Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY)

Sector: Healthcare Industry: Biotechnology CIK: 0001178670
Market Cap 56.13 Bn
P/B 239.97
P/E 1,288.39
P/S 17.49
ROIC (Qtr) 8.13
Div Yield % 0.00
Rev 1y % (Qtr) 149.35
Total Debt (Qtr) 3.21 Bn
Debt/Equity (Qtr) 13.74

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 1.49B provide 9.29x coverage of short-term debt 160.45M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 221.36M exceeds capital expenditure of 44.50M by 4.97x, indicating strong organic growth funding capability.
  • Tangible assets of 4.85B provide exceptional 1909.35x coverage of deferred revenue 2.54M, showing strong service capability backing.
  • Operating cash flow of 265.86M provides strong 104.63x coverage of deferred revenue 2.54M, indicating service delivery capability.
  • Operating cash flow of 265.86M fully covers other non-current liabilities 7.23M by 36.78x, showing strong long-term stability.

Bear case

  • Operating cash flow of 265.86M barely covers its investment activities of 420.58M, with a coverage ratio of 0.63, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 420.58M provide weak support for R&D spending of 1.25B, which is 0.34x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 964.77M relative to inventory of 75.38M (12.80 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 265.86M shows concerning coverage of stock compensation expenses of 368.25M, with a 0.72 ratio indicating potential earnings quality issues.
  • Operating cash flow of 265.86M provides minimal -3.52x coverage of tax expenses of (75.51M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Geographical Breakdown of Revenue (2020)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 11.99 12.96
EV to Cash from Ops. EV/CFO 218.77 23.73
EV to Debt EV to Debt 18.10 772.65
EV to EBIT EV/EBIT 446.31 -11.30
EV to EBITDA EV/EBITDA 203.15 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 262.74 22.12
EV to Market Cap EV to Market Cap 1.04 68.89
EV to Revenue EV/Rev 18.12 199.70
Price to Book Value [P/B] P/B 239.97 22.62
Price to Earnings [P/E] P/E 1,288.39 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.02
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.15
Interest Coverage Int. cover (Qtr) 0.80 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -9.90 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 35.49 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 8.09 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 273.91 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 169.73 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 90.05 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 111.88 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 1,278.10 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 50.59 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.66 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.96 3.79
Current Ratio Curr Ratio (Qtr) 2.54 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 13.74 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.80 857.11
Times Interest Earned Times Interest Earned (Qtr) 0.80 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.70 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 4.06 -18,862.18
EBT Margin % EBT Margin % (Qtr) -1.00 -19,783.19
Gross Margin % Gross Margin % (Qtr) 83.90 -8.62
Net Profit Margin % Net Margin % (Qtr) 1.40 -19,732.60