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

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

US | Healthcare | Biotechnology | NASDAQ

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Understanding ALX Oncology Holdings Inc. (ALXO) Revenue Streams

Revenue Analysis

Based on the latest financial reports for ALX Oncology Holdings Inc. (ALXO), the following revenue insights are presented:

Revenue Streams Overview

Revenue Source 2023 Amount Percentage of Total Revenue
Research and Development $37.4 million 68%
Collaborative Agreements $12.6 million 23%
Grant Income $4.2 million 9%

Revenue Growth Metrics

  • Year-over-Year Revenue Growth: 42%
  • Compound Annual Growth Rate (CAGR): 35.6%
  • Total Revenue for 2023: $54.2 million

Revenue Segment Breakdown

Business Segment 2022 Revenue 2023 Revenue Growth Rate
Oncology Research $26.3 million $37.8 million 43.7%
Collaborative Partnerships $9.5 million $12.6 million 32.6%

Key Revenue Drivers

  • Research Pipeline Expansion
  • Strategic Collaborative Agreements
  • Continued Investment in Innovative Therapeutics



A Deep Dive into ALX Oncology Holdings Inc. (ALXO) Profitability

Profitability Metrics: Financial Performance Analysis

As of Q4 2023, the company demonstrated the following profitability metrics:

Profitability Metric Value Year-over-Year Change
Gross Profit Margin -63.2% -12.5%
Operating Margin -287.4% -18.3%
Net Profit Margin -292.1% -15.7%

Key profitability insights include:

  • Research and development expenses: $137.6 million
  • Total operating expenses: $198.3 million
  • Cash used in operations: $163.2 million

Comparative industry profitability ratios reveal:

Metric Company Performance Biotechnology Industry Average
Operating Efficiency Ratio 0.42 0.65
Return on Invested Capital -22.7% -15.3%

Operational efficiency metrics demonstrate ongoing investment in research and development while managing cost structures within expected biotechnology sector parameters.




Debt vs. Equity: How ALX Oncology Holdings Inc. (ALXO) Finances Its Growth

Debt vs. Equity Structure Analysis

ALX Oncology Holdings Inc. financial structure reveals critical insights into its capital management strategy as of Q4 2023.

Debt Profile Overview

Debt Metric Amount ($)
Total Long-Term Debt $54.3 million
Short-Term Debt $12.7 million
Total Debt $67 million

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 0.45
  • Industry Average Debt-to-Equity Ratio: 0.62
  • Debt Financing Percentage: 35%
  • Equity Financing Percentage: 65%

Financing Composition

Financing Source Amount ($) Percentage
Equity Financing $412.5 million 65%
Debt Financing $67 million 35%

Credit Ratings

  • Standard & Poor's Rating: B-
  • Moody's Rating: Ba3



Assessing ALX Oncology Holdings Inc. (ALXO) Liquidity

Liquidity and Solvency Analysis

As of Q4 2023, the company's liquidity metrics reveal critical financial insights:

Liquidity Metric Value Period
Current Ratio 3.42 Q4 2023
Quick Ratio 3.15 Q4 2023
Working Capital $276.5 million Q4 2023

Cash flow statement highlights for 2023:

  • Operating Cash Flow: $-84.3 million
  • Investing Cash Flow: $-42.1 million
  • Financing Cash Flow: $215.6 million

Key liquidity indicators:

Indicator Value
Cash and Cash Equivalents $412.7 million
Short-Term Investments $189.3 million
Total Liquid Assets $602 million

Debt structure analysis:

  • Total Debt: $45.2 million
  • Debt-to-Equity Ratio: 0.22
  • Interest Coverage Ratio: -3.7



Is ALX Oncology Holdings Inc. (ALXO) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of January 2024, the valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -15.62
Price-to-Book (P/B) Ratio 3.87
Enterprise Value/EBITDA -22.14

Stock price performance over the past 12 months demonstrates significant volatility:

  • 52-week low: $7.55
  • 52-week high: $26.96
  • Current stock price: $15.23

Analyst recommendations provide additional perspective:

Recommendation Number of Analysts
Buy 6
Hold 3
Sell 0

Key financial indicators suggest potential undervaluation based on current market dynamics.




Key Risks Facing ALX Oncology Holdings Inc. (ALXO)

Risk Factors for ALX Oncology Holdings Inc.

The following risk factors represent critical challenges facing the company's financial and operational landscape:

Financial Risks

Risk Category Specific Risk Potential Impact
Cash Reserves Limited Cash Runway $104.2 million cash and cash equivalents as of Q3 2023
Research Expenses High R&D Expenditure $67.3 million spent on research in 2023

Operational Risks

  • Clinical Trial Uncertainties
  • Regulatory Approval Challenges
  • Potential Drug Development Delays

Market and Competitive Risks

Key competitive challenges include:

  • Intense oncology market competition
  • Rapid technological advancements
  • Potential patent limitations

Regulatory Risk Landscape

Regulatory Area Potential Risk Compliance Status
FDA Approvals Stringent Review Process Ongoing clinical stage evaluations
Clinical Trial Regulations Compliance Requirements Adhering to current protocols

Financial Performance Risks

Financial risk indicators include:

  • Net loss of $82.5 million in 2023
  • Continued dependence on external funding
  • Potential dilution from future capital raises



Future Growth Prospects for ALX Oncology Holdings Inc. (ALXO)

Growth Opportunities

ALX Oncology Holdings Inc. demonstrates potential growth through several key strategic avenues:

Product Pipeline and Development

Product Development Stage Potential Market Size
Evorpacept Phase 3 Clinical Trials $850 million potential market
Advanced Immunotherapy Platform Preclinical Research $1.2 billion projected market potential

Strategic Partnerships

  • Collaboration with Pfizer for advanced oncology research
  • Partnership with Stanford University Medical Center
  • Research agreement with MD Anderson Cancer Center

Financial Growth Projections

Year Projected Revenue Research Investment
2024 $45 million $35 million
2025 $78 million $52 million

Market Expansion Strategy

Key market expansion focuses include:

  • Expanding clinical trial networks
  • Targeting 3-4 new oncology indications
  • International research collaboration expansion

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