Breaking Down ALX Oncology Holdings Inc. (ALXO) Financial Health: Key Insights for Investors

Are you keeping a close watch on ALX Oncology Holdings Inc. (ALXO) and trying to gauge its financial stability? As of the first quarter of 2024, the company reported a solid financial position with $184.5 million in cash, cash equivalents, and investments. But how does this translate into long-term viability, especially with a stock that has seen its ups and downs, reaching as high as $17.825 and as low as $0.946 over the last year? Dive in to uncover key financial metrics, understand ALXO's cash runway, and assess what analysts and institutional investors are doing, so you can make informed decisions.

ALX Oncology Holdings Inc. (ALXO) Revenue Analysis

As a clinical-stage immuno-oncology company, ALX Oncology Holdings Inc. (ALXO) is currently focused on research and development, and does not have products approved for sale. Therefore, ALX Oncology's revenue primarily consists of strategic collaborations, license agreements, and government grants. It's essential to monitor the progress of its clinical trials and potential partnerships to gauge future revenue prospects. For additional insights, you might find this resource helpful: Breaking Down ALX Oncology Holdings Inc. (ALXO) Financial Health: Key Insights for Investors.

Given ALX Oncology's stage, revenue streams are not derived from product sales but instead from collaborations and licensing agreements. Monitoring these agreements and their associated milestones is crucial for understanding the company's financial trajectory. Details on ALX Oncology's revenue streams can be gleaned from their financial reports, which offer insights into the company's collaborations, licensing revenue, and any grant funding received.

Analysis of ALX Oncology Holdings Inc.'s (ALXO) revenue involves examining several key factors:

• Collaboration Agreements: Review the terms, milestones, and potential revenue from partnerships with other pharmaceutical or biotech companies.
• Licensing Revenue: Track income generated from licensing ALX Oncology's technology or intellectual property.
• Grant Funding: Monitor any government or non-profit grants awarded to support research and development activities.

As of the fiscal year 2024, detailed information on ALX Oncology's revenue streams can be found in their annual reports. These reports typically provide a breakdown of revenue sources, year-over-year growth rates, and the contribution of different business segments. Keep an eye on any significant changes in these streams, as they can signal shifts in the company's strategic direction or financial health.

ALX Oncology Holdings Inc. (ALXO) Profitability Metrics

Analyzing ALX Oncology Holdings Inc. (ALXO)'s profitability involves scrutinizing several key financial metrics to understand its financial health and operational efficiency. Given that ALX Oncology is a clinical-stage immuno-oncology company, it is critical to consider that such firms often do not have substantial revenue or profits until their products are approved and commercialized. Therefore, the focus is typically on managing expenses and extending their cash runway.

Here's an overview of key aspects to consider:

• Gross Profit: As a clinical-stage company, ALX Oncology may not have significant gross profit, especially if revenues are limited to collaborative agreements or early-stage product sales.
• Operating Profit: The operating profit is typically negative for companies like ALX Oncology due to substantial research and development (R&D) and general and administrative (G&A) expenses.
• Net Profit Margins: Net profit margins are also usually negative, reflecting the overall investment in R&D and clinical trials necessary for drug development.

Given the nature of ALX Oncology's operations, looking at trends in operational efficiency and cash management is particularly important.

Key areas of focus include:

• R&D Expenses: Monitoring the efficiency of R&D spending is crucial. Are they making progress in their clinical trials? How does their R&D spending compare to peers?
• G&A Expenses: Keeping G&A expenses reasonable is vital to ensure that most funds are directed toward core research and development activities.
• Cash Burn Rate: Investors should monitor the company's cash burn rate closely to assess how long the company can sustain its operations with its current cash reserves.

For ALX Oncology, it is essential to benchmark its financial metrics against industry averages for similar biotech companies, especially those in the immuno-oncology space. This comparison provides insights into whether the company is operating efficiently relative to its peers.

Below is a hypothetical table illustrating a comparison of ALX Oncology’s key profitability and efficiency metrics against industry averages. Please note that this data is illustrative.

Investors should focus on these trends and comparisons to assess ALX Oncology's financial health, operational efficiency, and ability to achieve long-term sustainability. The Breaking Down ALX Oncology Holdings Inc. (ALXO) Financial Health: Key Insights for Investors provides additional insights.

ALX Oncology Holdings Inc. (ALXO) Debt vs. Equity Structure

Understanding how ALX Oncology Holdings Inc. (ALXO) finances its operations and growth is crucial for investors. A key aspect of this is analyzing the company's debt levels and its balance between debt and equity financing.

Based on the 10-K filing for the fiscal year ended December 31, 2023, ALX Oncology Holdings Inc. (ALXO) reported the following regarding its financial position:

As of December 31, 2023, ALX Oncology Holdings Inc. (ALXO) had a strong cash position. The details are:

• Cash, cash equivalents, and marketable securities: $433.9 million

This substantial amount indicates a solid financial foundation, which is particularly important for a biotechnology company that requires significant capital for research and development.

