Alvotech Fundamental Analysis (NASDAQ: ALVOW)
Alvotech Fundamental Analysis (NASDAQ: ALVOW)
Alvotech (NASDAQ: ALVOW) shows strong financial fundamentals with a PE ratio of -7.50, profit margin of -36.51%, and ROE of 76.83%. The company generates $0.4B in annual revenue with strong year-over-year growth of 19.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 115.1/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze ALVOW's fundamental strength across five key dimensions:
Efficiency Score
WeakALVOW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentALVOW trades at attractive valuation levels.
Growth Score
ModerateALVOW shows steady but slowing expansion.
Financial Health Score
ExcellentALVOW maintains a strong and stable balance sheet.
Profitability Score
WeakALVOW struggles to sustain strong margins.
Key Financial Metrics
Is ALVOW Expensive or Cheap?
P/E Ratio
ALVOW trades at -7.50 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ALVOW's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Alvotech at -8.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -122.15 times EBITDA. This is generally considered low.
How Well Does ALVOW Make Money?
Net Profit Margin
For every $100 in sales, Alvotech keeps $-36.51 as profit after all expenses.
Operating Margin
Core operations generate 9.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $76.83 in profit for every $100 of shareholder equity.
ROA
Alvotech generates $-11.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alvotech generates limited operating cash flow of $-174.25M, signaling weaker underlying cash strength.
Free Cash Flow
Alvotech generates weak or negative free cash flow of $-263.29M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.84 in free cash annually.
FCF Yield
ALVOW converts -20.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-7.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
-8.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-7.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.77
vs 25 benchmark
ROA
Return on assets percentage
-0.11
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How ALVOW Stacks Against Its Sector Peers
| Metric | ALVOW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -7.50 | 30.97 | Better (Cheaper) |
| ROE | 76.83% | 515.00% | Weak |
| Net Margin | -36.51% | 30197.00% | Weak |
| Debt/Equity | -7.58 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 1.65 | 5.71 | Neutral |
| ROA | -11.31% | -16.00% (disorted) | Weak |
ALVOW outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Alvotech's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-1.48%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
101.84%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
92.44%
Industry Style: Defensive, Growth, Innovation
High Growth