# Alkermes (ALKS.US)

Canonical: https://gigainvestors.com/s/ALKS

Analysis as of: 2026-10-16T07:26:23.609Z. Financial observations: FY2011–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $40.10 per share; close as of 2026-10-15.

Estimated value: low $24.03 per share, central $31.88 per share, high $36.75 per share. Buy at or below the central value $31.88 per share. Valuation as of 2026-10-16T07:26:23.609Z; scenarios are not confidence intervals.

Expected annual return: 8.5% at the stated quote. About 8.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 6

- Operating margin variation: 4.10×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.16×

- FY2018: -0.09×

- FY2019: -0.15×

- FY2020: -0.11×

- FY2021: 0.08×

- FY2022: -0.01×

- FY2023: 0.25×

- FY2024: 0.27×

- FY2025: 0.17×

- LTM to Mar 2026: 0.12×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 2.9%

- ROIC, second-lowest year: -14.6%

- Typical minus recent gross margin: -2.6 pp

- Typical gross margin (annual median): 84.1%

- Recent gross margin (lower of latest and 3-year median): 86.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.2%

- ROIC including acquisitions, ten-year median: -9.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -14.6%

- FY2018: -9.6%

- FY2019: -18.5%

- FY2020: -11.9%

- FY2021: 9.5%

- FY2022: -0.7%

- FY2023: 57.6%

- FY2024: 50.0%

- FY2025: 43.3%

- LTM to Mar 2026: 6.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.13×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $856M

- Net income, five-year total: $758M

- Return on incremental invested capital: 5435.6%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: -0.1 pp

- Working capital / revenue, final three-year average: 29.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -0.03×

- FY2022: 0.75×

- FY2023: 1.08×

- FY2024: 0.99×

- FY2025: 0.95×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -14.6% vs 50.0%

- Per-share earnings: -1.38 to 2.10 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.2%

- Ordinary dilution, 5-year annual growth: 1.2%

- Market cap gain: -$3.8B

- Cumulative retained earnings: $213M

- Diluted shares, 10-year annual growth: 1.2%

- Diluted shares, 5-year annual growth: 1.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $3.47

- Per-share value, starting three-year median: -$1.38

- Per-share value, ending three-year median: $2.10

- Buybacks concentrated in cheaper years (correlation): 0.66

- Average buyback yield: 0.8%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $83M

- Cumulative net income, 10 years: -$55M

- ROIC, first three-year median: -14.6%

- ROIC, last three-year median: 50.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$1.38

- FY2017: -$1.03

- FY2018: -$0.90

- FY2019: -$1.25

- FY2020: -$0.70

- FY2021: -$0.29

- FY2022: -$0.97

- FY2023: $2.10

- FY2024: $2.17

- FY2025: $1.43

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -11.0%

- Receivables to sales index (DSRI): 0.91×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 19.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.15×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.09×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.4%

- FY2017: -9.9%

- FY2018: -13.1%

- FY2019: -14.9%

- FY2020: -9.9%

- FY2021: -7.4%

- FY2022: -9.1%

- FY2023: -2.1%

- FY2024: -3.5%

- FY2025: -11.0%

## Holders

## Price story

Down 23% since Jun 2026 · "Alkermes plummets on mid-stage alixorexton data for narcolepsy" (seekingalpha.com, Jun 2026) · sales +5.9%

Story as of 2026-10-16T09:58:16.516Z; price observation 2026-10-15.

Price needs cash profits to grow 9% a year for ten years

- 2025-10-29: Alkermes Q3 Earnings and Revenues Beat Estimates, 2025 View Raised ([finance.yahoo.com](https://finance.yahoo.com/news/alkermes-q3-earnings-revenues-beat-174500139.html))

- 2026-01-19: Alkermes (ALKS) Is Up 6.6% After FDA Breakthrough Tag for Narcolepsy Drug Alixorexton ([finance.yahoo.com](https://finance.yahoo.com/news/alkermes-alks-6-6-fda-021100075.html))

- 2026-06-17: Alkermes plummets on mid-stage alixorexton data for narcolepsy ([seekingalpha.com](https://seekingalpha.com/news/4604610-alkermes-plummets-mid-stage-alixorexton-data-narcolepsy?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +5.9%; source https://www.sec.gov/Archives/edgar/data/1520262/000119312526068925/alks-20251231.htm; observed 2026-02-25.

