Alkermes PLC

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ALKS : NASDAQ : Health Care
$58.88 | %
Today's Range: 58.13 - 59.8
Avg. Daily Volume: 848700.0
03/24/17 - 4:00 PM ET

Financial Analysis


ALKERMES PLC's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. ALKERMES PLC is extremely liquid. Currently, the Quick Ratio is 3.25 which clearly shows the ability to cover any short-term cash needs. ALKS managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 7.97% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)213.51163.1
EBITDA ($mil)1.11-45.28
EBIT ($mil)-23.54-67.06
Net Income ($mil)-21.14-69.38


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)497.23534.78
Total Assets ($mil)1726.421855.74
Total Debt ($mil)283.67349.94
Equity ($mil)1209.481314.28


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin88.083.31
EBITDA Margin0.52-27.75
Operating Margin-11.02-41.11
Sales Turnover0.430.34
Return on Assets-12.07-12.24
Return on Equity-17.23-17.28
Debt Q4 FY16 Q4 FY15
Current Ratio3.733.2
Debt/Capital0.190.21
Interest Expense2.823.32
Interest Coverage-8.34-20.2


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)152.43150.7
Div / share0.00.0
EPS-0.14-0.46
Book value / share7.938.72
Institutional Own % n/a n/a
Avg Daily Volume843608.01190413.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 7.40 indicates a significant premium versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 11.85. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, ALKERMES PLC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ALKS NM Peers 38.87   ALKS NM Peers 22.28

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

ALKS's P/E is negative making this valuation measure meaningless.

 

Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ALKS's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ALKS 85.04 Peers 58.77   ALKS NA Peers 0.49

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ALKS is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ALKS 7.40 Peers 11.85   ALKS 9.87 Peers 165.61

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ALKS is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ALKS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ALKS 12.00 Peers 256.31   ALKS 18.67 Peers 609.16

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ALKS is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ALKS significantly trails its peers on the basis of sales growth

 

 

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