Allogene Therapeutics (ALLO) AI Stock Analysis

• Market Cap: $279.57M
• Dividend Yield: N/A
• Average Volume (3M): 3.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.05
• Revenue Growth: -100.00%
• EPS Growth: 30.91%
• Country: US
• Employees: 226
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.23
• Shares Outstanding: 221,881,030
• 10 Day Avg. Volume: 2,783,301
• 30 Day Avg. Volume: 3,164,096
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -4.85
• Enterprise Value/Ebitda: -0.26
• 1Y Price Target: $9.40
• Price Target Upside: 646.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 45 Neutral
• Price Target: $1.00 ▼(-20.63% Downside)

The overall stock score is primarily impacted by the company's financial performance, which is challenged by declining revenues and persistent losses. Technical analysis provides some short-term optimism, but long-term indicators remain weak. Valuation is also a concern due to the lack of profitability and dividend yield. Despite some positive developments in clinical trials, safety concerns and financial losses weigh heavily on the stock's outlook.

Positive Factors

Innovative Business Model

Allogene's innovative approach using allogeneic T cell therapies offers a scalable and accessible treatment model, potentially revolutionizing cancer immunotherapy and providing a competitive edge in the biotechnology industry.

Strategic Partnerships

Collaborations with larger pharmaceutical companies enhance Allogene's research, development, and market access capabilities, which could lead to increased revenue streams and accelerated product development.

Cash Position

A strong cash position provides Allogene with the financial flexibility to continue its R&D efforts and navigate operational challenges, ensuring sustainability and potential growth over the next few years.

Negative Factors

Revenue Decline

The sharp decline in revenue reflects challenges in commercializing products, which may impact long-term financial stability and necessitate strategic shifts to achieve sustainable growth.

Persistent Financial Losses

Ongoing financial losses highlight operational inefficiencies and the need for improved cost management, which could strain resources and hinder future investment in growth initiatives.

Safety Concerns in Clinical Trials

Safety concerns in clinical trials, such as the Grade 5 event, could delay product approvals and impact Allogene's reputation, posing risks to its pipeline and future revenue potential.

Allogene Therapeutics Business Overview & Revenue Model

Company Description

Allogene Therapeutics is a biotechnology company focused on developing allogeneic T cell therapies for the treatment of cancer. The company is pioneering an innovative approach to immunotherapy, leveraging genetically engineered T cells derived from healthy donors to create therapies that are designed to be off-the-shelf and readily available for patients. Allogene's core products include its proprietary AlloCAR T™ platform, which aims to provide more accessible and scalable treatments for various hematologic malignancies and solid tumors.

How the Company Makes Money

Allogene Therapeutics generates revenue primarily through the development and commercialization of its allogeneic CAR T cell therapies. The company may achieve earnings through several key revenue streams, including licensing agreements, collaborations with larger pharmaceutical companies, and potential product sales once therapies receive regulatory approval. Significant partnerships with larger biopharmaceutical firms enhance its capabilities in research, development, and market access, contributing to its financial growth. Additionally, the company may receive milestone payments and royalties from its partners based on the progress of its product candidates.

Allogene Therapeutics Financial Statement Overview

Summary

Allogene Therapeutics faces significant financial challenges, with declining revenues, persistent losses, and dependence on external funding. The balance sheet shows some resilience with cash reserves and moderate leverage, but 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	-12.64M	22.00K	-242.82M	-14.14M	103.64M	-11.54M
EBITDA	-232.47M	-243.33M	-313.07M	-321.24M	-169.74M	-238.68M
Net Income	-236.91M	-257.59M	-327.26M	-340.41M	-182.05M	-250.22M
Balance Sheet
Total Assets	470.59M	548.71M	642.84M	817.08M	1.05B	1.23B
Cash, Cash Equivalents and Short-Term Investments	273.12M	292.48M	448.70M	517.32M	457.30M	827.91M
Total Debt	79.24M	90.76M	95.12M	101.12M	73.13M	53.78M
Total Liabilities	126.03M	126.53M	130.60M	154.70M	122.23M	148.21M
Stockholders Equity	344.56M	422.18M	512.23M	665.87M	916.41M	1.08B
Cash Flow
Free Cash Flow	-173.60M	-200.99M	-239.25M	-225.71M	-206.26M	-181.05M
Operating Cash Flow	-172.77M	-200.30M	-237.73M	-220.52M	-184.81M	-115.09M
Investing Cash Flow	28.95M	75.69M	163.29M	106.16M	163.66M	-505.12M
Financing Cash Flow	25.48M	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: Positive
• RSI: Neutral
• STOCH: Neutral

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 below the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.21, and below the 200-day MA of 1.42, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.07 is Neutral, neither overbought nor oversold. The STOCH value of 21.16 is Neutral, 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 *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ABEO	―	$270.75M	8.37	48.34%	―	―	―
ALLO	―	$279.57M	-1.13	-55.12%	―	-100.00%	30.91%
IMAB	―	$334.19M	―	―	―	-100.00%	72.45%
FHTX	―	$230.08M	-3.28	―	―	-31.30%	36.26%
TNYA	―	$270.54M	-1.73	-85.21%	―	―	38.94%
NMRA	―	$280.17M	―	-89.37%	―	―	9.84%

Allogene Therapeutics Corporate Events

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.

Allogene Therapeutics Adjusts ALPHA3 Trial After Adverse Event

On August 1, 2025, Allogene Therapeutics announced the selection of standard fludarabine and cyclophosphamide as the lymphodepletion regimen for its ALPHA3 study, following a Grade 5 adverse event linked to ALLO-647. The decision to close the arm testing FC plus ALLO-647 was made after consultation with the FDA and the DSMB due to severe viral infections attributed to immunosuppression from ALLO-647. The amended ALPHA3 trial will now proceed with two arms, comparing cema-cel after standard FC lymphodepletion to observation, with the next milestone being a futility analysis expected in the first half of 2026. The company will focus on advancing its AlloCAR T product candidates using the Dagger® Platform Technology, which aims to reduce the need for standard lymphodepletion.

The most recent analyst rating on (ALLO) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Allogene Therapeutics stock, see the ALLO Stock Forecast page.