Investment Thesis
Alkermes demonstrates solid fundamental strength with robust free cash flow generation (32.5% FCF margin), exceptional liquidity (3.55x current ratio), and conservative leverage (0.16x debt/equity). However, revenue contraction of 5.2% YoY and a significant 34.1% diluted EPS decline present concerning headwinds that require monitoring to assess whether this represents a temporary disruption or a structural challenge.
ALKS Strengths
- Exceptional free cash flow generation of $480.3M with 32.5% FCF margin demonstrating strong cash conversion and operational efficiency
- Fortress balance sheet with 3.55x current ratio, 0.16x debt/equity ratio, and $388.6M cash providing substantial financial flexibility
- Stable net profitability with 16.4% net margin and strong interest coverage of 21.3x indicating minimal financial distress risk
- Positive return on equity of 13.3% and ROA of 9.7% showing reasonable capital utilization despite operational headwinds
ALKS Risks
- Revenue decline of 5.2% YoY signals potential loss of market share, product maturation, or competitive pressures in pharmaceutical segment
- Sharp 34.1% diluted EPS decline despite flat net income suggests significant share dilution or unfavorable non-operating items requiring investigation
- Pharmaceutical sector exposure to pricing pressures, patent expirations, regulatory changes, and R&D execution risks typical of the industry
- High insider Form 4 filing activity (31 in last 90 days) warrants examination to assess whether management actions signal confidence or concern
Key Metrics to Watch
- Revenue growth trajectory and product-level revenue breakdown to confirm stabilization or continued decline
- Diluted share count changes to explain the substantial EPS contraction relative to net income performance
- Operating cash flow sustainability and capital allocation decisions to ensure FCF generation remains robust
ALKS Financial Metrics
ALKS Profitability Ratios
ALKS Balance Sheet & Liquidity
ALKS 5-Year Financial Trend
5-Year Trend Summary: Alkermes plc.'s revenue has grown significantly by 42% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.10 reflects profitable operations.
ALKS Growth Metrics (YoY)
ALKS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $378.1M | $22.5M | $0.49 |
| Q2 2025 | $390.7M | $22.5M | $0.52 |
| Q1 2025 | $306.5M | $22.5M | $0.13 |
| Q3 2024 | $378.1M | $36.8M | $0.28 |
| Q2 2024 | $399.1M | $36.8M | $0.53 |
| Q1 2024 | $287.6M | $36.8M | $0.21 |
| Q3 2023 | $252.4M | -$30.1M | $0.28 |
| Q2 2023 | $276.2M | -$30.1M | $-0.18 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ALKS Capital Allocation
ALKS SEC Filings
Access official SEC EDGAR filings for Alkermes plc. (CIK: 0001520262)