Capitalcube gives Alkermes Plc a score of 31.
Our analysis is based on comparing Alkermes Plc with the following peers – Acorda Therapeutics, Inc., Johnson & Johnson, Bristol-Myers Squibb Company, Novartis AG Sponsored ADR, Teva Pharmaceutical Industries Limited Sponsored ADR, Sanofi Sponsored ADR, Zogenix, Inc., Pfizer Inc. and Astrazeneca PLC Sponsored ADR (ACOR-US, JNJ-US, BMY-US, NVS-US, TEVA-US, SNY-US, ZGNX-US, PFE-US and AZN-US).
Alkermes Plc has a fundamental score of 31 and has a relative valuation of OVERVALUED.
Access our research and ratings on Alkermes Plc
- Taking peer performance into consideration, relative performance over the last month and last year is around the peer median.
- It currently trades at a Price/Book ratio of (6.68).
- ALKS-US‘s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful to make this analysis between operating advantage (ROE) and growth expectations (as suggested by P/E or P/EBITDA).
- ALKS-US has relatively low net profit margins while its asset efficiency is relatively high.
- The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
- ALKS-US‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
- The company’s median gross margin and relatively low pre-tax margin suggest high operating costs versus peers.
- ALKS-US‘s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful for an analysis between historical growth (using annualized three-year revenue growth) and investor growth expectations (as suggested by P/E or Price/EBITDA) .
- The company seems to be over-investing in a business with median returns.
- ALKS-US‘s operating performance may not allow it to raise additional debt.
Access our research and ratings on Alkermes Plc
Leverage & Liquidity
ALKS-US would seem to have a hard time raising additional debt.
- With debt at a relatively low 3.24% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 15.23%), and relatively tight interest coverage level of -14.33x, ALKS-US would have a hard time raising much additional debt. Thus, the company is classified as having Limited Flexibility when it comes to raising more debt.
- All 9 peers for the company have an outstanding debt balance.
ALKS-US has maintained its Constrained profile from the recent year-end.
- ALKS-US‘s interest coverage is less than (but within one standard deviation of) its five-year average interest coverage of -7.28x.
- Though its interest coverage has remained relatively stable at -14.33x compared to 2016, its peer median has decreased to 7.71x from 9.09x during this period.
- Interest coverage rose 1.07 points relative to peers. It is also below the 2.50x coverage benchmark unlike the peer median.
- ALKS-US‘s debt-EV is less than (but within one standard deviation of) its five-year average debt-EV of 6.77%.
- Compared to 2016, debt-EV has remained relatively stable for both the company (3.24%) and the peer median (15.23%).
Access the detailed analysis for Alkermes Plc
Key Liquidity Items
|Company||Debt/Enterprise Value (%)||Current Ratio||Interest Coverage (x)||Cash Flow To Total Debt (%)|
|Acorda Therapeutics, Inc.||29.71||2.39||0.51||14.74|
|Johnson & Johnson||9.17||1.34||27.52||61.86|
|Bristol-Myers Squibb Company||8.82||1.59||27.66||67.55|
|Novartis AG Sponsored ADR||12.68||1.01||11.85||37.01|
|Teva Pharmaceutical Industries Limited Sponsored ADR||46.96||0.94||4.37||10.97|
|Sanofi Sponsored ADR||17.78||1.59||19.14||43.53|
|Astrazeneca PLC Sponsored ADR||19.42||0.91||2.85||17.5|
|Best In Class||3.24||3.59||27.66||67.55|
Looking for more metrics and analysis for Alkermes Plc?
Alkermes Plc operates as a biopharmaceutical company. It engages in the development, manufacturing and distribution of medicines. The company was founded on May 4, 2011 and is headquartered in Dublin, Ireland.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.