Alector (ALEC) AI Stock Analysis

• Market Cap: $200.84M
• Dividend Yield: N/A
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.08
• Revenue Growth: 12.26%
• EPS Growth: 37.36%
• Country: US
• Employees: 175
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.34
• Shares Outstanding: 109,151,474
• 10 Day Avg. Volume: 973,682
• 30 Day Avg. Volume: 1,366,257
• PEG Ratio: 0.07
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 1.82
• P/FCF Ratio: -0.79
• Enterprise Value/Market Cap: 0.25
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 2.23
• Enterprise Value/Ebitda: -0.45
• 1Y Price Target: $2.10
• Price Target Upside: 9.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $2.00 ▲(4.17% Upside)

The score is primarily held down by weak financial performance—shrinking TTM revenue, persistent losses, and heavy cash burn that likely requires external funding. Technicals provide some support via a positive near-term trend, but overbought signals temper that benefit, while valuation remains challenged due to negative earnings and corporate events add pipeline/operational risk despite some leadership stabilization.

Positive Factors

Strategic Leadership

The appointment of Neil Berkley as CFO brings experienced leadership, potentially enhancing strategic execution and financial management.

Partnerships and Collaborations

Strong partnerships with major pharma companies provide Alector with resources and distribution channels, crucial for market success.

Innovative Pipeline

Alector's innovative pipeline targeting neurodegenerative diseases positions it well in a growing market for disease-modifying therapies.

Negative Factors

Financial Instability

Ongoing financial instability with consistent losses and declining revenue raises concerns about long-term sustainability and profitability.

Workforce Reduction

Significant workforce reduction following a failed clinical trial may impact operational capabilities and morale, hindering future growth.

Cash Flow Challenges

Negative free cash flow growth indicates inefficiencies in cash generation, posing risks to funding ongoing operations and future projects.

Alector Business Overview & Revenue Model

Company Description

Alector, Inc., a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its products include AL001, a humanized recombinant monoclonal antibody, which is in Phase III clinical trial for the treatment of frontotemporal dementia, Alzheimer's, Parkinson's, and amyotrophic lateral sclerosis diseases; and AL101 that is in Phase I clinical trial for the treatment of neurodegenerative diseases, including Alzheimer's and Parkinson's diseases. The company also offers AL002, a product candidate that is in Phase II clinical trial for the treatment of Alzheimer's disease; and AL003, which is in Phase I clinical trial for the treatment of Alzheimer's disease. In addition, its products in development stage include AL044 that targets MS4A4A, a risk gene for Alzheimer's disease. Alector, Inc. has a collaboration agreement with Adimab, LLC for the research and development of antibodies; and a strategic collaboration agreement with GlaxoSmithKline plc for the development and commercialization of monoclonal antibodies, such as AL001 and AL101 to treat neurodegenerative diseases. The company was founded in 2013 and is headquartered in South San Francisco, California.

How the Company Makes Money

Alector generates revenue primarily through collaborations and partnerships with larger pharmaceutical companies, which often involve upfront payments, milestone payments, and royalties on sales of products developed jointly. The company also seeks funding through grants and research programs aimed at advancing its pipeline of therapies. Additionally, Alector may receive revenue from licensing agreements for its proprietary technologies and drug candidates. Significant partnerships with established biopharmaceutical firms can boost Alector's earnings by providing access to resources, expertise, and distribution channels necessary for bringing its therapies to market.

Alector Financial Statement Overview

Summary

Alector's financial statements depict significant challenges in profitability, revenue growth, and cash flow management. The income statement shows consistent losses and declining revenue, while the balance sheet indicates reliance on debt financing. The cash flow statement highlights ongoing cash burn without significant improvement. Overall, the financial health is concerning, requiring strategic initiatives for long-term sustainability.

Income Statement

Alector's income statement reveals consistent losses with declining revenue over recent years. The gross profit margin is volatile, indicating unstable cost management. The net profit margin is negative, reflecting ongoing unprofitability. Revenue growth rate is negative, highlighting shrinking sales. The company struggles with EBIT and EBITDA margins, displaying operating inefficiencies. Overall, Alector's income statement shows significant challenges in achieving profitability and revenue growth.

