Alector (ALEC) AI Stock Analysis

• Market Cap: $239.04M
• Dividend Yield: N/A
• Average Volume (3M): 814.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.11
• 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: 675,629
• 30 Day Avg. Volume: 814,174
• PEG Ratio: -0.09
• Price to Book (P/B): 5.24
• Price to Sales (P/S): 7.63
• P/FCF Ratio: -0.87
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 3.22
• Enterprise Value/Gross Profit: 9.84
• Enterprise Value/Ebitda: -1.98
• 1Y Price Target: $2.10
• Price Target Upside: -12.13% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.98
• Revenue Forecast (FY): $39.58M

• Rating: 46 Neutral
• Price Target: $2.50 ▲(4.60% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held down primarily by weak financial performance, including sustained losses, heavy recent cash burn, and a weakened 2025 balance-sheet picture. Technicals are supportive on trend but appear overextended, while valuation is constrained by negative earnings and no dividend. A positive CFO appointment is a modest offset.

Positive Factors

Differentiated BBB platform & experienced team

Alector's ABC blood-brain barrier platform is described as differentiated and tunable, paired with leadership experienced in neurodegenerative programs. This is a durable scientific and execution advantage that can generate multiple clinical assets, attract partners, and sustain long-term R&D focus.

Strategic partnership with GSK on PROGRESS-AD

A co-development relationship with GSK provides clinical, regulatory and commercialization expertise, de-risks late-stage development, and offers funding and validation. Structurally this supports pipeline progression and increases the chance programs reach market or attract additional licensing deals.

Permanent CFO appointment supports execution

Naming an experienced CFO who already served interim improves financial leadership and continuity. Over the medium term this can strengthen capital planning, partner negotiations and fundraising execution, reducing execution risk as the company advances costly clinical programs.

Negative Factors

Deep and sustained cash burn

Repeated negative operating and free cash flow across multiple years indicates ongoing funding needs. Persisting cash burn forces reliance on external financing or partnerships, risks dilution, and limits the company's ability to self-fund trials or expand programs without raising capital under potentially unfavorable terms.

Persistent operating and net losses

Consistent operating and net losses mean the company lacks internal profitability to sustain long-term operations. Negative margins increase dependence on external capital, constrain reinvestment in R&D, and reflect that gross profit strength has not translated into sustainable bottom-line improvements.

Balance-sheet weakening and higher leverage

A marked rise in leverage and falling equity in 2025 reduces financial flexibility and raises refinancing risk. Higher debt burden can limit investment in trials, increase interest costs, and make the company more vulnerable to adverse funding conditions or delays in milestone receipts.

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

Financial profile is weak: persistent operating/net losses, a sharp 2025 revenue decline (~69.5% YoY), and deeply negative operating/free cash flow in 2022–2025 indicate continued funding risk. Balance sheet leverage was historically modest but appears to weaken in 2025 as equity falls and debt-to-equity rises (~1.18).

Income Statement

Profitability remains weak, with sizable operating and net losses across all reported years. Revenue has been volatile and recently deteriorated sharply (2025 annual revenue down ~69.5% year-over-year), which magnifies fixed-cost pressure and keeps margins deeply negative. A positive is that gross profit has been strong in several years (e.g., 2022–2024), but that has not translated into sustainable bottom-line improvement.

Balance Sheet

Leverage looks manageable in most years with relatively modest debt versus equity (debt-to-equity ~0.16–0.34 from 2021–2024), but 2025 shows a clear balance-sheet weakening as equity falls materially and debt-to-equity rises to ~1.18. Returns on equity are consistently negative, reflecting ongoing losses. Overall asset levels have also trended down versus prior peaks, suggesting reduced financial flexibility over time.

Cash Flow

Cash generation is a key concern: operating cash flow and free cash flow are deeply negative in 2022–2025, including substantial cash burn in 2024 and 2025. While 2021 showed strong positive operating and free cash flow, that performance did not persist. Free cash flow has generally moved in the wrong direction (negative growth in multiple years), indicating continued funding needs if losses persist.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	69.05M	21.05M	100.56M	97.06M	133.62M	207.09M
Gross Profit	22.59M	0.00	100.56M	88.21M	133.62M	17.68M
EBITDA	-112.36M	-156.01M	-136.16M	-142.89M	-129.36M	-29.05M
Net Income	-107.74M	-142.93M	-119.05M	-130.39M	-133.31M	-36.33M
Balance Sheet
Total Assets	335.29M	293.24M	468.30M	621.83M	787.65M	814.66M
Cash, Cash Equivalents and Short-Term Investments	291.11M	256.02M	413.40M	548.86M	712.85M	735.25M
Total Debt	37.88M	36.23M	42.52M	38.92M	43.33M	47.60M
Total Liabilities	277.57M	262.59M	341.50M	487.67M	573.21M	513.93M
Stockholders Equity	57.71M	30.65M	126.80M	134.16M	214.44M	300.72M
Cash Flow
Free Cash Flow	-197.58M	-184.07M	-231.16M	-186.54M	-24.45M	295.30M
Operating Cash Flow	-197.37M	-184.03M	-229.91M	-184.16M	-20.33M	298.55M
Investing Cash Flow	212.40M	196.60M	107.13M	101.92M	-159.01M	-49.66M
Financing Cash Flow	24.61M	20.21M	81.54M	2.55M	4.51M	30.30M

Alector Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.39
• 50DMA: Positive
• 100DMA: Positive
• 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 2.39 is above the 20-day moving average (MA) of 1.98, above the 50-day MA of 1.79, and above the 200-day MA of 1.87, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 78.37 is Negative, neither overbought nor oversold. The STOCH value of 92.59 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	$573.12M	-2.36	-104.35%	―	―	20.71%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ACIU	50 Neutral	$269.13M	-3.28	-72.70%	―	-89.01%	-86.17%
VOR	50 Neutral	$637.33M	-0.04	―	―	―	-1072.48%
FHTX	49 Neutral	$332.16M	-4.89	―	―	-3.91%	37.89%
ALEC	46 Neutral	$239.04M	-2.23	-121.98%	―	12.26%	37.36%

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.