Alnylam Pharmaceuticals Sees Disproportionate Price Despite Revenues
December 23, 2023
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Alnylam Pharmaceuticals ($NASDAQ:ALNY), Inc. is a biopharmaceutical company based in Cambridge, Massachusetts that specializes in the development of novel therapeutics based on RNA interference (RNAi). Its primary focus is on developing therapies for rare, genetic diseases, including hemophilia, Huntington’s Disease, and other neurological disorders. Despite this and other successes, the price of Alnylam Pharmaceuticals, Inc. stock is not reflective of its revenues. The company has had an impressive track record for the past few years with strong revenue growth and multiple partnerships with big pharmaceutical companies.
However, its share price has not kept up with this trend and has remained stagnant despite its successes. This indicates that the market may not be valuing Alnylam’s potential or that investors may be wary of investing in the company in the long-term due to the risks associated with its products. Despite this, Alnylam Pharmaceuticals remains an attractive proposition for investors due to its strong performance and promising outlook. Its strong portfolio of treatments puts it in a good position to capitalize on the growing demand for treatments for rare diseases.
Additionally, it has a solid team of experienced executives who have a history of successfully developing and launching new treatments. These factors should help to ensure that Alnylam Pharmaceuticals can continue to deliver strong returns for investors in the future.
Earnings
In the earning report of FY2023 Q3 ending September 30 2021, ALNYLAM PHARMACEUTICALS reported a total revenue of 187.63M USD, and a net income loss of 204.51M USD. This represented a 29.0% decrease in total revenue compared to the previous year. Despite this, during the past three years ALNYLAM PHARMACEUTICALS’s total revenue has seen an increase from 187.63M USD to 750.53M USD. This disproportionate price increase has not been paralleled by a proportional increase in net income for ALNYLAM PHARMACEUTICALS.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Alnylam Pharmaceuticals. More…
| Total Revenues | Net Income | Net Margin |
| 1.72k | -509.87 | -24.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Alnylam Pharmaceuticals. More…
| Operations | Investing | Financing |
| 1.97 | -235.6 | 196.34 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Alnylam Pharmaceuticals. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.84k | 4k | -1.32 |
Key Ratios Snapshot
Some of the financial key ratios for Alnylam Pharmaceuticals are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 62.6% | – | -22.2% |
| FCF Margin | ROE | ROA |
| -3.9% | 83.4% | -6.2% |
Share Price
On Monday, ALNYLAM PHARMACEUTICALS Inc. saw a slight 0.5% increase in its stock prices, closing at $186.2 after opening at $185.6. Despite the positive news, this increase is seen to be disproportionate to the company’s revenues. The technology and biotechnology company has seen significant increase in its revenue in the past year, with its quarterly revenue up by 30%. These impressive numbers have yet to be reflected in the company’s stock prices, leading some investors to believe that the ALNYLAM PHARMACEUTICALS Inc. stock is undervalued. Live Quote…
Analysis
GoodWhale conducted an analysis of ALNYLAM PHARMACEUTICALS‘s wellbeing and the results were revealing. Our Star Chart showed that ALNYLAM PHARMACEUTICALS had a low health score of 2/10, considering its cashflows and debt, which meant it was less likely to sustain future operations in times of crisis. In terms of financial metrics, ALNYLAM PHARMACEUTICALS performed strongly in growth, moderately in asset and weakly in dividend and profitability. Based on this assessment, we classified ALNYLAM PHARMACEUTICALS as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. This type of company may be attractive to investors looking for high-growth investments with the potential for high returns, yet they should also be aware of the associated risks. Due to its low-profitability and debt levels, ALNYLAM PHARMACEUTICALS may be subject to higher volatility than other companies in the sector. Therefore, investors should be aware of the risks and conduct their own research into ALNYLAM PHARMACEUTICALS before investing. More…
Peers
The company was founded in 2002 and is headquartered in Cambridge, Massachusetts. Alnylam’s competitors include Regeneron Pharmaceuticals Inc, Intellia Therapeutics Inc, and Novartis AG.
– Regeneron Pharmaceuticals Inc ($NASDAQ:REGN)
As of 2022, Regeneron Pharmaceuticals Inc has a market cap of 79.02B and a Return on Equity of 19.7%. The company is a biotech company that focuses on the discovery, development, and commercialization of medicines for the treatment of serious medical conditions.
– Intellia Therapeutics Inc ($NASDAQ:NTLA)
Intellia Therapeutics is a gene-editing company that focuses on developing therapeutics to treat serious diseases. The company has a market cap of $3.96 billion as of 2022 and a return on equity of -26.91%. Intellia’s gene-editing technology is based on CRISPR-Cas9, which is a naturally occurring bacterial system that can be used to target and edit specific genes. The company’s pipelines include programs for sickle cell disease, beta thalassemia, Huntington’s disease, and transthyretin amyloidosis.
– Novartis AG ($LTS:0QM7)
Novartis AG is a global pharmaceutical company with a market cap of 169.13B as of 2022. It has a Return on Equity of 24.65%. The company focuses on the discovery, development, and commercialization of healthcare products. Novartis’s products include over-the-counter and prescription drugs, vaccines, and diagnostic tools. The company has operations in over 140 countries and its products are sold in 180 countries.
Summary
Alnylam Pharmaceuticals, Inc. (ALNY) has seen a steady climb in stock price throughout the past year, however their revenues have not kept up with the climb. Investors should take caution when considering ALNY as a potential investment. It is important to analyze the fundamentals of the company to assess whether the stock is overvalued or undervalued. ALNY’s revenue growth, margins, EPS growth, debt levels, and cash flow are all important metrics to consider when analyzing the stock.
Additionally, investors should be aware of any external factors that may be influencing the stock price such as press releases and news from competitors. Ultimately, investors should evaluate ALNY’s financials and external factors before making an investment decision.
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