Switch to:
Alkermes PLC (NAS:ALKS)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Alkermes PLC has an F-score of 4 indicating the company's financial situation is typical for a stable company.

ALKS' s 10-Year Piotroski F-Score Range
Min: 1   Max: 9
Current: 4

1
9

During the past 13 years, the highest Piotroski F-Score of Alkermes PLC was 9. The lowest was 1. And the median was 4.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 0 + -24.354 + 3.735 + -39.956 = $-60.6 Mil.
Cash Flow from Operations was 38.106 + -3.472 + 8.777 + -7.809 = $35.6 Mil.
Revenue was 0 + 130.212 + 153.424 + 159.992 = $443.6 Mil.
Gross Profit was 0 + 91.373 + 110.134 + 112.657 = $314.2 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(1512.437 + 0 + 1835.478 + 1857.592 + 1837.855) / 5 = $1,408.7 Mil.
Total Assets as of Sep13 was $1,512.4 Mil.
Long-Term Debt was $352.8 Mil.
Total Current Assets was $812.9 Mil.
Total Current Liabilities was $110.1 Mil.
Net Income was 16.258 + 2.999 + 7.334 + -7.762 = $18.8 Mil.

Revenue was 135.909 + 163.422 + 138.631 + 139.802 = $577.8 Mil.
Gross Profit was 96.995 + 115.431 + 92.64 + 94.379 = $399.4 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(1370.547 + 1411.763 + 1470.291 + 1477.854 + 1512.437) / 5 = $1,448.6 Mil.
Total Assets as of Sep12 was $1,370.5 Mil.
Long-Term Debt was $359.1 Mil.
Total Current Assets was $523.6 Mil.
Total Current Liabilities was $73.7 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Alkermes PLC's current net income (ttm) was -60.6. ==> Negative ==> Score 0.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Alkermes PLC's current cash flow from operations (ttm) was 35.6. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Beginning of This Year Total Assets (Sep13)
=-60.575/1512.437
=-0.04005126

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Sep12)
=18.829/1370.547
=0.01373831

Alkermes PLC's return on assets of this year was -0.04005126. Alkermes PLC's return on assets of last year was 0.01373831. ==> Last year is higher ==> Score 0.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA =< ROA.

Alkermes PLC's current net income (ttm) was -60.6. Alkermes PLC's current cash flow from operations (ttm) was 35.6. ==> 35.6 > -60.6 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=352.801/1408.6724
=0.25044929

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=359.122/1448.5784
=0.2479134

Alkermes PLC's gearing of this year was 0.25044929. Alkermes PLC's gearing of last year was 0.2479134. ==> Last year is lower than this year ==> Score 0.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Sep14)=Total Current Assets/Total Current Liabilities
=812.906/110.14
=7.38066098

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=523.58/73.717
=7.10256793

Alkermes PLC's current ratio of this year was 7.38066098. Alkermes PLC's current ratio of last year was 7.10256793. ==> This year's current ratio is higher. ==> Score 1.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Alkermes PLC's number of shares in issue this year was 145.9. Alkermes PLC's number of shares in issue last year was 136.1. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=314.164/443.628
=0.70816991

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=399.445/577.764
=0.6913636

Alkermes PLC's gross margin of this year was 0.70816991. Alkermes PLC's gross margin of last year was 0.6913636. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by begining of the year total assets) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Beginning of This Year Total Assets (Sep13)
=443.628/1512.437
=0.29331999

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Sep12)
=577.764/1370.547
=0.42155723

Alkermes PLC's asset turnover of this year was 0.29331999. Alkermes PLC's asset turnover of last year was 0.42155723. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+1+0+1+0+1+0+1+0
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

Alkermes PLC has an F-score of 4 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Alkermes PLC Annual Data

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
Q1 0011110001
Q2 0011110001
Q3 0111100001
Q4 1011001111
Q5 1011111101
Q6 1101100101
Q7 0000111000
Q8 0110110001
Q9 1111010110
F-score 4477763427

Alkermes PLC Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 000111000
Q2 111111111
Q3 011111000
Q4 111111111
Q5 011111000
Q6 011111111
Q7 000000000
Q8 000111011
Q9 100001000
F-score 3557780344
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK