Alvotech Ordinary Shares (ALVO)

FairStock Score: 30/100 — RISKY

Key Financials

Concerns

• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of -1.5 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Alvotech Ordinary Shares is a micro-cap healthcare company valued at $1.1 billion. The business generates $562 million in annual revenue with a 3.8% net margin. From a quality standpoint, Alvotech shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of -1.5 warrants caution. On valuation, the stock is trading at a premium 33.1x earnings. Growth dynamics show revenue growing at 10.2% and profit growth of -62.1%. Our composite FairStock Score of 30/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 33x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer