Alnylam Posts 13.74% ROIC vs 5.69% WACC, Leading Peers
Alnylam Pharmaceuticals reports a 13.74% ROIC against a 5.69% WACC, yielding a ROIC/WACC ratio of 2.42. Peers Ionis, Sarepta and Agios show negative ROIC/WACC ratios of -1.90, -1.04 and -4.91, underscoring Alnylam’s leading capital efficiency.
1. Capital Efficiency Metrics
Alnylam achieved a 13.74% return on invested capital (ROIC) while its weighted average cost of capital (WACC) stood at 5.69%, resulting in a ROIC/WACC multiple of 2.42. This gap indicates the company is generating returns well above its cost of capital.
2. Peer Performance Comparison
Ionis Pharmaceuticals recorded a -9.98% ROIC and a 5.25% WACC for a -1.90 ratio, Sarepta Therapeutics posted a -4.92% ROIC with a 4.73% WACC for a -1.04 ratio, and Agios Pharmaceuticals showed a -38.18% ROIC against a 7.78% WACC for a -4.91 ratio. These negative multiples highlight peers’ struggles to cover capital costs.
3. Investment Implications
Alnylam’s superior capital efficiency suggests the company may deliver stronger returns on investment compared to its peers, potentially enhancing its appeal to investors seeking firms that generate value above financing costs.