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ALEC

Alector NasdaqGS:ALEC Stock Report

Last Price

US$9.46

Market Cap

US$781.1m

7D

12.2%

1Y

-60.1%

Updated

30 Sep, 2022

Data

Company Financials +
ALEC fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends0/6

ALEC Stock Overview

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

Alector Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Alector
Historical stock prices
Current Share PriceUS$9.46
52 Week HighUS$27.00
52 Week LowUS$7.50
Beta1.05
1 Month Change-8.60%
3 Month Change-14.16%
1 Year Change-60.08%
3 Year Change-34.78%
5 Year Changen/a
Change since IPO-47.44%

Recent News & Updates

Jul 08

AbbVie ends partnership with Alector for Alzheimer’s candidate

Clinical-stage biotech Alector (NASDAQ:ALEC) announced that AbbVie (ABBV) will no longer partner with the company for the development of AL003, an experimental treatment targeted at the Alzheimer’s disease. AL003 is part of an agreement the two companies signed in 2017 to jointly develop and commercialize therapeutics for Alzheimer’s and other neurodegenerative diseases.   AL003 is a molecule designed to modulate checkpoint receptors on the brain’s immune cells, targeting sialic acid binding Ig-like lectin 3 (SIGLEC 3, also called CD33). The decision to end collaboration for AL003 follows a review the companies conducted to evaluate the next steps for the program. After completing the review, AbbVie (ABBV) decided to end the partnership for CD33 program on June 30, Alector (ALEC) said, adding that the companies will continue to collaborate in the development of AL002, another Alzheimer’s candidate with a different mechanism. Read the latest 10-K filing of Alector (ALEC) to known more about the agreement between the two companies.

Shareholder Returns

ALECUS BiotechsUS Market
7D12.2%0.4%-2.5%
1Y-60.1%-25.6%-23.2%

Return vs Industry: ALEC underperformed the US Biotechs industry which returned -25.8% over the past year.

Return vs Market: ALEC underperformed the US Market which returned -21.5% over the past year.

Price Volatility

Is ALEC's price volatile compared to industry and market?
ALEC volatility
ALEC Average Weekly Movement10.6%
Biotechs Industry Average Movement11.1%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: ALEC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: ALEC's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2013269Arnon Rosenthalhttps://www.alector.com

Alector, Inc., a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its products include AL001, a humanized recombinant monoclonal antibody, which is in Phase III clinical trial for the treatment of frontotemporal dementia, Alzheimer’s, Parkinson’s, and amyotrophic lateral sclerosis diseases; 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, a product candidate that is in Phase II clinical trial for the treatment of Alzheimer’s disease; and AL003, which is in Phase I clinical trial for the treatment of Alzheimer’s disease.

Alector Fundamentals Summary

How do Alector's earnings and revenue compare to its market cap?
ALEC fundamental statistics
Market CapUS$781.05m
Earnings (TTM)US$36.26m
Revenue (TTM)US$300.73m

21.5x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALEC income statement (TTM)
RevenueUS$300.73m
Cost of RevenueUS$203.43m
Gross ProfitUS$97.30m
Other ExpensesUS$61.04m
EarningsUS$36.26m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.44
Gross Margin32.35%
Net Profit Margin12.06%
Debt/Equity Ratio0%

How did ALEC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ALEC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ALEC?

Other financial metrics that can be useful for relative valuation.

ALEC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.06x
Enterprise Value/EBITDA0.4x
PEG Ratio-0.9x

Price to Earnings Ratio vs Peers

How does ALEC's PE Ratio compare to its peers?

ALEC PE Ratio vs Peers
The above table shows the PE ratio for ALEC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.6x
DVAX Dynavax Technologies
5.8x-45.7%US$1.3b
RGNX REGENXBIO
12.6x-1.4%US$1.1b
RCUS Arcus Biosciences
28.3x26.7%US$1.9b
SELB Selecta Biosciences
7.9x-43.1%US$250.4m
ALEC Alector
21.5x-25.2%US$781.1m

Price-To-Earnings vs Peers: ALEC is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the peer average (13.6x).


Price to Earnings Ratio vs Industry

How does ALEC's PE Ratio compare vs other companies in the US Biotechs Industry?

Price-To-Earnings vs Industry: ALEC is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the US Biotechs industry average (14.9x)


Price to Earnings Ratio vs Fair Ratio

What is ALEC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ALEC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.5x
Fair PE Ratio14.2x

Price-To-Earnings vs Fair Ratio: ALEC is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.2x).


Share Price vs Fair Value

What is the Fair Price of ALEC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate ALEC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate ALEC's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Alector forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-25.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALEC's earnings are forecast to decline over the next 3 years (-25.2% per year).

Earnings vs Market: ALEC's earnings are forecast to decline over the next 3 years (-25.2% per year).

High Growth Earnings: ALEC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ALEC's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: ALEC's revenue is forecast to decline over the next 3 years (-0.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


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Past Performance

How has Alector performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-8.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ALEC has high quality earnings.

Growing Profit Margin: ALEC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ALEC has become profitable over the past 5 years, growing earnings by -8.9% per year.

Accelerating Growth: ALEC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ALEC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (29.2%).


Return on Equity

High ROE: ALEC's Return on Equity (12.6%) is considered low.


