Alto Neuroscience, Inc. (ANRO) AI Stock Analysis

• Market Cap: $63.62M
• Dividend Yield: N/A
• Average Volume (3M): 285.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.96
• 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: 205,722
• 30 Day Avg. Volume: 285,112
• 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: $11.80
• Price Target Upside: 402.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Alto Neuroscience, Inc. faces significant financial challenges with zero revenue, increasing losses, and negative cash flows, reflected in a low financial performance score. Technical indicators suggest a lack of positive momentum, while the valuation remains unattractive due to a negative P/E ratio. These factors contribute to a low overall stock score, indicating potential risks for investors.

Positive Factors

Biomarker Strategy

ALTO-203 and ALTO-300 could provide validation for the company's EEG-based biomarker patient selection strategies.

Pipeline Potential

The market is dramatically underappreciating the potential of ANRO's pipeline assets and the steady cadence of planned data readouts will yield favorable results.

Revenue Potential

ALTO-300 is expected to generate significant revenue in the U.S. for Major Depressive Disorder by the fiscal year 2036, accounting for a major portion of the projected total revenue.

Negative Factors

Previous Trial Disappointment

Phase IIb results for ALTO-100 in major depressive disorder were disappointing, but the market reaction was considered overdone.

Trial Delays

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.

Trial Enrollment Challenges

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.

Alto Neuroscience, Inc. Business Overview & Revenue Model

Company Description

Alto Neuroscience, Inc. operates as a clinical-stage biopharmaceutical company that engages in the psychiatry drug development business. The company develops ALTO-100 for the treatment of patients with major depressive disorder (MDD) and post-traumatic stress disorder; ALTO-300, a small molecule melatonergic agonist and serotonergic antagonist with antidepressant properties to treat patients with MDD; and ALTO-101, a novel small molecule phosphodiesterase 4 inhibitor for the treatment of cognitive impairment associated with schizophrenia. It also develops ALTO-203, a novel small-molecule histamine H3 receptor inverse agonist to treat patients with MDD and higher levels of anhedonia, and ALTO-202, an investigational orally bioavailable antagonist of the GluN2B subunit of the NMDA receptor for the treatment of MDD. In addition, the company develops novel pharmacodynamically synergistic combinations and an AI-enabled biomarker platform that combine sources of information on patients brain activity and behavior to identify patients to respond to novel product candidates. Alto Neuroscience, Inc. was incorporated in 2019 and is based in Los Altos, California.

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: Neutral
• Last Price: 2.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANRO, the sentiment is Neutral. The current price of 2.35 is above the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.70, and below the 200-day MA of 6.83, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 67.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ANRO.

Alto Neuroscience, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$4.17B	-1.48	-15.12%	5.19%	17.18%	-44.55%
MGX	46 Neutral	$65.05M	―	-34.69%	―	16.84%	57.38%
VTGN	39 Underperform	$64.07M	―	-46.28%	―	-33.00%	54.91%
JSPR	35 Underperform	$71.05M	―	-101.73%	―	―	21.40%
ANRO	34 Underperform	$63.62M	―	-153.99%	―	―	―
VIGL	29 Underperform	$83.54M	―	-89.69%	―	―	3.01%
UNCY	28 Underperform	$76.61M	―	-2355.27%	―	-100.00%	52.65%

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.