Alterity Therapeutics (ATHE) AI Stock Analysis

• Market Cap: $84.03M
• Dividend Yield: N/A
• Average Volume (3M): 145.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: N/A
• EPS Growth: 20.25%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.43
• Shares Outstanding: 15,345,777
• 10 Day Avg. Volume: 50,393
• 30 Day Avg. Volume: 145,723
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.02
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 0.57
• Enterprise Value/Ebitda: -0.09
• 1Y Price Target: $8.75
• Price Target Upside: 65.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: $5.50 ▲(3.77% 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

Clinical Trial Success

Positive news from Phase 2 data in early-stage multiple system atrophy shows ATH434 slowing disease progression and reducing iron accumulation.

Financial Position

Alterity Therapeutics raised substantial funding through a two-tranche financing, potentially providing up to A$40M in additional funding.

Regulatory Advantage

ATH434 has orphan drug designation for MSA in both the US and EU.

Negative Factors

Stock Price Decline

Despite positive data and demonstration of therapeutic benefit in an extremely challenging setting in advanced MSA, ATHE shares are down ~15% which is attributed to sell-the-news and profit taking.

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, with 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.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 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: Positive
• Last Price: 5.30
• 50DMA: Positive
• 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 ATHE, the sentiment is Positive. The current price of 5.3 is above the 20-day moving average (MA) of 5.24, above the 50-day MA of 4.70, and above the 200-day MA of 3.48, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 54.78 is Neutral, neither overbought nor oversold. The STOCH value of 68.12 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
ATHE	56 Neutral	$84.03M	―	-154.88%	―	―	20.25%
Sector *	51 Neutral	$7.41B	-0.29	-44.86%	2.30%	23.46%	-0.02%
CNTB	49 Neutral	$125.65M	―	-58.89%	―	―	―
IMA	41 Neutral	$164.04M	―	-23.76%	―	-100.00%	55.32%
IMRX	27 Underperform	$116.95M	―	-102.48%	―	―	-5.95%
IMMX	―	$66.32M	―	-162.04%	―	―	―
MAIA	44 Neutral	$45.16M	―	-459.53%	―	―	62.69%