ALKERMES PLC (ALKS) Stock Fundamental Analysis
USA - NASDAQ:ALKS - IE00B56GVS15 - Common Stock
29.04 USD
-1.97 (-6.35%)
29.04 USD
0 (0%)
ALKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 533 industry peers in the Biotechnology industry. ALKS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ALKS has a correct valuation and a medium growth rate. With these ratings, ALKS could be worth investigating further for quality 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.
The reported net income has been mixed in the past 5 years: ALKS reported negative net income in multiple years.
ALKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALKS has a Return On Assets of 14.55%. This is amongst the best in the industry. ALKS outperforms 95.10% of its industry peers.
With an excellent Return On Equity value of 19.56%, ALKS belongs to the best of the industry, outperforming 95.67% of the companies in the same industry.
The Return On Invested Capital of ALKS (16.21%) is better than 96.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.55% | ||
| ROE | 19.56% | ||
| ROIC | 16.21% |
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 (22.28%) is better than 94.73% of its industry peers.
ALKS's Operating Margin of 23.60% is amongst the best of the industry. ALKS outperforms 95.67% of its industry peers.
ALKS's Gross Margin of 85.93% is amongst the best of the industry. ALKS outperforms 88.51% 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 | 23.6% | ||
| PM (TTM) | 22.28% | ||
| GM | 85.93% |
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
ALKS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ALKS has less shares outstanding than it did 1 year ago.
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 6.17. This indicates that ALKS is financially healthy and has little risk of bankruptcy at the moment.
ALKS's Altman-Z score of 6.17 is fine compared to the rest of the industry. ALKS outperforms 77.02% 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 | 6.17 |
ROIC/WACC2.09
WACC7.75%
2.3 Liquidity
ALKS has a Current Ratio of 3.68. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.68, ALKS is in line with its industry, outperforming 43.31% of the companies in the same industry.
A Quick Ratio of 3.27 indicates that ALKS has no problem at all paying its short term obligations.
With a Quick ratio value of 3.27, ALKS perfoms like the industry average, outperforming 41.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.68 | ||
| Quick Ratio | 3.27 |
3. Growth
3.1 Past
ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.71%, which is quite good.
The Earnings Per Share has been growing by 32.50% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.08% in the past year.
The Revenue has been growing slightly by 5.87% on average over the past years.
EPS 1Y (TTM)19.71%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-31.94%
Revenue 1Y (TTM)1.08%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%4.24%
3.2 Future
The Earnings Per Share is expected to decrease by -4.73% on average over the next years.
Based on estimates for the next years, ALKS will show a quite strong growth in Revenue. The Revenue will grow by 8.56% on average per year.
EPS Next Y-48.02%
EPS Next 2Y-31.39%
EPS Next 3Y-19.38%
EPS Next 5Y-4.73%
Revenue Next Year-2.6%
Revenue Next 2Y10.16%
Revenue Next 3Y6.82%
Revenue Next 5Y8.56%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.71, which indicates a very decent valuation of ALKS.
ALKS's Price/Earnings ratio is rather cheap when compared to the industry. ALKS is cheaper than 96.99% of the companies in the same industry.
ALKS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
ALKS is valuated rather expensively with a Price/Forward Earnings ratio of 21.27.
92.66% of the companies in the same industry are more expensive than ALKS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.59. ALKS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 21.27 |
4.2 Price Multiples
97.55% of the companies in the same industry are more expensive than ALKS, based on the Enterprise Value to EBITDA ratio.
98.68% of the companies in the same industry are more expensive than ALKS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.74 | ||
| EV/EBITDA | 8.2 |
4.3 Compensation for Growth
ALKS has a very decent profitability rating, which may justify a higher PE ratio.
