Researches and develops pharmaceutical products. Commercializes pharmaceutical products. Now — the numbers.
Revenue is spread across several lines; no single product carries the company.
This is an established company with proven profits.
Average growth of 6% a year over the last 4 years. Red columns mark years that ended in a loss.
If every debt were paid off today, $1.2B would still be left — though next to the size of the company that is a thin cushion.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
Clearly below the class average.
Clearly below the class average.
This grade is a blend: the profit side is strong, the sales tempo slow.
The stock has been running stronger than the market lately.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
The stock trades 17% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 16% — still a thick cushion, though costs have been eating into it lately.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 20/100.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 45/100.
No clear buy-side message is coming from the executive floor.
On our five-subject report card, ALKS sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: ALKS is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.
Analysts’ average target sits above today’s price, yet the valuation grade (45/100) says the stock isn’t cheap.