NasdaqGS:ALKS

Stock Analysis Report

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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 overvalued.


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

1.8%

ALKS

0.2%

US Biotechs

2.6%

US Market


1 Year Return

-18.1%

ALKS

27.0%

US Biotechs

15.4%

US Market

Return vs Industry: ALKS underperformed the US Biotechs industry which returned 29.1% over the past year.

Return vs Market: ALKS underperformed the US Market which returned 16.2% over the past year.


Shareholder returns

ALKSIndustryMarket
7 Day1.8%0.2%2.6%
30 Day-6.7%-2.4%6.1%
90 Day25.0%7.2%16.6%
1 Year-18.1%-18.1%28.3%27.0%17.8%15.4%
3 Year-63.7%-63.7%31.7%27.2%43.9%34.7%
5 Year-72.6%-72.6%-1.4%-7.1%76.2%57.3%

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?

2.81x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ALKS ($18.74) is trading above our estimate of fair value ($11.95)

Significantly Below Fair Value: ALKS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ALKS is unprofitable, so we can't compare its PE Ratio to the US 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 (2.8x) compared to the US Biotechs industry average (3.3x).


Next Steps

Future Growth

How is Alkermes forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

63.9%

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 (8% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: ALKS's revenue (8% 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 low in 3 years time (13.4%).


Next Steps

Past Performance

How has Alkermes performed over the past 5 years?

5.2%

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, but has reduced losses over the past 5 years at a rate of 5.2% 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 (-8.3%).


Return on Equity

High ROE: ALKS has a negative Return on Equity (-11.9%), 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 ($947.4M) exceed its short term liabilities ($321.4M).

Long Term Liabilities: ALKS's short term assets ($947.4M) exceed its long term liabilities ($419.1M).


Debt to Equity History and Analysis

Debt Level: ALKS's debt to equity ratio (26%) is considered satisfactory.

Reducing Debt: ALKS's debt to equity ratio has increased from 25.4% to 26% over the past 5 years.


Balance Sheet


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 recent payouts.

High Dividend: Unable to evaluate ALKS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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 (58 yo)

8.92yrs

Tenure

US$14,637,147

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 ($USD14.64M) is above average for companies of similar size in the US market ($USD5.74M).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Pops
Chairman & CEO8.92yrsUS$14.64m0.48%
$ 14.2m
Floyd Bloom
no dataUS$324.96k0.080%
$ 2.4m
James Frates
Senior VP & CFO8.92yrsUS$3.08m0.16%
$ 4.6m
David Gaffin
Senior VP4.25yrsUS$3.54m0.038%
$ 1.1m
Michael Landine
Senior VP of Corporate Development & Chief Risk Officer8.92yrsUS$3.00m0.13%
$ 3.9m
Craig Hopkinson
Executive VP of Research & Development and Chief Medical Officer3.25yrsUS$3.66m0.0093%
$ 277.2k
Iain Brown
Senior VP of Finance & Chief Accounting Officer5.25yrsno data0.024%
$ 720.7k
Sandra Coombs
Co-Head of Investor Relationsno datano datano data
Eva Stroynowski
Vice President of Product & R&D Communicationsno datano datano data
Stephen Schiavo
Senior Vice President of Human Resources0.17yrno datano data
Blair Jackson
Senior Vice President of Corporate Planningno datano datano data
James Botkin
Senior Vice President of Operations2.42yrsno datano data

4.8yrs

Average Tenure

53yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Richard Pops
Chairman & CEO8.92yrsUS$14.64m0.48%
$ 14.2m
Robert Breyer
Independent Director8.92yrsUS$367.75k0.0045%
$ 133.7k
David Anstice
Lead Independent Director1.25yrsUS$366.24k0.042%
$ 1.2m
Nancy Snyderman
Independent Director4.25yrsUS$361.50kno data
Shane Cooke
Director2.42yrsUS$341.24k0.053%
$ 1.6m
Nancy Wysenski
Independent Director7.25yrsUS$356.24k0.0071%
$ 210.0k
Wendy Dixon
Independent Director8.92yrsUS$361.06k0.0010%
$ 30.0k
Paul Mitchell
Independent Director8.92yrsUS$381.24k0.0094%
$ 280.2k
Frank Wilson
Independent Director0.92yrUS$797.75kno data
Richard Gaynor
Independent Director0.92yrUS$797.75kno data

5.8yrs

Average Tenure

66yo

Average Age

Experienced Board: ALKS's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$2.971b
  • Shares outstanding: 159.04m
  • 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, Ire ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 00:18
End of Day Share Price2020/08/05 00:00
Earnings2020/06/30
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.