ALKERMES PLC (ALKS) Stock Fundamental Analysis
USA - NASDAQ:ALKS - IE00B56GVS15 - Common Stock
30.8 USD
-1.43 (-4.44%)
30.65 USD
-0.15 (-0.49%)
ALKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 536 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.
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.
The reported net income has been mixed in the past 5 years: ALKS reported negative net income in multiple years.
Each year in the past 5 years ALKS had a positive operating cash flow.
1.2 Ratios
ALKS has a Return On Assets of 15.45%. This is amongst the best in the industry. ALKS outperforms 95.71% of its industry peers.
The Return On Equity of ALKS (21.42%) is better than 96.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.98%, ALKS belongs to the top of the industry, outperforming 97.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.45% | ||
| ROE | 21.42% | ||
| ROIC | 17.98% |
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
With an excellent Profit Margin value of 23.12%, ALKS belongs to the best of the industry, outperforming 95.34% of the companies in the same industry.
With an excellent Operating Margin value of 24.88%, ALKS belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
ALKS has a better Gross Margin (85.13%) than 87.87% of its industry peers.
ALKS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.88% | ||
| PM (TTM) | 23.12% | ||
| GM | 85.13% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ALKS is creating value.
ALKS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ALKS has been increased compared to 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
An Altman-Z score of 6.36 indicates that ALKS is not in any danger for bankruptcy at the moment.
The Altman-Z score of ALKS (6.36) is better than 76.12% of its industry peers.
There is no outstanding debt for ALKS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.36 |
ROIC/WACC2.32
WACC7.74%
2.3 Liquidity
ALKS has a Current Ratio of 3.23. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 3.23, ALKS is not doing good in the industry: 61.75% of the companies in the same industry are doing better.
ALKS has a Quick Ratio of 2.85. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
ALKS's Quick ratio of 2.85 is on the low side compared to the rest of the industry. ALKS is outperformed by 63.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 2.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.08% over the past year.
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 decreased by -0.17% in the past year.
ALKS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.87% yearly.
EPS 1Y (TTM)36.08%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-4.29%
Revenue 1Y (TTM)-0.17%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%-2.12%
3.2 Future
ALKS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.18% yearly.
Based on estimates for the next years, ALKS will show a small growth in Revenue. The Revenue will grow by 1.50% on average per year.
EPS Next Y-55.52%
EPS Next 2Y-35.99%
EPS Next 3Y-31.02%
EPS Next 5Y-5.18%
Revenue Next Year-5.79%
Revenue Next 2Y-2.17%
Revenue Next 3Y-2.08%
Revenue Next 5Y1.5%
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
A Price/Earnings ratio of 11.37 indicates a reasonable valuation of ALKS.
ALKS's Price/Earnings ratio is rather cheap when compared to the industry. ALKS is cheaper than 97.57% 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 27.31.
ALKS is valuated quite expensively with a Price/Forward Earnings ratio of 25.92.
Based on the Price/Forward Earnings ratio, ALKS is valued cheaper than 91.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.85. ALKS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 25.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALKS is valued cheaper than 96.64% 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 97.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.6 | ||
| EV/EBITDA | 9.45 |
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 -31.02% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-35.99%
EPS Next 3Y-31.02%
5. Dividend
5.1 Amount
ALKS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.8
-1.43 (-4.44%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners104.46%
Inst Owner Change0.04%
Ins Owners1.66%
Ins Owner Change1.48%
Market Cap5.08B
Analysts80
Price Target42.97 (39.51%)
Short Float %9.33%
Short Ratio7.42
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)38.58%
Min EPS beat(2)12.02%
Max EPS beat(2)65.13%
EPS beat(4)3
Avg EPS beat(4)25.82%
Min EPS beat(4)-4.37%
Max EPS beat(4)65.13%
EPS beat(8)4
Avg EPS beat(8)7.12%
EPS beat(12)7
Avg EPS beat(12)34.35%
EPS beat(16)11
Avg EPS beat(16)154.85%
Revenue beat(2)1
Avg Revenue beat(2)5.47%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)12.13%
Revenue beat(4)2
Avg Revenue beat(4)4.84%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)12.13%
Revenue beat(8)4
Avg Revenue beat(8)2.44%
Revenue beat(12)6
Avg Revenue beat(12)2.36%
Revenue beat(16)9
Avg Revenue beat(16)2.29%
PT rev (1m)0.3%
PT rev (3m)3.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-36.17%
EPS NY rev (1m)0.62%
EPS NY rev (3m)-28.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 25.92 | ||
| P/S | 3.38 | ||
| P/FCF | 10.6 | ||
| P/OCF | 9.76 | ||
| P/B | 3.13 | ||
| P/tB | 3.3 | ||
| EV/EBITDA | 9.45 |
EPS(TTM)2.71
EY8.8%
EPS(NY)1.19
Fwd EY3.86%
FCF(TTM)2.9
FCFY9.43%
OCF(TTM)3.16
OCFY10.25%
SpS9.12
BVpS9.84
TBVpS9.33
PEG (NY)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.45% | ||
| ROE | 21.42% | ||
| ROCE | 21.44% | ||
| ROIC | 17.98% | ||
| ROICexc | 42.95% | ||
| ROICexgc | 48.52% | ||
| OM | 24.88% | ||
| PM (TTM) | 23.12% | ||
| GM | 85.13% | ||
| FCFM | 31.86% |
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-Score8
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 144.62% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 129.24% | ||
| Profit Quality | 137.77% | ||
| Current Ratio | 3.23 | ||
| Quick Ratio | 2.85 | ||
| Altman-Z | 6.36 |
F-Score8
WACC7.74%
ROIC/WACC2.32
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)36.08%
EPS 3Y54.92%
EPS 5Y32.5%
EPS Q2Q%-4.29%
EPS Next Y-55.52%
EPS Next 2Y-35.99%
EPS Next 3Y-31.02%
EPS Next 5Y-5.18%
Revenue 1Y (TTM)-0.17%
Revenue growth 3Y9.89%
Revenue growth 5Y5.87%
Sales Q2Q%-2.12%
Revenue Next Year-5.79%
Revenue Next 2Y-2.17%
Revenue Next 3Y-2.08%
Revenue Next 5Y1.5%
EBIT growth 1Y-1.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-10.49%
EBIT Next 3Y-3.56%
EBIT Next 5Y11.16%
FCF growth 1Y201.78%
FCF growth 3Y76.56%
FCF growth 5YN/A
OCF growth 1Y165.89%
OCF growth 3Y62.84%
OCF growth 5Y43.53%