Alterity Therapeutics (ATHE) AI Stock Analysis

• Market Cap: $78.15M
• Dividend Yield: N/A
• Average Volume (3M): 12.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: N/A
• EPS Growth: 63.85%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.43
• Shares Outstanding: 18,125,694
• 10 Day Avg. Volume: 15,966
• 30 Day Avg. Volume: 12,420
• PEG Ratio: 0.10
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 4.09
• P/FCF Ratio: -1.30
• Enterprise Value/Market Cap: 0.34
• Enterprise Value/Revenue: 7.13
• Enterprise Value/Gross Profit: 7.41
• Enterprise Value/Ebitda: -1.20
• 1Y Price Target: $12.00
• Price Target Upside: 195.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $5.50 ▲(35.47% Upside)

The overall stock score for Alterity Therapeutics is primarily impacted by its challenging financial performance, with persistent losses and negative cash flows posing significant risks. However, technical analysis indicates strong upward momentum, which partially offsets the negative financial outlook. The poor valuation due to a negative P/E ratio further depresses the score. Without earnings call insights or new corporate events, the score reflects the current financial and technical conditions.

Positive Factors

Strong Gross Margin

A strong gross margin indicates effective cost management in production, which can support future profitability if operating costs are controlled.

Low Leverage

Low leverage reduces financial risk, providing stability and flexibility to invest in R&D and strategic initiatives without high debt burdens.

Proprietary Compounds

Proprietary compounds in neurodegenerative treatment offer a competitive edge, potentially leading to successful partnerships and revenue streams.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market penetration or product adoption, which can hinder long-term growth and financial stability.

Persistent Losses

Persistent losses highlight ongoing operational inefficiencies and can strain resources, limiting the ability to invest in growth initiatives.

Negative Cash Flows

Negative cash flows suggest operational inefficiencies and reliance on external financing, which can impact long-term financial health.

Alterity Therapeutics Business Overview & Revenue Model

Company Description

Alterity Therapeutics Limited engages in the research and development of therapeutic drugs to treat Alzheimer's disease, Huntington disease, Parkinson's disease, and other neurological disorders in Australia. The company's lead drug candidate is ATH434 that has completed Phase I clinical trial for the treatment of Parkinson's disease. It is also developing PBT2 that has completed Phase IIa clinical trial to treat Alzheimer's disease. The company was formerly known as Prana Biotechnology Limited and changed its name to Alterity Therapeutics Limited in April 2019. Alterity Therapeutics Limited was incorporated in 1997 and is headquartered in Melbourne, Australia.

How the Company Makes Money

Alterity Therapeutics makes money through a combination of research and development collaborations, licensing agreements, and potential sales of its proprietary drug candidates. Revenue is primarily generated through milestone payments and royalties from its partnerships with larger pharmaceutical companies. These partnerships are crucial as they provide financial support for the costly process of drug development and clinical trials. Additionally, Alterity may receive government grants or funding from non-profit organizations dedicated to advancing neurological research. The company's earnings are significantly influenced by the success of clinical trials and the subsequent approval and commercialization of its therapies.

Alterity Therapeutics Financial Statement Overview

Summary

Alterity Therapeutics faces significant financial challenges, as evidenced by declining revenues, persistent losses, and negative cash flows. Despite a strong gross margin, profitability is severely impacted by high operating costs. The company maintains low leverage, but declining equity suggests ongoing financial strain. Improved operational efficiency and revenue growth are crucial for financial stability.

Income Statement

Alterity Therapeutics shows a declining revenue trend with revenue decreasing over the past year. The company has consistently faced operating losses, reflected in negative EBIT and net income margins. Gross profit margins remain positive, indicating some control over cost of goods sold, but overall profitability is hampered by high operating expenses.

Balance Sheet

The balance sheet reveals a low debt-to-equity ratio, suggesting a conservative approach to leverage. However, the equity ratio has declined, indicating a reduction in shareholder equity relative to assets. Return on equity remains negative due to persistent losses, highlighting a challenge in delivering shareholder value.

Cash Flow

The cash flow statements depict negative free cash flows, indicating cash outflows in operations have not been offset by sufficient inflows. The operating cash flow to net income ratio suggests inefficiencies in converting income into cash. While financing activities have provided liquidity, reliance on external financing could pose risks.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.02M	3.92M	5.12M	4.34M	0.00
Gross Profit	3.80M	3.63M	4.76M	3.98M	-112.43K
EBITDA	-19.57M	-17.51M	-17.39M	-19.36M	-13.34M
Net Income	-19.12M	-13.81M	-12.85M	-15.31M	-9.70M
Balance Sheet
Total Assets	19.22M	27.32M	41.36M	33.59M	13.30M
Cash, Cash Equivalents and Short-Term Investments	12.64M	15.77M	34.81M	28.12M	9.20M
Total Debt	159.04K	210.38K	117.49K	65.65K	33.75K
Total Liabilities	5.43M	4.50M	5.89M	3.12M	2.76M
Stockholders Equity	13.80M	22.81M	35.47M	30.47M	10.55M
Cash Flow
Free Cash Flow	-12.61M	-20.04M	-12.43M	-17.34M	-9.45M
Operating Cash Flow	-12.61M	-20.04M	-12.34M	-17.33M	-9.43M
Investing Cash Flow	-5.72K	-36.46K	-89.15K	-10.47K	-16.74K
Financing Cash Flow	9.22M	124.34K	16.30M	36.69M	3.98M

Alterity Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATHE, the sentiment is Negative. The current price of 4.06 is below the 20-day moving average (MA) of 4.76, below the 50-day MA of 5.03, and above the 200-day MA of 4.05, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 27.89 is Positive, neither overbought nor oversold. The STOCH value of 16.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATHE.

Alterity Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATHE	56 Neutral	$78.15M	―	-42.68%	―	―	63.85%
CNTB	49 Neutral	―	-5.97	―	―	―	―
MAIA	44 Neutral	52.79M	-2.66	―	―	―	62.69%
IMA	41 Neutral	89.45M	-1.02	―	―	-100.00%	55.32%
IMRX	27 Underperform	383.69M	-4.22	―	―	―	0.66%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%