📊 ALEC Key Takeaways
Is Alector, Inc. (ALEC) a Good Investment?
Alector is a clinical-stage biopharmaceutical company with $1.0M revenue against -$49.8M operating cash burn, indicating severe losses typical of pre-commercialization biotech. While the $77.0M cash position provides ~18 months of runway with a strong 5.25x current ratio, the absence of revenue growth and negative profitability across all metrics creates substantial execution risk requiring successful drug development and commercialization.
Alector's fundamentals are extremely weak: revenue is flat at a low base while operating and net losses remain very large relative to sales, producing deeply negative margins and returns on capital. Although near-term liquidity appears adequate with a 3.83x current ratio, the combination of heavy operating cash burn, negative free cash flow, and a thin equity base materially weakens financial health and growth quality.
Alector, Inc. Key Strengths (ALEC)
- Strong liquidity position with 5.25x current ratio providing near-term financial stability
- Adequate cash reserves of $77.0M reduce immediate financing pressure
- Moderate debt burden with 0.80x debt-to-equity ratio limiting financial leverage risk
- Near-term liquidity is solid, with cash of $65.80M and a 3.83x current and quick ratio
- Balance sheet debt is limited, with long-term debt of $10.00M and debt/equity of 0.33x
- Asset base of $293.24M provides some operating flexibility despite losses
ALEC Stock Risks: Alector, Inc. Investment Risks
- Catastrophic cash burn rate of -$49.8M annually with only 18 months of funding runway at current burn rate
- Minimal revenue generation of $1.0M with zero growth trajectory and no visible path to profitability
- Clinical-stage development risk: success depends entirely on drug pipeline approval and market acceptance with no de-risking milestones visible
- Stockholders' equity of only $10.4M relative to $229.5M liabilities indicates severe capital structure stress
- Operating margin of -741.3% and net margin of -679.2% indicate an unsustainable profitability profile
- Operating cash flow of -$184.03M and free cash flow of -$184.07M point to severe cash burn
- Stockholders' equity of only $30.65M versus cumulative losses raises balance sheet fragility and funding risk
Key Metrics to Watch
- Monthly cash burn rate trends and runway extension through financing or partnerships
- Clinical trial progression and FDA milestone achievements for lead programs
- Revenue generation timeline and partnership deals demonstrating commercialization progress
- Stockholders' equity trajectory and capital raising activity
- Quarterly cash burn relative to cash and equivalents
- Revenue growth and operating loss reduction
Alector, Inc. (ALEC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.25x current ratio provides a solid financial cushion.
ALEC Profit Margin, ROE & Profitability Analysis
ALEC vs Healthcare Sector: How Alector, Inc. Compares
How Alector, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Alector, Inc. Stock Overvalued? ALEC Valuation Analysis 2026
Based on fundamental analysis, Alector, Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Alector, Inc. Balance Sheet: ALEC Debt, Cash & Liquidity
ALEC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Alector, Inc.'s revenue has declined by 51% over the 5-year period, indicating business contraction. The most recent EPS of $-1.23 indicates the company is currently unprofitable.
ALEC Revenue Growth, EPS Growth & YoY Performance
ALEC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.0M | -$22.9M | $-0.21 |
| Q3 2025 | $3.3M | -$30.5M | $-0.34 |
| Q2 2025 | $7.9M | -$30.5M | $-0.30 |
| Q1 2025 | $3.7M | -$36.1M | $-0.38 |
| Q3 2024 | $9.1M | $1.4M | $-0.43 |
| Q2 2024 | $15.1M | $1.4M | $0.02 |
| Q1 2024 | $15.9M | -$36.1M | $-0.38 |
| Q3 2023 | $9.1M | $1.4M | $-0.53 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Alector, Inc. Dividends, Buybacks & Capital Allocation
ALEC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Alector, Inc. (CIK: 0001653087)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ALEC
What is the AI rating for ALEC?
Alector, Inc. (ALEC) has a Combined AI Grade of C from Claude (C) and ChatGPT (D) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ALEC's key strengths?
Claude: Strong liquidity position with 5.25x current ratio providing near-term financial stability. Adequate cash reserves of $77.0M reduce immediate financing pressure. ChatGPT: Near-term liquidity is solid, with cash of $65.80M and a 3.83x current and quick ratio. Balance sheet debt is limited, with long-term debt of $10.00M and debt/equity of 0.33x.
What are the risks of investing in ALEC?
Claude: Catastrophic cash burn rate of -$49.8M annually with only 18 months of funding runway at current burn rate. Minimal revenue generation of $1.0M with zero growth trajectory and no visible path to profitability. ChatGPT: Operating margin of -741.3% and net margin of -679.2% indicate an unsustainable profitability profile. Operating cash flow of -$184.03M and free cash flow of -$184.07M point to severe cash burn.
What is ALEC's revenue and growth?
Alector, Inc. reported revenue of $1.0M.
Does ALEC pay dividends?
Alector, Inc. does not currently pay dividends.
Where can I find ALEC SEC filings?
Official SEC filings for Alector, Inc. (CIK: 0001653087) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ALEC's EPS?
Alector, Inc. has a diluted EPS of $-0.21.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ALEC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Alector, Inc. has a C grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ALEC stock overvalued or undervalued?
Valuation metrics for ALEC: ROE of -220.9% (sector avg: 15%), net margin of -2,192.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is ALEC's AI grade for 2026?
Our dual AI analysis gives Alector, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ALEC's free cash flow?
Alector, Inc.'s operating cash flow is $-49.8M, with capital expenditures of $118.0K. FCF margin is -4,773.5%.
How does ALEC compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -2,192.2% (avg: 12%), ROE -220.9% (avg: 15%), current ratio 5.25 (avg: 2).