Owner Scorecard


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ALNY, Alnylam

Pharmaceuticals consumer brand

Alnylam is a global commercial-stage biopharmaceutical company developing novel therapeutics based on ribonucleic acid interference, or RNAi.

For delivery to the central nervous system, or CNS, and the eye (ocular delivery), we are utilizing an alternative conjugate approach based on a hexadecyl (C16) moiety as a lipophilic ligand.

Latest annual: FY2025 10-K
ALNY · Alnylam
I

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025
$3.7B
+65.2% YoY · 50% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $4.8B 5-yr avg $1.9B
Gross margin 80% 5-yr avg 85%
Operating margin 20.8% 5-yr avg −33.9%
ROIC 152% 5-yr avg −119%
Owner-earnings margin 18% 5-yr avg −25%
Free cash flow margin 17% 5-yr avg −26%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What moves the needle
Operating margin has reached 14% at its best but run negative through the cycle (median −80%) on a 86% gross margin — so the question is which reading is truer: whether the median was pulled below zero by one-off charges, by the cycle, or by spending it is still growing into, and whether it settles back at a profit. Stock-based pay runs about 22% of sales, a real and recurring claim on owners that the GAAP margin understates. Read this kind of business on the pipeline against the patent cliff, and pricing. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?
Return on capital has rarely cleared the cost of capital (median −83%, above 15% in 0 of 7 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

II

The record

Ten years of arithmetic, read across the cycle.

