Avalo Therapeutics Inc. Common Stock (AVTX)

FairStock Score: 46/100 — MIXED

Key Financials

AI Analysis

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

As a value investor in the Buffett-Graham tradition, I start with business quality, not stories. Avalo is a clinical-stage biotech with 33 employees; its lead asset AVTX-009 is in Phase 2 for immune-mediated inflammatory diseases. The commercial reality is thin. In fiscal 2025, the year ended 2025-12-31, revenue was $59,000 and net loss was $78.3 million. In fiscal 2024, revenue was $441,000 and net loss $35.1 million; in fiscal 2023, revenue was $1.9 million and net loss $31.5 million. More recently, fiscal Q2 2026, the quarter ended 2026-06-30, showed a $36.4 million net loss and diluted EPS of -$0.83. The trend is not strengthening. The balance sheet has no debt (D/E 0.00) and FairStock’s Altman Z-Score is 8.55, but trailing free cash flow is -$68.3 million and FCF yield is -10.6%, so cash is being consumed. At the 2026-10-13 close of $12.01, the market cap is $644.1 million against almost no revenue. FairStock calculations show P/E -2.72 and P/B 1.42, a Piotroski F-Score of 4/9, and a FairStock score of 46/100. The Peter Lynch category is none because it lost money in each of the last four years. There is no durable competitive moat evident, and valuation rests on binary trial outcomes. I see speculative optionality, not a margin of safety.

In plain English: Avalo Therapeutics is a small healthcare company that is testing a medicine for inflammatory diseases. It has almost no product sales and is losing a lot of money. The stock price looks expensive compared with the business today, because buyers are mostly paying for the chance that its main drug trial will succeed.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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