Is the business good?
How good a business is ALKS?
Alkermes plc earns 5.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
5.5%
Return on invested capital · cost of capital 9.0% · 3.5 points below what the capital costs: growth destroys value
- Operating margin
- 12%
Operating margin · Drug Manufacturers - Specialty & Generic median 12% · 12 months to Q1 2026
- Cash conversion
- 1.45×
Cash conversion · 1.36× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −11% |
| FY2021 | 8.3% |
| FY2022 | −0.55% |
| FY2023 | 25% |
| FY2024 | 27% |
| FY2025 | 17% |
Details›
- Gross margin12 months to Q1 2026
- 87%
- Operating margin12 months to Q1 2026
- 12%
- Net margin12 months to Q1 2026
- 9.8%
- Free cash flow margin
- 14%
- R&D as % of revenue
- 23%
- Revenue, trailing twelve months
- $1.56B
- Free cash flow, trailing twelve months
- $222M
- Net income, trailing twelve months
- $153M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Drug Manufacturers - Specialty & Generic
Ranks #21 of 28 by Smart Score