/S | 3.59 | ||
| P/FCF | 13.77 | ||
| P/OCF | 12.72 | ||
| P/B | 3.81 | ||
| P/tB | 4.04 | ||
| EV/EBITDA | 9.74 |
EPS(TTM)2.9
EY8.44%
EPS(NY)1.85
Fwd EY5.4%
FCF(TTM)2.49
FCFY7.26%
OCF(TTM)2.7
OCFY7.86%
SpS9.58
BVpS9.01
TBVpS8.49
PEG (NY)N/A
PEG (5Y)0.36
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 | 7 |
F-Score7
WACC7.58%
ROIC/WACC2.93
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-36.06%
EPS Next 2Y-18.88%
EPS Next 3Y-16.9%
EPS Next 5Y-3.12%
Revenue 1Y (TTM)-6.36%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%13.91%
Revenue Next Year-7.55%
Revenue Next 2Y-1.77%
Revenue Next 3Y-1.61%
Revenue Next 5Y0.39%
EBIT growth 1Y0.13%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-40.59%
EBIT Next 3Y15.07%
EBIT Next 5Y-6.52%
FCF growth 1Y14.81%
FCF growth 3Y76.56%
FCF growth 5YN/A
OCF growth 1Y9.41%
OCF growth 3Y62.84%
OCF growth 5Y43.53%