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ALNY

BEARISH
$313.41 Live
Alnylam Pharmaceuticals, Inc. · NASDAQ
Target $457.0 (+45.8%)
$205.87 52W Range $495.55

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AI Analysis

AI-powered fundamental assessment

Confidence
85%
ALNY's Piotroski F-Score of 4/9 indicates weak financial health, falling into the 'Weak' range, which raises concerns despite strong profitability and growth metrics. The company trades at a premium valuation with a P/E of 135.09 and Price/Sales of 11.19, significantly above sector averages, suggesting high growth expectations are already priced in. Insider selling activity totaling $11.62M over six months signals bearish sentiment from within the company, particularly from senior officers. While revenue growth is impressive at 84.9% YoY and ROE is exceptionally high at 73.28%, the lack of earnings consistency and negative free cash flow (implied by missing data) undermine sustainability. The Graham Number of $17.64 and intrinsic value of $16.24 are far below the current price of $313.41, indicating severe overvaluation unless future growth materializes at extraordinary rates.

Key Strengths

Exceptionally high ROE of 73.28%, indicating efficient use of equity capital
Strong gross margin of 81.64% reflecting pricing power and cost control
Impressive 84.9% YoY revenue growth, signaling robust market demand
Positive earnings surprises in multiple quarters, including a 281.9% beat in Q4 2023
Analyst consensus is 'buy' with a target price of $457.00, implying upside potential

Key Risks

Piotroski F-Score of 4/9 indicates weak financial health, with potential red flags in profitability consistency and cash flow
Debt/Equity ratio of 3.76 is high for a biotech firm, suggesting elevated financial leverage
Insider selling of $11.62M in six months, particularly from CEO and CFO, signals internal skepticism
Current price of $313.41 is over 17x the Graham Number ($17.64), indicating extreme overvaluation
Missing Free Cash Flow and Operating Cash Flow data raises concerns about capital efficiency and sustainability
AI Fair Value Estimate
Based on comprehensive analysis
$16.24
-94.8% below current price

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