Most recent quarterly filing 10-Q filed Jul 30, 2026 Source at SEC EDGAR →

Revenue up 66.9% year over year

figures computed from the filing's XBRL

The record, 2016–2025

realized figures from each filing · older years to the left
2016’162017’172018’182019’192020’202021’212022’222023’232024’242025’25TTMTTMJun 2026
Income statement
$47M$90M$75M$220M$493M$844M$1.0B$1.8B$2.2B$3.7B$4.8BRevenueRevenue
$195M$419M$729M$897M$1.6B$1.9B$3.0B$3.8BGross profitGross prof.
89%85%86%86%85%86%82%80%Gross marginGross mgn
189%222%510%218%119%74%74%44%43%33%27%SG&A / revenueSG&A/rev
811%434%675%298%133%94%85%55%50%36%31%R&D / revenueR&D/rev
($425M)($500M)($815M)($939M)($828M)($709M)($785M)($282M)($177M)$502M$1000MOperating incomeOp. inc.
−900.3%−556.2%n/m−427.5%−168.1%−83.9%−75.7%−15.4%−7.9%13.5%20.8%Operating marginOp. mgn
($410M)($491M)($761M)($885M)($856M)($852M)($1.1B)($434M)($377M)$323MPretax incomePretax
($410M)($491M)($761M)($886M)($858M)($853M)($1.1B)($440M)($278M)$314M$775MNet incomeNet inc.
Cash flow & returns
($308M)($383M)($563M)($278M)($615M)($642M)($541M)$104M($8M)$524M$912MOperating cash flowOp. cash
$15M$13M$15M$17M$35M$48M$44M$54M$57M$56M$55MDepreciationDeprec.
$12M$2M$26M$416M$69M($2M)$315M$269M($59M)($194M)($254M)Working capital & otherWC & other
$65M$104M$127M$140M$70M$76M$72M$62M$34M$59M$92MCapexCapex
136.9%115.9%169.4%63.8%14.3%9.0%6.9%3.4%1.5%1.6%1.9%Capex / revenueCapex/rev
($323M)($396M)($578M)($296M)($650M)($689M)($586M)$42M($43M)$465M$857MOwner earningsOwner earn.
−684.6%−440.6%−771.4%−134.5%−131.8%−81.6%−56.5%2.3%−1.9%12.5%17.8%Owner earnings marginOE mgn
($372M)($487M)($690M)($419M)($685M)($718M)($613M)$42M($43M)$465M$820MFree cash flowFCF
−789.4%−541.6%−920.5%−190.5%−139.1%−85.0%−59.1%2.3%−1.9%12.5%17.1%Free cash flow marginFCF mgn
$143M($290M)$273M($418M)($436M)($273M)$169M($336M)($117M)$436MInvesting cash flowInv. cash
$178M$1.1B$65M$823M$995M$1.2B$426M$172M$294M($305M)Financing cash flowFin. cash
$0$0($83K)$5M($9M)($7M)$6M($15M)$35MExchange-rate effectFX
$13M$452M($224M)$127M($51M)$323M$46M($54M)$154M$690MChange in cashΔ cash
-38%-34%-71%-83%-92%-126%-112%152%ROICROIC
-45%-28%-58%-62%-84%-145%-415%40%57%Return on equityROE
−45%−28%−58%−62%−84%−145%−415%40%57%Retained to equityRetained/eq
Balance sheet
$194M$645M$420M$547M$497M$820M$866M$813M$966M$1.7B$1.9BCash & investmentsCash+inv
$23M$34M$19M$43M$102M$199M$238M$328M$405M$778M$913MReceivablesReceiv.
$24M$56M$75M$86M$129M$89M$79M$83M$97MInventoryInvent.
$54M$28M$60M$50M$52M$73M$98M$56M$88M$116M$108MAccounts payablePayables
($31M)$6M($17M)$49M$126M$212M$269M$361M$395M$745M$902MOperating working capitalOper. WC
$672M$1.8B$1.2B$1.7B$2.6B$2.8B$2.7B$3.0B$3.3B$4.1B$4.6BCurrent assetsCur. assets
$132M$144M$179M$353M$585M$696M$768M$968M$1.2B$1.5B$1.5BCurrent liabilitiesCur. liab.
5.1×12.2×6.7×4.9×4.5×4.0×3.5×3.1×2.8×2.8×3.1×Current ratioCurr. ratio
$115M$182M$321M$425M$465M$502M$523M$526M$503M$513MNet PP&ENet PP&E
$1.3B$2.0B$1.6B$2.4B$3.4B$3.6B$3.5B$3.8B$4.2B$5.0B$5.6BTotal assetsAssets
$150M$30M$30M$0$191M$676M$1.0B$1.0B$1.0B$1.0B$1.0BTotal debtDebt
($44M)($615M)($390M)($547M)($305M)($144M)$151M$208M$58M($649M)($862M)Net debt / (cash)Net debt
-9.8×-5.0×-5.0×-2.3×-1.2×2.0×3.5×Interest coverageInt. cov.
$343M$228M$273M$956M$2.4B$3.1B$3.7B$4.1B$4.2B$4.2BTotal liabilitiesTotal liab.
$920M$1.8B$1.3B$1.4B$1.0B$588M($158M)($221M)$67M$789M$1.4BShareholders’ equityEquity
160.2%103.2%210.6%79.6%28.4%19.6%22.2%12.1%12.1%9.4%7.0%Stock comp / revenueSBC/rev
Per share
85.6M90.6M101M109M115M118M122M125M128M135M138MShares out (diluted)Shares
$0.55$0.99$0.74$2.01$4.29$7.13$8.53$14.64$17.61$27.58$34.75Revenue / shareRev/sh
$-4.79$-5.42$-7.57$-8.11$-7.46$-7.20$-9.30$-3.52$-2.18$2.33$5.60EPS (diluted)EPS
$-3.77$-4.37$-5.74$-2.71$-5.65$-5.82$-4.81$0.34$-0.33$3.46$6.20Owner earnings / shareOE/sh
$-4.35$-5.38$-6.85$-3.83$-5.96$-6.06$-5.04$0.34$-0.33$3.46$5.93Free cash flow / shareFCF/sh
$0.75$1.15$1.26$1.28$0.61$0.64$0.59$0.50$0.27$0.44$0.67Cap. spending / shareCapex/sh
$10.75$19.51$12.94$13.17$8.84$4.97$-1.30$-1.77$0.53$5.86$9.79Book value / shareBVPS
Per-share growththe realized rate an owner's share compounded
9-yr5-yr
Revenue / share+54.5%/yr+45.1%/yr
Capital spending / share−5.9%/yr−6.6%/yr
Book value / share−6.5%/yr−7.9%/yr

