Aligos Therapeutics (ALGS) AI Stock Analysis

• Market Cap: $53.91M
• Dividend Yield: N/A
• Average Volume (3M): 86.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -55.88%
• EPS Growth: 6.14%
• Country: US
• Employees: 70
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.04
• Shares Outstanding: 5,353,582
• 10 Day Avg. Volume: 122,947
• 30 Day Avg. Volume: 86,969
• PEG Ratio: >-0.01
• Price to Book (P/B): -8.61
• Price to Sales (P/S): 63.27
• P/FCF Ratio: -3.09
• Enterprise Value/Market Cap: -0.77
• Enterprise Value/Revenue: -15.70
• Enterprise Value/Gross Profit: -17.40
• Enterprise Value/Ebitda: 0.49
• 1Y Price Target: $81.67
• Price Target Upside: 746.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $9.00 ▼(-6.74% Downside)

ALGS scores low primarily due to declining revenue, persistent losses, and negative operating cash flow despite low leverage. Technical indicators are mixed but lean weak with price below key moving averages, while valuation is difficult to support because the company is unprofitable and no dividend yield is available.

Positive Factors

Low Leverage

Low leverage provides financial flexibility and reduces the risk of financial distress, allowing the company to focus on R&D and potential growth opportunities without the burden of high debt.

Free Cash Flow Improvement

An improvement in free cash flow, despite negative operating cash flow, indicates better cash management and potential for future financial stability as the company progresses its R&D pipeline.

R&D Focus

A strong R&D focus on unmet medical needs like HBV and NASH positions the company to potentially capture significant market share upon successful drug development and approval.

Negative Factors

Declining Revenue

A declining revenue trend highlights challenges in advancing the pipeline to commercialization, which is critical for transitioning from a clinical-stage to a revenue-generating company.

Negative Profitability

Consistently negative profitability indicates operational inefficiencies and challenges in cost management, which can hinder long-term financial health and investor confidence.

Negative Operating Cash Flow

Negative operating cash flow suggests ongoing cash burn, necessitating continued external financing to sustain operations, which could dilute shareholder value and limit strategic options.

Aligos Therapeutics Business Overview & Revenue Model

Company Description

Aligos Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses to develop novel therapeutics to address unmet medical needs in viral and liver diseases. Its lead drug candidate is ALG-010133, a s-antigen transport-inhibiting oligonucleotide polymer that is in Phase Ib clinical trial for the treatment of chronic hepatitis B (CHB); and ALG-000184, a capsid assembly modulator, which is in Phase I clinical trials to treat CHB. The company also develops ALG-020572, an antisense oligonucleotide to prevent HBsAg translation and secretion; and ALG-055009, a small molecule THR-ß agonist that is in the Phase 1a/1b for the treatment of non-alcoholic steatohepatitis(NASH). In addition, it develops siRNA drug candidate, ALG-125755, as well as ALG-125097 and ALG-125819, demonstrated potent inhibition of HBsAg release from HBV-infected cells. It has entered into license and collaboration agreements with Luxna Biotech Co., Ltd. to develop and commercialize products containing oligonucleotides targeting hepatitis B virus genome; Emory University to provide hepatitis B virus capsid assembly modulator technology; research, licensing, and commercialization agreement with Katholieke Universiteit Leuven to develop coronavirus protease inhibitors; and Merck to discover, research, optimize, and develop oligonucleotides directed against a NASH. The company was incorporated in 2018 and is headquartered in South San Francisco, California.

How the Company Makes Money

Aligos Therapeutics generates revenue through several key streams. Primarily, the company engages in research and development collaborations with larger pharmaceutical companies, which may include upfront payments, milestone payments based on the achievement of specific clinical or regulatory objectives, and royalties on future sales of products developed from these partnerships. Additionally, Aligos may receive funding from government grants or awards aimed at supporting innovative research in the biotech space. The company may also generate revenue through the licensing of its proprietary technologies or drug candidates to other firms in exchange for fees and royalties, enhancing its financial stability and growth prospects.

Aligos Therapeutics Financial Statement Overview

Summary

Aligos Therapeutics faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. While the company maintains low leverage, its inability to generate profits and positive cash flow raises concerns about its financial sustainability.

Income Statement

Aligos Therapeutics shows a declining revenue trend with a negative revenue growth rate of -16.64% in the TTM. The company has consistently negative net profit margins, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Overall, the income statement highlights significant challenges in achieving profitability.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.08 in the TTM, indicating low leverage. However, the return on equity is negative, reflecting the company's inability to generate profits from its equity base. The equity ratio is not explicitly calculated, but the available data suggests a moderate level of equity relative to total assets.

Cash Flow

The cash flow statement reveals a slight improvement in free cash flow growth at 5.87% in the TTM, but operating cash flow remains negative, indicating cash burn. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is marginally better than net income, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.65M	3.94M	15.53M	13.91M	4.36M	0.00
Gross Profit	2.39M	3.94M	15.53M	13.91M	4.36M	-3.33M
EBITDA	-84.83M	-86.53M	-85.06M	-93.91M	-124.54M	-105.06M
Net Income	-86.46M	-131.21M	-87.68M	-96.05M	-128.33M	-108.54M
Balance Sheet
Total Assets	109.76M	70.09M	151.53M	146.69M	235.37M	265.30M
Cash, Cash Equivalents and Short-Term Investments	99.10M	56.94M	135.70M	125.83M	190.73M	243.51M
Total Debt	6.07M	8.38M	11.14M	12.57M	14.46M	13.01M
Total Liabilities	37.93M	99.07M	59.45M	42.79M	50.64M	45.26M
Stockholders Equity	71.83M	-28.97M	92.08M	103.90M	184.73M	220.04M
Cash Flow
Free Cash Flow	-79.53M	-80.87M	-79.02M	-80.33M	-116.55M	-76.33M
Operating Cash Flow	-79.16M	-80.74M	-79.00M	-79.39M	-115.66M	-74.26M
Investing Cash Flow	-15.83M	-18.28M	44.98M	-26.29M	3.02M	32.76M
Financing Cash Flow	101.61M	355.00K	88.33M	164.00K	78.68M	192.35M

Aligos Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALGS, the sentiment is Positive. The current price of 9.65 is below the 20-day moving average (MA) of 10.35, above the 50-day MA of 9.20, and above the 200-day MA of 8.27, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 54.04 is Neutral, neither overbought nor oversold. The STOCH value of 56.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALGS.

Aligos Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACRV	59 Neutral	$94.98M	-1.39	-50.23%	―	―	21.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BRNS	44 Neutral	$28.99M	-0.38	-62.30%	―	-100.00%	-26.30%
ALGS	42 Neutral	$53.91M	-0.49	-141.82%	―	-55.88%	6.14%
CELU	40 Underperform	$36.05M	-0.37	―	―	-15.81%	-113.06%