Alterity Therapeutics (ATHE) AI Stock Analysis

• Market Cap: $64.83M
• Dividend Yield: N/A
• Average Volume (3M): 53.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: N/A
• EPS Growth: 20.25%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 54
• Industry: Biotechnology
• EPS (TTM): -1.58
• Shares Outstanding: 15,212,284
• 10 Day Avg. Volume: 124,555
• 30 Day Avg. Volume: 53,172
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: 183.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Alterity Therapeutics is facing financial difficulties with declining revenues and persistent losses, which significantly impact its overall score. While there is positive short-term momentum, the technical indicators suggest caution due to potential overbought conditions. The valuation perspective is weak, with a negative P/E ratio and no dividend yield, further reducing the stock's attractiveness. Improvement in financial performance and operational efficiency is crucial for a better outlook.

Positive Factors

Clinical Trial Results

Positive clinical results for the Phase 2 trial of ATH434 in Multiple System Atrophy show a 48% slowing of clinical progression at the 50 mg dose level.

Financial Stability

The balance sheet of Alterity Therapeutics has been strengthened with a financing that 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.

Negative Factors

Market Limitations

Despite promising results, ATH434 targets a disease with a small patient population and few treatment options.

Stock Recommendation

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 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 generates revenue primarily through partnerships, collaborations, and licensing agreements with other pharmaceutical and biotechnology companies. These partnerships may involve joint development efforts, milestone payments, and royalties on sales of commercialized products. The company may also secure funding through government grants or subsidies aimed at supporting innovative medical research. Additionally, Alterity might engage in equity financing to raise capital for its ongoing research and development activities.

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
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
	EBIT
-19.60M	-14.64M	-15.50M	-15.18M	-10.41M
	EBITDA
-19.57M	-17.51M	-17.39M	-19.36M	-13.34M
	Net Income Common Stockholders
-19.12M	-13.81M	-12.85M	-15.31M	-9.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.64M	15.77M	34.81M	28.12M	9.20M
	Total Assets
19.22M	27.32M	41.36M	33.59M	13.30M
	Total Debt
159.04K	210.38K	117.49K	65.65K	33.75K
	Net Debt
-12.48M	-15.56M	-34.69M	-28.05M	-9.16M
	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: 4.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 4.23 is above the 20-day moving average (MA) of 3.54, above the 50-day MA of 3.53, and above the 200-day MA of 2.43, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 65.97 is Neutral, neither overbought nor oversold. The STOCH value of 47.65 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
Sector *	52 Neutral	$5.21B	3.55	-41.91%	2.83%	15.12%	0.42%
ATHE	50 Neutral	$64.83M	―	-154.88%	―	―	20.25%
CNTB	49 Neutral	$44.28M	―	-58.89%	―	―	―
MAIA	44 Neutral	$57.70M	―	-1131.02%	―	―	23.55%
IKNA	41 Neutral	$45.09M	―	-33.30%	―	-100.00%	37.59%
IMRX	27 Underperform	$44.62M	―	-102.48%	―	―	-7.78%