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $314M of profit into $465M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$314M
Owner earnings$465M · 13% of revenue
FY2025FY2024FY2023FY2022FY2021
Reported net income$314M($278M)($440M)($1.1B)($853M)
Depreciation & amortizationnon-cash charge added back+$56M+$57M+$54M+$44M+$48M
Stock-based compensationreal costnon-cash, but a real cost+$348M+$272M+$222M+$231M+$166M
Working capital & othertiming of cash in and out, other non-cash items−$194M−$59M+$269M+$315M−$2M
Cash from operations$524M($8M)$104M($541M)($642M)
Maintenance capital expenditurethe spending needed just to hold position and volume−$59M−$34M−$62M−$44M−$48M
Owner earnings$465M($43M)$42M($586M)($689M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still−$28M−$29M
Free cash flow$465M($43M)$42M($613M)($718M)
Owner-earnings marginowner earnings ÷ revenue13%-2%2%-56%-82%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $348M), owner earnings is nearer $117M.

Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

  • Thin
    Operating income $502M ÷ interest expense $253M
    What this means

    Operating profit covers interest, but with little room. A bad year, a refinancing at higher rates, or a revenue wobble closes the gap fast.

  • Net cash
    Cash $1.7B − debt $1.0B
    What this means

    Cash and short-term investments exceed every dollar of debt by $649M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.

  • Tight
    DSO 76 + DIO 45 − DPO 62 days
    What this means

    Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

  • Below average through the cycle
    7-yr median, range -126%–-34%; the latest year is left out — large non-operating charges put its operating line well above pretax profit
    Industry peers: median 1%
    What this means

    The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 7 years, so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.

  • Positive this year, negative across the cycle
    latest $465M = operating cash $524M − maintenance capex $59M (positive this year), after an earlier loss stretch (8-yr median -69%)
    Industry peers: median 6%
    What this means

    What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 13% of revenue this year, a -69% median across 8 years. Treating stock comp as the real expense it is (less $348M of SBC) leaves $117M.

  • Cash-backed
    Cash from ops $524M ÷ net income $314M
    What this means

    How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

  • Not enough data
    What this means

    The filing data didn't include the inputs for this check.

  • Investing or harvesting? 1.05×
    Maintaining
    Capex $59M ÷ depreciation $56M
    What this means

    Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

The promise and the pay packet

  • Is the buyback buying ownership, or mopping up? 9.4%
    The count is rising
    Stock compensation $348M (fiscal 2025), 9.4% of revenue · no repurchases · diluted shares +10.7% since 2022
    What this means

    Stock handed to employees is a real cost paid in the owner's own currency: it is charged against profit, but the shares it creates are permanent. Many companies repurchase stock at the same time, which looks like a return of capital and often is not — if the count barely moves, the cash merely cancelled the pay packet and bought the owner nothing. The three states worth telling apart are a count genuinely shrinking, a count standing still despite large repurchases, and a count rising because the issuance was never offset at all.

Graham’s defensive tests · 3 of 4 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

  • Adequate size Pass
    Revenue ≥ $2B · $3.7B
    What this means

    Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.

  • Strong liquidity Pass
    Current ratio ≥ 2× · 2.76×
    What this means

    Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.

  • Conservative debt Pass
    Debt ≤ working capital · $1.0B vs $2.6B WC
    What this means

    Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.

  • Earnings stability Miss
    A profit every year (10-yr record) · 9 loss years
    What this means

    Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.

  • Dividend record
    Uninterrupted dividends · no dividend line tagged in the data
    What this means

    An unbroken dividend was Graham's mark of durability. This record carries no dividends-paid line in any year — common for partnerships, whose distributions file under tags the chain doesn't read — so the criterion is withheld rather than judged on silence.

  • Earnings growth
    Earnings +33% over the record ·
    What this means

    Earnings were negative early in the record, a growth rate isn't meaningful.

  • Moderate price
    P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
    What this means

    Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-1.01/share (latest year $2.34), the averaged base the calculator's gate runs on, and book value is $5.90/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

  • Profitable years 1 of 10
    What this means

    Lost money in 9 year(s), look at what happened there before trusting the average.

