ALKERMES PLC (ALKS)
IE00B56GVS15 - Common Stock
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 an excellent financial health rating, but there are some minor concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on ALKS. These ratings would make ALKS suitable for value investing!
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.
In the past 5 years ALKS reported 4 times negative net income.
In the past 5 years ALKS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ALKS (15.47%) is better than 97.88% of its industry peers.
ALKS's Return On Equity of 25.80% is amongst the best of the industry. ALKS outperforms 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 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 97.35% of its industry peers.
ALKS has a Operating Margin of 29.00%. This is amongst the best in the industry. ALKS outperforms 98.41% of its industry peers.
ALKS has a better Gross Margin (83.17%) than 87.79% 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
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.
2.2 Solvency
ALKS has an Altman-Z score of 4.60. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ALKS (4.60) is better than 79.47% of its industry peers.
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.
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.
ALKS has a Debt to Equity ratio of 0.22. This is in the lower half of the industry: ALKS underperforms 69.56% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | 4.6 |
ROIC/WACC2.83
WACC7.17%
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.
ALKS's Quick ratio of 3.03 is on the low side compared to the rest of the industry. ALKS is outperformed by 62.30% of its industry peers.
| 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.
Measured over the past years, ALKS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.41% on average per year.
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
Based on estimates for the next years, ALKS will show a small growth in Earnings Per Share. The EPS will grow by 7.14% on average per year.
ALKS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.12% yearly.
EPS Next Y91.51%
EPS Next 2Y17.8%
EPS Next 3Y16.55%
EPS Next 5Y7.14%
Revenue Next Year-8.5%
Revenue Next 2Y-7.47%
Revenue Next 3Y-3.53%
Revenue Next 5Y-2.12%
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.
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
With a Price/Earnings ratio of 14.35, ALKS is valued correctly.
Based on the Price/Earnings ratio, ALKS is valued cheaply inside the industry as 96.99% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.73, ALKS is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.08, which indicates a correct valuation of ALKS.
Based on the Price/Forward Earnings ratio, ALKS is valued cheaply inside the industry as 96.28% of the companies are valued more expensively.
ALKS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 15.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALKS is valued cheaply inside the industry as 98.94% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ALKS is valued cheaper than 96.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.25 | ||
| EV/EBITDA | 7.71 |
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 16.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)0.78
EPS Next 2Y17.8%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
No dividends for ALKS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALKERMES PLC
NASDAQ:ALKS (12/20/2024, 8:00:00 PM)
After market: 31.5136 +1.8 (+6.07%)29.71
-0.26 (-0.87%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners112.37%
Inst Owner Change-2.17%
Ins Owners1.52%
Ins Owner Change-0.8%
Market Cap4.81B
Analysts78
Price Target34.76 (17%)
Short Float %8.63%
Short Ratio8.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-2.41%
PT rev (3m)-2.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)21.07%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 15.08 | ||
| P/S | 3.19 | ||
| P/FCF | 15.25 | ||
| P/OCF | 13.5 | ||
| P/B | 3.72 | ||
| P/tB | 3.98 | ||
| EV/EBITDA | 7.71 |
EPS(TTM)2.07
EY6.97%
EPS(NY)1.97
Fwd EY6.63%
FCF(TTM)1.95
FCFY6.56%
OCF(TTM)2.2
OCFY7.41%
SpS9.3
BVpS7.99
TBVpS7.47
PEG (NY)0.16
PEG (5Y)0.78
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.6 |
F-Score7
WACC7.17%
ROIC/WACC2.83
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 Y91.51%
EPS Next 2Y17.8%
EPS Next 3Y16.55%
EPS Next 5Y7.14%
Revenue 1Y (TTM)-5.37%
Revenue growth 3Y16.99%
Revenue growth 5Y8.74%
Sales Q2Q%-0.73%
Revenue Next Year-8.5%
Revenue Next 2Y-7.47%
Revenue Next 3Y-3.53%
Revenue Next 5Y-2.12%
EBIT growth 1Y97.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year56.73%
EBIT Next 3Y-7.27%
EBIT Next 5Y15.41%
FCF growth 1Y2119.87%
FCF growth 3Y105.69%
FCF growth 5Y63.87%
OCF growth 1Y598%
OCF growth 3Y69.24%
OCF growth 5Y32.23%