Alterity Therapeutics (ATHE) AI Stock Analysis

• Market Cap: $77.79M
• Dividend Yield: N/A
• Average Volume (3M): 165.15K
• 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: 463,515
• 30 Day Avg. Volume: 165,145
• 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: 0.34
• Enterprise Value/Revenue: 4.88
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: -1.82
• 1Y Price Target: $12.00
• Price Target Upside: 139.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: $4.00 ▼(-20.16% Downside)

Alterity Therapeutics faces significant challenges with profitability and cash flow, which are critical for its long-term success. The technical indicators suggest a bearish trend, and the valuation metrics highlight the company's unprofitability. These factors collectively contribute to a low overall stock score.

Positive Factors

Clinical Trial Success

The successful Phase 2 trial of ATH434 in Multiple System Atrophy shows potential for a breakthrough therapy, enhancing Alterity's pipeline credibility and long-term growth prospects in neurodegenerative disease treatment.

Capital Raising

The successful capital raising strengthens Alterity's balance sheet, providing necessary funds for ongoing R&D and clinical trials, which is crucial for advancing their drug pipeline and sustaining operations.

Strong Gross Profit Margin

A high gross profit margin indicates effective cost management relative to revenue, which can support profitability once revenue scales, enhancing long-term financial health.

Negative Factors

Negative Cash Flows

Persistent negative cash flows indicate liquidity challenges, potentially limiting Alterity's ability to fund operations and growth initiatives without additional financing.

Profitability Challenges

Ongoing profitability issues, despite revenue growth, suggest structural challenges in converting sales into profits, which could hinder long-term sustainability and investor confidence.

Negative Return on Equity

A negative return on equity indicates that Alterity is not effectively generating returns on its equity base, which can deter investment and affect long-term growth potential.

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 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

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.44M	5.44M	4.02M	3.92M	5.12M	4.34M
Gross Profit	5.31M	5.31M	3.80M	3.63M	4.76M	3.98M
EBITDA	-14.63M	-14.63M	-19.57M	-14.60M	-17.39M	-15.16M
Net Income	-12.15M	-12.15M	-19.12M	-13.81M	-12.85M	-15.31M
Balance Sheet
Total Assets	46.03M	46.03M	19.22M	27.32M	41.36M	33.59M
Cash, Cash Equivalents and Short-Term Investments	40.66M	40.66M	12.64M	15.77M	34.81M	28.12M
Total Debt	155.46K	155.46K	159.04K	210.38K	117.49K	65.65K
Total Liabilities	3.62M	3.62M	5.43M	4.50M	5.89M	3.12M
Stockholders Equity	42.40M	42.40M	13.80M	22.81M	35.47M	30.47M
Cash Flow
Free Cash Flow	-10.71M	-11.45M	-12.61M	-20.04M	-12.43M	-17.34M
Operating Cash Flow	-10.71M	-11.45M	-12.61M	-20.04M	-12.34M	-17.33M
Investing Cash Flow	-7.50M	-7.50M	-5.72K	-36.46K	-89.15K	-10.47K
Financing Cash Flow	25.61M	39.67M	9.22M	124.34K	16.30M	36.69M

Alterity Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 5.01 is above the 20-day moving average (MA) of 4.32, above the 50-day MA of 4.76, and above the 200-day MA of 4.20, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 63.30 is Neutral, neither overbought nor oversold. The STOCH value of 82.67 is Negative, 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
RPTX	60 Neutral	$78.19M	―	-69.96%	―	-99.64%	-59.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ATHE	41 Neutral	$77.79M	―	-42.68%	―	―	63.85%
KLRS	28 Underperform	$79.67M	―	-50.68%	―	―	73.18%
UNCY	28 Underperform	$79.30M	―	-3987.11%	―	―	68.02%
CVM	27 Underperform	$79.13M	―	-328.04%	―	―	42.29%

Alterity Therapeutics Corporate Events

Alterity Therapeutics Reports Change in Substantial Holding by Regal Funds

On October 14, 2025, Alterity Therapeutics Limited reported a change in substantial holding as per a notice filed by Regal Funds Management Pty Limited. The change, which occurred on October 10, 2025, increased Regal’s voting power in Alterity from 13.76% to 14.93%. This adjustment in holdings reflects a strategic move by Regal Funds Management, potentially impacting Alterity’s shareholder dynamics and influencing future corporate decisions.

Alterity Therapeutics Reports Positive ATH434 Phase 2 Trial Results at 2025 MDS Congress

Alterity Therapeutics announced positive results from their ATH434 Phase 2 trial, presented at the 2025 International Congress of Parkinson’s Disease and Movement Disorders. The trial demonstrated that ATH434 slows disease progression and stabilizes orthostatic hypotension in patients with Multiple System Atrophy (MSA). New analyses increased confidence in the trial results, showing significant efficacy at a 75 mg dose. The company aims to advance ATH434 development and improve MSA treatment paradigms, reinforcing its potential market leadership position.

Alterity Therapeutics Sets AGM and Director Nomination Dates

Alterity Therapeutics Limited announced that its next Annual General Meeting (AGM) is scheduled for November 21, 2025. The closing date for director nominations is set for October 1, 2025. This announcement is a routine part of the company’s governance process, providing stakeholders with important dates for participation in corporate decision-making.

Alterity Therapeutics Initiates Trading Halt for Capital Raising Announcement

On September 4, 2025, Alterity Therapeutics Limited announced a trading halt on its securities, pending a significant announcement related to a capital raising. The halt is expected to last until the earlier of the announcement release or the commencement of normal trading on September 8, 2025. This move signals a potential strategic financial maneuver that could impact the company’s market position and stakeholder interests.

Alterity Therapeutics Initiates Trading Halt for Capital Raising

On September 4, 2025, Alterity Therapeutics Limited announced a trading halt on its securities, pending an announcement related to a capital raising. The halt will remain in effect until the company releases the announcement or until the commencement of normal trading on September 8, 2025. This move is aimed at facilitating a smooth capital raising process, which could have significant implications for the company’s financial strategy and investor relations.