Balance Sheet

Alector's balance sheet shows a relatively high debt-to-equity ratio, indicating reliance on debt financing. The return on equity is negative due to net losses, signaling challenges in generating shareholder value. The equity ratio is moderate, suggesting a balanced capital structure. However, the diminishing equity over time points to eroding financial strength. While the company maintains a reasonable level of assets, financial stability remains a concern.

Cash Flow

The cash flow statement highlights Alector's negative free cash flow growth rate, reflecting ongoing cash burn without significant improvement. The operating cash flow to net income ratio is negative, indicating insufficient cash generation from core operations. Free cash flow to net income ratio is also negative, underscoring inefficiencies in converting earnings into cash. Alector faces significant challenges in managing cash flows sustainably.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.05M	100.56M	97.06M	133.62M	207.09M	21.10M
Gross Profit	22.59M	100.56M	88.21M	133.62M	17.68M	-135.77M
EBITDA	-112.36M	-136.16M	-142.89M	-129.36M	-29.05M	-187.91M
Net Income	-107.74M	-119.05M	-130.39M	-133.31M	-36.33M	-190.23M
Balance Sheet
Total Assets	335.29M	468.30M	621.83M	787.65M	814.66M	488.25M
Cash, Cash Equivalents and Short-Term Investments	291.11M	413.40M	548.86M	712.85M	735.25M	413.31M
Total Debt	37.88M	42.52M	38.92M	43.33M	47.60M	51.26M
Total Liabilities	277.57M	341.50M	487.67M	573.21M	513.93M	220.72M
Stockholders Equity	57.71M	126.80M	134.16M	214.44M	300.72M	267.53M
Cash Flow
Free Cash Flow	-197.58M	-231.16M	-186.54M	-24.45M	295.30M	-171.77M
Operating Cash Flow	-197.37M	-229.91M	-184.16M	-20.33M	298.55M	-166.73M
Investing Cash Flow	212.40M	107.13M	101.92M	-159.01M	-49.66M	-105.05M
Financing Cash Flow	24.61M	81.54M	2.55M	4.51M	30.30M	232.11M

Alector Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.92
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALEC, the sentiment is Positive. The current price of 1.92 is above the 20-day moving average (MA) of 1.56, above the 50-day MA of 1.40, and above the 200-day MA of 1.74, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 75.47 is Negative, neither overbought nor oversold. The STOCH value of 95.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALEC.

Alector Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NMRA	52 Neutral	$370.94M	-1.46	-104.35%	―	―	20.71%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ACIU	50 Neutral	$348.28M	-4.39	-72.72%	―	-89.01%	-86.17%
FHTX	49 Neutral	$360.80M	-5.63	―	―	-3.91%	37.89%
ALEC	47 Neutral	$200.84M	-1.79	-121.98%	―	12.26%	37.36%
VOR	47 Neutral	$310.04M	-0.03	―	―	―	-1072.48%

Alector Corporate Events

Alector Appoints Neil Berkley as CFO

On December 10, 2025, Alector appointed Neil Berkley as Chief Financial Officer, a role he has been serving in an interim capacity since June 2025. Berkley, who will also continue as Chief Business Officer, brings over two decades of experience in biotech, having played a crucial role in advancing Alector’s strategic priorities and partnerships. His appointment is expected to support the company’s ongoing development of transformative therapies for neurodegenerative diseases.

The most recent analyst rating on (ALEC) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on Alector stock, see the ALEC Stock Forecast page.

Alector Announces Major Workforce Reduction Post-Trial

On October 21, 2025, Alector announced a significant workforce reduction of approximately 49% to align with strategic priorities following the results of the Phase 3 INFRONT-3 clinical trial for latozinemab (AL001) in frontotemporal dementia, which did not meet its primary endpoint. The company is discontinuing the open-label extension and continuation study for latozinemab, impacting around 75 employees with restructuring charges estimated at $7.7 million. Additionally, Sara Kenkare-Mitra, President and Head of Research and Development, resigned effective December 22, 2025, to pursue other opportunities, with a separation agreement in place. Despite the trial’s outcome, Alector remains committed to advancing its pipeline, including ongoing collaborations and preclinical programs, supported by its proprietary ABC platform.

The most recent analyst rating on (ALEC) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Alector stock, see the ALEC Stock Forecast page.