ALKS's earnings are expected to decrease with -19.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-31.39%
EPS Next 3Y-19.38%
5. Dividend
5.1 Amount
ALKS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.04
-1.97 (-6.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners104.46%
Inst Owner Change8.61%
Ins Owners1.66%
Ins Owner Change1.42%
Market Cap4.79B
Revenue(TTM)1.52B
Net Income(TTM)339.00M
Analysts80.91
Price Target44.61 (53.62%)
Short Float %8.93%
Short Ratio7.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)66.1%
Min EPS beat(2)59.84%
Max EPS beat(2)72.36%
EPS beat(4)4
Avg EPS beat(4)43.68%
Min EPS beat(4)12.02%
Max EPS beat(4)72.36%
EPS beat(8)4
Avg EPS beat(8)10.27%
EPS beat(12)8
Avg EPS beat(12)42.89%
EPS beat(16)11
Avg EPS beat(16)151.46%
Revenue beat(2)2
Avg Revenue beat(2)10.32%
Min Revenue beat(2)8.51%
Max Revenue beat(2)12.13%
Revenue beat(4)3
Avg Revenue beat(4)7.62%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)12.13%
Revenue beat(8)4
Avg Revenue beat(8)3.11%
Revenue beat(12)7
Avg Revenue beat(12)3.8%
Revenue beat(16)10
Avg Revenue beat(16)3.09%
PT rev (1m)3.82%
PT rev (3m)4.13%
EPS NQ rev (1m)4.11%
EPS NQ rev (3m)0.55%
EPS NY rev (1m)16.87%
EPS NY rev (3m)-16.02%
Revenue NQ rev (1m)2.97%
Revenue NQ rev (3m)2.27%
Revenue NY rev (1m)3.39%
Revenue NY rev (3m)6.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 21.27 | ||
| P/S | 3.15 | ||
| P/FCF | 9.74 | ||
| P/OCF | 8.86 | ||
| P/B | 2.76 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 8.2 |
EPS(TTM)2.48
EY8.54%
EPS(NY)1.37
Fwd EY4.7%
FCF(TTM)2.98
FCFY10.26%
OCF(TTM)3.28
OCFY11.29%
SpS9.22
BVpS10.5
TBVpS10
PEG (NY)N/A
PEG (5Y)0.36
Graham Number24.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.55% | ||
| ROE | 19.56% | ||
| ROCE | 19.34% | ||
| ROIC | 16.21% | ||
| ROICexc | 40.38% | ||
| ROICexgc | 45.51% | ||
| OM | 23.6% | ||
| PM (TTM) | 22.28% | ||
| GM | 85.93% | ||
| FCFM | 32.34% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 163.33% | ||
| Cap/Sales | 3.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 139.07% | ||
| Profit Quality | 145.13% | ||
| Current Ratio | 3.68 | ||
| Quick Ratio | 3.27 | ||
| Altman-Z | 6.17 |
F-Score6
WACC7.75%
ROIC/WACC2.09
Cap/Depr(3y)75.65%
Cap/Depr(5y)62.81%
Cap/Sales(3y)2.82%
Cap/Sales(5y)2.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.71%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-31.94%
EPS Next Y-48.02%
EPS Next 2Y-31.39%
EPS Next 3Y-19.38%
EPS Next 5Y-4.73%
Revenue 1Y (TTM)1.08%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%4.24%
Revenue Next Year-2.6%
Revenue Next 2Y10.16%
Revenue Next 3Y6.82%
Revenue Next 5Y8.56%
EBIT growth 1Y-17.77%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-10.49%
EBIT Next 3Y-3.56%
EBIT Next 5Y16.39%
FCF growth 1Y93.7%
FCF growth 3Y76.61%
FCF growth 5YN/A
OCF growth 1Y83.33%
OCF growth 3Y62.82%
OCF growth 5Y43.52%
ALKERMES PLC / ALKS FAQ
What is the fundamental rating for ALKS stock?
ChartMill assigns a fundamental rating of 6 / 10 to ALKS.
What is the valuation status for ALKS stock?
ChartMill assigns a valuation rating of 6 / 10 to ALKERMES PLC (ALKS). This can be considered as Fairly Valued.
Can you provide the profitability details for ALKERMES PLC?
ALKERMES PLC (ALKS) has a profitability rating of 7 / 10.
What is the valuation of ALKERMES PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALKERMES PLC (ALKS) is 11.71 and the Price/Book (PB) ratio is 2.76.
What is the expected EPS growth for ALKERMES PLC (ALKS) stock?
The Earnings per Share (EPS) of ALKERMES PLC (ALKS) is expected to decline by -48.02% in the next year.