Alkermes ALKS
IrelandHealthcare · Drug Manufacturers - Specialty & GenericUSD
56.56 USD (+36.5%)
18 analysts
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Alkermes is a biopharmaceutical company that develops and commercializes specialty medicines for central nervous system disorders, such as schizophrenia, depression, and alcohol and opioid addiction.
Key points
from its scores- ✓Favourable backdrop9.2
- ✓Good share-price trend8.8
- ✕Little or no dividend1.5
- ✕Demanding valuation2.9
- ✕Weak growth4.5
AI analysis
bottom line, main risk, context and newsHold pending improvement in profitability and earnings growth materialization; the high P/E and weak cash conversion (53.83%) limit current appeal.
Alkermes shows 27% revenue growth and an 87.18% gross margin, but profitability is weak (ROE 3.85%, ROIC 7.64%) and the -99.4% earnings decline weighs on valuation, trading at a 109.07x P/E. The 47.29% momentum suggests market confidence in its product pipeline, but current fundamentals do not support the multiple.
The high net debt/EBITDA of 3.21 and the -99.4% earnings decline expose Alkermes to balance sheet risk if revenue growth does not translate into profitability, especially in a rising rate environment that makes debt service more expensive.
Context and risks
No recent relevant news and no material exposure to the current macro context. Alkermes is a specialty pharmaceutical company based in Ireland, with no significant dependence on commodities, shipping routes, or external financing that would make it vulnerable to the rate rally or geopolitics.
Is Alkermes stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 199% above the Healthcare median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 109.1 | 26.7 | +308% |
| EV / EBITDA | 27.6 | 14.5 | +91% |
| Price / book | 3.8 | 4.1 | −7% |
| Price / sales | 4.2 | 3.4 | +22% |
Sector: median of the 217 Healthcare companies analysed. In bold, the multiples used for the comparison.
Valuation score: 2.9 out of 10 (median for Healthcare: 4.7).
Average analyst target: 56.56 USD, +36.5% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 5.5 (sector 5.5), Growth 4.5 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Healthcare medianValuation
- P/E
- 109.1
- Forward P/E
- 22.9
- EV / EBITDA
- 27.6
- Price / book
- 3.8
- Price / sales
- 4.2
- PEG
- 1.96
- Market cap
- 7.0B USD
- Enterprise value
- 7.9B USD
Profitability
- ROE
- 3.9%
- ROA
- 4.2%
- ROIC (approx.)
- 7.6%
- Gross margin
- 87.2%
- Operating margin
- 15.5%
- Net margin
- 4.0%
- Free cash flow
- 153.4M USD
- FCF yield
- 2.2%
- Cash conversion
- 54%
Solvency
- Total debt
- 1.6B USD
- Net debt
- 916.0M USD
- Cash
- 656.6M USD
- EBITDA
- 284.9M USD
- Net debt / EBITDA
- 3.21
- Debt / equity
- 86.95
- Current ratio
- 2.30
- Quick ratio
- 1.68
Growth
- Revenue growth
- +27.0%
- Earnings growth
- −99.4%
- EPS (TTM)
- 0.38 USD
- EPS (forward)
- 1.81 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.27
- Analyst consensus
- Buy (18)
- Target price
- 56.56 USD
- 52-week range
- 27.00 – 55.67
Recent news
All ALKS news →Compare it with its sector
All 217 in Healthcare →Frequently asked questions about Alkermes
Is Alkermes stock cheap or expensive?
On P/E and EV / EBITDA, it trades 199% above the Healthcare median on average. Valuation score: 2.9 out of 10 (median for Healthcare: 4.7). Average analyst target: 56.56 USD, +36.5% versus the price. This is not investment advice.
What score does Alkermes get on MeridIAn Screener?
It scores 5.4 out of 10, rank 1,450 of 2,130 (better than 29% of the companies analysed). Its strongest category is Risk & Context (9.2) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Alkermes's P/E ratio?
Its P/E is 109.1: the share price equals 109.1 times earnings per share over the last 12 months. The Healthcare median is 26.7. Based on the earnings analysts expect, the forward P/E is 22.9.
How much is Alkermes worth on the stock market?
Its market capitalisation is 7.0B USD and its enterprise value, debt included, is 7.9B USD.
How much debt does Alkermes have?
Its net debt (debt minus cash) is 916.0M USD. That is 3.21 times its EBITDA; the Healthcare median is 1.53.
Does Alkermes pay a dividend?
It pays no dividend, or almost none.
How has Alkermes stock performed over the last year?
It has risen 32.8% over the last year, excluding dividends. Over the last 52 weeks it has traded between 27.00 and 55.67 USD. Past performance does not guarantee future results.
What do analysts think of Alkermes?
18 analysts cover it; their average recommendation is “Buy” and their average target is 56.56 USD (+36.5% versus the price). It is an estimate, not market data.