Alkem Laboratories Limited
Alkem Laboratories Limited Fundamental Analysis
Alkem Laboratories Limited (ALKEM.BO) shows moderate financial fundamentals with a PE ratio of 28.47, profit margin of 16.64%, and ROE of 19.09%. The company generates $142.0B in annual revenue with moderate year-over-year growth of 3.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ALKEM.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentALKEM.BO demonstrates superior asset utilization.
Valuation Score
WeakALKEM.BO trades at a premium to fair value.
Growth Score
ModerateALKEM.BO shows steady but slowing expansion.
Financial Health Score
ExcellentALKEM.BO maintains a strong and stable balance sheet.
Profitability Score
ModerateALKEM.BO maintains healthy but balanced margins.
Key Financial Metrics
Is ALKEM.BO Expensive or Cheap?
P/E Ratio
ALKEM.BO trades at 28.47 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ALKEM.BO's PEG of 85.17 indicates potential overvaluation.
Price to Book
The market values Alkem Laboratories Limited at 5.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.87 times EBITDA. This signals the market has high growth expectations.
How Well Does ALKEM.BO Make Money?
Net Profit Margin
For every $100 in sales, Alkem Laboratories Limited keeps $16.64 as profit after all expenses.
Operating Margin
Core operations generate 17.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.09 in profit for every $100 of shareholder equity.
ROA
Alkem Laboratories Limited generates $11.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alkem Laboratories Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Alkem Laboratories Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
ALKEM.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
85.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How ALKEM.BO Stacks Against Its Sector Peers
| Metric | ALKEM.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.47 | 29.45 | Neutral |
| ROE | 19.09% | 779.00% | Weak |
| Net Margin | 16.64% | -24936.00% (disorted) | Strong |
| Debt/Equity | 0.18 | 0.26 | Strong (Low Leverage) |
| Current Ratio | 2.49 | 4.65 | Strong Liquidity |
| ROA | 11.69% | -19344.00% (disorted) | Strong |
ALKEM.BO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alkem Laboratories Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
58.26%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
92.13%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
226.93%
Industry Style: Defensive, Growth, Innovation
High Growth