Education
About Us
Working with TipRanks
Follow Us
Alphatec Holdings (ATEC)
NASDAQ:ATEC
Top Page
Alphatec Holdings
(NASDAQ:ATEC)
57Neutral
Positive Factors
Financial Management
Alphatec completed a refinancing transaction to extend the maturity of its 2026 Convertible Notes to 2030, indicating strong financial management.
Industry Disruption
Alphatec is likely to benefit from ongoing spine industry disruption, such as Stryker's exit from the spinal implant business.
Negative Factors
Interest Rate Environment
The company borrowed $400M at less than 1% interest during a period of rising rates and investor uncertainty.
Alphatec Holdings (ATEC) vs. S&P 500 (SPY)
Market Cap
$1.43B
Dividend YieldN/A
Average Volume (3M)2.28M
Price to Earnings (P/E)―
Beta (1Y)1.57
Revenue Growth26.81%
EPS Growth26.47%
CountryUS
Employees839
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-1.14
Shares Outstanding126,079,950
10 Day Avg. Volume4,048,451
30 Day Avg. Volume2,284,941
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.28
Price to Cash Flow (P/CF)33.10
P/FCF Ratio24.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.79Price Target Upside86.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
Alphatec Holdings Business Overview & Revenue Model
Company DescriptionAlphatec Holdings, Inc. engages in the design, development, and marketing of spinal fusion technology products and solutions for the treatment of spinal disorders. It offers intra-operative information and neuromonitoring technologies, access systems, interbody implants, fixation systems, and various biologics offerings. The company was founded on March 4, 2005 and is headquartered in Carlsbad, CA.
How the Company Makes MoneyAlphatec Holdings generates revenue through the sale of its spinal fusion products and solutions to hospitals, surgeons, and healthcare facilities. The company's key revenue streams include direct sales of implants and surgical instruments, as well as biologic products designed to support the spinal fusion process. Additionally, Alphatec leverages strategic partnerships and collaborations within the healthcare sector to enhance its distribution network and expand its market reach. Revenue is also driven by offering value-added services and training to healthcare professionals to ensure effective utilization of its products.
Alphatec Holdings Financial Statement Overview
Summary
Alphatec Holdings exhibits strong revenue growth but struggles with profitability and cash flow generation. High leverage and negative equity position raise significant financial risks, and continued reliance on financing activities is unsustainable long-term without operational improvements.Income Statement
Alphatec Holdings has shown consistent revenue growth over the years, with a significant increase from $113M in 2019 to $424M in 2024. However, the company continues to face challenges with profitability, as evidenced by persistently negative net income and EBIT margins. The gross profit margin remains high, suggesting efficient cost management, but the negative EBITDA margins highlight ongoing operational inefficiencies.50
Neutral
Balance Sheet
The balance sheet reveals a concerning financial structure with negative stockholders' equity as of 2024, indicating more liabilities than assets. The company's debt-to-equity ratio is not meaningful due to negative equity, raising potential solvency risks. Despite growth in total assets, high leverage and negative equity present stability concerns.30
Negative
Cash Flow
Alphatec Holdings demonstrates weak cash flow performance, with no free cash flow reported in 2024. The operating cash flow has been negative over the years, reflecting challenges in cash generation from operations. The reliance on financing activities for liquidity poses risks if capital market conditions change.25
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 291.93M | 424.26M | 482.26M | 350.87M | 243.21M | 144.86M |
| Gross Profit | |||||
| 189.53M | 424.26M | 310.20M | 233.06M | 157.76M | 102.50M |
| EBIT | |||||
| -135.43M | -136.17M | -173.40M | -121.10M | -108.87M | -46.09M |
| EBITDA | |||||
| -119.33M | -136.17M | -110.59M | -102.58M | -106.88M | -54.84M |
| Net Income Common Stockholders | |||||
| -163.38M | -162.12M | -186.64M | -152.15M | -144.33M | -78.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 138.84M | 138.84M | 220.97M | 84.70M | 187.25M | 107.77M |
| Total Assets | |||||
| 775.71M | 775.71M | 805.21M | 513.38M | 572.05M | 261.22M |
| Total Debt | |||||
| 8.11M | 609.94M | 541.68M | 395.86M | 4.55M | 5.08M |
| Net Debt | |||||
| -130.73M | 471.10M | 320.71M | 311.17M | -182.69M | -102.68M |
| Total Liabilities | |||||
| 613.25M | 789.88M | 703.49M | 550.09M | 492.63M | 131.34M |
| Stockholders Equity | |||||
| 162.46M | -14.17M | 101.72M | -36.71M | 79.42M | 129.88M |
| Cash Flow | Free Cash Flow | ||||
| -150.71M | -137.79M | -165.46M | -133.42M | -141.98M | -70.30M |
| Operating Cash Flow | |||||
| -90.37M | -44.65M | -78.48M | -75.14M | -73.43M | -46.41M |
| Investing Cash Flow | |||||
| -60.73M | -93.14M | -141.97M | -58.28M | -157.76M | -23.86M |
| Financing Cash Flow | |||||
| 183.97M | 56.21M | 356.92M | 31.23M | 311.97M | 130.83M |
Alphatec Holdings Technical Analysis
Negative
9.56
Price Trends
10.85
Negative
9.68
Negative
8.86
Positive
Market Momentum
-0.22
Positive
36.59
Neutral
8.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEC, the sentiment is Negative. The current price of 9.56 is below the 20-day moving average (MA) of 10.91, below the 50-day MA of 10.85, and above the 200-day MA of 8.86, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 36.59 is Neutral, neither overbought nor oversold. The STOCH value of 8.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATEC.
