ALKERMES PLC (ALKS)
IE00B56GVS15 - Common Stock
Overall ALKS gets a fundamental rating of 6 out of 10. We evaluated ALKS against 577 industry peers in the Biotechnology industry. While ALKS has a great health rating, its profitability is only average at the moment. A decent growth rate in combination with a cheap valuation! Better keep an eye on ALKS. These ratings could make ALKS a good candidate 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.
In the past 5 years ALKS always reported a positive cash flow from operatings.
1.2 Ratios
ALKS has a Return On Assets of 20.46%. This is amongst the best in the industry. ALKS outperforms 99.13% of its industry peers.
ALKS has a better Return On Equity (34.63%) than 98.78% of its industry peers.
ALKS has a Return On Invested Capital of 24.24%. This is amongst the best in the industry. ALKS outperforms 99.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.46% | ||
| ROE | 34.63% | ||
| ROIC | 24.24% |
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
With an excellent Profit Margin value of 25.17%, ALKS belongs to the best of the industry, outperforming 98.25% of the companies in the same industry.
ALKS has a better Operating Margin (29.60%) than 98.43% of its industry peers.
ALKS's Gross Margin of 85.31% is amongst the best of the industry. ALKS outperforms 89.69% 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 | 29.6% | ||
| PM (TTM) | 25.17% | ||
| GM | 85.31% |
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.
The number of shares outstanding for ALKS has been increased compared to 1 year ago.
ALKS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ALKS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.15 indicates that ALKS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.15, ALKS is in the better half of the industry, outperforming 78.50% of the companies in the same industry.
ALKS has a debt to FCF ratio of 0.74. This is a very positive value and a sign of high solvency as it would only need 0.74 years to pay back of all of its debts.
ALKS has a better Debt to FCF ratio (0.74) than 96.50% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that ALKS is not too dependend on debt financing.
ALKS has a Debt to Equity ratio of 0.23. This is in the lower half of the industry: ALKS underperforms 69.23% 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 | 0.23 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | 4.15 |
ROIC/WACC3.26
WACC7.44%
2.3 Liquidity
ALKS has a Current Ratio of 3.20. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
ALKS has a Current ratio of 3.20. This is in the lower half of the industry: ALKS underperforms 65.03% of its industry peers.
A Quick Ratio of 2.77 indicates that ALKS has no problem at all paying its short term obligations.
ALKS has a Quick ratio of 2.77. This is in the lower half of the industry: ALKS underperforms 68.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.2 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 700.00% over the past year.
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.
Looking at the last year, ALKS shows a very strong growth in Revenue. The Revenue has grown by 54.00%.
The Revenue has been growing by 8.74% on average over the past years. This is quite good.
EPS 1Y (TTM)700%
EPS 3Y48.92%
EPS 5Y18.41%
EPS Q2Q%4200%
Revenue 1Y (TTM)54%
Revenue growth 3Y16.99%
Revenue growth 5Y8.74%
Sales Q2Q%21.83%
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 Y92.96%
EPS Next 2Y36.49%
EPS Next 3Y24.42%
EPS Next 5Y10.51%
Revenue Next Year-8.98%
Revenue Next 2Y-4.56%
Revenue Next 3Y-1.59%
Revenue Next 5Y-2.19%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.10, the valuation of ALKS can be described as correct.
98.43% of the companies in the same industry are more expensive than ALKS, based on the Price/Earnings ratio.
ALKS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.35.
Based on the Price/Forward Earnings ratio of 9.11, the valuation of ALKS can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALKS indicates a rather cheap valuation: ALKS is cheaper than 98.08% of the companies listed in the same industry.
ALKS is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 9.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALKS is valued cheaper than 98.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ALKS is valued cheaply inside the industry as 99.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.34 | ||
| EV/EBITDA | 5.79 |
4.3 Compensation for Growth
The 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 24.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)0.71
EPS Next 2Y36.49%
EPS Next 3Y24.42%
5. Dividend
5.1 Amount
No dividends for ALKS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALKERMES PLC
NASDAQ:ALKS (6/28/2024, 7:00:01 PM)
After market: 24.1 0 (0%)24.1
-0.19 (-0.78%)
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 Cap4.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 9.11 | ||
| 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)0.14
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.46% | ||
| ROE | 34.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.6% | ||
| PM (TTM) | 25.17% | ||
| GM | 85.31% | ||
| 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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.2 | ||
| Quick Ratio | 2.77 | ||
| 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)700%
EPS 3Y48.92%
EPS 5Y
EPS Q2Q%
EPS Next Y92.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)54%
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