  • Return on capital ≥ 15% 1 of 8 yrs
    What this means

    A moat shows up as a high return on invested capital that holds year after year, not one good vintage.

  • Operating margin −848% → −3% (3-yr avg ends)

    In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.

    What this means

    Through the cycle the operating margin widened — about −848% early to −3% lately, median −168% — pricing power intact or improving.

  • Reinvestment, incremental ROIC returns capital
    What this means

    The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.

  • Worst year 2018 · −1087.6% op. margin
    What this means

    Operations went underwater in 2018, understand why before trusting the good years.

  • Share count +5.2%/yr
    What this means

    The share count is rising, dilution works against you on a per-share basis.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Jun 30, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$4.6B
  • Cash & short-term investments$1.7B
  • Receivables$913M
  • Inventory$97M
  • Other current assets$1.9B
Current liabilities$1.5B
  • Accounts payable$108M
  • Other current liabilities$1.4B
Current ratio3.05×all current assets ÷ what's due · Graham looked for 2×
Quick ratio2.99×stricter: inventory excluded
Cash ratio1.13×strictest: cash alone against what's due
Working capital$3.1Bthe cushion left after near-term bills
Revenue, latest quarter vs. a year ago+66.9%the freshest read on whether the business is still growing
Current ratio, recent quarters3.0× → 3.1×
Deeper floors
Tangible book value$1.4Bequity stripped of goodwill & intangibles
Net current asset value$416MGraham's net-net: current assets less all liabilities
Debt incl. operating leases$934M$256M of it operating leases
Deferred revenue$4Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal yearChief executivePay, as filed“Actually paid”Owner earnings
2021John M. Maraganore, Ph.D.$10.2M$17.5M($689M)
2022$4.6M$19.0M($586M)
2023Yvonne L. Greenstreet, M.D.$8.9M$11.4M$42M
2024$11.5M$29.8M($43M)
2025$14.9M$77.4M$465M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years. A dash under the name means the filing tags the figure without naming the officer.

  • Insider ownership<1%

    The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.

  • CEO pay ratio48:1

    What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.

  • Stock-based compensation$348M

    The slice of the business handed to employees in shares in fiscal 2025, 9.4% of revenue, equal to 69.4% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

What an owner would ask, FY2025

read the 10-K →
  • Which reported numbers are a judgment call?
    Management names Revenue recognition as critical estimates

    each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Pharmaceuticals

The same industry, side by side on owner economics. Each column names the period it is read over; the group median at the foot is the line to read each figure against.

CompanyRevenuelatest FY, USDGross marginmedian over the recordOp. marginmedian over the recordROICmedian over the recordOwner earn. marginmedian over the record
ONCBeOne Medicines Ltd.$5.3B85%-122.3%-46%-110%
ELANElanco Animal Health Incorporated$4.7B54%-1.2%-0%4%
JAZZJazz Pharmaceuticals$4.3B16.8%8%35%
PRGOPerrigo Company plc$4.3B36%3.9%1%6%
ALNYAlnylam$3.7B86%-79.8%-83%-69%
BMRNBioMarin$3.2B78%-1.7%-1%1%
UTHRUnited Therapeutics$3.2B92%47.5%20%39%
AMRXAmneal Pharmaceuticals Inc.$3.0B37%7.9%3%9%
Group median78%1.3%1%5%
IV

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Alnylam has delivered.

$
Base

The assumptions

9.0% = the 4.68% 10-year Treasury (Jul 30, 2026) + 4.32 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price
Owner-earnings growth, delivered
Owner-earnings yield
P/E (3-yr earnings ’23–’25)
P/B
Graham’s price gate

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.68%, as of Jul 30, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $820M on 134M shares outstanding, per the 10-Q cover, as of 2026-07-24; net cash $697M. The if-converted diluted count is 138M, 3% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($92M) runs well above depreciation ($55M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $853M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Cite: Owner Scorecard, "Alnylam (ALNY), the owner's record," https://ownerscorecard.com/c/ALNY, data as of 2026-07-18.

Manual order: ← ALNT its page in the Manual ALOY →

Industry order: ← ALMS the Pharmaceuticals chapter ALT →