- FY2017: $903M 

- FY2018: $1.1B 

- FY2019: $1.2B 

- FY2020: $1.0B 

- FY2021: $1.2B 

- FY2022: $1.1B 

- FY2023: $1.7B 

- FY2024: $1.6B 

- FY2025: $1.5B 

- FY2026: $1.6B 

### Gross margin · FY2026

gross margin 86.6%; source https://www.sec.gov/Archives/edgar/data/1520262/000119312526068925/alks-20251231.htm; observed 2026-02-25.

- FY2017: 82.9% 

- FY2018: 83.9% 

- FY2019: 84.6% 

- FY2020: 82.8% 

- FY2021: 83.2% 

- FY2022: 80.4% 

- FY2023: 84.8% 

- FY2024: 84.2% 

- FY2025: 86.7% 

- FY2026: 86.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in drug manufacturers specialty & generic; annual sales are USD 1.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1520262/000119312526068925/alks-20251231.htm (filed 2026-02-25); FY2025: revenue 1475899000; grossProfit 1279442000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ALKS.US: Alkermes plc, a biopharmaceutical company, engages in the research, development, and commercialization of pharmaceutical products to address unmet medical needs of patients in therapeutic areas in the United States, Ireland, and internationally. The company has a portfolio of proprietary commercial products for the treatment of opioid dependence, alcohol dependence, schizophrenia, bipolar I, and a pipeline of clinical and preclinical product candidates in development for neurological disorders. Its marketed products include ARISTADA, an intramuscular injectable suspension for the treatment of schizophrenia; ARISTADA INITIO for the treatment of schizophrenia in adults; VIVITROL for the treatment of alcohol and prevention of opioid dependence; LYBALVI, an oral atypical antipsychotic drug candidate for the treatment of adults with schizophrenia and bipolar I disorder; and LUMRYZ, an extended-release oral suspension product for the treatment of cataplexy or EDS in pediatric patients. The company also offers proprietary technology platforms to third parties to enable them to develop, commercialize, and manufacture products. It has collaboration agreements primarily with Janssen Pharmaceutica N.V., Janssen Pharmaceutica Inc, and Janssen Pharmaceutica International. Alkermes plc was founded in 1987 and is headquartered in Dublin, Ireland.

### Why customers stay

Margins ranged from 84.2% to 86.7% during 2023–25; it earns 2.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: grossProfit / revenue = 84.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: grossProfit / revenue = 84.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1520262/000119312526068925/alks-20251231.htm (filed 2026-02-25); FY2025: grossProfit / revenue = 86.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on capital observations [[2017,-0.14593176836465144],[2018,-0.09568515135779088],[2019,-0.1851993892077335],[2020,-0.11854338869172587],[2021,0.09462642129779011],[2022,-0.006574192014169819],[2023,0.5764881611129904],[2024,0.49977914735632634],[2025,0.4325285425336189],[2026,0.0645418542496822]]; median 0.028983831117756192. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 4 of 10 years; bought back USD 31 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2021: growth capex 0; upkeep 29020000; owner earnings 1463000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: growth capex 0; upkeep 48048000; owner earnings 382636000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: growth capex 0; upkeep 33484000; owner earnings 362119000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1520262/000119312526068925/alks-20251231.htm (filed 2026-02-25); FY2025: growth capex 0; upkeep 40420000; owner earnings 228409000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,9608000],[2020,671999],[2021,8748000],[2022,1426000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1520262/000119312526068925/alks-20251231.htm (filed 2026-02-25); FY2025: cash repurchases 31032000 USD.

### Are managers owners

Insiders own 1.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ALKS.US SharesStats.PercentInsiders = 1.403 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Ten-year compound average after fade. Initial solved rate 0.11596328035559467. Price 40.1; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -1.3031915606610993 → FY2025 1.3535909637733121. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $50.41 per share

