DB:0Z2

Stock Analysis Report

Executive Summary

Alector, Inc., a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases.


Snowflake Analysis

Flawless balance sheet with limited growth.

Share Price & News

How has Alector's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0Z2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

0Z2

11.7%

DE Biotechs

9.9%

DE Market


1 Year Return

21.4%

0Z2

-8.1%

DE Biotechs

-17.5%

DE Market

Return vs Industry: 0Z2 exceeded the German Biotechs industry which returned -8.1% over the past year.

Return vs Market: 0Z2 exceeded the German Market which returned -17.5% over the past year.


Shareholder returns

0Z2IndustryMarket
7 Day-4.3%11.7%9.9%
30 Day-3.5%-5.9%-16.6%
90 Day43.2%-22.6%-24.8%
1 Year21.4%21.4%-7.9%-8.1%-15.0%-17.5%
3 Yearn/a16.6%15.4%-17.4%-24.5%
5 Yearn/a-6.1%-8.5%-16.6%-28.1%

Price Volatility Vs. Market

How volatile is Alector's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Alector undervalued compared to its fair value and its price relative to the market?

8.69x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 0Z2's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 0Z2's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 0Z2 is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 0Z2 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 0Z2's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 0Z2 is overvalued based on its PB Ratio (8.7x) compared to the DE Biotechs industry average (3.6x).


Next Steps

Future Growth

How is Alector forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0Z2 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 0Z2 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 0Z2 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 0Z2's revenue (39.1% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: 0Z2's revenue (39.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0Z2 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Alector performed over the past 5 years?

-101.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 0Z2 is currently unprofitable.

Growing Profit Margin: 0Z2 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 0Z2's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare 0Z2's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 0Z2 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (8.7%).


Return on Equity

High ROE: 0Z2 has a negative Return on Equity (-54.11%), as it is currently unprofitable.


Next Steps

Financial Health

How is Alector's financial position?


Financial Position Analysis

Short Term Liabilities: 0Z2's short term assets ($357.4M) exceed its short term liabilities ($62.0M).

Long Term Liabilities: 0Z2's short term assets ($357.4M) exceed its long term liabilities ($165.2M).


Debt to Equity History and Analysis

Debt Level: 0Z2 is debt free.

Reducing Debt: 0Z2 has not had any debt for past 5 years.


Balance Sheet

Inventory Level: 0Z2 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0Z2's debt is covered by short term assets (assets are 5.0304785625263E+16x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 0Z2 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 0Z2 has sufficient cash runway for 2.1 years if free cash flow continues to reduce at historical rates of -55.8% each year.


Next Steps

Dividend

What is Alector's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 0Z2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 0Z2's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 0Z2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 0Z2's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 0Z2's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Arnon Rosenthal (63yo)

7.17s

Tenure

US$6,775,588

Compensation

Dr. Arnon Rosenthal, Ph.D., Co-Founded of Alector, Inc. in 2013 and serves as its Chief Executive Officer and Director since 2013 and served as its President since 2013. He served as Chief Scientific Offic ...


CEO Compensation Analysis

Compensation vs Market: Arnon's total compensation ($USD6.78M) is above average for companies of similar size in the German market ($USD1.85M).

Compensation vs Earnings: Arnon's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Tillman Gerngross
Co-Founder & Chairman7.17yrsUS$313.75k3.3% $57.9m
Arnon Rosenthal
Co-Founder7.17yrsUS$6.78m7.67% $134.5m
Robert Paul
Chief Medical Officer3.42yrsUS$2.28m0.32% $5.6m
Robert King
Chief Development Officer3.17yrsUS$2.24m0.62% $10.9m
Shehnaaz Suliman
President & COO0.25yrno datano data
Calvin Yu
Vice President of Finance2.67yrsno data0.14% $2.5m
Charles Wolfus
Vice President of Technology & Digital Health1.17yrsno datano data
Stephanie Yonker
Vice President of Legal2.58yrsno datano data
Clare Hunt
Head of Peopleno datano datano data
Sabah Oney
Chief Business Officer2.17yrsno data0.73% $12.7m

2.7yrs

Average Tenure

51yo

Average Age

Experienced Management: 0Z2's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tillman Gerngross
Co-Founder & Chairman7.17yrsUS$313.75k3.3% $57.9m
Arnon Rosenthal
Co-Founder7.17yrsUS$6.78m7.67% $134.5m
Terrance McGuire
Independent Director7.17yrsUS$306.26kno data
Lewis Lanier
Member of Scientific Advisory Boardno datano datano data
Marco Colonna
Member of Scientific Advisory Boardno datano datano data
Stephen Hauser
Member of Scientific Advisory Boardno datano datano data
David Wehner
Independent Director1.42yrsUS$302.52k0.057% $991.0k
Adam Boxer
Member of Scientific Advisory Boardno datano datano data
Michael Heneka
Member of Scientific Advisory Boardno datano datano data
Louis Lavigne
Lead Independent Director1.42yrsUS$331.73kno data

7.2yrs

Average Tenure

63yo

Average Age

Experienced Board: 0Z2's board of directors are considered experienced (7.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 0Z2 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 446.2%.


Top Shareholders

Company Information

Alector, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alector, Inc.
  • Ticker: 0Z2
  • Exchange: DB
  • Founded: 2013
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.935b
  • Listing Market Cap: US$1.754b
  • Shares outstanding: 78.98m
  • Website: https://www.alector.com

Number of Employees


Location

  • Alector, Inc.
  • 131 Oyster Point Boulevard
  • Suite 600
  • South San Francisco
  • California
  • 94080
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALECNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 2019
0Z2DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2019

Biography

Alector, Inc., a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its product includes AL001, a humanized recombinant monoclonal antibody, which is in phase II clinical trial for the treatment of frontotemporal dementia disease; and AL101 that is in Phase I clinical trial for the treatment of neurodegenerative diseases, including Alzheimer’s and Parkinson’s diseases. The company also offers AL002 and AL003, which are in phase 1b clinical trial for the treatment of Alzheimer’s disease. In addition, it has 10 programs under research and development stage. The company was founded in 2013 and is headquartered in South San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:33
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.