Alterity Therapeutics (ATHE) AI Stock Analysis

• Market Cap: $59.64M
• Dividend Yield: N/A
• Average Volume (3M): 25.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: N/A
• EPS Growth: 20.25%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): -1.58
• Shares Outstanding: 15,212,284
• 10 Day Avg. Volume: 41,017
• 30 Day Avg. Volume: 25,800
• PEG Ratio: -97.56
• Price to Book (P/B): 445.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -507.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.00
• Price Target Upside: 205.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: $4.00 ▲(1.78%Upside)

The overall stock score for Alterity Therapeutics is driven by financial performance challenges, including declining revenues, persistent losses, and negative cash flows. Technical analysis offers mixed signals, with a potential for support indicated by the 200-day moving average. However, valuation remains a concern due to negative earnings and lack of dividends, leading to an overall unattractive investment profile at this time.

Positive Factors

Clinical Trial Results

Alterity Therapeutics reported positive clinical results for its Phase 2 trial of ATH434 in Multiple System Atrophy (MSA), including 48% slowing of clinical progression at the 50 mg dose level and 29% slowing at the larger 75 mg dose after 52 weeks when compared to placebo.

Financial Position

Alterity announced it raised A$40M (~$24.8M in USD) through a two-tranche placement of its fully paid ordinary shares, which could extend the cash runway through CY26.

Regulatory Engagement

Based on the Phase 2 results, Alterity intends to engage the FDA to discuss next steps in the development of ATH434 in MSA, a disease with a small patient population but few treatment options at the present time.

Negative Factors

Stock Price Target

The recommendation on ATHE shares is being lowered to Hold as these shares have exceeded the $4 price target.

Alterity Therapeutics Business Overview & Revenue Model

Company Description

Alterity Therapeutics (ATHE) is a biotechnology company focused on developing therapeutic drugs to treat neurodegenerative diseases. The company primarily targets conditions such as Parkinson's disease and other disorders related to the degeneration of the nervous system. Alterity's core products are centered around its proprietary compounds aimed at modulating the biological pathways believed to contribute to these diseases.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	3.72M	4.02M	3.92M	5.12M	4.34M	0.00
Gross Profit	3.59M	3.80M	3.63M	4.76M	3.98M	-112.43K
EBITDA	-22.14M	-19.57M	-17.51M	-17.39M	-19.36M	-13.34M
Net Income	-19.79M	-19.12M	-13.81M	-12.85M	-15.31M	-9.70M
Balance Sheet
Total Assets	10.55M	19.22M	27.32M	41.36M	33.59M	13.30M
Cash, Cash Equivalents and Short-Term Investments	4.54M	12.64M	15.77M	34.81M	28.12M	9.20M
Total Debt	105.83K	159.04K	210.38K	117.49K	65.65K	33.75K
Total Liabilities	2.76M	5.43M	4.50M	5.89M	3.12M	2.76M
Stockholders Equity	7.79M	13.80M	22.81M	35.47M	30.47M	10.55M
Cash Flow
Free Cash Flow	-16.47M	-12.61M	-20.04M	-12.43M	-17.34M	-9.45M
Operating Cash Flow	-16.47M	-12.61M	-20.04M	-12.34M	-17.33M	-9.43M
Investing Cash Flow	-722.00	-5.72K	-36.46K	-89.15K	-10.47K	-16.74K
Financing Cash Flow	530.77K	9.22M	124.34K	16.30M	36.69M	3.98M

Alterity Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.93
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATHE, the sentiment is Neutral. The current price of 3.93 is below the 20-day moving average (MA) of 4.44, below the 50-day MA of 4.13, and above the 200-day MA of 2.93, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.49 is Neutral, neither overbought nor oversold. The STOCH value of 10.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATHE.

Alterity Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	HK$15.14B	5.55	-7.43%	4.45%	11.60%	-21.06%
CNTB	49 Neutral	$55.35M	―	-58.89%	―	―	―
ATHE	46 Neutral	$59.64M	―	-154.88%	―	―	20.25%
MAIA	44 Neutral	$53.64M	―	-1131.02%	―	―	23.55%
IKNA	41 Neutral	$65.63M	―	-30.49%	―	-100.00%	37.59%
IMRX	27 Underperform	$127.03M	―	-102.48%	―	―	-7.78%