Alkermes plc Ordinary Shares (ALKS)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for stable earning power bought at a sensible price, and Alkermes passes neither test well. The company sells proprietary medicines for opioid and alcohol dependence, schizophrenia and bipolar I, with a neurological pipeline; that niche gives some recurring revenue, but filed results show erosion. In fiscal 2023, the year ended 2023-12-31, revenue was $1.7 billion and net income $355.8 million; by fiscal 2025, the year ended 2025-12-31, revenue had slipped to $1.5 billion and net income to $241.7 million. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $496.0 million but net income of only $501,000, after fiscal Q1 2026 ended 2026-03-31 had a $66.5 million net loss. FairStock's metrics at the 2026-10-13 close of $39.73 are demanding: P/E 104.55, P/B 3.68, EV/EBITDA 28.57, Graham Number $9.48, and margin of safety -319.09%. The Piotroski F-Score is 0/9 and Altman Z-Score 1.60, which argue for caution. On the positive side, trailing free cash flow is $221.8 million, a 3.3% FCF yield, and debt/equity is 0.87; beta is low at 0.26. FairStock calls it a TURNAROUND because it returned to profit after a loss within three years, but ROE 3.85% and ROCE 4.20% show weak current returns. I would need evidence that revenue and margins are sustainably recovering before calling the price attractive.

In plain English: Alkermes makes medicines for addiction and mental health, including treatments for opioid and alcohol dependence and schizophrenia. The business still generates cash but sales and profits have weakened, and the latest quarter showed only a tiny profit after a loss. At the recent price, the shares look expensive compared with current earnings and asset value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer