Alvotech
Alvotech Fundamental Analysis
Alvotech (ALVOW) shows weak financial fundamentals with a PE ratio of 33.95, profit margin of 4.76%, and ROE of -11.92%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 4.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
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
ModerateALVOW shows balanced valuation metrics.
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 33.95 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ALVOW's PEG of -0.96 indicates potential undervaluation.
Price to Book
The market values Alvotech at -3.33 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.78 times EBITDA. This is generally considered low.
How Well Does ALVOW Make Money?
Net Profit Margin
For every $100 in sales, Alvotech keeps $4.76 as profit after all expenses.
Operating Margin
Core operations generate 13.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-11.92 in profit for every $100 of shareholder equity.
ROA
Alvotech generates $1.88 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 $-56.14M, signaling weaker underlying cash strength.
Free Cash Flow
Alvotech generates weak or negative free cash flow of $-128.24M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.41 in free cash annually.
FCF Yield
ALVOW converts -10.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
-3.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.12
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How ALVOW Stacks Against Its Sector Peers
| Metric | ALVOW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.95 | 28.81 | Worse (Expensive) |
| ROE | -11.92% | 643.00% | Weak |
| Net Margin | 4.76% | -44312.00% (disorted) | Weak |
| Debt/Equity | -5.09 | 0.36 | Strong (Low Leverage) |
| Current Ratio | 1.89 | 4.50 | Neutral |
| ROA | 1.88% | -17799.00% (disorted) | Weak |
ALVOW outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
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
1295.18%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-0.47%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-143.24%
Industry Style: Defensive, Growth, Innovation
Declining