ALX Oncology Holdings (ALXO) AI Stock Analysis

• Market Cap: $28.90M
• Dividend Yield: N/A
• Average Volume (3M): 450.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.96
• Revenue Growth: N/A
• EPS Growth: 30.37%
• Country: US
• Employees: 65
• Sector: Healthcare
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -0.58
• Shares Outstanding: 53,444,020
• 10 Day Avg. Volume: 477,511
• 30 Day Avg. Volume: 450,235
• PEG Ratio: -0.08
• Price to Book (P/B): -1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.06
• Enterprise Value/Market Cap: 6.44
• Enterprise Value/Revenue: 37.54
• Enterprise Value/Gross Profit: -846.40
• Enterprise Value/Ebitda: -0.32
• 1Y Price Target: $2.25
• Price Target Upside: 341.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• 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

The proprietary topoisomerase I inhibitor payload in ALX2004 has been designed to enhance therapeutic effects and improve stability, which bodes well for its potential in clinical trials.

Pipeline Progress

ALX Oncology received IND clearance from the FDA for ALX2004, a novel ADC against EGFR, which is a significant step for the company's in-house development efforts.

Strategic Focus

The decision to discontinue development of evorpacept in certain cancers extends the cash runway into 4Q26, allowing a focus on breast and colorectal cancer programs.

Negative Factors

Clinical Trial Challenges

Phase 2 studies were not successful in testing evorpacept with pembrolizumab or pembrolizumab + chemo in advanced head and neck squamous cell carcinoma, casting doubt on the combination's efficacy.

Financial Performance

ALX Oncology reported no revenues for 1Q25 and a net loss per share, aligning with market expectations but highlighting financial challenges.

Market Skepticism

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

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
0.00	0.00	0.00	0.00	0.00	1.18M
	Gross Profit
-220.00K	0.00	-836.00K	-1.47M	-736.00K	107.00K
	EBIT
-136.53M	-142.47M	-170.28M	-127.44M	-83.56M	-43.66M
	EBITDA
-129.13M	-132.25M	-158.40M	-121.95M	-83.47M	-43.46M
	Net Income Common Stockholders
-130.02M	-134.85M	-160.81M	-123.48M	-83.46M	-45.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.83M	127.76M	182.74M	282.91M	363.67M	434.22M
	Total Assets
120.90M	147.78M	242.55M	306.49M	380.18M	436.05M
	Total Debt
1.74M	9.90M	17.20M	10.43M	742.00K	0.00
	Net Debt
-18.88M	-7.66M	-5.21M	-272.48M	-362.93M	-434.22M
	Total Liabilities
32.60M	34.16M	52.84M	43.02M	17.13M	436.05M
	Stockholders Equity
88.30M	113.62M	189.71M	-325.47M	-201.99M	-118.52M
Cash Flow		Free Cash Flow
-109.01M	-122.36M	-131.64M	-90.65M	-73.02M	-38.32M
	Operating Cash Flow
-108.65M	-121.91M	-130.36M	-89.22M	-68.10M	-38.29M
	Investing Cash Flow
87.43M	86.26M	44.66M	-235.42M	-4.92M	610.00K
	Financing Cash Flow
27.80M	30.82M	59.29M	9.86M	2.47M	462.88M

ALX Oncology Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.51
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.51 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.51, and below the 200-day MA of 1.24, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.59 is Neutral, neither overbought nor oversold. The STOCH value of 32.16 is Neutral, 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	$245.44M	―	-414.88%	―	-65.96%	40.80%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%
CLNN	46 Neutral	$37.73M	―	-1738.36%	―	-43.55%	69.81%
GBIO	44 Neutral	$25.67M	―	-70.06%	―	146.47%	57.85%
VYNE	42 Neutral	$14.83M	―	-66.15%	―	43.03%	81.75%
PYPD	41 Neutral	$34.95M	―	-853.05%	―	―	34.97%
ALXO	39 Underperform	$28.90M	―	-102.99%	―	―	30.37%

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.