Alphatec Holdings (ATEC) AI Stock Analysis

• Market Cap: $2.44B
• Dividend Yield: N/A
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 26.27%
• EPS Growth: 15.58%
• Country: US
• Employees: 867
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): N/A
• Shares Outstanding: 147,983,780
• 10 Day Avg. Volume: 2,126,650
• 30 Day Avg. Volume: 1,869,896
• PEG Ratio: 0.30
• Price to Book (P/B): -92.61
• Price to Sales (P/S): 2.15
• P/FCF Ratio: -9.52
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 3.10
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: -31.08
• 1Y Price Target: $19.29
• Price Target Upside: 16.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 52 Neutral
• Price Target: $15.50 ▼(-6.00% Downside)

Alphatec Holdings' overall stock score is driven by strong earnings call results and positive technical indicators. However, significant financial performance challenges and valuation concerns weigh heavily on the score. The company's ability to manage financial leverage and improve profitability will be crucial for future performance.

Positive Factors

Revenue Growth

The strong revenue growth indicates expanding market reach and successful product adoption, which supports long-term business sustainability and competitive positioning.

Market Position

Securing a top market position in the U.S. spine market demonstrates competitive strength and enhances the company's ability to leverage economies of scale and influence industry trends.

Cash Generation

Positive free cash flow generation underscores effective cash management, providing financial flexibility for strategic investments and debt reduction.

Negative Factors

Financial Leverage

Excessive financial leverage can strain resources and limit strategic options, posing risks to long-term financial health if not managed carefully.

Profitability Challenges

Persistent profitability issues highlight operational inefficiencies and could impede the company's ability to reinvest in growth and innovation.

Cash Flow Concerns

Deteriorating cash flow metrics suggest liquidity challenges, which could affect the company's ability to fund operations and growth initiatives.

Alphatec Holdings Business Overview & Revenue Model

Company Description

Alphatec Holdings, Inc., a medical technology company, designs, develops, and advances technologies for the surgical treatment of spinal disorders. The company offers SafeOp Neural InformatiX System, an Alpha InformatiX product platform designed to reduce the risk of intraoperative nerve injury; Sigma transforaminal lumbar interbody fusion pedicle-based access system that provides direct visualization of anatomical landmarks; Sigma PTP Access and Patient Positioning System; squadron lateral retractor designed to maximize patient outcomes; Invictus Spinal Fixation System, a thoracolumbar fixation system to treat a range of pathologies; and Invictus MIS SingleStep System that provides minimally invasive pedicle screw placement. It also provides Invictus Modular Fixation Systems designed to increase adaptability with the power of screw modularity; OsseoScrew system to restore the integrity of the spinal column; Arsenal spinal fixation system, a comprehensive thoracolumbar fixation platform to fix a range of degenerative to deformity pathologies and surgical procedures; Aspida Anterior Lumbar Plating System, a fixation system for anterior lumbar interbody fusion; AMP Anti-Migration Plate; OCT Spinal Fixation System; trestle luxe anterior cervical plate system; and Insignia Anterior Cervical Plate System. In addition, the company offers IdentiTi Porous Ti, Transcend Lateral, and Battalion Posterior Interbody Implants; and biologics consisting of Cervical Structural Allograft Spacers, 3D ProFuse Demineralized Bone Scaffold, Neocore Osteoconductive Matrix, Alphagraft Demineralized and Cellular Bone Matrix, and Amnioshield Amniotic Tissue Barrier, as well as EOS imaging products. It sells its products through a network of independent distributors and direct sales representatives in the United States. The company was founded in 1990 and is headquartered in Carlsbad, California.

How the Company Makes Money

Alphatec Holdings generates revenue through the sale of its spinal surgical products, which include implants, surgical instruments, and related technologies. The company's primary revenue streams come from direct sales to hospitals, surgical centers, and healthcare providers. Additionally, ATEC engages in strategic partnerships and collaborations with healthcare institutions and surgical experts, which not only enhance its product offerings but also expand its market reach. The company's focus on innovation, including the development of advanced technologies and minimally invasive surgical solutions, contributes to its competitive advantage and revenue growth.