Alphatec Holdings Risk Analysis
Alphatec Holdings disclosed 38 risk factors in its most recent earnings report. Alphatec Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alphatec Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $9.93B | 25.72 | 58.41% | ― | 11.84% | 42.04% | |
72 Outperform | $21.37B | 24.96 | 7.24% | 0.87% | 3.84% | -9.29% | |
68 Neutral | $11.76B | 95.78 | 2.52% | ― | 60.62% | -35.88% | |
68 Neutral | $73.40M | 10.94 | 12.70% | ― | 71.31% | 1277.03% | |
57 Neutral | $1.43B | ― | -291.71% | ― | 26.81% | 26.47% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% |
* Healthcare Sector Average
Performance Comparison
ATEC
Alphatec Holdings
9.56
-4.23
-30.67%
ZBH
Zimmer Biomet Holdings
104.03
-21.48
-17.11%
GMED
Globus Medical
71.30
15.95
28.82%
SRTS
Sensus Healthcare
4.58
0.69
17.74%
MEDP
Medpace Holdings
324.91
-82.97
-20.34%
Alphatec Holdings Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -13.56% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong performance in terms of revenue growth, profitability expansion, and entry into new markets, supported by the launch of new software and positive cash flow. However, challenges such as flat gross margins, high debt levels, and seasonal impacts on cash flow were noted.Highlights
Strong Revenue Growth
Q4 2024 total revenue growth of 28%, which is 4 times the market, and full-year 2024 total revenue of $612 million, representing a 27% increase.
Profitability Expansion
Q4 operating profit marked the first since the company's transformation, with adjusted EBITDA of $21 million, equating to a 12% margin and an improvement of over 1,000 basis points year-over-year.
Positive Cash Flow
First quarter of positive cash flow since the transformation, generating $9 million in free cash flow for Q4.
Growth in Surgical Revenue
Surgical revenue grew 29% in 2024, driven by a 19% increase in procedure volume and an 8% increase in average revenue per procedure.
International Expansion
First cases performed in Japan, marking an entry into the second-largest market in the world.
New Product Launch
Launch of EOS Insight software and a record EOS order book in dollars, indicating strong demand and future growth potential.
Lowlights
Flat Gross Margin
Non-GAAP gross margin for Q4 was 70%, flat compared to the previous year, suggesting challenges in margin expansion.
High Debt Levels
Debt at face value was $590 million, with $316 million convertible notes due by August 2026, posing a potential financial risk.
Seasonality Impact
Seasonality contributed to a specific revenue pattern, with expectations of the largest cash use period during Q1 2025.
Company Guidance
During the ATEC Q4 2024 financial results call, the company reported a strong performance with a total revenue growth of 28%, reaching $177 million, and a 17% sequential increase. Surgical revenue contributed $157 million, marking a 28% increase year-over-year, driven by a 19% rise in procedural volume and a 7% growth in average revenue per procedure. EOS revenue also rose by 32% to $20 million. The non-GAAP gross margin stood at 70%, while adjusted EBITDA reached $21 million, reflecting a 12% margin and over 1,000 basis points improvement. The company achieved a free cash flow of $9 million, supported by robust adjusted EBITDA and reduced investment needs. For the full year 2024, ATEC reported $612 million in revenue, a 27% increase, with surgical revenue up 29%. Looking ahead, ATEC expects 2025 revenue to grow by 20% to $732 million, driven by innovations and procedural adoption, with adjusted EBITDA projected to reach $75 million.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.