ALX Oncology Holdings (ALXO) AI Stock Analysis

• Market Cap: $55.16M
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: N/A
• EPS Growth: 39.60%
• Country: US
• Employees: 65
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): -0.49
• Shares Outstanding: 53,551,132
• 10 Day Avg. Volume: 2,488,409
• 30 Day Avg. Volume: 1,208,348
• 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: -0.74
• Enterprise Value/Revenue: -47.17
• Enterprise Value/Gross Profit: 213.26
• Enterprise Value/Ebitda: 0.35
• 1Y Price Target: $2.00
• Price Target Upside: 70.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 39 Underperform
• Price Target: ―

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

Clinical Development

ALX Oncology is updating the design of its Phase 2 ASPEN-Breast study to enable a CD47 and HER2 biomarker-driven strategy, which could enhance the trial's effectiveness.

Market Opportunity

Data suggests that 50-70% of HER2+ breast cancer patients overexpress CD47, representing a large market opportunity for ALX Oncology if the study is successful.

Negative Factors

Financial Prioritization

ALX has decided not to move forward with the planned Phase 1 ASPEN-CRC study, indicating a need to better prioritize cash resources.

Study Design Challenges

The single-arm design of the new study may make the data more difficult to interpret compared to the prior plan for a randomized control trial.

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 exhibits significant financial challenges, with no revenue generation and persistent losses. The negative equity and cash flow issues highlight a need for strategic change to improve its financial health and operational effectiveness.

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	868.00K	0.00	0.00	0.00	0.00	1.18M
Gross Profit	-192.00K	-872.00K	-836.00K	-1.47M	-736.00K	107.00K
EBITDA	-115.34M	-132.25M	-158.40M	-121.95M	-83.47M	-43.46M
Net Income	-116.57M	-134.85M	-160.81M	-123.48M	-83.46M	-45.74M
Balance Sheet
Total Assets	95.32M	147.78M	242.55M	306.49M	380.18M	436.05M
Cash, Cash Equivalents and Short-Term Investments	79.31M	127.76M	182.74M	266.21M	363.67M	434.22M
Total Debt	3.04M	9.90M	17.20M	10.43M	742.00K	0.00
Total Liabilities	30.91M	34.16M	52.84M	43.02M	17.13M	6.21M
Stockholders Equity	64.42M	113.62M	189.71M	263.46M	363.05M	429.85M
Cash Flow
Free Cash Flow	-105.81M	-122.36M	-131.64M	-90.65M	-73.02M	-38.32M
Operating Cash Flow	-105.49M	-121.91M	-130.36M	-89.22M	-68.10M	-38.29M
Investing Cash Flow	108.84M	86.26M	44.66M	-235.42M	-4.92M	610.00K
Financing Cash Flow	422.00K	30.82M	59.29M	9.86M	2.47M	462.88M

ALX Oncology Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALXO, the sentiment is Positive. The current price of 1.17 is above the 20-day moving average (MA) of 0.72, above the 50-day MA of 0.57, and above the 200-day MA of 0.94, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 75.53 is Negative, neither overbought nor oversold. The STOCH value of 81.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALXO.

ALX Oncology Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLNN	54 Neutral	$56.55M	―	-1738.36%	―	-35.29%	45.18%
Sector *	51 Neutral	$7.88B	-0.12	-39.83%	2.18%	21.38%	-1.56%
TVRD	50 Neutral	$249.86M	―	-93.85%	―	-40.16%	78.28%
GBIO	50 Neutral	$43.44M	―	-85.45%	―	61.15%	54.71%
PYPD	41 Neutral	$35.46M	―	-312.77%	―	―	61.18%
VYNE	40 Underperform	$8.51M	―	-67.73%	―	-2.06%	64.86%
ALXO	39 Underperform	$55.16M	―	-104.21%	―	―	39.60%

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.