ALX Oncology Holdings (ALXO) AI Stock Analysis

• Market Cap: $47.70M
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.28
• Revenue Growth: N/A
• EPS Growth: 30.37%
• Country: US
• Employees: 72
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -2.60
• Shares Outstanding: 53,384,144
• 10 Day Avg. Volume: 2,252,261
• 30 Day Avg. Volume: 1,212,269
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -0.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.63
• Price Target Upside: 420.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

ALX Oncology Holdings is facing significant financial and operational challenges with no revenue generation, ongoing losses, and negative equity. The recent workforce reduction and leadership changes are strategic moves to address these issues, but they also underline the current distress. Technical indicators suggest a bearish trend, further pressuring the stock. Overall, the company's financial health is precarious, making its stock a high-risk investment.

Positive Factors

Market Potential

Evorpacept's commercial potential across multiple indications suggests a strong future market presence.

Research and Development

Announced new trials with Evorpacept for breast and colorectal cancer, highlighting ongoing research and development efforts.

Negative Factors

Financial Sustainability

ALX Oncology has approximately 1.3 years of cash left, which may raise concerns about the company's financial sustainability.

ALX Oncology Holdings Business Overview & Revenue Model

Company Description

ALX Oncology Holdings Inc. (ALXO) is a clinical-stage immuno-oncology company focusing on the development of therapies designed to enhance the immune system's ability to eliminate cancer. The company's main product candidate, evorpacept (also known as ALX148), is a CD47-blocking therapeutic aimed at preventing cancer cells from evading the immune system. ALX Oncology operates within the biotechnology and pharmaceutical sectors, targeting various solid tumors and hematologic malignancies.

How the Company Makes Money

ALX Oncology primarily makes money through partnerships and collaborations with other pharmaceutical companies, aiming to co-develop and commercialize its lead product candidate, evorpacept. Revenue is also generated from milestone payments and licensing fees associated with these partnerships. Additionally, the company may earn income from grants or funding to support its research and development activities. As a clinical-stage company, ALX Oncology's revenue model is heavily reliant on the successful progress and eventual approval of its therapies, leading to potential future sales.

ALX Oncology Holdings Financial Statement Overview

Summary

ALX Oncology Holdings faces significant financial challenges, including no revenue generation, persistent losses, negative equity, and cash flow issues, highlighting the need for strategic change.

Income Statement

The company has been unable to generate revenue since 2020, reflecting a challenge in monetizing its operations. This lack of revenue leads to negative profit margins, with a consistent net loss over the years. The absence of revenue growth and negative EBIT and EBITDA margins indicate significant operational challenges.

Balance Sheet

The company's equity is negative, which is a red flag for financial stability. Although debt levels are low, the negative stockholders' equity suggests underlying financial struggles. The equity ratio is negative, indicating more liabilities than assets, which poses a risk to solvency.

Cash Flow

The company consistently reports negative free cash flow, showing cash outflows exceed inflows, especially concerning operating activities. This negative trend in cash flow from operations highlights ongoing liquidity challenges. Despite occasional positive financing cash flow, it hasn't translated into improved operational cash performance.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	1.18M
	Gross Profit
-1.18M	0.00	-836.00K	-1.47M	-736.00K	107.00K
	EBIT
-111.58M	-142.47M	-170.28M	-127.44M	-83.56M	-43.66M
	EBITDA
-109.78M	-132.25M	-158.40M	-121.95M	-83.47M	-43.46M
	Net Income Common Stockholders
-109.37M	-134.85M	-160.81M	-123.48M	-83.46M	-45.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
127.76M	127.76M	182.74M	282.91M	363.67M	434.22M
	Total Assets
147.78M	147.78M	242.55M	306.49M	380.18M	436.05M
	Total Debt
9.90M	435.00K	17.20M	10.43M	742.00K	0.00
	Net Debt
-7.66M	-17.13M	-5.21M	-272.48M	-362.93M	-434.22M
	Total Liabilities
34.16M	34.16M	52.84M	43.02M	17.13M	436.05M
	Stockholders Equity
113.62M	113.62M	189.71M	-325.47M	-201.99M	-118.52M
Cash Flow		Free Cash Flow
-85.78M	-122.36M	-131.64M	-90.65M	-73.02M	-38.32M
	Operating Cash Flow
-80.02M	-121.91M	-130.36M	-89.22M	-68.10M	-38.29M
	Investing Cash Flow
-264.97M	86.26M	44.66M	-235.42M	-4.92M	610.00K
	Financing Cash Flow
1.47M	30.82M	59.29M	9.86M	2.47M	462.88M

ALX Oncology Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALXO, the sentiment is Negative. The current price of 0.89 is below the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.36, and below the 200-day MA of 3.16, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 10.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALXO.

ALX Oncology Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%
ADAP	44 Neutral	$114.38M	―	-53.54%	―	145.37%	57.01%
FATE	42 Neutral	$110.00M	―	-54.21%	―	-78.55%	-0.92%
AFMD	42 Neutral	$14.08M	―	-151.46%	―	-95.23%	-325.89%
KPTI	41 Neutral	$62.62M	―	41.08%	―	-0.55%	49.85%
ALXO	38 Underperform	$47.70M	―	-88.91%	―	―	30.37%
IGMS	29 Underperform	$83.09M	―	-155.76%	―	25.77%	32.56%

ALX Oncology Holdings Corporate Events

ALX Oncology Announces Workforce Reduction and Leadership Change

On February 28, 2025, ALX Oncology Holdings Inc. announced a 30% reduction in its workforce as part of a strategy to prioritize its pipeline, focus on clinical development, and preserve cash. This reduction, expected to be completed by May 2025, will incur estimated expenses of $2.2 million primarily related to research and preclinical development. Additionally, the company’s President and Chief Scientific Officer, Jaume Pons, Ph.D., will depart in April 2025 as a result of this workforce reduction. Dr. Pons will receive severance benefits and will enter a consulting agreement to assist with the transition.

ALX Oncology Strengthens Leadership with Key Appointments

On January 22, 2025, ALX Oncology announced the appointment of Harish Shantharam as Chief Financial Officer and the addition of Barbara Klencke and Chris Takimoto to its Board of Directors. These appointments are expected to strengthen the company’s leadership as it advances its lead candidate, evorpacept, into late-stage clinical trials in 2025. Shantharam brings extensive experience in finance and commercial operations from his previous roles at CymaBay Therapeutics and Gilead Sciences. Dr. Klencke and Dr. Takimoto are highly regarded oncology leaders with significant contributions to oncology drug development, and their inclusion is anticipated to enhance ALX Oncology’s strategic direction and innovation in immuno-oncology.

ALX Oncology Adopts 2025 Inducement Equity Plan

On January 16, 2025, ALX Oncology Holdings Inc. adopted the 2025 Inducement Equity Incentive Plan, reserving 1,500,000 shares of common stock for equity awards without stockholder approval as per Nasdaq rules. This plan aims to attract new employees by offering equity-based awards similar to the company’s 2020 plan, aligning with Nasdaq’s inducement award exception, and potentially impacting the company’s talent acquisition and retention strategy.