Alpha Pro Tech (APT) AI Stock Analysis

• Market Cap: $51.44M
• Dividend Yield: N/A
• Average Volume (3M): 22.89K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.33
• Revenue Growth: -0.32%
• EPS Growth: -5.75%
• Country: US
• Employees: 130
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.07
• Shares Outstanding: 10,185,427
• 10 Day Avg. Volume: 15,129
• 30 Day Avg. Volume: 22,887
• PEG Ratio: -4.60
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 26.79
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 1.92
• Enterprise Value/Ebitda: 9.07
• 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: 66 Neutral
• Price Target: $6.00 ▲(28.76% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by solid balance-sheet strength and improving price trend, partially offset by weaker cash conversion and reduced margins versus prior peak years. Valuation is reasonable at ~13x earnings, but the lack of dividend data and limited cash-flow momentum temper the overall outlook.

Positive Factors

Low Leverage / Balance Sheet Strength

APT's low leverage (debt-to-equity ~0.13) and stable equity provide financial flexibility to fund working capital, capex or opportunistic M&A and to absorb demand shocks. This conservative capital structure supports durable solvency and lower refinancing risk over the next several months.

Revenue Resilience

Revenue returning to modest growth in 2025 and a stable $58–62M range indicates resilient core demand across healthcare and industrial channels. That steadiness underpins predictable order flow, supports planning, and reduces execution risk versus highly cyclical peers over a 2–6 month horizon.

Healthy Gross Margins

A gross margin near 38% reflects strong per-unit economics for disposable protective products, enabling the company to cover SG&A and invest in distribution. Durable gross margins help absorb moderate input-cost swings and support longer-term profitability if sales volumes hold.

Negative Factors

Weak Cash Conversion

Operating cash flow falling below net income and a ~36% drop in free cash flow indicate deteriorating cash conversion and potential working-capital or collections issues. Weaker cash generation reduces internal funding for capex, buffers against demand shocks, and may increase reliance on external financing.

Thin Net Margins

A net margin around 6%—well below earlier peaks—suggests reduced pricing power or higher operating costs. Sustained lower net margins limit earnings retention, constrain ROE expansion, and reduce the company's ability to reinvest in growth initiatives or return capital to shareholders over time.

Modest Scale and Returns

A modest revenue base (~$58–62M) and moderate ROE (~5–7%) limit scale advantages versus larger competitors. This constrained scale reduces purchasing and distribution leverage, slows potential margin expansion, and can make it harder to fund product development or broaden channels sustainably.

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

APT makes money primarily by selling disposable protective products through a mix of business-to-business and retail/consumer channels. Its core revenue streams come from (1) protective apparel sales—single-use garments and accessories used for contamination control and worker protection in healthcare and industrial settings—and (2) infection-control product sales—items used to reduce pathogen transmission and support hygiene protocols (for example, masks and other protective barriers). Revenue is generated when APT sells these products to distributors, retailers, and end customers (such as hospitals, industrial facilities, and other organizations) under purchase orders and supply arrangements, with earnings driven by unit volumes shipped and gross margin per product line. Demand levels in healthcare and industrial safety, and broader public-health conditions that increase utilization of infection-control supplies, are significant factors influencing sales and profitability. Specific details on major partnerships or customer concentration are null.

Alpha Pro Tech Financial Statement Overview

Summary

Financials are mixed: a strong, low-leverage balance sheet (debt-to-equity ~0.13) supports stability, and revenue returned to modest growth in 2025. However, profitability is thinner than prior peak years (net margin ~6%), and cash-flow quality is weaker with operating cash flow below net income and declining free cash flow.

Income Statement

Revenue has been relatively stable in the ~$58–62M range over the last four annual reports, with 2025 returning to modest growth (+7.8%) after declines in 2022–2024. Profitability is positive but thinner than earlier years: 2025 gross margin (~38%) is solid, but net margin (~6%) remains well below the 2020–2021 peak period, indicating reduced pricing power and/or higher operating costs. Overall, earnings are consistent, but the margin profile and growth trajectory are more subdued than the company’s prior highs.

Balance Sheet

The balance sheet looks conservatively financed with low leverage: debt-to-equity is ~0.13 in 2025 (and has generally stayed low across the period). Equity has been stable in the low-$60M range, supporting financial flexibility. Returns on equity are positive but moderate (~5–7% in 2022–2025, versus a much higher 2020), suggesting decent stability but not standout efficiency in generating shareholder returns at current profitability levels.

Cash Flow

Cash generation has weakened versus prior years. In 2025, operating cash flow (~$2.4M) is notably below net income (~$3.5M), implying less favorable working-capital/collection dynamics and lower cash conversion. Free cash flow is positive (~$1.7M) but declined sharply (down ~36% in 2025) and is well below the stronger 2022–2023 period, highlighting higher volatility and less consistency in cash available after investment needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	59.14M	57.84M	61.23M	61.98M	68.64M
Gross Profit	22.54M	22.93M	22.83M	21.68M	25.30M
EBITDA	4.76M	4.32M	5.06M	5.46M	8.74M
Net Income	3.53M	3.93M	4.19M	3.28M	6.76M
Balance Sheet
Total Assets	74.13M	73.74M	68.76M	64.80M	67.02M
Cash, Cash Equivalents and Short-Term Investments	16.99M	18.64M	20.38M	16.29M	16.31M
Total Debt	7.88M	8.78M	4.85M	1.77M	2.70M
Total Liabilities	11.65M	11.51M	7.20M	4.04M	5.27M
Stockholders Equity	62.48M	62.23M	61.57M	60.76M	61.75M
Cash Flow
Free Cash Flow	1.73M	1.89M	7.67M	3.79M	-3.00M
Operating Cash Flow	2.37M	5.70M	8.46M	4.28M	-480.00K
Investing Cash Flow	-639.00K	-3.78M	-792.00K	-492.00K	-2.52M
Financing Cash Flow	-3.38M	-3.66M	-3.58M	-3.80M	-3.98M

Alpha Pro Tech Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APT, the sentiment is Neutral. The current price of 4.66 is below the 20-day moving average (MA) of 5.17, below the 50-day MA of 4.97, and below the 200-day MA of 4.76, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.19 is Neutral, neither overbought nor oversold. The STOCH value of 43.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$226.80M	8.88	17.57%	―	30.74%	-13.58%
APT	66 Neutral	$51.44M	13.13	5.91%	―	-0.32%	-5.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CSTE	42 Neutral	$23.86M	-0.47	-27.96%	―	-15.45%	-6.98%
AEHL	42 Neutral	$7.53M	-1.11	―	―	36.37%	80.95%