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Alkermes (ALKS) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Healthcare•Drug Manufacturers - Specialty & Generic
C
AverageMetricSide Score: 53/100
ProfitabilityProfit5/30
GrowthGrowth9/25
Balance SheetBalance19/25
Cash QualityCash20/20
Price & Volume
Market Cap $8.62B

Alkermes plc, a biopharmaceutical company, engages in the research, development, and commercialization of pharmaceutical products to address unmet medical needs of patients in therapeutic areas in the United States, Ireland, and internationally. The company has a portfolio of proprietary commercial products for the treatment of opioid dependence, alcohol dependence, schizophrenia, bipolar I, and a pipeline of clinical and preclinical product candidates in development for neurological disorders. Its marketed products include ARISTADA, an intramuscular injectable suspension for the treatment of schizophrenia; ARISTADA INITIO for the treatment of schizophrenia in adults; VIVITROL for the treatment of alcohol and prevention of opioid dependence; LYBALVI, an oral atypical antipsychotic drug candidate for the treatment of adults with schizophrenia and bipolar I disorder; and LUMRYZ, an extended-release oral suspension product for the treatment of cataplexy or EDS in pediatric patients. The company also offers proprietary technology platforms to third parties to enable them to develop, commercialize, and manufacture products. It has collaboration agreements primarily with Janssen Pharmaceutica N.V., Janssen Pharmaceutica Inc, and Janssen Pharmaceutica International. Alkermes plc was founded in 1987 and is headquartered in Dublin, Ireland.

Moat Signals

Competitive analysis based on 56 quarters of fundamental data

Pricing Power

Weak Moat

Operating margins are under pressure, averaging 18.3%. The business may lack pricing power or face rising costs.'

Competitive Advantage

Moderate Moat

ROE averages 20.0% but has fluctuated — the competitive advantage may be cyclical or emerging.

Risk Signals

Data-driven red flags and warnings across 56 quarters

Some Concerns

Margin Pressure

Red Flag

Operating margins dropped 49.6% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Healthy

FCF covers net income by 2.0x on average — earnings are well-supported by cash generation.

Leverage Risk

Healthy

D/E ratio is 0.8 — conservative capital structure with low financial risk.

Revenue Decline

Watch

Revenue has softened, declining in 4 quarters. Monitor for further erosion.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Share count is stable — no significant dilution or buyback activity.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$1.56B
3.2%
Q. Revenue
$392.91M
TTM EBITDA
$246.96M
42.9%
TTM Op. Income
$191.88M
50.9%
Q. Op. Income
$-48.28M
TTM Net Income
$152.72M
56.7%
Q. Net Income
$-66.48M
EPS
$-0.4
Shares Out.
$166.20M
1.7%
$1.56B in TTM revenue grew 3.2% YoY, reaching $392.91M last quarter. TTM EBITDA of $246.96M and TTM operating income of $191.88M shows growth is flowing through. Net income of $152.72M TTM confirms the company is converting revenue into profit. Revenue is growing modestly — monitor for acceleration or deceleration.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
84.3%
0.5%
EBITDA Margin
-7.3%
Op. Margin
-12.3%
373.1%
Net Margin
-16.9%
330.9%
Op. margin of -12.3% is down 16.8% YoY — costs are rising relative to revenue. Net margin at -16.9% and gross margin of 84.3% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
56.4x
P/S Ratio
5.5x
P/B Ratio
4.9x
At 56.4x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 5.5x and P/B of 4.9x provide additional context. The premium P/E is not backed by strong revenue growth — the stock may be overvalued.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$4.26B
Cash
$351.55M
Long-Term Debt
$1.48B
Book Value
$1.75B
D/E Ratio
0.8
Debt/EBITDA
N/A
With $4.26B in assets and $1.48B in long-term debt, the D/E of 0.8and book value of $1.75B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$-165.74M
TTM Free Cash Flow
$221.80M
53.9%
FCF Margin
14.2%
FCF / Net Income
1.5
TTM FCF of $221.80M on $-165.74M in operating cash flow. The FCF / Net Income ratio of 1.5x means earnings are well backed by actual cash — high-quality earnings.

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Cash Generation

Moderate Moat

7 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Moderate Moat

Revenue has grown modestly overall (~3.6%) but trajectory is uneven, suggesting a competitive or cyclical business.