Alterity Therapeutics (ATHE) AI Stock Analysis

• Market Cap: $60.99M
• Dividend Yield: N/A
• Average Volume (3M): 13.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: N/A
• EPS Growth: 63.85%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.07
• Shares Outstanding: 18,125,694
• 10 Day Avg. Volume: 16,981
• 30 Day Avg. Volume: 13,055
• PEG Ratio: 0.09
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 12.18
• P/FCF Ratio: -5.79
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 9.91
• Enterprise Value/Gross Profit: 10.23
• Enterprise Value/Ebitda: -1.91
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.18
• Revenue Forecast (FY): $2.64M

• Rating: 46 Neutral
• Price Target: $3.50 ▼(-1.41% Downside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is primarily held back by persistent unprofitability and negative operating/free cash flow despite strong gross margins and solid recent revenue growth. Technicals are mixed—some near-term strength above shorter moving averages, but weaker longer-term trend signals—and valuation is constrained by negative earnings and no dividend support.

Positive Factors

Innovative Drug Development

Alterity's unique approach to treating neurodegenerative diseases positions it as a leader in innovation, potentially leading to breakthrough therapies and a competitive edge in the biotechnology sector.

Positive Clinical Trial Results

Successful Phase 2 results for ATH434 enhance Alterity's credibility and market potential in treating Multiple System Atrophy, supporting long-term growth and market leadership.

Strong Revenue Growth

High gross profit margins indicate effective cost management and strong revenue growth, which are critical for sustaining operations and funding future R&D activities.

Negative Factors

Profitability Challenges

Persistent unprofitability raises concerns about Alterity's ability to sustain operations and invest in future growth, posing a risk to long-term viability.

Negative Cash Flows

Negative cash flows indicate liquidity issues, potentially limiting Alterity's ability to fund ongoing research and development, impacting its growth trajectory.

High Operational Risk

Ongoing operational losses and cash flow issues increase financial risk, potentially affecting Alterity's ability to achieve long-term strategic goals and maintain competitive positioning.

Alterity Therapeutics Business Overview & Revenue Model

Company Description

Alterity Therapeutics (ATHE) is a biotechnology company focused on developing innovative therapies for neurodegenerative diseases, particularly in the realm of protein misfolding disorders. The company operates primarily in the healthcare sector, leveraging its proprietary drug development platform to create novel treatments aimed at addressing unmet medical needs in conditions such as Alzheimer's disease and Parkinson's disease. Alterity's core pipeline includes drug candidates that target specific molecular mechanisms involved in these disorders, with the goal of improving patient outcomes and quality of life.

How the Company Makes Money

Alterity Therapeutics generates revenue primarily through the development and commercialization of its pharmaceutical products. The company may receive funding through various channels, including government grants, partnerships with larger pharmaceutical firms, and licensing agreements for its drug candidates. Additionally, Alterity could potentially earn revenue through milestone payments and royalties from any successful drug sales once they are commercialized. Collaborations with biotech or pharmaceutical companies can also provide financial support and resources, which help sustain its research and development efforts.

Alterity Therapeutics Financial Statement Overview

Summary

Very strong gross margins and notable recent revenue growth, but profitability remains weak with negative net profit/EBIT margins and continued losses. Low leverage helps, yet negative operating and free cash flow raise sustainability and funding-risk concerns.

Income Statement

Alterity Therapeutics shows a strong gross profit margin, consistently above 90%, indicating effective cost management relative to revenue. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. Despite a notable revenue growth rate of 46% in the latest year, the company remains unprofitable, which is a concern for long-term sustainability.

Balance Sheet

The balance sheet reflects a low debt-to-equity ratio, suggesting minimal leverage and a conservative capital structure. However, the return on equity is negative, indicating that the company is not generating sufficient returns on its equity base. The equity ratio is relatively stable, but the negative ROE highlights profitability challenges.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, which are concerning for liquidity and operational sustainability. The free cash flow to net income ratio is consistently around 1, indicating that cash flow is closely aligned with net income, albeit both are negative. The company needs to improve cash generation to support its operations and growth.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	3.83M	5.44M	4.02M	3.92M	5.12M	4.34M
Gross Profit	3.71M	5.31M	3.80M	3.63M	4.76M	3.98M
EBITDA	-19.87M	-14.63M	-19.57M	-14.60M	-17.39M	-15.16M
Net Income	-14.41M	-12.15M	-19.12M	-13.81M	-12.85M	-15.31M
Balance Sheet
Total Assets	56.86M	46.03M	19.22M	27.32M	41.36M	33.59M
Cash, Cash Equivalents and Short-Term Investments	49.15M	40.66M	12.64M	15.77M	34.81M	28.12M
Total Debt	98.35K	155.46K	159.04K	210.38K	117.49K	65.65K
Total Liabilities	2.65M	3.62M	5.43M	4.50M	5.89M	3.12M
Stockholders Equity	54.21M	42.40M	13.80M	22.81M	35.47M	30.47M
Cash Flow
Free Cash Flow	-2.36M	-11.45M	-12.61M	-20.04M	-12.43M	-17.34M
Operating Cash Flow	-12.78M	-11.45M	-12.61M	-20.04M	-12.34M	-17.33M
Investing Cash Flow	-137.62K	-7.50M	-5.72K	-36.46K	-89.15K	-10.47K
Financing Cash Flow	44.09M	39.67M	9.22M	124.34K	16.30M	36.69M

Alterity Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATHE, the sentiment is Positive. The current price of 3.55 is above the 20-day moving average (MA) of 3.46, above the 50-day MA of 3.39, and below the 200-day MA of 4.11, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 50.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATHE.

Alterity Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KLRS	60 Neutral	$145.12M	-2.27	-76.00%	―	―	63.31%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ATHE	46 Neutral	$60.99M	-2.07	-30.19%	―	―	63.85%
UNCY	44 Neutral	$146.79M	-3.28	-184.07%	―	―	66.05%
CVM	43 Neutral	$30.19M	-1.93	-226.10%	―	―	48.68%