ALX Oncology Holdings (ALXO) AI Stock Analysis

• Market Cap: $27.54M
• Dividend Yield: N/A
• Average Volume (3M): 522.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.05
• Revenue Growth: N/A
• EPS Growth: 30.37%
• Country: US
• Employees: 80
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -2.60
• Shares Outstanding: 53,395,770
• 10 Day Avg. Volume: 519,117
• 30 Day Avg. Volume: 522,403
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -1.28
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.94
• Price Target Upside: 657.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

ALX Oncology Holdings faces significant financial hurdles due to ongoing losses and negative cash flow, reflected in its low financial performance score. The technical analysis indicates a bearish trend with the stock trading below major moving averages. The valuation is challenging due to a negative P/E ratio and lack of dividends. Recent corporate events offer some hope with new leadership appointments, though offset by workforce reductions. Overall, the challenges outweigh the positive aspects, resulting in a low overall stock score.

Positive Factors

Combination Therapy Efficacy

The combination therapy of evorpacept with other treatments in trials has achieved strong and durable efficacy, providing key insights for future studies in HER2+ metastatic breast cancer.

Pipeline Development

Developing ALX2004, an EGFR directed ADC that had its IND recently cleared by the US FDA, indicates ongoing progress in their pipeline.

Stock Valuation

The stock is being upgraded to 'Buy' due to its current valuation being significantly below its cash reserves, indicating limited downside risk.

Negative Factors

Financial Concerns

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

Market Skepticism

Short interest in the stock is relatively high, indicating some investor skepticism.

Phase 2 Study Setback

ALX Oncology announced that its two Phase 2 studies were not successful combining evorpacept with pembrolizumab or pembrolizumab + chemo in advanced head and neck squamous cell carcinoma.

ALX Oncology Holdings Business Overview & Revenue Model

Company Description

ALX Oncology Holdings Inc., a clinical-stage immuno-oncology company, focuses on developing therapies for patients fighting cancer. Its lead product candidate is ALX148, a CD47 blocking therapeutic that is in Phase 1b/2 clinical trial used for the treatment of myelodysplastic syndromes; and for the treatment of acute myeloid leukemia and non-Hodgkin's lymphoma, as well as a range of solid tumor indications, including head and neck squamous cell carcinoma, human epidermal growth factor receptor 2 (HER2) positive gastric/gastroesophageal junction carcinoma, HER2-expressing breast cancer, and other solid tumors. The company's pre-clinical products include ALTA-002, a SIRPa TRAAC that offers ways to engage the innate and adaptive immune response to cancer. ALX Oncology Holdings Inc. has a collaboration agreement with Merck for a Phase 2 trial evaluating ALX148 in combination with pembrolizumab with and without chemotherapy in patients with head and neck cancer; Zymeworks on a Phase 1 trial evaluating ALX148 with the HER2-targeting bispecific antibody zanidatamab in patients with HER2-expressing breast cancer and other solid tumors; and Tallac Therapeutics for the development, manufacturing and commercialization of a novel class of cancer immunotherapeutics. It also has a license agreement with Selexis SA and Crystal Bioscience, Inc. The company was founded in 2015 and is headquartered in South San Francisco, California.

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

ALX Oncology Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.52
• 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 0.52 is below the 20-day moving average (MA) of 0.54, below the 50-day MA of 0.75, and below the 200-day MA of 1.78, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 19.61 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
TVRD	57 Neutral	$233.33M	―	-270.01%	―	-65.96%	40.80%
Sector *	52 Neutral	$5.28B	3.75	-42.72%	2.86%	17.70%	2.03%
VYNE	43 Neutral	$20.38M	―	-56.54%	―	18.16%	86.65%
PYPD	41 Neutral	$28.53M	―	-1038.73%	―	―	34.97%
ALXO	39 Underperform	$27.54M	―	-88.91%	―	―	30.37%
CLNN	39 Underperform	$26.43M	―	-1738.36%	―	-47.71%	-244.00%
GBIO	38 Underperform	$29.49M	―	-91.02%	―	236.92%	-0.57%

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.