ALKERMES PLC (ALKS)
IE00B56GVS15 - Common Stock
We assign a fundamental rating of 6 out of 10 to ALKS. ALKS was compared to 565 industry peers in the Biotechnology industry. ALKS has an excellent financial health rating, but there are some minor concerns on its profitability. ALKS may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ALKS suitable for value investing!
1. Profitability
1.1 Basic Checks
ALKS had positive earnings in the past year.
In the past year ALKS had a positive cash flow from operations.
In the past 5 years ALKS reported 4 times negative net income.
Each year in the past 5 years ALKS had a positive operating cash flow.
1.2 Ratios
ALKS's Return On Assets of 15.47% is amongst the best of the industry. ALKS outperforms 97.68% of its industry peers.
ALKS has a Return On Equity of 25.80%. This is amongst the best in the industry. ALKS outperforms 97.86% of its industry peers.
The Return On Invested Capital of ALKS (20.27%) is better than 97.86% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
ALKS has a better Profit Margin (22.15%) than 97.15% of its industry peers.
With an excellent Operating Margin value of 29.00%, ALKS belongs to the best of the industry, outperforming 97.86% of the companies in the same industry.
ALKS's Gross Margin of 83.17% is amongst the best of the industry. ALKS outperforms 87.52% 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 Rank | Sector 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%
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.
Compared to 1 year ago, ALKS has more shares outstanding
Compared to 5 years ago, ALKS has more shares outstanding
ALKS has a better debt/assets ratio than last year.
2.2 Solvency
ALKS has an Altman-Z score of 4.39. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.39, ALKS is doing good in the industry, outperforming 78.79% of the companies in the same industry.
The Debt to FCF ratio of ALKS is 0.92, which is an excellent value as it means it would take ALKS, only 0.92 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.92, ALKS belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
ALKS has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.22, ALKS is not doing good in the industry: 68.81% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for ALKS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | 4.39 |
ROIC/WACC2.83
WACC7.16%
2.3 Liquidity
ALKS has a Current Ratio of 3.45. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
ALKS has a Current ratio (3.45) which is comparable to the rest of the industry.
ALKS has a Quick Ratio of 3.03. 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 3.03, ALKS is doing worse than 62.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.45 | ||
| Quick Ratio | 3.03 |
3. Growth
3.1 Past
ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.48%, which is quite impressive.
The Earnings Per Share has been growing by 18.41% on average over the past years. This is quite good.
ALKS shows a decrease in Revenue. In the last year, the revenue decreased by -5.37%.
Measured over the past years, ALKS shows a quite strong growth in Revenue. The Revenue has been growing by 8.74% on average per year.
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 10.51% on average over the next years. This is quite good.
Based on estimates for the next years, ALKS will show a decrease in Revenue. The Revenue will decrease by -2.19% on average per year.
EPS Next Y92.07%
EPS Next 2Y20.21%
EPS Next 3Y18.61%
EPS Next 5Y10.51%
Revenue Next Year-8.5%
Revenue Next 2Y-7.15%
Revenue Next 3Y-2.86%
Revenue Next 5Y-2.19%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 correctly with a Price/Earnings ratio of 13.38.
Compared to the rest of the industry, the Price/Earnings ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 97.50% of the companies listed in the same industry.
ALKS is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.50, the valuation of ALKS can be described as correct.
Based on the Price/Forward Earnings ratio, ALKS is valued cheaply inside the industry as 96.61% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, ALKS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALKS is valued cheaply inside the industry as 98.75% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ALKS is valued cheaply inside the industry as 97.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.22 | ||
| EV/EBITDA | 7.1 |
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 18.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)0.73
EPS Next 2Y20.21%
EPS Next 3Y18.61%
5. Dividend
5.1 Amount
No dividends for ALKS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALKERMES PLC
NASDAQ:ALKS (11/21/2024, 8:11:51 PM)
After market: 27.7 0 (0%)27.7
-0.21 (-0.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 13.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.15
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.47% | ||
| ROE | 25.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29% | ||
| PM (TTM) | 22.15% | ||
| GM | 83.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.45 | ||
| Quick Ratio | 3.03 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)54.48%
EPS 3Y48.92%
EPS 5Y
EPS Q2Q%
EPS Next Y92.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.37%
Revenue growth 3Y16.99%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y