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

Fundamentals

Flawless balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

-2.4%

NasdaqGS:ALKS

-0.03%

US Biotechs

-1.0%

US Market


1 Year Return

-51.4%

NasdaqGS:ALKS

-8.1%

US Biotechs

-0.4%

US Market

ALKS underperformed the Biotechs industry which returned -8.1% over the past year.

ALKS underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

ALKSIndustryMarket
7 Day-2.4%-0.03%-1.0%
30 Day-7.0%-0.1%-3.3%
90 Day-11.8%3.1%0.8%
1 Year-51.4%-51.4%-7.3%-8.1%1.9%-0.4%
3 Year-51.2%-51.2%9.8%6.0%39.4%30.4%
5 Year-49.9%-49.9%8.1%3.1%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

49%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Alkermes's share price is below the future cash flow value, and at a moderate discount (> 20%).

Alkermes's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Alkermes is loss making, we can't compare its value to the US Biotechs industry average.

Alkermes is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Alkermes, we can't assess if its growth is good value.


Price Based on Value of Assets

Alkermes is overvalued based on assets compared to the US Biotechs industry average.


Next Steps

Future Growth

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

54.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Alkermes's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).

Alkermes's earnings are expected to grow significantly at over 20% yearly.

Alkermes's revenue growth is expected to exceed the United States of America market average.

Alkermes's earnings growth is expected to exceed the United States of America market average.

Alkermes's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Alkermes is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Alkermes performed over the past 5 years?

-14.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Alkermes does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Alkermes's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Alkermes's 1-year growth to the US Biotechs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Alkermes has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Alkermes has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Alkermes improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Alkermes's financial position?


Financial Position Analysis

Alkermes is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Alkermes's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Alkermes's level of debt (25.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (26.7% vs 25.5% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.6x 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.

Whilst loss making Alkermes has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Alkermes has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -106.7% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Alkermes's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Alkermes's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Alkermes has not reported any payouts.

Unable to verify if Alkermes's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Alkermes has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Alkermes's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Alkermes's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Richard Pops (57yo)

7.9yrs

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

Richard's remuneration is higher than average for companies of similar size in United States of America.

Richard's compensation has increased whilst company is loss making.


Management Age and Tenure

4.3yrs

Average Tenure

52yo

Average Age

The tenure for the Alkermes management team is about average.


Board Age and Tenure

7.9yrs

Average Tenure

66yo

Average Age

The tenure for the Alkermes board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$142,34018 Mar 19
Nancy Wysenski
EntityIndividual
Role
Member of the Board of Directors
Shares4,302
Max PriceUS$33.09
SellUS$134,92113 Dec 18
David Anstice
EntityIndividual
Role
Member of the Board of Directors
Shares3,787
Max PriceUS$35.92

Ownership Breakdown


Management Team

  • Richard Pops (57yo)

    Chairman & CEO

    • Tenure: 7.9yrs
    • Compensation: $17.06m
  • Floyd Bloom (82yo)

    Co-Founder & Director

    • Compensation: $477.82k
  • Jim Frates (52yo)

    Senior VP & CFO

    • Tenure: 7.9yrs
    • Compensation: $3.62m
  • Sandy Coombs

    Co-Head of Investor Relations

  • Eva Stroynowski

    Co-Head of Investor Relations

  • Iain Brown (50yo)

    Senior VP of Finance & Chief Accounting Officer

    • Tenure: 4.3yrs
  • Mike Landine (65yo)

    Senior VP of Corporate Development & Chief Risk Officer

    • Tenure: 7.9yrs
    • Compensation: $1.36m
  • David Gaffin (47yo)

    Senior VP

    • Tenure: 3.3yrs
    • Compensation: $3.60m
  • C. Nichols

    Senior VP of Sales & Marketing

    • Tenure: 0.3yrs
  • Craig Hopkinson (51yo)

    Senior VP of Medicines Development & Medical Affairs and Chief Medical Officer

    • Tenure: 2.3yrs
    • Compensation: $3.79m

Board Members

  • Shane Cooke (57yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: $1.06m
  • Nancy Snyderman (66yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: $470.32k
  • Richard Pops (57yo)

    Chairman & CEO

    • Tenure: 7.9yrs
    • Compensation: $17.06m
  • Floyd Bloom (82yo)

    Co-Founder & Director

    • Tenure: 7.9yrs
    • Compensation: $477.82k
  • Bob Breyer (75yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: $485.32k
  • David Anstice (71yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: $487.82k
  • Nancy Wysenski (61yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: $477.82k
  • Paul Mitchell (67yo)

    Lead Independent Director

    • Tenure: 7.0yrs
    • Compensation: $502.82k
  • Wendy Dixon (64yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: $477.82k

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$3.402b
  • Shares outstanding: 157.13m
  • Website: Click here

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 Analysis2019/08/18 01:17
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.