Allogene Therapeutics, Inc. (ALLO) Fundamental Analysis: Bull vs. Bear Case

ALLO

Allogene Therapeutics, Inc.

Fundamental data last updated:June 4, 2026

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company profile

SECTOR

Healthcare

industry

Biotechnology

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/12/2026

Business Summary

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.

VALUATION

P/E

-2.86

Market Cap ($M USD)

$504.81M

Forward P/E

2.75 PEG

0.01 PRICE TO SALES

0.00 PRICE TO BOOK

1.78 EV / EBITDA

-3.30

5-Year Average P/E

Free Cash Flow Yield

-21.70%

DCF Value

$-0.12

Graham Number

N/A

Price to FCF

-4.61

EV to FCF

-5.07

Earnings Yield

-34.93%

FCF Yield

-21.70%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.72

Next Year EPS Growth Estimate

$0.75

Next Year Revenue Growth Estimate

$60.67B

Return on Equity (ROE)

-56.45%

FREE CASH FLOW

Operating Margin

0.00%

Debt-to-Equity

0.26 Piotroski F-Score

1 Altman Z-Score

-5.20

Return on Invested Capital (ROIC)

-51.74%

Current Ratio

9.65 Quick Ratio

9.65 Net Debt to EBITDA

-0.30

Interest Coverage

-155.28

Gross Profit margin

0.00%

FCF PER SHARE

$-0.46

REVENUE PER SHARE

$0.00

Gainseekers Quantitative Analysis

Summary

ALLO Allogene Therapeutics, Inc. is a perplexing enigma in the biotech sector. Despite a Forward P/E of 2.89 suggesting potential growth, the market seems to have priced it well below its DCF value, indicating skepticism about its future cash flows. The Altman Z-score of -4.95 raises red flags about financial distress, while a negative Earnings Yield of -37.95% underscores profitability concerns. The juxtaposition of these metrics paints a picture of a company struggling to convince investors of its long-term viability, despite a consensus “Buy” rating.

AI Exposure / Tech Reliance

In the rapidly evolving biotech industry, Allogene Therapeutics is uniquely positioned to leverage AI advancements for drug discovery and personalized medicine. As a player in biotechnology, the company can harness AI to streamline research and development processes, potentially reducing time to market. This adaptability is crucial in maintaining a competitive edge in a tech-driven landscape.

The Bull Case

For the optimistic investor, Allogene presents an intriguing opportunity. The Forward PEG ratio of 0.015 hints at undervaluation relative to its growth prospects, while a robust Current Ratio of 7.93 indicates strong liquidity. Despite a low Piotroski F-Score of 1, the company's ability to potentially capitalize on future earnings growth makes it a speculative bet for those seeking deep value in a volatile market.

The Bear Case

However, the bear case is hard to ignore. With a Price/Book ratio of 1.72 and a Price to FCF of -3.72, the company appears overvalued relative to its tangible assets and cash flow generation. The negative ROIC of -54.60% and a dismal Altman Z-score suggest structural weaknesses that could hinder long-term sustainability. Investors should be wary of these red flags, as they point to significant operational inefficiencies and financial instability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$6.43

Institutional Ownership %

1-Year Beta

0.46 Insider Buying % (6 Mo)

Distance to 52-Week High

115.46%

Distance to 52-Week Low

52.66%

EARNINGS SURPRISE %

5.26%

50-DAY SMA

$2.30

200-DAY SMA

$1.69

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.