Is Alvotech Stock a Good Investment?

Alvotech Investment Advice

ALVO

To provide specific investment advice or recommendations on Alvotech stock, we recommend investors consider the following general factors when evaluating Alvotech. This will help you to make an informed decision on whether to include Alvotech in one of your diversified portfolios:

Examine Alvotech's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Alvotech's leadership team and their track record. Good management can help Alvotech navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Biotechnology space and any emerging trends that could impact Alvotech's business and its evolving consumer preferences.
Compare Alvotech's performance and market position to its competitors. Analyze how Alvotech is positioned in terms of product offerings, innovation, and market share.
Check if Alvotech pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Alvotech's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Alvotech stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Alvotech is a good investment.

Sell

Buy

Strong Sell

Our trade advice tool can cross-verify current analyst consensus on Alvotech and to analyze the company potential to grow in the current economic cycle. To make sure Alvotech is not overpriced, please confirm all Alvotech fundamentals, including its book value per share, and the relationship between the net income and number of employees . Given that Alvotech has a number of shares shorted of 116.79 K, we suggest you to validate Alvotech market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Insignificant	Details
Volatility	Not too volatile	Details
Hype Condition	Stale	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Very High	Details
Economic Sensitivity	Moves indifferently to market moves	Details
Investor Sentiment	Interested	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Alvotech Stock

Researching Alvotech's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 64.0% of the company shares are held by company insiders. The company recorded a loss per share of 1.85. Alvotech had not issued any dividends in recent years.

To determine if Alvotech is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Alvotech's research are outlined below:

	Alvotech has a very high chance of going through financial distress in the upcoming years
	Alvotech currently holds 1.08 B in liabilities. Alvotech has a current ratio of 0.84, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Alvotech's use of debt, we should always consider it together with its cash and equity.
	The entity reported the previous year's revenue of 91.43 M. Net Loss for the year was (551.73 M) with profit before overhead, payroll, taxes, and interest of 20.92 M.
	Alvotech currently holds about 128.44 M in cash with (312.19 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.52.
	Roughly 64.0% of the company shares are held by company insiders
	Latest headline from gurufocus.com: Alvotech Shares Gap Down to 11.94 on Nov 22

Alvotech Quarterly Good Will

12.2 Million

Alvotech uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Alvotech. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Alvotech's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	6th of March 2024 Upcoming Quarterly Report	View
	17th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	6th of March 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Alvotech's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Alvotech's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2024-11-20	2024-09-30	-0.063	-0.03	0.033	52
2024-08-15	2024-06-30	-0.02	0.28	0.3	1500
2023-11-28	2023-09-30	-0.07	-0.82	-0.75	1071
2024-05-21	2024-03-31	-0.08	-0.89	-0.81	1012
2024-03-20	2023-12-31	0.04	-1.22	-1.26	3150

Alvotech's market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 3.53 B.

Market Cap

2.93 Billion

Alvotech's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.60)	(0.63)
Return On Capital Employed	(0.51)	(0.54)
Return On Assets	(0.58)	(0.61)
Return On Equity	0.59	0.49

The company has Profit Margin (PM) of (2.0) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of 0.46 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.46.

Determining Alvotech's profitability involves analyzing its financial statements and using various financial metrics to determine if Alvotech is a good buy. For example, gross profit margin measures Alvotech's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Alvotech's profitability and make more informed investment decisions.

Evaluate Alvotech's management efficiency

Alvotech has return on total asset (ROA) of (0.0761) % which means that it has lost $0.0761 on every $100 spent on assets. This is way below average. Alvotech's management efficiency ratios could be used to measure how well Alvotech manages its routine affairs as well as how well it operates its assets and liabilities. As of the 30th of November 2024, Return On Tangible Assets is likely to drop to -0.63. In addition to that, Return On Capital Employed is likely to drop to -0.54. At this time, Alvotech's Intangible Assets are very stable compared to the past year. As of the 30th of November 2024, Intangibles To Total Assets is likely to grow to 0.05, while Total Assets are likely to drop about 784 M.

