Alpha Pro Tech (APT) AI Stock Analysis

• Market Cap: $52.21M
• Dividend Yield: N/A
• Average Volume (3M): 22.89K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.35
• Revenue Growth: -0.32%
• EPS Growth: -5.75%
• Country: US
• Employees: 130
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.09
• Shares Outstanding: 10,360,062
• 10 Day Avg. Volume: 15,129
• 30 Day Avg. Volume: 22,887
• PEG Ratio: 0.00
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 31.14
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 1.89
• Enterprise Value/Ebitda: 9.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $5.00 ▲(7.30% Upside)

Alpha Pro Tech's overall score reflects strong financial stability and reasonable valuation. However, the lack of momentum in technical indicators and challenges in profitability and cash flow conversion weigh on the score.

Positive Factors

Revenue Growth

The increase in Q3 revenue indicates a positive trend in sales, suggesting effective market strategies and product demand resilience.

Low Leverage

Low leverage enhances financial stability, providing flexibility for future investments and reducing risk during economic downturns.

Free Cash Flow Growth

Strong free cash flow growth supports reinvestment in the business, debt reduction, and potential shareholder returns, enhancing long-term value.

Negative Factors

Declining Profitability Margins

Decreasing profitability margins indicate pressure on cost management and pricing power, potentially impacting long-term earnings stability.

Challenges in Cash Flow Conversion

Reduced cash flow conversion may limit the ability to fund operations and growth, posing risks to financial health and operational efficiency.

Weak Housing Market Impact

Weakness in the housing market could dampen demand for building products, affecting revenue from this segment and overall growth prospects.

Alpha Pro Tech Business Overview & Revenue Model

Company Description

Alpha Pro Tech, Ltd., together with its subsidiaries, develops, manufactures, and markets a range of disposable protective apparel, infection control, and building supply products in the United States and internationally. The company operates through two segments, Disposable Protective Apparel and Building Supply. The Disposable Protective Apparel segment provides shoe covers, bouffant caps, coveralls, frocks, lab coats, and gowns, hoods, as well as face masks and shields. The Building Supply segment offers construction weatherization products, such as housewrap and housewrap accessories, including window and door flashing, and seam tape, and synthetic roof underlayment, as well as other woven material. The company markets its products under the Alpha Pro Tech brand name, as well as under private labels. Its products are used primarily in cleanrooms; industrial safety manufacturing environments; health care facilities, such as hospitals, laboratories, and dental offices; building and re-roofing sites. The company distributes its products through a network of purchasing groups, distributors, and independent sales representatives, as well as through its sales and marketing force. Alpha Pro Tech, Ltd. was founded in 1983 and is headquartered in Markham, Canada.

How the Company Makes Money

Alpha Pro Tech generates revenue through the sale of its core products, including disposable face masks, protective gowns, and other PPE. The company has a diversified revenue model that includes direct sales to healthcare providers, distributors, and retailers. Key revenue streams come from both domestic and international markets, with significant demand for its products driven by regulatory requirements and health crises, such as the COVID-19 pandemic. Additionally, APT may engage in strategic partnerships with healthcare organizations and distributors to expand its market reach and enhance product distribution, thereby contributing to its overall earnings.

Alpha Pro Tech Financial Statement Overview

Summary

Alpha Pro Tech demonstrates strong revenue growth and low leverage, indicating financial stability. However, declining profitability margins and challenges in cash flow conversion highlight areas for improvement.

Income Statement

Alpha Pro Tech's income statement shows a mixed performance. The TTM data indicates a strong revenue growth rate of 91.2%, which is a positive sign. However, the gross profit margin has decreased slightly from previous years, and the net profit margin is relatively low at 6.23%. The EBIT and EBITDA margins are stable, suggesting operational efficiency, but the overall profitability is under pressure compared to historical performance.

Balance Sheet

The balance sheet of Alpha Pro Tech is relatively strong, with a low debt-to-equity ratio of 0.13, indicating low leverage and financial stability. The return on equity is modest at 5.92%, reflecting moderate efficiency in generating profits from shareholders' equity. The equity ratio is healthy, suggesting a strong capital structure.

Cash Flow

The cash flow statement shows a positive trend in free cash flow growth at 32.1% in the TTM period, which is encouraging. However, the operating cash flow to net income ratio has decreased, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is moderate, suggesting room for improvement in cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.10M	57.84M	61.23M	61.98M	68.64M	102.70M
Gross Profit	22.58M	22.93M	22.83M	21.68M	25.30M	50.48M
EBITDA	4.58M	4.32M	5.06M	5.46M	8.74M	32.31M
Net Income	3.68M	3.93M	4.19M	3.28M	6.76M	26.89M
Balance Sheet
Total Assets	73.87M	73.74M	68.76M	64.80M	67.02M	68.66M
Cash, Cash Equivalents and Short-Term Investments	17.66M	18.64M	20.38M	16.29M	16.31M	23.29M
Total Debt	8.11M	8.78M	4.85M	1.77M	2.70M	3.59M
Total Liabilities	11.33M	11.51M	7.20M	4.04M	5.27M	9.13M
Stockholders Equity	62.54M	62.23M	61.57M	60.76M	61.75M	59.53M
Cash Flow
Free Cash Flow	2.71M	1.89M	7.67M	3.79M	-3.00M	17.14M
Operating Cash Flow	4.53M	5.70M	8.46M	4.28M	-480.00K	18.27M
Investing Cash Flow	-1.82M	-3.78M	-792.00K	-492.00K	-2.52M	-862.00K
Financing Cash Flow	-3.39M	-3.66M	-3.58M	-3.80M	-3.98M	-668.00K

Alpha Pro Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APT, the sentiment is Positive. The current price of 4.66 is below the 20-day moving average (MA) of 4.76, above the 50-day MA of 4.62, and below the 200-day MA of 4.66, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 66.14 is Neutral, neither overbought nor oversold. The STOCH value of 69.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APT.

Alpha Pro Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPIH	73 Outperform	$233.76M	16.92	17.68%	―	30.74%	-13.58%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
APT	61 Neutral	$52.21M	14.67	5.91%	―	-0.32%	-5.75%
CSTE	50 Neutral	$75.33M	-1.02	-27.96%	―	-15.45%	-6.98%
AEHL	41 Neutral	$8.31M	-0.02	―	―	36.37%	80.95%