📊 ALKS Key Takeaways
Is Alkermes plc. (ALKS) a Good Investment?
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.
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.
Why Buy Alkermes plc. Stock? ALKS Key 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
- 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
- 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
- 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
- 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
- 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
The 32.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.55x 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. has mixed fundamental signals 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 |
|---|---|---|---|
| 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.
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 Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ALKS's key strengths?
Claude: 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. 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: 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. 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 $1.5B.
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 $1.43.
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 rating reflects both perspectives for balanced insights.
Is ALKS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Alkermes plc. has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ALKS stock overvalued or undervalued?
Valuation metrics for ALKS: ROE of 13.3% (sector avg: 15%), net margin of 16.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ALKS stock in 2026?
Our dual AI analysis gives Alkermes plc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ALKS's free cash flow?
Alkermes plc.'s operating cash flow is $520.8M, with capital expenditures of $40.4M. FCF margin is 32.5%.
How does ALKS compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 16.4% (avg: 12%), ROE 13.3% (avg: 15%), current ratio 3.55 (avg: 2).