	Last Reported	Projected for Next Year
Book Value Per Share	(4.10)	(4.31)
Tangible Book Value Per Share	(4.24)	(4.45)
Enterprise Value Over EBITDA	(7.58)	(7.20)
Price Book Value Ratio	(2.80)	(2.94)
Enterprise Value Multiple	(7.58)	(7.20)
Price Fair Value	(2.80)	(2.94)
Enterprise Value	3.3 B	2.9 B

The leadership approach at Alvotech's fosters a culture of excellence and accountability. Our analysis examines how this culture influences financial outcomes and stock valuation.

Beta

(0.1)

Basic technical analysis of Alvotech Stock

As of the 30th of November, Alvotech shows the Mean Deviation of 1.18, downside deviation of 1.83, and Risk Adjusted Performance of 0.0176. Alvotech technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Alvotech's Outstanding Corporate Bonds

Alvotech issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Alvotech uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Alvotech bonds can be classified according to their maturity, which is the date when Alvotech has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	MPLX LP 52 Corp Bond US55336VAL45	View
	Morgan Stanley 3591 Corp Bond US61744YAK47	View

View All Alvotech Corporate Bonds

Understand Alvotech's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Alvotech's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0176
	Market Risk Adjusted Performance	(0.08)
	Mean Deviation	1.18
	Semi Deviation	1.56
	Downside Deviation	1.83
	Coefficient Of Variation	6266.71
	Standard Deviation	1.68
	Variance	2.82
	Information Ratio	(0.07)
	Jensen Alpha	0.0411
	Total Risk Alpha	(0.26)
	Sortino Ratio	(0.06)
	Treynor Ratio	(0.09)
	Maximum Drawdown	8.63
	Value At Risk	(2.83)
	Potential Upside	3.15
	Downside Variance	3.35
	Semi Variance	2.43
	Expected Short fall	(1.29)
	Skewness	0.2892
	Kurtosis	0.8912

	Risk Adjusted Performance	0.0176
	Market Risk Adjusted Performance	(0.08)
	Mean Deviation	1.18
	Semi Deviation	1.56
	Downside Deviation	1.83
	Coefficient Of Variation	6266.71
	Standard Deviation	1.68
	Variance	2.82
	Information Ratio	(0.07)
	Jensen Alpha	0.0411
	Total Risk Alpha	(0.26)
	Sortino Ratio	(0.06)
	Treynor Ratio	(0.09)
	Maximum Drawdown	8.63
	Value At Risk	(2.83)
	Potential Upside	3.15
	Downside Variance	3.35
	Semi Variance	2.43
	Expected Short fall	(1.29)
	Skewness	0.2892
	Kurtosis	0.8912

Consider Alvotech's intraday indicators

Alvotech intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Alvotech stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	465.44
	Daily Balance Of Power	0.4667
	Rate Of Daily Change	1.01
	Day Median Price	11.73
	Day Typical Price	11.73
	Price Action Indicator	0.06
	Period Momentum Indicator	0.07
	Relative Strength Index	49.28

Alvotech Corporate Filings

6K	13th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
13A	6th of November 2024 An amended filing to the original Schedule 13G	View Verify
	29th of August 2024 Other Reports	View Verify
	21st of August 2024 Other Reports	View Verify

Alvotech time-series forecasting models is one of many Alvotech's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Alvotech's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Alvotech Stock media impact

Far too much social signal, news, headlines, and media speculation about Alvotech that are available to investors today. That information is available publicly through Alvotech media outlets and privately through word of mouth or via Alvotech internal channels. However, regardless of the origin, that massive amount of Alvotech data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Alvotech news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Alvotech relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Alvotech's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Alvotech alpha.

Alvotech Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Alvotech can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Alvotech Corporate Management

Christina Siniscalchi	Interim Officer	Profile
Ming Li	Chief Officer	Profile
Sandra Casaca	Chief Officer	Profile
RoseMarie Ohlsson	Chief Officer	Profile
Anil Okay	Chief Officer	Profile
Giedrius Zunda	Chief Officer	Profile
Sean Gaskell	Chief Officer	Profile

Already Invested in Alvotech?

The danger of trading Alvotech is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Alvotech is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Alvotech. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Alvotech is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether Alvotech offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Alvotech's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Alvotech Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Alvotech Stock: