Latest Ratios: P/E Ratio 30.5x · EV/EBITDA 22.3x · ROE 14.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.3B | $4.7B | $4.9B | $4.7B | $4.3B | $3.7B | $3.2B | $3.2B | $4.6B | $8.4B | $8.4B |
| Enterprise Value | $6.3B | $3.7B | $4.7B | $4.6B | $4.4B | $3.8B | $3.3B | $3.3B | $4.6B | $8.5B | $8.5B |
| P/E Ratio → | 30.51 | 19.57 | 13.25 | 13.21 | — | — | — | — | — | — | — |
| P/S Ratio | 4.96 | 3.20 | 3.12 | 2.83 | 3.85 | 3.19 | 3.05 | 2.74 | 4.18 | 9.29 | 11.29 |
| P/B Ratio | 4.05 | 2.60 | 3.32 | 3.91 | 4.10 | 3.36 | 2.97 | 2.95 | 3.91 | 6.98 | 6.96 |
| P/FCF | 15.24 | 9.83 | 12.00 | 13.33 | — | 51.50 | 77.99 | — | 153.35 | — | — |
| P/OCF | 14.06 | 9.07 | 11.08 | 11.73 | 203.32 | 36.80 | 38.24 | 44.45 | 46.11 | 437.54 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.49 | 2.99 | 2.78 | 3.93 | 3.26 | 3.18 | 2.81 | 4.19 | 9.39 | 11.42 |
| EV / EBITDA | 22.30 | 13.06 | 10.35 | 9.45 | 60.82 | 21.67 | — | — | 1012.78 | — | — |
| EV / EBIT | 24.69 | 12.09 | 9.97 | 10.40 | — | 38.63 | — | — | — | — | — |
| EV / FCF | — | 7.64 | 11.46 | 13.09 | — | 52.58 | 81.37 | — | 153.77 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 86.7% | 86.7% | 84.2% | 84.8% | 80.4% | 83.2% | 82.8% | 84.6% | 83.9% | 82.9% | 82.3% |
| Operating Margin | 17.2% | 17.2% | 27.0% | 24.9% | -0.5% | 8.3% | -10.8% | -15.0% | -9.1% | -16.4% | -28.0% |
| Net Profit Margin | 16.4% | 16.4% | 23.6% | 21.4% | -14.2% | -4.1% | -10.7% | -16.8% | -12.7% | -17.5% | -28.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.7% | 14.7% | 27.5% | 31.7% | -14.7% | -4.4% | -10.3% | -17.4% | -11.7% | -13.1% | -16.5% |
| ROA | 10.5% | 10.5% | 17.5% | 17.4% | -7.9% | -2.4% | -5.9% | -10.8% | -7.7% | -9.0% | -11.6% |
| ROIC | 18.9% | 18.9% | 26.7% | 27.6% | -0.4% | 6.1% | -7.1% | -11.2% | -6.0% | -8.5% | -11.2% |
| ROCE | 14.2% | 14.2% | 26.2% | 26.9% | -0.4% | 6.4% | -7.7% | -12.1% | -6.6% | -9.8% | -13.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.04 | 0.04 | 0.05 | 0.31 | 0.36 | 0.37 | 0.38 | 0.27 | 0.24 | 0.23 | 0.23 |
| Debt / EBITDA | 0.25 | 0.25 | 0.17 | 0.76 | 5.29 | 2.36 | — | — | 61.63 | — | — |
| Net Debt / Equity | — | -0.58 | -0.15 | -0.07 | 0.08 | 0.07 | 0.13 | 0.08 | 0.01 | 0.07 | 0.08 |
| Net Debt / EBITDA | -3.73 | -3.73 | -0.48 | -0.17 | 1.21 | 0.45 | — | — | 2.77 | — | — |
| Debt / FCF | — | -2.19 | -0.53 | -0.24 | — | 1.08 | 3.38 | — | 0.42 | — | — |
| Interest Coverage | 24.74 | 24.74 | 20.65 | 19.30 | -1.39 | 8.82 | -10.15 | -13.49 | -7.22 | -10.93 | -13.40 |
Net cash position: cash ($1.1B) exceeds total debt ($70M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.55 | 3.55 | 3.04 | 2.86 | 2.27 | 2.25 | 2.53 | 2.46 | 2.89 | 3.32 | 4.30 |
| Quick Ratio | 3.19 | 3.19 | 2.65 | 2.50 | 1.91 | 1.93 | 2.25 | 2.20 | 2.63 | 3.00 | 4.01 |
| Cash Ratio | 2.43 | 2.43 | 1.62 | 1.49 | 1.22 | 1.14 | 1.45 | 1.37 | 1.59 | 1.49 | 2.35 |
