NasdaqGS:ALKS

Stock Analysis Report

Executive Summary

Alkermes plc, a biopharmaceutical company, researches, develops, and commercializes pharmaceutical products to address unmet medical needs of patients in various therapeutic areas in the United States, Ireland, and internationally.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Alkermes's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALKS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.1%

ALKS

5.3%

US Biotechs

12.5%

US Market


1 Year Return

-59.9%

ALKS

-0.7%

US Biotechs

-12.7%

US Market

Return vs Industry: ALKS underperformed the US Biotechs industry which returned -0.7% over the past year.

Return vs Market: ALKS underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

ALKSIndustryMarket
7 Day7.1%5.3%12.5%
30 Day-30.9%-6.6%-14.7%
90 Day-29.4%-8.3%-21.5%
1 Year-59.9%-59.9%0.1%-0.7%-10.9%-12.7%
3 Year-74.9%-74.9%10.3%7.5%12.6%5.4%
5 Year-76.0%-76.0%-6.1%-10.3%31.9%17.5%

Price Volatility Vs. Market

How volatile is Alkermes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alkermes undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALKS ($14.4) is trading below our estimate of fair value ($34.9)

Significantly Below Fair Value: ALKS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ALKS is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: ALKS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ALKS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ALKS is good value based on its PB Ratio (2.1x) compared to the US Biotechs industry average (2.5x).


Next Steps

Future Growth

How is Alkermes forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

57.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALKS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ALKS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ALKS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ALKS's revenue (5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ALKS's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALKS's Return on Equity is forecast to be high in 3 years time (20.5%)


Next Steps

Past Performance

How has Alkermes performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALKS is currently unprofitable.

Growing Profit Margin: ALKS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ALKS is unprofitable, and losses have increased over the past 5 years at a rate of -6.3% per year.

Accelerating Growth: Unable to compare ALKS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ALKS is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (22%).


Return on Equity

High ROE: ALKS has a negative Return on Equity (-18.11%), as it is currently unprofitable.


Next Steps

Financial Health

How is Alkermes's financial position?


Financial Position Analysis

Short Term Liabilities: ALKS's short term assets ($962.0M) exceed its short term liabilities ($391.1M).

Long Term Liabilities: ALKS's short term assets ($962.0M) exceed its long term liabilities ($328.8M).


Debt to Equity History and Analysis

Debt Level: ALKS's debt to equity ratio (25.5%) is considered satisfactory.

Reducing Debt: ALKS's debt to equity ratio has increased from 25.5% to 25.5% over the past 5 years.


Balance Sheet

Inventory Level: ALKS has a high level of physical assets or inventory.

Debt Coverage by Assets: ALKS's debt is covered by short term assets (assets are 3.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ALKS has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ALKS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Alkermes's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ALKS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ALKS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ALKS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ALKS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALKS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Richard Pops (57yo)

8.5s

Tenure

US$17,055,802

Compensation

Mr. Richard F. Pops has been the Chief Executive Officer of Alkermes PLC since September 2011. Mr. Pops was the Founder of Genomics Collaborative, Inc. He was a Co-founder of Sirtris Pharmaceuticals, Inc.  ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD17.06M) is above average for companies of similar size in the US market ($USD4.58M).

Compensation vs Earnings: Richard's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Pops
Chairman & CEO8.5yrsUS$17.06m0.48% $10.9m
Floyd Bloom
no dataUS$477.82k0.081% $1.8m
James Frates
Senior VP & CFO8.5yrsUS$3.62m0.14% $3.2m
David Gaffin
Senior VP3.83yrsUS$3.60m0.039% $891.8k
Craig Hopkinson
Executive VP of Research & Development and Chief Medical Officer2.83yrsUS$3.79m0.0088% $200.9k
Iain Brown
Senior VP of Finance & Chief Accounting Officer4.83yrsno data0.024% $555.5k
Sandra Coombs
Co-Head of Investor Relationsno datano datano data
Eva Stroynowski
Vice President of Product & R&D Communicationsno datano datano data
Michael Landine
Senior VP of Corporate Development & Chief Risk Officer8.5yrsUS$1.36m0.13% $2.9m
C. Nichols
Senior VP of Sales & Marketing0.83yrno datano data

4.8yrs

Average Tenure

52yo

Average Age

Experienced Management: ALKS's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Pops
Chairman & CEO8.5yrsUS$17.06m0.48% $10.9m
Robert Breyer
Independent Director8.5yrsUS$485.32k0.0045% $103.2k
David Anstice
Independent Director8.5yrsUS$487.82k0.042% $953.4k
Nancy Snyderman
Independent Director3.83yrsUS$470.32kno data
Shane Cooke
Director2yrsUS$1.06m0.054% $1.2m
Nancy Wysenski
Independent Director6.83yrsUS$477.82k0.0071% $161.8k
Wendy Dixon
Independent Director8.5yrsUS$477.82k0.0010% $22.9k
Paul Mitchell
Lead Independent Director7.58yrsUS$502.82k0.0095% $216.1k
Frank Wilson
Independent Director0.50yrno datano data
Richard Gaynor
Independent Director0.50yrno datano data

7.2yrs

Average Tenure

65yo

Average Age

Experienced Board: ALKS's board of directors are considered experienced (7.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ALKS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alkermes plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alkermes plc
  • Ticker: ALKS
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$2.272b
  • Shares outstanding: 157.79m
  • Website: https://www.alkermes.com

Number of Employees


Location

  • Alkermes plc
  • Connaught House
  • 1 Burlington Road
  • Dublin
  • Co. Dublin
  • 4
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALKSNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJul 1991
8AKDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1991

Biography

Alkermes plc, a biopharmaceutical company, researches, develops, and commercializes pharmaceutical products to address unmet medical needs of patients in various therapeutic areas in the United States, Ireland, and internationally. Its marketed products include ARISTADA (aripiprazole lauroxil), an extended-release intramuscular injectable suspension for the treatment of schizophrenia; VIVITROL (naltrexone for extended-release injectable suspension) for the treatment of alcohol and opioid dependence; RISPERDAL CONSTA for the treatment of schizophrenia and bipolar I disorder; INVEGA SUSTENNA for the treatment of schizophrenia and schizoaffective disorder; XEPLION, INVEGA TRINZA, and TREVICTA for treating schizophrenia; and VUMERITY (diroximel fumarate) for the treatment of relapsing forms of multiple sclerosis in adults, including clinically isolated syndrome, relapsing-remitting and active secondary progressive diseases. The company is also ALKS 3831 to treat schizophrenia; and ALKS 4230, an engineered fusion protein to expand tumor-killing immune cells and to avoid activation of immunosuppressive cells. It has collaboration agreements with Janssen Pharmaceutica N.V., Janssen Pharmaceutica Inc, and Janssen Pharmaceutica International; license agreement with Acorda Therapeutics, Inc.; and license and collaboration agreement with Biogen Swiss Manufacturing GmbH. Alkermes plc was founded in 1987 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 03:12
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.