Alto Neuroscience, Inc. (ANRO) AI Stock Analysis

• Market Cap: $48.73M
• Dividend Yield: N/A
• Average Volume (3M): 384.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 76
• Sector: General
• Sector Strength: N/A
• Industry: Biotechnology
• EPS (TTM): -2.28
• Shares Outstanding: 27,072,128
• 10 Day Avg. Volume: 250,775
• 30 Day Avg. Volume: 384,190
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 10.79
• Price to Cash Flow (P/CF): -1.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.25
• Price Target Upside: 580.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Alto Neuroscience, Inc. is struggling with significant financial challenges, such as zero revenue and increasing losses. Technical indicators reflect bearish trends, and the negative P/E ratio suggests valuation difficulties. These factors contribute to a low overall stock score, indicating potential risks and uncertainties for investors.

Positive Factors

Biomarker Strategy

The biomarker-driven approaches being pioneered by Alto are likely to increase the probability of achieving optimal clinical benefit and gaining regulatory approval.

Pipeline Potential

The market is dramatically underappreciating the potential of ANRO's pipeline assets, which could lead to favorable results and reverse the negative trend in share price.

Negative Factors

Approval Delay

The expected approval of ALTO-300 has been pushed back to the third quarter of 2030 due to the increase in target enrollment for the Phase IIb trial.

Earnings Concern

The net loss reported for 4Q24 was $15.2M, which may concern some investors despite the potential positive outcomes of ongoing trials.

Alto Neuroscience, Inc. Business Overview & Revenue Model

Company Description

Alto Neuroscience, Inc. (ANRO) is a biotechnology company focused on developing precision medicine approaches for the treatment of mental health disorders. The company leverages advancements in brain biomarkers and artificial intelligence to create personalized treatment plans for conditions such as depression and anxiety. By integrating cutting-edge neuroscience with clinical data, Alto aims to provide effective and targeted therapeutic solutions.

How the Company Makes Money

Alto Neuroscience, Inc. generates revenue through the development and commercialization of its precision medicine treatments for mental health disorders. The company's revenue model primarily involves partnerships with pharmaceutical companies and healthcare providers to co-develop and distribute its personalized treatment solutions. Additionally, Alto may leverage licensing agreements for its proprietary technology and biomarker discoveries, facilitating further revenue through royalties and milestone payments. Strategic collaborations with research institutions and involvement in clinical trials also contribute to its financial growth.

Alto Neuroscience, Inc. Financial Statement Overview

Summary

Alto Neuroscience, Inc. faces significant challenges with zero revenue generation, increasing losses, and negative cash flows. While improvements in equity and leverage are noted, the company's financial performance suggests ongoing difficulties in achieving sustainable growth and profitability.

Income Statement

Alto Neuroscience, Inc. has consistently reported zero total revenue in recent years, indicating a lack of sales generation. The company has also experienced increasing net losses, with the net income deteriorating further from -$9.19 million in 2021 to -$61.43 million in 2024. The absence of revenue and consistent losses highlight significant challenges in achieving profitability.

Balance Sheet

The balance sheet shows improvement in stockholders' equity from negative values to $151.46 million in 2024, indicating better financial stability. However, the company maintains a low equity ratio given the previous negative equity and sustained liabilities. The debt-to-equity ratio has improved due to reduced debt, but historical high leverage poses potential risks.

Cash Flow

Operating cash flow remains negative, reflecting cash outflows from operations. Free cash flow is also negative, though large financing inflows ($135.69 million in 2024) have supported cash positions. Despite these inflows, the company struggles with cash generation and operational sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
0.00	0.00	0.00	210.00K
	Gross Profit
0.00	-373.00K	-342.00K	65.00K
	EBIT
-68.61M	-37.81M	-29.19M	-12.06M
	EBITDA
-68.61M	-34.56M	-27.37M	-9.04M
	Net Income Common Stockholders
-61.43M	-36.30M	-27.71M	-9.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
168.23M	82.55M	48.34M	25.70M
	Total Assets
177.54M	86.63M	50.85M	28.79M
	Total Debt
4.52M	9.99M	82.11M	38.16M
	Net Debt
-163.71M	-72.56M	33.76M	12.46M
	Total Liabilities
26.08M	158.30M	89.26M	41.27M
	Stockholders Equity
151.46M	-71.67M	-38.41M	-12.48M
Cash Flow		Free Cash Flow
-49.50M	-33.92M	-21.13M	-9.94M
	Operating Cash Flow
-47.42M	-33.45M	-20.39M	-9.26M
	Investing Cash Flow
-2.08M	-470.00K	-732.00K	-680.00K
	Financing Cash Flow
135.69M	68.13M	43.79M	31.69M

Alto Neuroscience, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANRO, the sentiment is Negative. The current price of 1.8 is below the 20-day moving average (MA) of 2.64, below the 50-day MA of 3.19, and below the 200-day MA of 7.45, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 24.51 is Positive, neither overbought nor oversold. The STOCH value of 4.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ANRO.

Alto Neuroscience, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$3.64B	-16.80	-14.99%	6.38%	25.64%	-79.38%
AXSM	51 Neutral	$4.82B	―	-231.63%	―	42.53%	-15.29%
SAGE	48 Neutral	$421.76M	―	-63.37%	―	-52.30%	27.13%
CYTK	45 Neutral	$4.42B	―	435.49%	―	145.34%	3.20%
ANRO	31 Underperform	$48.73M	―	-153.99%	―	―	―
MNMD	27 Underperform	$409.25M	―	-68.01%	―	―	26.24%
NERV	26 Underperform	$9.58M	7.21	>-0.01%	―	―	―

Alto Neuroscience, Inc. Corporate Events

Alto Neuroscience Announces Board Member Departures

On March 17, 2025, Alto Neuroscience announced that two of its board members, Jeff (Po Yu) Chen, Ph.D., and Maha Radhakrishnan, M.D., will not stand for re-election at the 2025 Annual Meeting of Stockholders. This decision was not due to any disagreements with the company. Following their departure, the board will reduce its size from seven to five members. Additionally, Alto Neuroscience reported its full-year 2024 financial results and highlighted significant progress in its clinical trials, including favorable interim analysis outcomes for the ALTO-300 Phase 2b MDD trial and completion of enrollment for the ALTO-203 Phase 2 trial. The company maintains a strong cash position to support its operations and upcoming clinical study readouts.