| Asset Turnover | — | 0.58 | 0.76 | 0.78 | 0.57 | 0.58 | 0.53 | 0.65 | 0.60 | 0.50 | 0.43 |
| Inventory Turnover | 1.00 | 1.00 | 1.34 | 1.36 | 1.20 | 1.31 | 1.42 | 1.77 | 1.96 | 1.66 | 2.10 |
| Days Sales Outstanding | — | 82.61 | 91.28 | 73.11 | 97.47 | 101.55 | 101.74 | 82.75 | 100.22 | 94.38 | 93.54 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.3% | 5.1% | 7.5% | 7.6% | — | — | — | — | — | — | — |
| FCF Yield | 6.6% | 10.2% | 8.3% | 7.5% | — | 1.9% | 1.3% | — | 0.7% | — | — |
| Buyback Yield | 0.4% | 0.7% | 4.1% | 0.6% | 0.4% | 0.4% | 0.2% | 0.3% | 0.4% | 0.2% | 0.2% |
| Total Shareholder Yield | 0.4% | 0.7% | 4.1% | 0.6% | 0.4% | 0.4% | 0.2% | 0.3% | 0.4% | 0.2% | 0.2% |
| Shares Outstanding | — | $169M | $169M | $170M | $164M | $161M | $159M | $157M | $155M | $153M | $151M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying ALKS stock.
Alkermes plc's current P/E ratio is 30.5x. The historical average is 42.7x. This places it at the 71th percentile of its historical range.
Alkermes plc's current EV/EBITDA is 22.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.9x.
Alkermes plc's return on equity (ROE) is 14.7%. The historical average is -17.5%.
Based on historical data, Alkermes plc is trading at a P/E of 30.5x. This is at the 71th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Alkermes plc has 86.7% gross margin and 17.2% operating margin. Operating margin between 10-20% is typical for established companies.
Alkermes plc's Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Revenue decline and royalty uncertainty
Metrics are mathematically derived from official filings.
Margin Compression Masks Structural Strength
According to recent financial statements, ALKS's operating margin fell from 37.8% in 2024Q4 to 3.7% in 2026Q2, despite a stable 86.7% gross margin, indicating cost escalation rather than pricing pressure.
The gross margin has remained remarkably stable around 86-88% over the past ten quarters, reflecting the high-margin royalty streams and proprietary product mix. However, operating margin compression from 37.8% in 2024Q4 to 3.7% in 2026Q2 suggests that R&D and SG&A spending have outpaced revenue growth, likely due to the Lybalvi launch and pipeline investments. The net margin of 0.1% in 2026Q2, down from 34.1% in 2024Q4, indicates that the company is in a transition phase where profitability is temporarily suppressed. Investors should monitor whether the margin recovery is driven by cost discipline or revenue acceleration, as the current trajectory suggests a strategic shift toward higher spending.
ROIC Volatility Reflects Spin-Off Distortions
As reported in financial statements, ROIC swung from 9.7% in 2024Q4 to 0.5% in 2026Q2, with the recent debt-funded spin-off of Mural Oncology distorting capital base and earnings, per balance sheet data.
