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Alvotech (ALVO)
NASDAQ:ALVO
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Alvotech
(NASDAQ:ALVO)
Rating:49Neutral
Price Target:
$9.50
▲(3.94%Upside)
Alvotech (ALVO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.76B
Dividend YieldN/A
Average Volume (3M)208.37K
Price to Earnings (P/E)27.1
Beta (1Y)0.74
Revenue Growth539.47%
EPS GrowthN/A
CountryUS
Employees1,012
SectorHealthcare
Sector Strength42
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.35
Shares Outstanding301,805,660
10 Day Avg. Volume174,432
30 Day Avg. Volume208,366
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)-3.50
Price to Sales (P/S)0.00
P/FCF Ratio-5.47
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue1.60
Enterprise Value/Gross Profit7.65
Enterprise Value/Ebitda-9.38
Forecast
1Y Price Target
$28.00Price Target Upside206.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Alvotech Business Overview & Revenue Model
Company DescriptionAlvotech (ALVO) is a global biopharmaceutical company focused on developing and manufacturing biosimilar medicines. It operates within the healthcare and pharmaceuticals sectors, providing high-quality and cost-effective alternatives to branded biologics. The company's core products include biosimilars for treating a range of diseases, including autoimmune disorders, cancer, and other chronic conditions.
How the Company Makes MoneyAlvotech generates revenue primarily through the development, manufacturing, and commercialization of biosimilar drugs. These biosimilars are sold to healthcare providers, distributors, and pharmaceutical companies, either directly or through strategic partnerships. The company has established collaborations with various global and regional partners to enhance distribution, regulatory approval, and market access, which are crucial factors in driving its earnings. Alvotech’s revenue model relies on entering markets with expiring biologic patents, offering competitive pricing strategies to gain market share, and expanding its pipeline of biosimilar products to sustain growth.
Alvotech Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 15.11%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The call presented a strong financial performance with raised revenue guidance and successful product launches, despite some challenges like strong price competition and potential tariff impacts.Q1-2025 Updates
Positive Updates
Increased Revenue Guidance
Top line revenue guidance for 2025 is raised to $600 million to $700 million, and adjusted EBITDA guidance is raised to $200 million to $280 million.
Strong Financial Performance
Fourth consecutive quarter of positive adjusted EBITDA and operating profits with triple-digit increases in both product revenues and total revenues compared to the same quarter in the previous year.
Stelara Biosimilar Success
Successful launch of Stelara biosimilar in the U.S. and other markets, with a significant market share and recent FDA approval for interchangeability.
Product Pipeline Expansion
Three biosimilar filings under review in major markets, expected to launch by Q4 2025, expanding to six marketed biosimilars by early 2026.
Positive Cash Flow
Generated $17 million of positive cash flows from operations in Q1, expecting to be free cash flow positive in 2025.
Negative Updates
Price Competition
Strong price competition for Stelara biosimilar in the U.S., which is described as opportunistic and potentially detrimental to developers.
Tariff Concerns
Potential U.S. tariffs on pharmaceuticals are under review, which could impact market competitiveness.
Company Guidance
During the Alvotech Q1 2025 earnings call, the company provided guidance by revising its full-year financial projections upward, reflecting strong performance and strategic developments. The top-line revenue guidance was increased to a range of $600 million to $700 million, while the adjusted EBITDA guidance was raised to $200 million to $280 million. Alvotech reported a $110 million increase in product revenues for the first quarter, driven by successful launches of biosimilars to Humira and Stelara. The company also achieved a positive adjusted EBITDA of $21 million and expects to be free cash flow positive in 2025. Alvotech plans to launch three new biosimilars by Q4 2025, contributing further to revenue diversification. The guidance reflects the company's robust pipeline, strategic partnerships, and the anticipated growth in biosimilar market share, particularly in the U.S. market.Alvotech Financial Statement Overview
Summary
