Allogene Therapeutics (ALLO) AI Stock Analysis

• Market Cap: $276.42M
• Dividend Yield: N/A
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: -100.00%
• EPS Growth: 37.10%
• Country: US
• Employees: 226
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.19
• Shares Outstanding: 224,730,150
• 10 Day Avg. Volume: 2,372,909
• 30 Day Avg. Volume: 2,716,989
• PEG Ratio: 0.04
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 18861.34
• P/FCF Ratio: -2.06
• Enterprise Value/Market Cap: 0.39
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -2.89
• Enterprise Value/Ebitda: -0.55
• 1Y Price Target: $9.17
• Price Target Upside: 627.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): -0.93
• Revenue Forecast (FY): $3.64K

• Rating: 46 Neutral
• Price Target: $1.50 ▲(19.05% Upside)

Allogene Therapeutics' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and ongoing losses. While technical analysis shows some short-term bullish momentum, the valuation remains unattractive due to negative earnings. The earnings call provides a slightly positive outlook with a strong cash position and clinical trial advancements, but safety concerns and uncertainties temper enthusiasm.

Positive Factors

Innovative Business Model

The company's allogeneic CAR T platform allows for scalable, off-the-shelf therapies, enhancing accessibility and potentially transforming the cell therapy landscape.

Strong Cash Position

A robust cash position provides financial stability and supports ongoing R&D and clinical trials, ensuring the company can sustain operations and pursue strategic initiatives.

Expanding Clinical Trials

Expansion of clinical trials into new regions enhances the company's research capabilities and potential market reach, supporting long-term growth and product development.

Negative Factors

Declining Revenue

The sharp decline in revenue highlights significant financial challenges and underscores the need for successful commercialization of products to achieve sustainable growth.

Safety Concerns in Trials

Safety issues in clinical trials can delay product development and regulatory approval, impacting the company's ability to bring therapies to market and generate revenue.

Operational Inefficiencies

Reliance on external funding due to negative cash flows suggests operational inefficiencies, which could hinder long-term financial health and limit strategic flexibility.

Allogene Therapeutics Business Overview & Revenue Model

Company Description

Allogene Therapeutics (ALLO) is a biotechnology company focused on the development of allogeneic T cell therapies for the treatment of cancer. The company is at the forefront of advancing innovative therapies that harness the power of the immune system to target and destroy cancer cells. Allogene's core offerings include its proprietary platform for developing off-the-shelf CAR T cell therapies, which aim to provide a more accessible and cost-effective treatment option for patients with hematologic malignancies and solid tumors.

How the Company Makes Money

Allogene Therapeutics generates revenue primarily through collaborations and partnerships with larger pharmaceutical companies, which often involve upfront payments, milestone payments upon achieving specific clinical or regulatory goals, and royalties on sales of products developed through these partnerships. The company may also seek funding through public offerings, grants, and strategic alliances to support its research and development efforts. As Allogene's therapies progress through clinical trials and reach commercialization, the potential for significant revenue generation increases, particularly as successful treatments can command high prices in the oncology market.

Allogene Therapeutics Financial Statement Overview

Summary

Allogene Therapeutics faces significant financial challenges, with declining revenues, persistent losses, and dependence on external funding. While the balance sheet shows some resilience with cash reserves and moderate leverage, the lack of profitability and cash flow growth indicates the company must address operational inefficiencies to achieve sustainable growth.

Income Statement

Allogene Therapeutics has struggled to generate revenue, with a sharp decline from $38.5M in 2021 to negligible amounts in 2023 and 2024. Consistently negative EBIT and net income reflect ongoing operational challenges. The lack of revenue growth and persistent losses highlight significant financial hurdles.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio, indicating moderate leverage. However, a declining equity base from $1.08B in 2020 to $422M in 2024 signals potential financial strain. The substantial cash reserves provide a buffer, but the shrinking equity ratio raises concerns about long-term stability.