Alphatec Holdings Financial Statement Overview

Summary

Alphatec Holdings shows strong revenue growth but struggles with profitability and high leverage. Consistently negative net income and high debt-to-equity ratio are concerning, though 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	682.24M	611.56M	482.26M	350.87M	243.21M	144.86M
Gross Profit	469.41M	424.26M	310.20M	233.06M	157.76M	102.50M
EBITDA	-68.13M	-53.87M	-110.59M	-102.58M	-106.88M	-54.84M
Net Income	-166.00M	-162.12M	-186.64M	-152.15M	-144.33M	-78.99M
Balance Sheet
Total Assets	790.29M	775.71M	805.21M	513.38M	572.05M	261.22M
Cash, Cash Equivalents and Short-Term Investments	157.06M	138.84M	220.97M	84.70M	187.25M	107.77M
Total Debt	586.63M	609.94M	541.68M	395.86M	4.55M	5.08M
Total Liabilities	742.92M	789.88M	703.49M	550.09M	492.63M	131.34M
Stockholders Equity	47.37M	-14.17M	101.72M	-36.71M	79.42M	129.88M
Cash Flow
Free Cash Flow	-28.19M	-137.79M	-165.46M	-133.42M	-141.98M	-70.30M
Operating Cash Flow	15.69M	-44.65M	-78.48M	-75.14M	-73.43M	-46.41M
Investing Cash Flow	-47.41M	-93.14M	-141.97M	-58.28M	-157.76M	-23.86M
Financing Cash Flow	88.46M	56.21M	356.92M	31.23M	311.97M	130.83M

Alphatec Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEC, the sentiment is Positive. The current price of 16.49 is above the 20-day moving average (MA) of 14.71, above the 50-day MA of 15.21, and above the 200-day MA of 12.44, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 68.02 is Neutral, neither overbought nor oversold. The STOCH value of 86.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATEC.

Alphatec Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPT	―	$1.46B	21.95	19.29%	―	40.98%	34.80%
AHCO	―	$1.24B	17.15	4.76%	―	-0.61%	―
LIVN	―	$2.91B	―	-17.87%	―	8.57%	-1154.64%
AORT	―	$2.14B	―	-5.01%	―	7.44%	-109.83%
ATEC	―	$2.44B	-14.53	-376.89%	―	26.27%	15.58%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ESTA	―	$1.52B	-17.13	-261.18%	―	17.22%	1.65%

Alphatec Holdings Corporate Events

Alphatec’s Financial Health at Risk Amid Potential U.S. Trade Policy Changes

Alphatec faces significant risks due to potential changes in U.S. trade policies, including tariffs and trade restrictions, which could negatively impact its operations and financial health. Although the majority of its suppliers are U.S.-based, certain materials essential for its manufacturing processes are subject to tariffs on imports. Furthermore, as Alphatec expands its international sales, it may encounter retaliatory trade measures from other nations. These factors, combined with possible global economic downturns stemming from trade disputes, pose a threat to Alphatec’s business performance and financial stability.

Alphatec’s Earnings Call Highlights Robust Growth and Future Prospects

Alphatec’s recent earnings call painted a picture of robust performance and promising growth. The company reported significant revenue growth, increased guidance, and strong cash flow generation, despite facing challenges like flat gross margins and expected tariff impacts. The expansion in clinical offerings and a strong market position underscore a positive outlook for the company.

Alphatec Holdings Reports Strong Q2 2025 Results

Alphatec Holdings, Inc. is a medical device company focused on revolutionizing spine surgery through innovative solutions, operating primarily in the spine sector. In its latest earnings report, Alphatec announced a significant increase in both surgical and total revenue for the second quarter of 2025, with surgical revenue growing by 29% to $168 million and total revenue increasing by 27.5% to $186 million. The company also raised its full-year guidance for revenue and profitability. Key financial metrics reveal a GAAP gross margin of 70% and a non-GAAP net income of $3 million, marking a shift to profitability. The company achieved an adjusted EBITDA of $23 million with a margin of 13%, reflecting disciplined execution and strategic growth. Looking ahead, Alphatec expects a 21% growth in total revenue for the full year 2025, with a revised expectation of $742 million, indicating continued confidence in its strategic direction and market position.