The ROIC trend shows a clear deterioration from a peak of 9.7% in 2024Q4 to 0.5% in 2026Q2, but this is heavily influenced by the $1.6B debt issuance and the separation of the oncology business. The increase in invested capital from the spin-off and the temporary earnings dip have compressed returns, but the underlying CNS business may still be generating healthy returns on a normalized basis. The ROE of 0.0% in 2026Q2, down from 10.6% in 2024Q4, similarly reflects the impact of the new debt and the one-time charges. Investors should adjust for the spin-off to assess the true earning power of the continuing operations, as the current figures likely understate the company's ability to compound returns.
Working Capital Cycle Lengthens on Inventory Build
Based on reported figures, ALKS's cash conversion cycle extended from 235 days in 2024Q2 to 260 days in 2026Q2, driven by a rise in days inventory outstanding to 295, indicating potential inventory management challenges.
The cash conversion cycle has remained elevated, averaging around 280 days over the past ten quarters, with DIO increasing from 277 days in 2024Q4 to 295 days in 2026Q2. This suggests that the company is holding more inventory, possibly to support the Lybalvi launch or due to supply chain considerations, but it also ties up cash. DSO has been relatively stable in the 78-85 day range, while DPO has fluctuated, indicating some variability in supplier payment terms. The extended CCC, combined with the negative working capital swing in 2026Q1, highlights the need for careful monitoring of inventory levels and their impact on cash flow.
Debt-Funded Spin-Off Reshapes Leverage Profile
According to recent SEC filings, ALKS's debt-to-equity ratio jumped from 0.04 in 2025Q4 to 0.87 in 2026Q2, with total debt rising to $1.6B, while interest coverage fell to 0.93, signaling increased financial risk.
The company's leverage has increased dramatically following the $1.6B debt issuance related to the Mural Oncology spin-off, lifting D/E from near zero to 0.87. Interest coverage of 0.93 in 2026Q2 indicates that operating income is barely sufficient to cover interest expenses, a sharp decline from the 37.55 coverage in 2024Q4. This suggests that the company is now more sensitive to earnings volatility, and any further margin compression could strain debt service. However, the debt may be structured with favorable terms, and the company's cash position of $511.5M provides a buffer. Investors should monitor the company's ability to generate sufficient cash flow to service this debt as it integrates the new capital structure.
Liquidity Buffer Remains Adequate Despite Debt
As per financial statements, ALKS's current ratio stands at 2.30 in 2026Q2, down from 3.04 in 2024Q4, but still above 2.0, with cash of $511.5M providing a cushion against near-term obligations.
The current ratio has declined from 3.04 in 2024Q4 to 2.30 in 2026Q2, reflecting the increased debt and changes in working capital, but it remains at a comfortable level. The quick ratio of 1.85 indicates that the company can cover its current liabilities without relying on inventory sales, which is important given the high DIO. The cash position of $511.5M, combined with the low capital intensity (capex ~2% of revenue), suggests that the company has sufficient liquidity to fund operations and strategic initiatives. However, the negative operating cash flow in 2026Q1 and the volatile FCF margins warrant caution, as the company may need to rely on its cash reserves if the revenue decline persists.
EV/EBITDA Misleads on Spin-Off Distortions
The most commonly misapplied ratio for ALKS is EV/EBITDA, which at 25.11 TTM appears elevated, but the recent spin-off and debt issuance distort both EV and EBITDA, obscuring the underlying cash-generative CNS business.
Analysts often use EV/EBITDA to value biopharma companies, but for ALKS, this ratio is distorted by the $1.6B debt raised for the Mural Oncology spin-off, which inflates EV without a corresponding increase in EBITDA from continuing operations. Additionally, the EBITDA figure may include non-recurring items or be depressed by the transition costs. A more appropriate metric would be EV/EBIT or EV/operating cash flow, which better reflect the company's core earnings power. Alternatively, sum-of-the-parts valuation that separates the royalty stream from the proprietary products could provide a clearer picture. Investors should adjust for the spin-off and focus on the normalized free cash flow yield, which at 16.88 P/FCF suggests a more reasonable valuation.