Alnylam Pharmaceuticals Inc (NASDAQ:ALNY): A Prime GARP Candidate for Affordable Growth

For investors looking to balance the search for high-growth companies with some price awareness, the "Growth at a Reasonable Price" (GARP) or "Affordable Growth" strategy offers a practical middle path. This method tries to find companies with solid, lasting growth paths that are not completely seen in their stock prices, thus steering clear of the limits of speculative, costly growth bets and stagnant value options. By looking for stocks with strong growth marks, good profitability and financial soundness, and a price that is not too high, investors can create a portfolio set to gain from rises while limiting falls.

ALNYLAM PHARMACEUTICALS INC (NASDAQ:ALNY) recently appeared on such an Affordable Growth screen, which looks for a ChartMill Growth Rating over 7, Valuation over 5, and at least good scores in Profitability and Health. This mix points to a company that is increasing quickly but whose market cost may not yet account for that future, making it an option for more basic study.

A Detailed View of the Growth Driver

The main draw of Alnylam is in its solid growth profile, which is key for any GARP investment. The company's latest financial results and future outlook show a business in a firm growth stage.

• Strong Recent Growth: In the last year, Alnylam has shown a notable 119.47% growth in Earnings Per Share (EPS) and a 53.24% rise in Revenue. This shows the company is not only growing its sales but is also moving that growth effectively to profits.
• Continued Progress: Reviewing the last few years, the company's Revenue has been increasing at a yearly rate of 59.21%, showing this is not a short-term event but a continued pattern.
• Firm Future View: The growth narrative is likely to persist. Experts predict average yearly growth of 69.83% for EPS and 33.34% for Revenue in the next years. While the revenue growth rate is thought to slow from its past high speed, these forecasts stay very firm and build the base for the stock's place in a growth-focused screen.

Price Assessment: Acceptable in a High-Value Field

Price assessment is the moderating element in the Affordable Growth plan. A stock must show growth without selling at a very high cost. Alnylam's price presents a varied but finally screen-passing view.

• Direct vs. Comparative Measures: On a direct basis, common measures like the Price/Earnings (P/E) ratio of 814.14 and Forward P/E of 59.67 seem very high, particularly next to the wider S&P 500. This shows the premium buyers often give for biotech growth.
• The Field Setting: The view shifts when seen against its competition. Compared to others in the Biotechnology field, Alnylam's price looks much more acceptable. Its P/E ratio is below 88.51% of field peers, and its Forward P/E costs less than 89.83% of them. This comparative price is what the screen finds with its "over 5" rating.
• Cash Flow and Total Value: More support comes from measures like Price/Free Cash Flow and Total Value/EBITDA, where Alnylam is priced more affordably than about 90% of its field rivals. This implies the market may be pricing its present cash creation and operational earnings better than its reported earnings.

Reviewing Profitability and Financial Soundness

For growth to be lasting and "affordable," a company must rest on a sound operational and financial base. This is where the screen's needs for good Profitability and Health ratings work, serving as a quality control on the growth narrative.

Profitability is a clear positive for Alnylam, scoring a 6 out of 10. The company has lately become profitable and produces firm margins that top its field.

• Its Gross Margin of 83.90% and Operating Margin of 8.25% do better than over 86% and 90% of peers, in order.
• Returns on Assets, Equity, and Invested Capital (ROIC) are all at marks that place in the top group of the biotechnology field.

Financial Health is the more detailed area, with a middle score of 5. The company has a very good cash position with firm Current and Quick Ratios, making sure it can handle short-term needs. Yet, it uses a high amount of financial borrowing, with a Debt-to-Equity ratio of 4.45, which is poorer than most field peers. This borrowing increases risk but also stock returns, as seen in its high ROE. Investors must balance this firm funding structure against the company's strong cash flow growth.

Summary

Alnylam Pharmaceuticals shows the kind of company an Affordable Growth screen is made to find. It has a confirmed and expected growth path that is with the firmest in the market, meeting the main "growth" need. Its price, while high on the face, is acceptable, even interesting, next to its high-growth biotech peers, meeting the "affordable" or "reasonable price" part. The supporting basics of field-leading profitability margins give trust in the quality of its earnings, while its financial health, though borrowed, is now steady with enough cash.

For a full list of all basic measures, you can see the full Fundamental Analysis Report for ALNY.

This review of Alnylam is from a single screen made to find possible options. Investors curious about seeing other stocks that meet similar needs for growth at a reasonable price can find more outcomes by using the Affordable Growth stock screener.

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Disclaimer: This article is for information only and is not financial guidance, a suggestion, or a deal to buy or sell any securities. The study is from data and a screening method that may shift. Investing includes risk, including the chance to lose the original amount. You should do your own full research and think about talking with a skilled financial guide before making any investment choices.