- 2016-11: $56.83 per share

- 2016-12: $55.58 per share

- 2017-01: $54.11 per share

- 2017-02: $56.50 per share

- 2017-03: $58.50 per share

- 2017-04: $58.25 per share

- 2017-05: $57.76 per share

- 2017-06: $57.97 per share

- 2017-07: $54.41 per share

- 2017-08: $50.78 per share

- 2017-09: $50.84 per share

- 2017-10: $48.76 per share

- 2017-11: $52.29 per share

- 2017-12: $54.73 per share

- 2018-01: $57.17 per share

- 2018-02: $57.08 per share

- 2018-03: $57.96 per share

- 2018-04: $44.27 per share

- 2018-05: $47.20 per share

- 2018-06: $41.16 per share

- 2018-07: $43.85 per share

- 2018-08: $44.84 per share

- 2018-09: $42.44 per share

- 2018-10: $40.83 per share

- 2018-11: $36.44 per share

- 2018-12: $29.51 per share

- 2019-01: $32.87 per share

- 2019-02: $33.27 per share

- 2019-03: $36.49 per share

- 2019-04: $30.32 per share

- 2019-05: $21.54 per share

- 2019-06: $22.54 per share

- 2019-07: $23.16 per share

- 2019-08: $20.98 per share

- 2019-09: $19.51 per share

- 2019-10: $19.53 per share

- 2019-11: $21.02 per share

- 2019-12: $20.40 per share

- 2020-01: $17.41 per share

- 2020-02: $20.84 per share

- 2020-03: $14.42 per share

- 2020-04: $13.71 per share

- 2020-05: $16.36 per share

- 2020-06: $19.41 per share

- 2020-07: $18.01 per share

- 2020-08: $16.54 per share

- 2020-09: $16.57 per share

- 2020-10: $16.25 per share

- 2020-11: $18.26 per share

- 2020-12: $19.95 per share

- 2021-01: $20.99 per share

- 2021-02: $19.04 per share

- 2021-03: $18.68 per share

- 2021-04: $22.01 per share

- 2021-05: $22.67 per share

- 2021-06: $24.52 per share

- 2021-07: $25.87 per share

- 2021-08: $31.26 per share

- 2021-09: $30.84 per share

- 2021-10: $30.29 per share

- 2021-11: $21.92 per share

- 2021-12: $23.26 per share

- 2022-01: $25.50 per share

- 2022-02: $24.86 per share

- 2022-03: $26.31 per share

- 2022-04: $28.85 per share

- 2022-05: $29.85 per share

- 2022-06: $29.79 per share

- 2022-07: $25.60 per share

- 2022-08: $23.67 per share

- 2022-09: $22.33 per share

- 2022-10: $22.70 per share

- 2022-11: $24.78 per share

- 2022-12: $26.13 per share

- 2023-01: $28.64 per share

- 2023-02: $26.74 per share

- 2023-03: $28.19 per share

- 2023-04: $28.55 per share

- 2023-05: $28.93 per share

- 2023-06: $31.30 per share

- 2023-07: $29.28 per share

- 2023-08: $29.19 per share

- 2023-09: $28.01 per share

- 2023-10: $24.19 per share

- 2023-11: $24.14 per share

- 2023-12: $27.74 per share

- 2024-01: $27.05 per share

- 2024-02: $29.69 per share

- 2024-03: $27.07 per share

- 2024-04: $24.54 per share

- 2024-05: $23.40 per share

- 2024-06: $24.10 per share

- 2024-07: $27.32 per share

- 2024-08: $28.45 per share

- 2024-09: $27.99 per share

- 2024-10: $25.70 per share

- 2024-11: $29.02 per share

- 2024-12: $28.76 per share

- 2025-01: $31.53 per share

- 2025-02: $34.33 per share

- 2025-03: $33.02 per share

- 2025-04: $28.77 per share

- 2025-05: $30.61 per share

- 2025-06: $28.61 per share

- 2025-07: $26.49 per share

- 2025-08: $28.97 per share

- 2025-09: $30.00 per share

- 2025-10: $30.70 per share

- 2025-11: $29.58 per share

- 2025-12: $27.98 per share

- 2026-01: $33.89 per share

- 2026-02: $30.10 per share

- 2026-03: $35.36 per share

- 2026-04: $33.71 per share

- 2026-05: $42.19 per share

- 2026-06: $52.40 per share

- 2026-07: $48.99 per share

- 2026-08: $46.99 per share

- 2026-09: $40.52 per share

- 2026-10: $40.10 per share

## Annual estimated value (USD per share)

- FY2024: low $4.41 per share, central $4.48 per share, high $4.52 per share

- FY2025: low $25.52 per share, central $32.43 per share, high $36.71 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1520262/000119312526068925/alks-20251231.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.