Alector (ALEC) AI Stock Analysis

• Market Cap: $150.99M
• Dividend Yield: N/A
• Average Volume (3M): 961.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -8.37%
• EPS Growth: 9.21%
• Country: US
• Employees: 175
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -0.41
• Shares Outstanding: 99,992,600
• 10 Day Avg. Volume: 569,533
• 30 Day Avg. Volume: 961,228
• PEG Ratio: -0.02
• Price to Book (P/B): 3.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.14
• Enterprise Value/Market Cap: 4.31
• Enterprise Value/Revenue: 2.13
• Enterprise Value/Gross Profit: 7.74
• Enterprise Value/Ebitda: -1.02
• 1Y Price Target: $5.33
• Price Target Upside: 250.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 48 Neutral
• Price Target: $1.50 ▼(-1.32%Downside)

Alector's overall stock score is primarily impacted by its weak financial performance, characterized by persistent losses and ineffective cash flow management. Technical analysis indicates some positive momentum, yet the stock remains below its long-term trend. Valuation metrics present high risk due to negative earnings and no dividend yield.

Positive Factors

Financial Stability

$355M cash runway extends to H2:27.

Trial Effectiveness

AL001 treatment reduced elevated biomarkers in FTD-GRN patients, suggesting robust target engagement and potential disease modification.

Trial Enrollment

Alector completed the enrollment ahead of schedule in April, which probably indicates a strong interest in the therapy.

Negative Factors

Financial Concerns

There is no meaningful catalyst expected until Q4 2025, at which time Alector may have less than one year of cash on the balance sheet.

Product Uncertainty

The success of latozinemab in FTD-GRN does not necessarily translate to success for AL101 in Alzheimer's disease due to the complexity and numerous risk factors associated with Alzheimer's.

Stock Rating

Alector is assumed at an Underweight rating, indicating a cautious outlook on the stock's performance.

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 strategic collaborations and partnerships with larger pharmaceutical companies. These collaborations often involve upfront payments, milestone payments based on the achievement of specified research or regulatory milestones, and royalties on the sales of developed therapies. Additionally, Alector may receive funding from grants or government programs aimed at supporting innovative biotechnology research. The company's financial success is closely tied to the progress and success of its drug candidates in clinical trials and their eventual approval and commercialization.

Alector Financial Statement Overview

Summary

Alector's financial statements depict a company facing substantial 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. Cash flow management is inefficient, with negative free cash flow growth. Overall, financial stability is concerning.

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
88.34M	100.56M	97.06M	133.62M	207.09M	21.10M
	Gross Profit
83.98M	91.72M	-95.05M	125.14M	17.68M	-135.77M
	EBIT
-145.98M	-145.00M	-151.74M	-137.83M	-37.36M	-195.17M
	EBITDA
-138.46M	-136.16M	-142.89M	-129.36M	-29.05M	-187.91M
	Net Income Common Stockholders
-123.44M	-119.05M	-130.39M	-133.31M	-28.01M	-182.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
354.55M	413.40M	548.86M	712.85M	735.25M	413.31M
	Total Assets
408.30M	468.30M	621.83M	787.65M	814.66M	488.25M
	Total Debt
41.05M	42.52M	38.92M	43.33M	47.60M	51.26M
	Net Debt
3.08M	9.50M	-35.64M	-111.00M	-281.55M	1.29M
	Total Liabilities
313.69M	341.50M	487.67M	573.21M	513.93M	220.72M
	Stockholders Equity
94.61M	126.80M	134.16M	214.44M	300.72M	267.53M
Cash Flow		Free Cash Flow
-230.08M	-231.16M	-186.54M	-24.45M	295.30M	-171.77M
	Operating Cash Flow
-229.34M	-229.91M	-184.16M	-20.33M	298.55M	-166.73M
	Investing Cash Flow
184.63M	107.13M	101.92M	-159.01M	-49.66M	-105.05M
	Financing Cash Flow
10.43M	81.54M	2.55M	4.51M	30.30M	232.11M

Alector Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.52 is above the 20-day moving average (MA) of 1.44, above the 50-day MA of 1.23, and below the 200-day MA of 2.60, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 56.95 is Neutral, neither overbought nor oversold. The STOCH value of 49.61 is Neutral, 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
ENTA	55 Neutral	$155.62M	―	-74.26%	―	-11.55%	27.32%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
ALEC	48 Neutral	$150.99M	―	-90.26%	―	-8.37%	9.21%
CHRS	45 Neutral	$91.02M	5.55	0.51%	―	-34.58%	-62.19%
XBIT		$83.54M	―	-20.53%	―	―	―
CCCC	48 Neutral	$115.74M	―	-45.55%	―	98.56%	37.97%
TIL	34 Underperform	$216.28M	―	-44.50%	―	―	52.54%

Alector Corporate Events

Alector Announces CFO Resignation and Interim Appointment

On June 9, 2025, Alector announced the resignation of its Chief Financial Officer, Dr. Marc Grasso, effective June 20, 2025, with Neil Berkley stepping in as Interim CFO. Berkley, who joined Alector in March 2024, brings extensive experience in corporate development and business strategy. Alector also held its annual meeting on June 11, 2025, where stockholders voted on director nominees, ratified Ernst & Young LLP as the accounting firm, and approved executive compensation. The company continues to progress its clinical trials and research programs, with significant developments expected in late 2025.

The most recent analyst rating on (ALEC) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on Alector stock, see the ALEC Stock Forecast page.

Alector Announces Resignation of Chief Medical Officer

On March 25, 2025, Alector, Inc. announced the resignation of Dr. Gary Romano from his role as Chief Medical Officer, effective April 25, 2025. Dr. Romano, who has been with the company since May 2022, is leaving to pursue other opportunities, and the company expressed gratitude for his contributions.