Alector Inc
NASDAQ:ALEC

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Alector Inc
NASDAQ:ALEC
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Price: 3.94 USD 4.79% Market Closed
Market Cap: 385.8m USD
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Intrinsic Value

ALEC's intrinsic value estimate is unreliable because it is based only on its multiples and doesn't use a DCF valuation.

The intrinsic value of one ALEC stock under the Base Case scenario is 5.98 USD. Compared to the current market price of 3.94 USD, Alector Inc is Undervalued by 34%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

ALEC Intrinsic Value
5.98 USD
Undervaluation 34%
Intrinsic Value
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Base Case
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Alector Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Economic Moat
Alector Inc

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Balance Sheet Decomposition
Alector Inc

Current Assets 469.4m
Cash & Short-Term Investments 457.2m
Other Current Assets 12.2m
Non-Current Assets 46.7m
PP&E 39m
Other Non-Current Assets 7.6m
Current Liabilities 142.5m
Accounts Payable 5m
Accrued Liabilities 37.8m
Other Current Liabilities 99.8m
Non-Current Liabilities 254.6m
Other Non-Current Liabilities 254.6m
Efficiency

Earnings Waterfall
Alector Inc

Revenue
61.5m USD
Operating Expenses
-244.5m USD
Operating Income
-183m USD
Other Expenses
24.6m USD
Net Income
-158.4m USD

Free Cash Flow Analysis
Alector Inc

Last Value
3-Years Average
FCF Margin
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Earnings Calls

Alector is set for transformative advancements with anticipated key trial readouts. The AL002 Phase II trial for early Alzheimer’s disease will deliver data in Q4 2024, focusing on its TREM2 agonist. Additionally, the FDA has granted breakthrough therapy designation to latozinemab for frontotemporal dementia, with a pivotal Phase III readout expected in late 2025 or early 2026. Financially, Alector ended the quarter with $503.3 million in cash, ensuring operations through 2026. The company also projects collaboration revenue between $60 million and $70 million for 2024. Its proprietary Alector Brain Carrier platform continues to enhance drug delivery capabilities.

What is Earnings Call?
Fundamental Scores

ALEC Profitability Score
Profitability Due Diligence

Alector Inc's profitability score is 9/100. The higher the profitability score, the more profitable the company is.

Positive Revenue Growth Forecast
Negative 1-Year Revenue Growth
Declining ROE
Declining ROIC
9/100
Profitability
Score

Alector Inc's profitability score is 9/100. The higher the profitability score, the more profitable the company is.

ALEC Solvency Score
Solvency Due Diligence

Alector Inc's solvency score is 53/100. The higher the solvency score, the more solvent the company is.

Low D/E
Short-Term Solvency
Long-Term Solvency
Low Altman Z-Score
53/100
Solvency
Score

Alector Inc's solvency score is 53/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

ALEC Price Targets Summary
Alector Inc

Wall Street analysts forecast ALEC stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for ALEC is 14.03 USD with a low forecast of 4.04 USD and a high forecast of 36.75 USD.

Lowest
Price Target
4.04 USD
3% Upside
Average
Price Target
14.03 USD
256% Upside
Highest
Price Target
36.75 USD
833% Upside
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Dividends

Alector Inc
does not pay dividends
Shareholder Yield

Current shareholder yield for ALEC is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Ownership

ALEC Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
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Profile

Alector Inc Logo
Alector Inc

Country

United States of America

Industry

Biotechnology

Market Cap

396.6m USD

Dividend Yield

0%

Description

Alector, Inc. operates as a clinical-stage biopharmaceutical company, which engages in pioneering of immuno-neurology. The company is headquartered in South San Francisco, California and currently employs 208 full-time employees. The company went IPO on 2019-02-07. The firm is focused on immuno-neurology, a therapeutic approach for the treatment of neurodegeneration. The firm is engaged in developing therapies designed to counteract these pathologies by restoring healthy immune function to the brain. Its research and drug discovery platform leverages human genetic datasets, advanced tools in bioinformatics and imaging, and insights in neurodegeneration and immunology to identify immune system. The firm has advanced four product candidates, AL001, AL002, AL003, and AL101, into clinical development. Its first product candidate, AL001, is a humanized recombinant monoclonal antibody that increases the levels of progranulin (PGRN) in the brains of frontotemporal dementia carrying a progranulin (FTD-GRN) patients. Its AL002 targets triggering receptor expressed on myeloid cells 2 (TREM2) to increase the functionality of TREM2 signaling and enhance microglia cell activation.

Contact

CALIFORNIA
South San Francisco
131 Oyster Point Blvd., Suite 600
+14152315660.0
alector.com

IPO

2019-02-07

Employees

208

Officers

Co-Founder, CEO & Director
Dr. Arnon Rosenthal Ph.D.
President and Head of Research & Development
Dr. Saraswati Kenkare-Mitra Ph.D.
CFO, Principal Financial Officer & Principal Accounting Officer
Dr. Marc Grasso M.D.
Chief Medical Officer
Dr. Gary Romano M.D., Ph.D.
Senior Director of Corporate Communication & Investor Relations
Ms. Katie Hogan
General Counsel
Ms. Danielle Pasqualone J.D., Ph.D.
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Chief People Officer
Ms. Clare Hunt M.B.A.
Chief Regulatory, Pharmacovigilance, & Quality Assurance Officer
Ms. Kristina Cutter M.P.H.
Chief of Staff & Head of Strategy
Ms. Virginia DeJesus-Rueff M.B.A.
Senior Vice President of Portfolio & Program Management
Ms. Norah Conway
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See Also

Discover More
What is the Intrinsic Value of one ALEC stock?

The intrinsic value of one ALEC stock under the Base Case scenario is 5.98 USD.

Is ALEC stock undervalued or overvalued?

Compared to the current market price of 3.94 USD, Alector Inc is Undervalued by 34%.

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