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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Alector has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Alector Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Alector's interest coverage with the available data.
Alector's debt to revenue ratio for the quarter that ended in Mar. 2026 was 8.26.
As of today, Alector's Altman Z-Score is -6.14.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Alector has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Alector Financial Strength Related Terms
ALEC vs CAMP, ORMP, PYXS: Financial Strength Comparison
For the Biotechnology subindustry, Alector's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alector Financial Strength vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Alector's Financial Strength distribution charts can be found below:
* The bar in red indicates where Alector's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
GuruFocus does not calculate Alector's interest coverage with the available data.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Alector Inc has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Alector's Debt to Revenue Ratio for the quarter that ended in Mar. 2026 is
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Alector has a Z-score of -6.14, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -6.14 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alector (ALEC) has a Financial Strength of 2 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Alector and its competitors. This is 60% below median its historical median of 5.00. Over the past decade, Alector's Financial Strength has ranged from 2.00 to 10.00.
Is Alector's Financial Strength too high?
Alector's current Financial Strength of 2 is 60% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 10.00. Overall, Alector has a GF Score™ of 31/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Alector's Financial Strength compare to CAMP and ORMP?
Alector's Financial Strength of 2 can be compared against companies in the Biotechnology industry. Historically, Alector's own Financial Strength has ranged from 2.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Biotechnology company?
A good Financial Strength depends on the Biotechnology industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Alector and its competitors. Alector's current Financial Strength is 2, which is 60% below median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alector stock overvalued right now?
Based on GuruFocus' analysis, Alector (ALEC) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.72, compared to a current price of $1.55 — trading 115.1% above its estimated fair value. The current Financial Strength is 2, which is 60% below median its 10-year median of 5.00. Alector's overall GF Score™ is 31/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Alector (ALEC), the current Financial Strength is 2 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alector (ALEC) Overvalued in 2026?
Based on GuruFocus' analysis, Alector stock appears to be overvalued.
The current stock price of $1.55 is trading 115.1% above its estimated GF Value™ of $0.72.
GuruFocus considers Alector to be Significantly Overvalued.
Key valuation signals for ALEC:
Financial Strength: 2 (60% below median its 10-year median of 5.00)
GF Value™: $0.72 vs. price of $1.55 (115.1% above fair value)
No single metric tells the full story. See the ALEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alector Inc is a clinical-stage biotechnology company focused on developing therapies for neurodegenerative diseases. The company advances a pipeline of product candidates including Nivisnebart (AL101/GSK4527226) for Alzheimer's disease, AL137 for Alzheimer's disease, AL050 for Parkinson's disease and Lewy body dementia, and AL064, an siRNA program targeting tau for Alzheimer's disease and other tauopathies, supported by its proprietary Alector Brain Carrier (ABC) platform designed to improve delivery of therapeutics across the blood-brain barrier.
31GF Score
Get the complete analysis for ALEC
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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