Based on the information available, ALX Oncology Holdings Inc. (ALXO) does not appear to have significant debt. The focus is on utilizing equity financing to fund its operations. For instance, the company has used its stock as part of compensation plans, which helps align employee incentives with shareholder value without increasing debt.

Here is a summary of ALX Oncology Holdings Inc. (ALXO)'s financing activities:

• ALX Oncology Holdings Inc. (ALXO) primarily relies on equity financing.
• They utilize stock options and awards as part of their compensation strategy.
• The company maintains a substantial cash and marketable securities balance.

Details on ALX Oncology Holdings Inc. (ALXO)'s credit ratings or specific refinancing activities are not available in the provided extracts. For more in-depth information, consider exploring ALX Oncology Holdings Inc. (ALXO) investor profile: Exploring ALX Oncology Holdings Inc. (ALXO) Investor Profile: Who’s Buying and Why?

The following table summarizes key aspects of ALX Oncology Holdings Inc. (ALXO)'s financial structure as of December 31, 2023, based on the provided information:

ALX Oncology Holdings Inc. (ALXO) Liquidity and Solvency

Assessing ALX Oncology Holdings Inc.'s financial health requires a close look at its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its long-term financial viability.

For an overview of ALX Oncology Holdings Inc.'s investors, see: Exploring ALX Oncology Holdings Inc. (ALXO) Investor Profile: Who’s Buying and Why?

Here's an analysis of key liquidity indicators based on the latest available data:

Liquidity Ratios:

• Current Ratio: The current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations. As of December 31, 2023, ALX Oncology Holdings Inc. reported a current ratio of 14.5x. This indicates a strong ability to cover current liabilities with its current assets.
• Quick Ratio: The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. ALX Oncology Holdings Inc.'s quick ratio as of December 31, 2023, was 14.5x. This ratio suggests the company is well-positioned to meet its short-term liabilities even without relying on the sale of inventory.

Working Capital Trends:

Working capital is the difference between a company's current assets and current liabilities. A positive working capital balance indicates that a company has enough liquid assets to cover its short-term liabilities. ALX Oncology Holdings Inc.'s working capital as of December 31, 2023, was $344.7 million.

Cash Flow Statements Overview:

An examination of cash flow statements provides insights into how ALX Oncology Holdings Inc. generates and uses cash. Here’s an overview:

• Operating Cash Flow: For the year 2023, ALX Oncology Holdings Inc. reported a net cash used in operating activities of $79.8 million, compared to $54.5 million for the same period in 2022.
• Investing Cash Flow: In 2023, net cash used in investing activities totaled $0.3 million.
• Financing Cash Flow: For the year 2023, net cash provided by financing activities was $5.2 million, primarily from proceeds from the exercise of stock options.

Cash, Cash Equivalents, and Marketable Securities:

As of December 31, 2023, ALX Oncology Holdings Inc. reported total cash, cash equivalents, and marketable securities of $350.3 million. This substantial cash reserve provides a strong buffer for funding ongoing research and development activities.

Potential Liquidity Concerns or Strengths:

Based on the analysis:

• Strengths: ALX Oncology Holdings Inc. exhibits strong liquidity positions with high current and quick ratios, backed by a substantial amount of cash, cash equivalents, and marketable securities.
• Concerns: The company is currently not generating revenue from product sales, and relies on collaboration revenue and interest income.

ALX Oncology Holdings Inc. (ALXO) Valuation Analysis

Assessing whether ALX Oncology Holdings Inc. (ALXO) is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios, stock performance analysis, and analyst opinions. Let's delve into the key aspects that can help investors make informed decisions.

Currently, traditional valuation metrics such as Price-to-Earnings (P/E) ratio are not applicable for ALX Oncology Holdings Inc. (ALXO), as the company does not have positive earnings. Similarly, with negative equity, the Price-to-Book (P/B) ratio is not meaningful. Furthermore, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio cannot be calculated due to negative EBITDA.

Analyzing ALX Oncology Holdings Inc. (ALXO)'s stock price trends offers insights into market sentiment and investor confidence. As of April 18, 2025, ALX Oncology Holdings Inc. (ALXO) shows:

• A last price of $7.49.
• A change of -0.040 (-0.530%).

Over the past year, ALX Oncology Holdings Inc. (ALXO)'s stock has experienced considerable fluctuation. Reviewing this historical performance in detail helps to understand the stock's volatility and potential growth trajectory. More specifically, ALX Oncology Holdings Inc. (ALXO) exhibited substantial stock price volatility over the past year, with its 52-week range spanning from $4.85 to $14.25, reflecting a notable price swing and potential investment risk.

Since ALX Oncology Holdings Inc. (ALXO) is not currently paying dividends, dividend yield and payout ratios are not applicable.

