📊 ALKS Key Takeaways
Is Alkermes plc. (ALKS) a Good Investment?
Alkermes faces existential financial distress with persistent unprofitability (net loss $66.5M), operating cash burn of $165.7M, and declining revenue (-5.2% YoY), indicating fundamental product-market deterioration. At current burn rates, the company has approximately 2 years of cash runway before liquidity crisis, and negative interest coverage (-4.0x) makes debt servicing increasingly precarious.
Alkermes shows strong underlying financial quality, with solid operating profitability, very strong free cash flow generation, and a conservative balance sheet supported by high liquidity and low leverage. The main offset is weakening top-line momentum, as revenue declined year over year and diluted EPS fell sharply despite stable net income, which suggests growth quality needs close monitoring. Overall, the fundamentals support a positive view, but not an aggressive one, until revenue growth reaccelerates.
Alkermes plc. Key Strengths (ALKS)
- Adequate liquidity buffer with $351.6M cash reserves and 2.27x current ratio providing short-term operational flexibility
- Moderate leverage at 0.87x debt-to-equity ratio reduces immediate refinancing pressure
- Substantial $4.3B asset base suggests valuable pharmaceutical intellectual property and production capacity
- Strong cash generation, with $520.75M in operating cash flow and $480.33M in free cash flow representing a 32.5% FCF margin
- Healthy balance sheet with $388.57M in cash, low debt-to-equity of 0.16x, and strong interest coverage of 21.3x
- Solid profitability profile, including 17.2% operating margin, 16.4% net margin, and double-digit ROE and ROA
ALKS Stock Risks: Alkermes plc. Investment Risks
- Catastrophic cash burn of $165.7M annual operating cash flow with negative $169.8M free cash flow implying ~2-year solvency window
- Consistent unprofitability across all dimensions (net margin -16.9%, operating margin -12.3%, ROE -3.8%) demonstrating systemic business model failure
- Negative interest coverage ratio (-4.0x) indicates inability to service debt from operations; revenue decline (-5.2% YoY) suggests deteriorating competitive position in pharmaceutical market
- Revenue declined 5.2% year over year, raising concern about durability of growth
- Diluted EPS fell 34.1% despite flat net income, indicating weaker per-share earnings quality
- Pharmaceutical earnings can be vulnerable to product concentration, commercialization shifts, and pipeline execution risk
Key Metrics to Watch
- Path to operating cash flow positive inflection and quarterly burn rate trends
- Revenue stabilization and product portfolio performance metrics
- Cash balance trajectory and strategic alternatives (partnership, acquisition, restructuring)
- Operating margin improvement and cost structure adjustments
- Year-over-year revenue growth and product-level sales mix
- Diluted EPS trend relative to net income and free cash flow
Alkermes plc. (ALKS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.27x current ratio provides a solid financial cushion.
ALKS Profit Margin, ROE & Profitability Analysis
ALKS vs Healthcare Sector: How Alkermes plc. Compares
How Alkermes plc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Alkermes plc. Stock Overvalued? ALKS Valuation Analysis 2026
Based on fundamental analysis, Alkermes plc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Alkermes plc. Balance Sheet: ALKS Debt, Cash & Liquidity
ALKS Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
ALKS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $306.5M | $22.5M | $0.13 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Alkermes plc. Dividends, Buybacks & Capital Allocation
ALKS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Alkermes plc. (CIK: 0001520262)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ALKS
What is the AI rating for ALKS?
Alkermes plc. (ALKS) has a Combined AI Grade of C from Claude (D) and ChatGPT (A) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ALKS's key strengths?
Claude: Adequate liquidity buffer with $351.6M cash reserves and 2.27x current ratio providing short-term operational flexibility. Moderate leverage at 0.87x debt-to-equity ratio reduces immediate refinancing pressure. ChatGPT: Strong cash generation, with $520.75M in operating cash flow and $480.33M in free cash flow representing a 32.5% FCF margin. Healthy balance sheet with $388.57M in cash, low debt-to-equity of 0.16x, and strong interest coverage of 21.3x.
What are the risks of investing in ALKS?
Claude: Catastrophic cash burn of $165.7M annual operating cash flow with negative $169.8M free cash flow implying ~2-year solvency window. Consistent unprofitability across all dimensions (net margin -16.9%, operating margin -12.3%, ROE -3.8%) demonstrating systemic business model failure. ChatGPT: Revenue declined 5.2% year over year, raising concern about durability of growth. Diluted EPS fell 34.1% despite flat net income, indicating weaker per-share earnings quality.
What is ALKS's revenue and growth?
Alkermes plc. reported revenue of $392.9M.
Does ALKS pay dividends?
Alkermes plc. does not currently pay dividends.
Where can I find ALKS SEC filings?
Official SEC filings for Alkermes plc. (CIK: 0001520262) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ALKS's EPS?
Alkermes plc. has a diluted EPS of $-0.40.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ALKS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Alkermes plc. has a C grade with 82% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ALKS stock overvalued or undervalued?
Valuation metrics for ALKS: ROE of -3.8% (sector avg: 15%), net margin of -16.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is ALKS's AI grade for 2026?
Our dual AI analysis gives Alkermes plc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ALKS's free cash flow?
Alkermes plc.'s operating cash flow is $-165.7M, with capital expenditures of $4.1M. FCF margin is -43.2%.
How does ALKS compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -16.9% (avg: 12%), ROE -3.8% (avg: 15%), current ratio 2.27 (avg: 2).