Cash Flow

Negative operating and free cash flows indicate poor cash generation from operations. While financing activities have bolstered cash levels, the reliance on external funding to sustain operations could pose risks. The absence of positive cash flow growth further underscores operational inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	22.00K	95.00K	156.00K	114.09M	0.00
Gross Profit	-37.50M	22.00K	95.00K	-14.14M	114.09M	-11.54M
EBITDA	-198.19M	-243.33M	-313.07M	-321.24M	-169.74M	-238.68M
Net Income	-212.01M	-257.59M	-327.26M	-340.41M	-182.05M	-250.22M
Balance Sheet
Total Assets	439.77M	548.71M	642.84M	821.58M	1.05B	1.23B
Cash, Cash Equivalents and Short-Term Investments	252.19M	292.48M	448.70M	517.32M	457.30M	827.91M
Total Debt	85.14M	90.76M	95.12M	101.12M	73.13M	53.78M
Total Liabilities	124.44M	126.53M	130.60M	154.70M	125.63M	148.21M
Stockholders Equity	315.33M	422.18M	512.23M	666.88M	925.20M	1.08B
Cash Flow
Free Cash Flow	-158.99M	-200.99M	-239.25M	-225.71M	-206.26M	-181.05M
Operating Cash Flow	-158.34M	-200.30M	-237.73M	-220.52M	-184.81M	-115.09M
Investing Cash Flow	116.88M	75.69M	163.29M	106.16M	163.66M	-505.12M
Financing Cash Flow	28.04M	116.67M	95.69M	2.95M	11.96M	633.59M

Allogene Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLO, the sentiment is Positive. The current price of 1.26 is above the 20-day moving average (MA) of 1.20, above the 50-day MA of 1.23, and below the 200-day MA of 1.37, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.59 is Neutral, neither overbought nor oversold. The STOCH value of 83.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALLO.

Allogene Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ABEO	50 Neutral	$244.40M	3.84	75.90%	―	―	―
FHTX	49 Neutral	$199.55M	-2.85	―	―	-3.91%	37.89%
ALLO	46 Neutral	$276.42M	―	-54.43%	―	-100.00%	37.10%
IMAB	45 Neutral	―	―	―	―	-100.00%	72.45%
TNYA	36 Underperform	$224.91M	-1.44	-96.44%	―	―	46.68%
NMRA	33 Underperform	$451.83M	-1.78	-104.35%	―	―	20.71%

Allogene Therapeutics Corporate Events

Allogene Therapeutics Advances in CAR T Therapy Development

Allogene Therapeutics, Inc., based in South San Francisco, is a clinical-stage biotechnology company focused on developing allogeneic chimeric antigen receptor T cell (AlloCAR T) products for cancer and autoimmune diseases, aiming to provide off-the-shelf cell therapies that are more accessible and scalable.

Allogene Therapeutics’ Promising Study on LBCL Treatment with Cema-cel

Allogene Therapeutics is currently conducting a study titled ‘A Randomized, Open-label Study Evaluating the Efficacy and Safety of Cemacabtagene Ansegedleucel in Participants With Minimal Residual Disease After Response to First Line Therapy for Large B-cell Lymphoma.’ The study aims to evaluate the effectiveness and safety of cemacabtagene ansegedleucel (cema-cel), an allogeneic CD19 CAR T product, in patients with large B-cell lymphoma (LBCL) who have minimal residual disease (MRD) after initial therapy. This research is significant as it explores a potential new treatment avenue for patients who have shown a response to first-line therapy but still harbor MRD.

Allogene Therapeutics Earnings Call: Progress Amid Challenges

Allogene Therapeutics’ recent earnings call conveyed a cautiously optimistic sentiment. While the company reported significant advancements in its clinical trials and maintained a stable financial position, the announcement of a Grade 5 event in the ALPHA3 study raised safety concerns. This mix of positive developments and safety challenges paints a promising yet cautious outlook for the company.

Allogene Therapeutics Faces Financial Uncertainty Amid New U.S. Tariffs and Regulatory Challenges

Allogene Therapeutics faces significant risks due to evolving political, trade, and regulatory developments, particularly following the U.S. government’s announcement of new tariffs in 2025. These tariffs, which include a baseline of 10-15% and country-specific rates as high as 25-39%, could adversely affect pharmaceutical imports, impacting the company’s financial condition and operations. The dynamic and unpredictable nature of these policy changes, coupled with potential investigations into national security risks associated with foreign-manufactured pharmaceutical ingredients, adds further uncertainty. As Allogene Therapeutics relies on global third-party suppliers for raw materials, increased tariffs may lead to higher research and development expenses, posing a material risk to their business prospects.

Allogene Therapeutics Advances in CAR T Cell Therapy

Allogene Therapeutics is a clinical-stage biotechnology company based in South San Francisco, specializing in the development of allogeneic CAR T cell therapies for cancer and autoimmune diseases. The company is known for its innovative ‘off-the-shelf’ cell therapy products aimed at providing scalable and accessible treatment options.