Altimmune

Altimmune Inc is assigned a 3-star quantitative star rating, reflecting our opinion that this share class is a balanced choice, but prudent investors should consider looking elsewhere. The stock currently trades at a 28% discount to our quantitative fair value estimate of $3.68 per share; however, caution is warranted due to this estimate's very high uncertainty rating. We require the price/fair value ratio to move a certain amount before the star rating can change. This stability-enhancing buffer is in effect for this stock.

The firm's valuation metrics bolster our estimated fair value. A company's valuation metrics provide insights into the market's expectations for its future growth and profitability. For example, the firm's book value yield of 89.2% sits in the top 40% globally. The market price is low relative to the book (accounting) value of the company's equity, which contributes to our view that shares are undervalued.

Conversely, the company's lack of profitability is potentially concerning. Companies with low profitability are often less resilient in recessions and are likely to generate weaker future cash flows for shareholders. The firm's sales yield, for example, lies in the bottom 1% globally. This company's inability to generate significant sales growth without meaningful capital investment is a challenge, which, despite our favorable price/fair value ratio, is a negative attribute.

With its quantitative economic moat rating of none, we do not expect this company to materially outearn its cost of capital in the long run. Additionally, the firm's moderate financial health score suggests it is acceptably positioned against adverse economic circumstances.