Now is not the time to buy Alnylam Pharmaceuticals stock

We believe there are only a couple of things to fear in ALNY stock given its overall Moderate operating performance and financial condition. But keeping in mind its Very High valuation, we think that the stock is Unattractive. Here is our multi-factor assessment.

But no matter how attractive, investing in a single stock carries high risk. Trefis High Quality Portfolio and is designed to reduce stock-specific risk while giving upside exposure

Let’s get into details of each of the assessed factors but before that, for quick background: With $59 Bil in market cap, Alnylam Pharmaceuticals provides novel RNAi-based therapeutics targeting genetic, cardio-metabolic, hepatic infectious, and CNS/ocular diseases, including marketed treatments for hereditary transthyretin-mediated amyloidosis.

[1] Valuation Looks Very High

This table highlights how ALNY is valued vs broader market. For more details see: ALNY Valuation Ratios

[2] Growth Is Very Strong

• Alnylam Pharmaceuticals has seen its top line grow at an average rate of 40.8% over the last 3 years
• Its revenues have grown 17% from $2.0 Bil to $2.3 Bil in the last 12 months
• Also, its quarterly revenues grew 20.2% to $594 Mil in the most recent quarter from $494 Mil a year ago.

This table highlights how ALNY is growing vs broader market. For more details see: ALNY Revenue Comparison

[3] Profitability Appears Very Weak

• ALNY last 12 month operating income was $-115 Mil representing operating margin of -4.9%
• With cash flow margin of -1.9%, it generated nearly $-45 Mil in operating cash flow over this period
• For the same period, ALNY generated nearly $-270 Mil in net income, suggesting net margin of about -11.5%

This table highlights how ALNY profitability vs broader market. For more details see: ALNY Operating Income Comparison

[4] Financial Stability Looks Very Strong

• ALNY Debt was $1.3 Bil at the end of the most recent quarter, while its current Market Cap is $59 Bil. This implies Debt-to-Equity Ratio of 2.2%
• ALNY Cash (including cash equivalents) makes up $2.6 Bil of $4.2 Bil in total Assets. This yields a Cash-to-Assets Ratio of 62.5%

[4] Downturn Resilience Is Moderate

ALNY saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• ALNY stock fell 42.5% from a high of $209.29 on 14 October 2021 to $120.42 on 11 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 3 August 2022
• Since then, the stock increased to a high of $458.31 on 20 August 2025 $458.31

 
2020 Covid Pandemic

• ALNY stock fell 30.5% from a high of $133.99 on 12 February 2020 to $93.12 on 12 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 17 April 2020

 
2008 Global Financial Crisis

• ALNY stock fell 58.6% from a high of $36.55 on 9 October 2007 to $15.14 on 9 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 3 July 2013

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read ALNY Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.