Alvotech Ordinary Shares (ALVO)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable earning power, honest accounting, and a margin of safety. Alvotech makes biosimilar medicines, near-copies of biologic drugs, for autoimmune, eye, bone, and cancer patients, including AVT02, an adalimumab biosimilar to Humira. That can be a real business if manufacturing scale and regulatory approvals create a moat. But the filed numbers do not yet show a durable moat. In the second quarter of 2026, revenue was $105.8 million, yet net income was negative $66.8 million, a -63.17% net margin. Trailing free cash flow was -$333.8 million, and FairStock's FCF yield was -31.4% against a $1.1 billion market cap at the 2026-10-13 close. Revenue growth was -38.94% and profit growth was -308.57%; EPS was -$0.62. The P/E of -8.68 is not meaningful, and P/B is not available. FairStock's Piotroski F-Score of 2/9 and Altman Z-Score of -1.62 point to financial weakness, while ROCE of 2.19% is thin. The stock trades at $5.38, within a 52-week range of $2.94-$9.00, but negative earnings and cash burn make it hard to call cheap on Graham terms. The Lynch category is none because only 0 years of filed results exist, versus the 3 needed. With a FairStock score of 30/100, I would call this a speculative turnaround, not a proven compounder. I would need to see revenue stabilize, losses narrow, and cash flow turn before paying up.

In plain English: Alvotech makes near-copies of biologic medicines, called biosimilars, for conditions like arthritis, eye disease, bone disease, and cancer. The business looks weak right now: in the second quarter of 2026 it had $105.8 million of revenue but lost $66.8 million, and it is burning cash. Because it has no positive earnings and a short record, the $5.38 price is hard to judge as cheap or expensive using its numbers; it looks more speculative than stable.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer