Alnylam Pharmaceuticals Inc. Common Stock (ALNY)

FairStock Score: 36/100 — MIXED

Key Financials

Strengths

• Generates $129 million in annual free cash flow (0.3% yield on market cap)
• High return on equity of 73.3% demonstrating efficient capital deployment
• Altman Z-Score of 5.1 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 85.0% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($18) with negative 1678% margin of safety—limited downside protection
• High leverage at 3.76x debt-to-equity increases financial risk and interest expense burden

AI Analysis

Alnylam Pharmaceuticals Inc. Common Stock is a mid-cap healthcare company valued at $41.9 billion. The business generates $3.7 billion in annual revenue with a 3.0% net margin and $129 million in free cash flow. From a quality standpoint, Alnylam shows Altman Z-Score of 5.1 confirms fortress-level solvency and extraordinary 73% return on equity. On valuation, the stock is commanding a steep 134.7x multiple, with trades far above its Graham Number ($18) with no margin of safety. Growth dynamics show revenue growing at 85.0% and profit growth of 322.6%. Our composite FairStock Score of 37/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Alnylam's 85% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $129 million in annual free cash flow (0.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 135x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer