Alterity Therapeutics (ATHE) AI Stock Analysis

• Market Cap: $57.67M
• Dividend Yield: N/A
• Average Volume (3M): 13.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: N/A
• EPS Growth: 63.85%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.52
• Shares Outstanding: 18,125,694
• 10 Day Avg. Volume: 17,264
• 30 Day Avg. Volume: 13,231
• 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: 0.77
• Enterprise Value/Revenue: 8.18
• Enterprise Value/Gross Profit: 8.37
• Enterprise Value/Ebitda: -3.04
• 1Y Price Target: $12.00
• Price Target Upside: 238.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.75
• Revenue Forecast (FY): $5.31M

• Rating: 41 Neutral
• Price Target: $3.00 ▼(-15.49% Downside)

The overall stock score for Alterity Therapeutics is primarily influenced by its financial performance and technical analysis. The company shows strong revenue growth but struggles with profitability and cash flow, which are critical concerns. The technical indicators suggest a bearish trend, further impacting the score. Valuation is also a concern due to the negative P/E ratio and lack of dividend yield.

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

Alterity Therapeutics demonstrates strong revenue growth and effective cost management, as seen in its high gross profit margins. However, persistent losses and negative cash flows pose significant challenges. The company's low leverage is a positive aspect, but it must address profitability and cash flow issues to ensure long-term viability in the competitive biotechnology industry.

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	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: Negative
• Last Price: 3.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 3.55 is above the 20-day moving average (MA) of 3.34, below the 50-day MA of 3.86, and below the 200-day MA of 4.19, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 38.96 is Neutral, neither overbought nor oversold. The STOCH value of 34.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$92.25M	-1.26	-49.78%	―	-82.16%	14.58%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ATHE	41 Neutral	$57.67M	-4.15	-42.68%	―	―	63.85%
KLRS	28 Underperform	$152.81M	-1.23	-63.45%	―	―	63.31%
UNCY	28 Underperform	$119.49M	-1.71	-102.47%	―	―	66.05%
CVM	27 Underperform	$39.36M	-0.50	-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.