Alvotech shows rapid revenue growth and improving profitability, but faces financial challenges with high leverage and negative equity. Cash flow issues and reliance on financing for liquidity pose risks to long-term viability.Income Statement
Alvotech's revenue has shown significant growth over the years, notably with a leap from $91 million in 2023 to $489 million in 2024, and further to $586 million in TTM. The gross profit margin improved substantially, reaching 60.6% in TTM. However, net income has been volatile, swinging from a loss of $232 million in 2024 to a profit of $96 million in TTM, indicating potential profitability but also underlying instability. The EBIT margin is positive at 22% in TTM, reflecting improved operational efficiency.45
Neutral
Balance Sheet
The balance sheet reveals a high debt burden, with total debt exceeding total assets, leading to a negative stockholders' equity of $302 million in TTM. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is also negative, indicating financial instability. A high leverage risk is evident.20
Very Negative
Cash Flow
Alvotech's cash flow statements show consistent negative free cash flows, with a slight improvement in TTM compared to 2024. The operating cash flow to net income ratio is negative, suggesting that earnings are not translating into cash flows effectively. Financing activities are primarily supporting cash flows, raising concerns about sustainability.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 585.61M | 489.68M | 91.43M | 83.03M | 36.77M | 66.62M |
| Gross Profit | 354.81M | 304.37M | -69.42M | 18.93M | 36.77M | 66.62M |
| EBITDA | 138.86M | -28.66M | -484.86M | -439.80M | 3.99M | -125.67M |
| Net Income | 96.55M | -231.86M | -551.73M | -513.58M | -101.50M | -170.04M |
Balance Sheet | ||||||
| Total Assets | 1.25B | 1.22B | 950.09M | 828.44M | 597.98M | 474.42M |
| Cash, Cash Equivalents and Short-Term Investments | 38.54M | 51.43M | 11.16M | 66.43M | 17.56M | 31.69M |
| Total Debt | 1.23B | 1.19B | 1.08B | 805.10M | 523.05M | 676.85M |
| Total Liabilities | 1.55B | 1.63B | 1.88B | 1.39B | 733.59M | 1.34B |
| Stockholders Equity | -302.29M | -412.77M | -932.49M | -564.42M | -135.61M | -867.24M |
Cash Flow | ||||||
| Free Cash Flow | -224.65M | -293.84M | -358.66M | -361.39M | -268.80M | -86.28M |
| Operating Cash Flow | -148.89M | -236.84M | -312.19M | -312.39M | -228.17M | -74.30M |
| Investing Cash Flow | -35.78M | -18.87M | -46.34M | -63.54M | -40.63M | -16.90M |
| Financing Cash Flow | 158.29M | 297.31M | 301.32M | 424.91M | 254.83M | 55.40M |
Alvotech Technical Analysis
Negative
9.14
Price Trends
9.54
Negative
10.26
Negative
11.28
Negative
Market Momentum
-0.25
Positive
40.77
Neutral
44.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALVO, the sentiment is Negative. The current price of 9.14 is below the 20-day moving average (MA) of 9.99, below the 50-day MA of 9.54, and below the 200-day MA of 11.28, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 40.77 is Neutral, neither overbought nor oversold. The STOCH value of 44.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALVO.
Alvotech Risk Analysis
Alvotech disclosed 95 risk factors in its most recent earnings report. Alvotech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may need to refinance all or a portion of our indebtedness and cannot assure you that refinancing will be available on commercially reasonable terms, or at all. Q4, 2023
2.
Termination or expiration of governmental programs or tax benefits, could adversely affect us. Q4, 2023
3.
We operate our main R&D and manufacturing facility in Iceland which is an island with a relatively limited number of ports of entry by sea or air which may impact logistics. Geologic activity, in particular volcanic eruptions could impact transport and cause disruptions to our supply chain or ability to export product. Q4, 2023
Alvotech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.74B | 28.21 | 6.32% | ― | 11.82% | ― | |
63 Neutral | $3.65B | ― | -3.64% | 4.37% | -4.85% | -4290.31% | |
62 Neutral | $2.64B | 69.88 | 5.06% | ― | -25.48% | -63.36% | |
56 Neutral | $2.55B | ― | 106.97% | ― | 13.42% | 92.50% | |
51 Neutral | $7.41B | 0.36 | -61.88% | 2.33% | 16.99% | 1.69% | |
49 Neutral | $2.76B | 27.11 | 128.44% | ― | 539.47% | ― | |
48 Neutral | $1.19B | 64.45 | -10.45% | ― | 24.76% | -783.38% |
* Healthcare Sector Average
Performance Comparison
ALVO
Alvotech
9.14
-3.22
-26.05%
DVAX
Dynavax
9.91
-1.25
-11.20%
PRGO
Perrigo Company
26.54
1.32
5.23%
SUPN
Supernus Pharmaceuticals
31.16
4.61
17.36%
HCM
HUTCHMED
15.10
-2.46
-14.01%
AMRX
Amneal Pharmaceuticals
8.13
1.71
26.64%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.