Allogene Therapeutics (ALLO) AI Stock Analysis

• Market Cap: $255.89M
• Dividend Yield: N/A
• Average Volume (3M): 3.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• Revenue Growth: -86.25%
• EPS Growth: 36.10%
• Country: US
• Employees: 226
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.28
• Shares Outstanding: 218,705,250
• 10 Day Avg. Volume: 4,253,780
• 30 Day Avg. Volume: 3,166,218
• PEG Ratio: -0.06
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.26
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 958.13
• Enterprise Value/Gross Profit: -37.51
• Enterprise Value/Ebitda: -0.26
• 1Y Price Target: $8.00
• Price Target Upside: 742.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

Allogene Therapeutics' stock is rated low primarily due to ongoing financial challenges, including declining revenue and persistent losses, which are somewhat mitigated by a strong cash position. Technical indicators are weak, reflecting poor stock momentum, while valuation metrics are unattractive due to negative earnings. Although the earnings call provided some positive developments in their programs, significant financial losses and strategic uncertainties remain key risks.

Positive Factors

Cash Management

Strategic cash preservation efforts extend Allogene’s financial runway into a later period.

Valuation Potential

There is potential upside to ALLO’s current valuation as key clinical milestones approach without further delays.

Negative Factors

Clinical Delays

The clinical delay for ALPHA3 was driven by slower-than-expected transitions from site activation to initiation of patient screening.

Operational Challenges

Operational delays due to site constraints and staffing shortages are causing a delay in the ALPHA3 trial insights until 2026.

Allogene Therapeutics Business Overview & Revenue Model

Company Description

Allogene Therapeutics, Inc., a clinical stage immuno-oncology company, develops and commercializes genetically engineered allogeneic T cell therapies for the treatment of cancer. It develops, manufactures, and commercializes UCART19, an allogeneic chimeric antigen receptor (CAR) T cell product candidate for the treatment of pediatric and adult patients with R/R CD19 positive B-cell ALL. The company also develops ALLO-501, an anti-CD19 allogeneic CAR T cell product candidate that is in Phase I clinical trial for the treatment of R/R non-Hodgkin lymphoma; and ALLO-501A, which is in Phase I/II clinical trial for the treatment R/R large B-cell lymphoma or transformed follicular lymphoma. In addition, it is developing ALLO-715, an allogeneic CAR T cell product candidate that is in a Phase I clinical trial for treating R/R multiple myeloma; ALLO-605, an allogeneic CAR T cell product candidate for the treatment of multiple myeloma; ALLO-647, an anti-CD52 monoclonal antibody; CD70 to treat renal cell cancer; ALLO-819, an allogeneic CAR T cell product candidates for the treatment of acute myeloid leukemia; and DLL3 for the treatment of small cell lung cancer and other aggressive neuroendocrine tumors. The company has license and collaboration agreements with Pfizer Inc.; Servier; Cellectis S.A.; and Notch Therapeutics Inc., as well as clinical trial collaboration agreement with SpringWorks Therapeutics, Inc. It also has a strategic collaboration agreement with The University of Texas MD Anderson Cancer Center for the preclinical and clinical investigation of allogeneic CAR T cell product candidates. The company was incorporated in 2017 and is headquartered in South San Francisco, California.

How the Company Makes Money

Allogene Therapeutics generates revenue primarily through partnerships, collaborations, and licensing agreements with other pharmaceutical and biotechnology companies. These partnerships often involve upfront payments, milestone payments based on the achievement of developmental and regulatory goals, and royalties on potential sales of commercialized products. The company's business model is heavily reliant on research and development funding, as well as strategic alliances that provide access to additional resources and expertise. As of now, Allogene does not generate revenue from product sales, as its therapies are still in clinical development stages.

Allogene Therapeutics Financial Statement Overview

Summary

Allogene Therapeutics faces significant financial challenges, with declining revenues, persistent losses, and dependence on external funding. While the balance sheet shows some resilience with cash reserves and moderate leverage, the lack of profitability and cash flow growth indicates the company must address operational inefficiencies to achieve sustainable growth.

Income Statement

Allogene Therapeutics has struggled to generate revenue, with a sharp decline from $38.5M in 2021 to negligible amounts in 2023 and 2024. Consistently negative EBIT and net income reflect ongoing operational challenges. The lack of revenue growth and persistent losses highlight significant financial hurdles.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio, indicating moderate leverage. However, a declining equity base from $1.08B in 2020 to $422M in 2024 signals potential financial strain. The substantial cash reserves provide a buffer, but the shrinking equity ratio raises concerns about long-term stability.

Cash Flow

Negative operating and free cash flows indicate poor cash generation from operations. While financing activities have bolstered cash levels, the reliance on external funding to sustain operations could pose risks. The absence of positive cash flow growth further underscores operational inefficiencies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.00K	95.00K	243.00K	38.49M	0.00
	Gross Profit
22.00K	-242.82M	-16.48M	25.42M	-11.54M
	EBIT
-273.20M	-327.74M	-335.45M	-255.79M	-258.24M
	EBITDA
-243.33M	-300.29M	-321.24M	-169.74M	-250.81M
	Net Income Common Stockholders
-257.59M	-327.26M	-329.81M	-244.84M	-233.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
292.48M	448.70M	576.47M	809.48M	1.03B
	Total Assets
548.71M	642.84M	817.08M	1.04B	1.23B
	Total Debt
90.76M	95.12M	95.12M	69.93M	53.78M
	Net Debt
15.54M	11.97M	-481.35M	-739.55M	-978.34M
	Total Liabilities
126.53M	130.60M	151.21M	122.23M	148.21M
	Stockholders Equity
422.18M	512.23M	665.87M	916.41M	1.08B
Cash Flow		Free Cash Flow
-200.99M	-239.25M	-225.71M	-206.26M	-181.05M
	Operating Cash Flow
-200.30M	-237.73M	-220.52M	-184.81M	-115.09M
	Investing Cash Flow
75.69M	163.29M	106.16M	163.66M	-505.12M
	Financing Cash Flow
116.67M	95.69M	2.95M	11.96M	633.59M

Allogene Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLO, the sentiment is Negative. The current price of 0.95 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.56, and below the 200-day MA of 2.17, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 25.42 is Positive, neither overbought nor oversold. The STOCH value of 10.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALLO.

Allogene Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMPX	60 Neutral	$277.95M	―	-41.31%	―	―	-7.93%
Sector *	52 Neutral	$5.14B	3.39	-43.55%	2.83%	16.49%	-0.19%
AUTL	45 Neutral	$359.29M	―	-49.97%	―	-14.16%	25.80%
ALLO	38 Underperform	$255.89M	―	-59.60%	―	-86.25%	36.10%
ZBIO	38 Underperform	$407.04M	―		―	―	―
ANNX	38 Underperform	$192.00M	―	-66.13%	―	―	43.21%
SANA	33 Underperform	$404.87M	―	-71.44%	―	―	19.94%

Allogene Therapeutics Corporate Events

Allogene Therapeutics Announces Executive Departure and Transition

On January 23, 2025, Allogene Therapeutics announced that Timothy Moore would be leaving the company on February 28, 2025, with eligibility for certain severance benefits. The company plans to enter a consulting agreement with Mr. Moore, which could impact their operational strategy and stakeholder relations.