Alector, Inc. (ALEC) AI Stock Analysis

Alector, Inc. is a clinical-stage biopharmaceutical company focused on developing therapies to combat neurodegenerative diseases. Its lead candidate, AL001, is in Phase III clinical trials targeting immune activity in the brain for disorders such as frontotemporal dementia, Alzheimer's disease, Parkinson's disease, and amyotrophic lateral sclerosis. The pipeline also includes AL101 in Phase I trials, AL002 in Phase II trials for Alzheimer's disease, AL003 in Phase I trials, and AL044 targeting MS4A4A. The company collaborates with Adimab, LLC for antibody development and has a partnership with GlaxoSmithKline plc for the joint development and commercialization of AL001, AL002, and AL101.

Alector's financial performance reflects large fluctuations typical of clinical-stage biotechnology firms. Revenue reached $207.1M in FY2021 before dropping to $133.6M in FY2022, $97.1M in FY2023, and $100.6M in FY2024. In FY2025, revenue fell 79.1% to $21.0M, generating an operating margin of -692.8% and a net income of -$142.9M. Over the 5-year period from FY2020 to FY2025, revenue posted a CAGR of -0.1%. For the latest quarter ended June 30, 2026, revenue dropped 57.8% year-over-year, and quarterly earnings decreased 86.3%. On a trailing twelve months basis, revenue sits at $13.9M with an operating margin of -734.7% and an EPS of -$1.09.

As of June 30, 2026, Alector held $172.8M in cash and short-term investments against $32.8M in total debt, resulting in a net cash position of $140.0M. The company's total assets stood at $202.9M, supported by a current ratio of 5.26. However, cumulative losses have resulted in negative shareholders' equity of -$10.0M. In FY2025, operating cash flow was -$184.0M and free cash flow was -$184.1M, with capital expenditures totaling $41,000. Additionally, the company's share count increased 36.5% over 5 years.

Alector trades at a market capitalization of $205.4M and an enterprise value of $84.4M. Its forward price-to-earnings ratio is 8.5x, compared to 17.3x for the median of its US-listed Healthcare peers. Its price-to-sales multiple is 14.8x, above the peer median of 4.1x, while its enterprise value-to-revenue stands at 6.0x. Over the past year, the stock fell 42.9%, trailing the S&P 500 (SPY) return of 16.8%. Over a 5-year span, the shares dropped 92.1% against an 83.0% gain for the benchmark.

Wall Street coverage includes 3 Strong Buy, 0 Buy, 2 Hold, 1 Sell, and 1 Strong Sell ratings. The mean price target is $3.90, which represents a 112.0% upside compared to the last close of $1.84. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $66.2M and EPS of -$0.50. For the following fiscal year, 5 analysts expect revenue to decrease to $11.4M with EPS of -$0.73. Alector beat EPS expectations in all 4 of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of Alector, Inc. (ALEC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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