Alnylam Pharmaceuticals, Inc. Fundamental Analysis (NASDAQ: ALNY)
Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY) shows moderate financial fundamentals with a PE ratio of 35.66, profit margin of 16.82%, and ROE of 93.61%. The company generates $4.8B in annual revenue with strong year-over-year growth of 65.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ALNY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentALNY demonstrates superior asset utilization.
Valuation Score
ModerateALNY shows balanced valuation metrics.
Growth Score
ModerateALNY shows steady but slowing expansion.
Financial Health Score
ExcellentALNY maintains a strong and stable balance sheet.
Profitability Score
ExcellentALNY achieves industry-leading margins.
Key Financial Metrics
Is ALNY Expensive or Cheap?
P/E Ratio
ALNY trades at 35.66 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ALNY's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Alnylam Pharmaceuticals, Inc. at 21.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.68 times EBITDA. This signals the market has high growth expectations.
How Well Does ALNY Make Money?
Net Profit Margin
For every $100 in sales, Alnylam Pharmaceuticals, Inc. keeps $16.82 as profit after all expenses.
Operating Margin
Core operations generate 20.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $93.61 in profit for every $100 of shareholder equity.
ROA
Alnylam Pharmaceuticals, Inc. generates $14.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alnylam Pharmaceuticals, Inc. produces operating cash flow of $637.18M, showing steady but balanced cash generation.
Free Cash Flow
Alnylam Pharmaceuticals, Inc. generates strong free cash flow of $544.84M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.07 in free cash annually.
FCF Yield
ALNY converts 1.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.009
vs 25 benchmark
P/B Ratio
Price to book value ratio
21.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.94
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How ALNY Stacks Against Its Sector Peers
| Metric | ALNY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.66 | 30.56 | Worse (Expensive) |
| ROE | 93.61% | 454.00% | Weak |
| Net Margin | 16.82% | -14987.00% (disorted) | Strong |
| Debt/Equity | 0.94 | 0.76 | Weak (High Leverage) |
| Current Ratio | 3.05 | 5.29 | Strong Liquidity |
| ROA | 14.54% | 2930105.00% | Weak |
ALNY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alnylam Pharmaceuticals, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
561.42%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
132.09%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
174.80%
Industry Style: Defensive, Growth, Innovation
High Growth