Alphatec Holdings (ATEC) AI Stock Analysis

• Market Cap: $1.64B
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: 25.53%
• EPS Growth: 23.22%
• Country: US
• Employees: 867
• Sector: Healthcare
• Sector Strength: 49
• Industry: Medical - Devices
• EPS (TTM): -0.11
• Shares Outstanding: 146,172,700
• 10 Day Avg. Volume: 1,645,111
• 30 Day Avg. Volume: 1,503,897
• PEG Ratio: 4.20
• Price to Book (P/B): -34.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.57
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 3.75
• Enterprise Value/Ebitda: -5.40
• 1Y Price Target: $18.11
• Price Target Upside: 61.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 52 Neutral
• Price Target: $11.50 ▲(2.31%Upside)

The overall stock score of 52 reflects a balanced view of Alphatec Holdings' strong revenue growth and improved profitability metrics as highlighted in the earnings call, against the backdrop of financial risks due to high leverage and negative cash flows. While technical analysis indicates mixed signals, the company's strategic initiatives and positive guidance provide a more optimistic future outlook.

Positive Factors

Financial Performance

ATEC posted a strong quarter to start the year, with top-line revenues above expectations, an adj. EBITDA beat, and cash burn nearly beating expectations.

Market Position

ATEC's work to drive clinical differentiation with its enabling technologies and procedural solutions appears to be paying off, as ATEC notes it is an 8% market share player, the largest pure-play spine company.

Revenue Growth

The strong revenue growth seen in 2024 appears to have continued into the new year, with topline revenue up 22% YoY, which is approximately 4x the industry average.

Negative Factors

Tariff Impact

ATEC's tariff impact is manageable in the low-single digit millions.

Alphatec Holdings Business Overview & Revenue Model

Company Description

Alphatec Holdings, Inc. (ATEC) is a medical technology company specializing in the design, development, and advancement of spinal fusion technologies. The company operates primarily in the healthcare sector, focusing on providing solutions that improve surgical outcomes for patients with spine disorders. Alphatec's core products include a range of spinal implants and surgical instruments that are used in various procedures to treat conditions such as scoliosis, degenerative disc disease, and other spinal deformities.

How the Company Makes Money

Alphatec Holdings generates revenue primarily through the sale of its spinal fusion products to hospitals and healthcare providers. The company's key revenue streams include the direct sale of spinal implants and surgical instruments. Significant partnerships with distributors and healthcare institutions also play a crucial role in expanding its market reach and enhancing product adoption. Alphatec's growth strategy involves continuous innovation in product development, leveraging clinical data to validate the efficacy of its solutions, and expanding its sales force to increase market penetration.

Alphatec Holdings Financial Statement Overview

Summary

Alphatec Holdings has demonstrated strong revenue growth in the medical devices industry, reaching $589 million TTM from $144 million in 2020. However, challenges exist with profitability, evidenced by negative net income and EBIT margins. A high debt-to-equity ratio and consistently negative free cash flow underscore financial risks, although strategic financing supports liquidity.

Income Statement

Alphatec Holdings has shown significant revenue growth over the years, with TTM revenue at $589 million compared to $144 million in 2020. However, the company is struggling with profitability as indicated by consistently negative net income and EBIT margins. The gross profit margin remains healthy, but low EBIT and EBITDA margins indicate high operating expenses.

Balance Sheet

The company has a high debt-to-equity ratio due to significant leverage, with total debt at $581 million against equity of $55 million in the latest TTM. Although assets have been growing, equity remains low, suggesting potential solvency concerns. Positive cash and short-term investments provide some liquidity cushion.

Cash Flow

Alphatec Holdings has consistently negative free cash flow, indicating challenges in generating cash from operations after capital expenditures. The operating cash flow to net income ratio is negative, reflecting operational inefficiencies. However, financing activities have provided cash inflows, supporting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	642.26M	611.56M	482.26M	350.87M	243.21M	144.86M
Gross Profit	423.03M	424.26M	310.20M	233.06M	157.76M	102.50M
EBITDA	-73.86M	-53.87M	-110.59M	-102.58M	-106.88M	-54.84M
Net Income	-165.53M	-162.12M	-186.64M	-152.15M	-144.33M	-78.99M
Balance Sheet
Total Assets	785.47M	775.71M	805.21M	513.38M	572.05M	261.22M
Cash, Cash Equivalents and Short-Term Investments	153.24M	138.84M	220.97M	84.70M	187.25M	107.77M
Total Debt	581.27M	609.94M	541.68M	395.86M	4.55M	5.08M
Total Liabilities	871.41M	789.88M	703.49M	550.09M	492.63M	131.34M
Stockholders Equity	55.20M	-14.17M	101.72M	-36.71M	79.42M	129.88M
Cash Flow
Free Cash Flow	-80.70M	-137.79M	-165.46M	-133.42M	-141.98M	-70.30M
Operating Cash Flow	-11.25M	-44.65M	-78.48M	-75.14M	-73.43M	-46.41M
Investing Cash Flow	-71.13M	-93.14M	-141.97M	-58.28M	-157.76M	-23.86M
Financing Cash Flow	91.34M	56.21M	356.92M	31.23M	311.97M	130.83M

Alphatec Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.24
• 50DMA: Negative
• 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 ATEC, the sentiment is Neutral. The current price of 11.24 is below the 20-day moving average (MA) of 11.76, below the 50-day MA of 11.79, and above the 200-day MA of 9.66, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 48.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATEC.

Alphatec Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNMD	72 Outperform	$1.62B	13.85	12.96%	1.51%	4.20%	43.62%
SIBN	65 Neutral	$763.65M	―	-15.96%	―	22.60%	41.26%
KIDS	64 Neutral	$534.76M	―	-11.33%	―	31.28%	-81.86%
ATEC	52 Neutral	$1.64B	―	-291.71%	―	25.53%	23.22%
OPK	52 Neutral	$1.01B	―	-3.04%	―	-13.79%	82.82%
Sector *	51 Neutral	$7.39B	0.31	-61.07%	2.34%	17.46%	1.71%
OFIX	49 Neutral	$425.90M	―	-27.82%	―	5.85%	-8.92%

Alphatec Holdings Corporate Events

Alphatec Holdings Approves Key Proposals at Annual Meeting

On June 11, 2025, Alphatec Holdings, Inc. held its annual meeting of stockholders where several key proposals were approved. The stockholders agreed to amend the company’s Certificate of Incorporation to increase the number of authorized shares, elected members to the Board of Directors, ratified Deloitte & Touche LLP as the independent accounting firm, and approved amendments to the Equity Incentive Plan and executive compensation. These decisions are poised to impact the company’s operational flexibility and governance structure.

The most recent analyst rating on (ATEC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Alphatec Holdings stock, see the ATEC Stock Forecast page.

Alphatec Holdings Implements Executive Salary Conversion Plan

On March 31, 2025, Alphatec Holdings implemented a salary conversion plan for its executives, reducing their cash salaries by 10%, 25%, or 50% in exchange for restricted stock units (RSUs). This plan, affecting Named Executive Officers, grants RSUs based on the stock’s closing price on March 31, 2025, with vesting scheduled for August 5 and December 5, 2025. The plan does not alter existing employment agreements or incentive programs, maintaining the original base salary as the reference for 2025 incentive compensation.