Alkermes plc Fundamental Analysis (NASDAQ: ALKS)
Alkermes plc Fundamental Analysis (NASDAQ: ALKS)
Alkermes plc (NASDAQ: ALKS) shows weak financial fundamentals with a PE ratio of 15864.70, profit margin of -0.02%, and ROE of -0.02%. The company generates $1.8B in annual revenue with weak year-over-year growth of -5.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ALKS's fundamental strength across five key dimensions:
Efficiency Score
WeakALKS struggles to generate sufficient returns from assets.
Valuation Score
ModerateALKS shows balanced valuation metrics.
Growth Score
WeakALKS faces weak or negative growth trends.
Financial Health Score
ExcellentALKS maintains a strong and stable balance sheet.
Profitability Score
WeakALKS struggles to sustain strong margins.
Key Financial Metrics
Is ALKS Expensive or Cheap?
P/E Ratio
ALKS trades at 15864.70 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ALKS's PEG of -158.88 indicates potential undervaluation.
Price to Book
The market values Alkermes plc at 4.28 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 39.50 times EBITDA. This signals the market has high growth expectations.
How Well Does ALKS Make Money?
Net Profit Margin
For every $100 in sales, Alkermes plc keeps $-0.02 as profit after all expenses.
Operating Margin
Core operations generate 3.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.02 in profit for every $100 of shareholder equity.
ROA
Alkermes plc generates $-0.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alkermes plc produces operating cash flow of $243.23M, showing steady but balanced cash generation.
Free Cash Flow
Alkermes plc generates strong free cash flow of $227.60M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.35 in free cash annually.
FCF Yield
ALKS converts 2.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15864.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-158.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.00
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How ALKS Stacks Against Its Sector Peers
| Metric | ALKS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15864.70 | 31.66 | Worse (Expensive) |
| ROE | -0.02% | 501.00% | Weak |
| Net Margin | -0.02% | -3647.00% (disorted) | Weak |
| Debt/Equity | 0.84 | -0.30 (disorted) | Distorted |
| Current Ratio | 2.42 | 5.78 | Strong Liquidity |
| ROA | -0.01% | -262.00% (disorted) | Weak |
ALKS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alkermes plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.99%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
310.18%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
506.09%
Industry Style: Defensive, Growth, Innovation
High Growth