Allogene Therapeutics, Inc. (ALLO) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001737287

P/B 1.04

P/E -1.54

P/S 0.00

Market Cap 326.68 Mn

ROIC (Qtr) -68.92

Div Yield % 0.00

Rev 1y % (Qtr) 0.00

Total Debt (Qtr) 0.00

Debt/Equity (Qtr) 0.00

About

Allogene Therapeutics, Inc., often recognized by its stock symbol ALLO, is a company that operates within the immuno-oncology industry. This clinical-stage business is dedicated to the development of genetically engineered allogeneic T cell product candidates for the treatment of cancer and autoimmune diseases. Allogene's primary business activities revolve around the creation of engineered T cells designed to target and eliminate cancer cells in patients or pathogenic autoreactive cells in patients with autoimmune disorders. The company's approach...

Allogene Therapeutics, Inc., often recognized by its stock symbol ALLO, is a company that operates within the immuno-oncology industry. This clinical-stage business is dedicated to the development of genetically engineered allogeneic T cell product candidates for the treatment of cancer and autoimmune diseases.

Allogene's primary business activities revolve around the creation of engineered T cells designed to target and eliminate cancer cells in patients or pathogenic autoreactive cells in patients with autoimmune disorders. The company's approach is unique as it involves engineering healthy donor T cells to create an inventory of off-the-shelf products. This method is designed to overcome the limitations of autologous T cell therapies, which require individualized manufacturing and can take a considerable amount of time to deliver.

The company's revenue generation is primarily based on its allogeneic CAR T cell product candidates. These include cema-cel, ALLO-316, and ALLO-329. Cema-cel, the company's lead product candidate, is an engineered allogeneic CAR T cell product candidate that targets CD19, a protein expressed on the surface of B cells. It is being developed for the treatment of B cell lymphoma and chronic lymphocytic leukemia. ALLO-316, another product candidate, targets CD70, a protein expressed on the surface of certain cancer cells, and is being developed for the treatment of renal cell carcinoma. ALLO-329, the third product candidate, targets both CD19 and CD70 and is being developed for the treatment of autoimmune diseases.

Allogene's position within the industry is strengthened by its proprietary manufacturing process, experienced management team, and strong intellectual property position. The company's management team has significant experience in immuno-oncology and has led the development and approval of several CAR T cell therapies, including Yescarta and Kymriah.

In terms of its customers, Allogene has partnered with several leading biopharmaceutical companies, including Pfizer and Cellectis, to develop and commercialize its allogeneic CAR T cell product candidates. The company has also established relationships with several leading hospitals and research institutions to support its clinical trials.

The brand names and/or trade names of its products and services include cema-cel, ALLO-316, and ALLO-329. Each of these product candidates represents a significant step forward in the treatment of various diseases, demonstrating Allogene's commitment to innovation and patient care.

Stock Price Chart

Analysis

Pros

Short-term investments of 214.38M provide solid 7.62x coverage of other current liabilities 28.13M, indicating strong liquidity.
Tangible assets of 439.77M provide robust 15.63x coverage of other current liabilities 28.13M, indicating strong asset backing.
Strong cash position of 48.11M provides 1.71x coverage of other current liabilities 28.13M, indicating excellent liquidity.
Cash reserves of 48.11M provide robust 1.51x coverage of current liabilities 31.83M, indicating strong short-term solvency.
Short-term investments of 214.38M provide healthy 0.94x coverage of working capital 228.89M, indicating strong liquidity.

Cons

Operating cash flow of (158.34M) barely covers its investment activities of 116.88M, with a coverage ratio of -1.35, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of 116.88M provide weak support for R&D spending of 166.49M, which is 0.70x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Short-term investments of 214.38M significantly exceed cash reserves of 48.11M, which is 4.46x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
The company's operating cash flow of (158.34M) shows concerning coverage of stock compensation expenses of 42.38M, with a -3.74 ratio indicating potential earnings quality issues.
Free cash flow of (158.99M) provides weak coverage of capital expenditures of 643000, with a -247.26 ratio suggesting additional external financing needs for growth initiatives.

Peer Comparison

Companies in the Biotechnology

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SMMT	Summit Therapeutics Inc.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	0.60	12.31
EV to Cash from Ops.	-1.67	23.25
EV to Debt	0.00	738.44
EV to EBIT	-1.25	-9.16
EV to EBITDA	-1.23	6.95
EV to Free Cash Flow [EV/FCF]	-1.66	21.90
EV to Market Cap	0.81	65.67
EV to Revenue	0.00	227.32
Price to Book Value [P/B]	1.04	22.34
Price to Earnings [P/E]	-1.54	-11.77

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-11.94
Dividend Payout Ratio %	0.00	0.16
Dividend per Basic Share	0.00	0.01
FCF Dividend Payout Ratio %	0.00	-0.14
Interest Coverage	-249.98	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-4.05	-27.13
Cash and Equivalents Growth (1y) %	-21.82	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	25.47	-46.93
EBITDA Growth (1y) %	24.33	-1.68
EBIT Growth (1y) %	25.62	-56.45
EBT Growth (1y) %	25.35	-12.70
EPS Growth (1y) %	37.18	-28.31
FCF Growth (1y) %	27.05	-31.90
Gross Profit Growth (1y) %	0.00	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	1.51	3.85
Current Ratio	8.19	7.27
Debt to Equity Ratio	0.00	0.40
Interest Cover Ratio	-249.98	841.00
Times Interest Earned	-249.98	841.00

Profitability

Metric	Value	Industry	Percentile
EBITDA Margin %	0.00	-18,234.31
EBIT Margin %	0.00	-18,580.80
EBT Margin %	0.00	-19,488.74
Gross Margin %	0.00	-7.59
Net Profit Margin %	0.00	-19,439.22

Allogene Therapeutics, Inc. (NASDAQ: ALLO)