Discover strong past performing companies

Financial Health

How is Alector's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ALEC's short term assets ($827.0M) exceed its short term liabilities ($149.4M).

Long Term Liabilities: ALEC's short term assets ($827.0M) exceed its long term liabilities ($451.7M).


Debt to Equity History and Analysis

Debt Level: ALEC is debt free.

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

Debt Coverage: ALEC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ALEC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Alector Dividend Yield vs Market
How does Alector dividend yield compare to the market?
SegmentDividend Yield
Company (Alector)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Biotechs)2.8%
Analyst forecast in 3 Years (Alector)0%

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ALEC has not reported any payouts.


Discover strong dividend paying companies

Management

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

0.8yrs

Average management tenure


CEO

Arnon Rosenthal (66 yo)

9.67yrs

Tenure

US$9,612,580

Compensation

Dr. Arnon Rosenthal, Ph D., Co-Founded of 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 Officer of Alector,...


CEO Compensation Analysis

Arnon Rosenthal's Compensation vs Alector Earnings
How has Arnon Rosenthal's remuneration changed compared to Alector's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$36m

Mar 31 2022n/an/a

-US$29m

Dec 31 2021US$10mUS$575k

-US$36m

Sep 30 2021n/an/a

-US$33m

Jun 30 2021n/an/a

-US$212m

Mar 31 2021n/an/a

-US$202m

Dec 31 2020US$4mUS$554k

-US$190m

Sep 30 2020n/an/a

-US$169m

Jun 30 2020n/an/a

-US$148m

Mar 31 2020n/an/a

-US$127m

Dec 31 2019US$7mUS$525k

-US$105m

Sep 30 2019n/an/a

-US$92m

Jun 30 2019n/an/a

-US$76m

Mar 31 2019n/an/a

-US$62m

Dec 31 2018US$5mUS$397k

-US$52m

Sep 30 2018n/an/a

-US$45m

Jun 30 2018n/an/a

-US$39m

Mar 31 2018n/an/a

-US$35m

Dec 31 2017US$3mUS$370k

-US$32m

Compensation vs Market: Arnon's total compensation ($USD9.61M) is above average for companies of similar size in the US market ($USD4.14M).

Compensation vs Earnings: Arnon's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ALEC's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: ALEC's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ALEC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NasdaqGS:ALEC Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
02 Sep 22SellUS$1,869Robert KingIndividual176US$10.62
02 Sep 22SellUS$23,120Gary RomanoIndividual2,177US$10.62
02 Jun 22SellUS$1,542Robert KingIndividual177US$8.71
01 Mar 22SellUS$4,468Robert KingIndividual287US$15.57
01 Dec 21SellUS$5,023Robert KingIndividual250US$20.09

Ownership Breakdown

What is the ownership structure of ALEC?
Owner TypeNumber of SharesOwnership Percentage
General Public7,685,1499.3%
Individual Insiders9,032,31310.9%
VC/PE Firms12,353,81715.0%
Institutions53,492,64264.8%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Top 25 shareholders own 79.63% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
14.96%
Polaris Venture Partners, Inc.
12,353,817$116.9m0%45.43%
7.05%
BlackRock, Inc.
5,824,659$55.1m8.47%no data
6.96%
Federated Hermes, Inc.
5,746,830$54.4m-3.11%0.15%
6.91%
The Vanguard Group, Inc.
5,708,696$54.0m4.86%no data
6.52%
Arnon Rosenthal
5,385,601$50.9m0%no data
5.69%
FMR LLC
4,699,585$44.5m0.96%no data
4.91%
EcoR1 Capital, LLC
4,056,548$38.4m-29.31%1.07%
4.74%
State Street Global Advisors, Inc.
3,914,336$37.0m2.04%no data
3.17%
Tillman Gerngross
2,618,069$24.8m0.36%no data
2.86%
J.P. Morgan Asset Management, Inc.
2,362,385$22.3m0.5%no data
2.27%
Franklin Resources, Inc.
1,876,480$17.8m-15.07%0.01%
2.24%
T. Rowe Price Group, Inc.
1,848,125$17.5m-2.26%no data
1.33%
Geode Capital Management, LLC
1,094,057$10.3m1.65%no data
1.28%
Deerfield Management Company, L.P. Series C
1,055,192$10.0m0%0.29%
1.19%
Euclidean Capital LLC
980,894$9.3m0%7.71%
1.17%
Renaissance Technologies LLC
966,583$9.1m36.95%0.01%
1.09%
Rubric Capital Management LP
900,000$8.5m0%0.42%
0.76%
Marshall Wace LLP
629,852$6.0m23.22%0.01%
0.74%
Millennium Management LLC
614,744$5.8m-46.08%0.01%
0.72%
Northern Trust Global Investments
595,993$5.6m1.97%no data
0.72%
Morgan Stanley, Investment Banking and Brokerage Investments
594,148$5.6m14.89%no data
0.67%
Dafna Capital Management, LLC
552,438$5.2m88.71%1.25%
0.64%
Robert King
525,336$5.0m0.06%no data
0.52%
Charles Schwab Investment Management, Inc.
428,008$4.0m1.26%no data
0.5%
Two Sigma Advisers, LP
411,300$3.9m52.16%0.01%

Company Information

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


Key Information

  • Name: Alector, Inc.
  • Ticker: ALEC
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: US$781.055m
  • Shares outstanding: 82.56m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.