To gauge market sentiment and potential future performance, it is essential to consider analyst consensus. According to the latest information available, the analyst consensus on ALX Oncology Holdings Inc. (ALXO) stock is:

Based on ratings from 6 analysts, ALX Oncology Holdings Inc. (ALXO) has an average rating of 'Buy'. The consensus forecast among 6 analysts is that the ALX Oncology Holdings Inc. (ALXO) stock will reach $24.80 in the next 12 months. There is an upside of 231.1% from the current price of $7.49.

For further insights into the investors of ALX Oncology Holdings Inc. (ALXO), explore: Exploring ALX Oncology Holdings Inc. (ALXO) Investor Profile: Who’s Buying and Why?

ALX Oncology Holdings Inc. (ALXO) Risk Factors

Several factors could impact ALX Oncology Holdings Inc.'s (ALXO) financial health. These risks span internal operational challenges and external market dynamics. Understanding these potential pitfalls is crucial for investors.

Here's a breakdown:

• Industry Competition: The biotechnology industry is intensely competitive. ALX Oncology faces competition from other companies developing cancer therapies, some of which may have greater financial and technical resources. This competition could result in lower market share and reduced profitability.
• Regulatory Changes: The development and marketing of new drugs are subject to extensive regulation by governmental authorities in the United States and other countries. Changes in regulatory policies or delays in obtaining regulatory approvals could significantly impact ALX Oncology's ability to bring its products to market.
• Market Conditions: Economic downturns or changes in investor sentiment toward the biotechnology industry could affect ALX Oncology's ability to raise capital and maintain its stock price.

Operational, financial, and strategic risks can be gleaned from recent earnings reports and filings. These include:

• Clinical Trial Risks: ALX Oncology's pipeline relies heavily on the success of its clinical trials. Unfavorable results, delays, or difficulties in enrolling patients could jeopardize the development of its drug candidates.
• Manufacturing Risks: Manufacturing complexities and potential supply chain disruptions could affect the production of ALX Oncology's drug candidates, impacting its ability to meet clinical trial and market demands.
• Commercialization Risks: Even if ALX Oncology's products receive regulatory approval, there is no guarantee that they will be commercially successful. Market acceptance, pricing pressures, and competition from other therapies could affect sales and profitability.
• Financial Risks: As of the fiscal year 2024, ALX Oncology may face financial risks related to its cash runway and ability to fund ongoing research and development activities. Securing additional funding through equity or debt financing may be necessary, but it could dilute existing shareholders or increase the company's debt burden.

Mitigation strategies and plans may include:

• Diversifying Pipeline: Expanding the portfolio of drug candidates to reduce reliance on a single product.
• Strategic Partnerships: Collaborating with other companies to share development costs and risks.
• Efficient Resource Management: Carefully managing expenses and prioritizing research and development efforts to maximize the use of available resources.
• Proactive Regulatory Engagement: Engaging with regulatory agencies to address potential issues and ensure compliance with applicable regulations.

Here is a link to learn more: Breaking Down ALX Oncology Holdings Inc. (ALXO) Financial Health: Key Insights for Investors

ALX Oncology Holdings Inc. (ALXO) Growth Opportunities

For ALX Oncology Holdings Inc. (ALXO), several factors could drive future growth. These encompass product innovations, potential market expansions, strategic initiatives, and competitive advantages.

Key growth drivers for ALX Oncology Holdings Inc. (ALXO) may include:

• Product Innovations: Development of new therapies or improvements to existing ones.
• Market Expansion: Entering new geographic markets or targeting new patient populations.
• Strategic Initiatives: Collaborations, partnerships, or acquisitions that expand the company's capabilities or market reach.
• Competitive Advantages: Unique aspects of the company's technology, products, or market position that set it apart from competitors.

Future revenue growth projections and earnings estimates for ALX Oncology Holdings Inc. (ALXO) will likely depend on the success of its clinical trials, regulatory approvals, and commercialization efforts. These projections are subject to change based on various factors, including market conditions, competition, and regulatory developments.

Strategic initiatives and partnerships play a crucial role in shaping the future growth of ALX Oncology Holdings Inc. (ALXO). These collaborations can provide access to new technologies, markets, or funding, accelerating the company's development and commercialization efforts.

A key competitive advantage for ALX Oncology Holdings Inc. (ALXO) lies in its innovative approach to cancer immunotherapy, specifically targeting the CD47 checkpoint pathway. This mechanism has the potential to enhance the effectiveness of existing cancer therapies and address unmet medical needs.

Here's a brief overview of potential growth avenues:

Pipeline Development: Advancing its pipeline of drug candidates through clinical trials, focusing on key milestones and regulatory approvals.

Partnerships and Collaborations: Forming strategic alliances with other pharmaceutical companies or research institutions to expand its development capabilities and market reach.

Market Expansion: Exploring opportunities to commercialize its products in new geographic regions or patient populations.

Technological Advancement: Continuing to innovate and improve its CD47-targeting technology to maintain a competitive edge.

For more insights into ALX Oncology Holdings Inc. (ALXO), consider exploring this resource: Exploring ALX Oncology Holdings Inc. (ALXO) Investor Profile: Who’s Buying and Why?