Alpha Tau Medical Ltd (DRTS) AI Stock Analysis

• Market Cap: $178.77M
• Dividend Yield: N/A
• Average Volume (3M): 55.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: N/A
• EPS Growth: -16.78%
• Country: US
• Employees: 125
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -0.45
• Shares Outstanding: 70,380,570
• 10 Day Avg. Volume: 42,399
• 30 Day Avg. Volume: 55,247
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• 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: $7.33
• Price Target Upside: 188.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Alpha Tau Medical Ltd's stock score is heavily impacted by its financial performance challenges, particularly the lack of revenue and consistent operational losses. Despite positive technical indicators suggesting potential upward price momentum, the poor valuation metrics reflect the company's unprofitability. Overall, the stock presents significant risks primarily due to its financial instability, though the technical analysis suggests some short-term trading opportunities.

Positive Factors

Clinical Trials

Alpha Tau Medical reported positive interim results for the first eight patients receiving a combination of Alpha DaRT and Keytruda for the treatment of recurrent unresectable or metastatic head and neck squamous cell carcinoma, with a systemic objective response rate of 75%.

Manufacturing Capabilities

The Hudson, NH facility is slated to complete its first phase of construction and come online for production of Alpha DaRT, indicating progress in manufacturing capabilities.

Regulatory Progress

Alpha DaRT has been accepted into the Total Product Life Cycle Advisory Program of the U.S. FDA to accelerate market access for patients with recurrent glioblastoma multiforme.

Negative Factors

Market Competition

Options to invest in publicly traded radiopharma names have grown increasingly scarce, making DRTS an overlooked exception.

Regulatory Uncertainty

The company expects to receive a response from PMDA in Japan on pre-market approval of Alpha DaRT in patients with recurrent head & neck cancer by the end of 2024.

Alpha Tau Medical Ltd Business Overview & Revenue Model

Company Description

Alpha Tau Medical Ltd (DRTS) is a medical technology company specializing in the research, development, and commercialization of innovative cancer therapies. The company is primarily focused on its proprietary Alpha DaRT (Diffusing Alpha-emitters Radiation Therapy) technology designed to deliver highly localized radiation treatment to tumors. This technology aims to enhance the efficacy of cancer treatments while minimizing damage to surrounding healthy tissues.

How the Company Makes Money

Alpha Tau Medical Ltd generates revenue through the commercialization of its Alpha DaRT technology. The company's revenue model includes licensing agreements with medical institutions and healthcare providers, who utilize the Alpha DaRT for treating cancer patients. Additionally, the company may engage in strategic partnerships with pharmaceutical companies to integrate its technology into broader cancer treatment regimens. Revenue streams are also likely to include sales of related equipment and consumables necessary for the implementation of the Alpha DaRT technology. The company's financial performance is influenced by the successful clinical adoption of its technology, regulatory approvals, and the expansion of its treatment offerings across various cancer types.

Alpha Tau Medical Ltd Financial Statement Overview

Summary

Alpha Tau Medical Ltd faces significant financial challenges. The lack of revenue generation and consistent losses raise concerns about the company's ability to achieve profitability. While there is some improvement in equity and asset financing, the heavy reliance on external funding and ongoing cash burn highlight the need for strategic adjustments to ensure long-term sustainability.

Income Statement

Alpha Tau Medical Ltd's income statement reveals significant challenges, with no revenue generated over the past years. Gross profit margins are negative due to the absence of revenue and consistent operating expenses. Net income remains negative, reflecting ongoing operational losses. The EBIT and EBITDA metrics are also unfavorable, indicating a lack of profitability in core operations.

Balance Sheet

The balance sheet shows some improvement in stockholders' equity, which is now positive, reflecting a recovery from previous negative positions. However, the debt-to-equity ratio is concerning due to substantial liabilities relative to equity in earlier years. The equity ratio has improved, indicating better asset financing through equity, but the overall financial stability remains weak given the company's historical leverage issues.

Cash Flow

Cash flow analysis reveals persistent negative free cash flow, highlighting ongoing cash burn. The operating cash flow remains negative, indicating the company is not generating sufficient cash from operations. While the company has seen some inflow from financing activities, it relies heavily on external funding, which poses sustainability concerns.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-1.07M	-1.07M	-979.00K	-776.00K	-86.00K	0.00
	EBIT
-36.35M	35.68M	-32.14M	-13.79M	-9.24M	-8.01M
	EBITDA
-34.48M	-28.03M	-32.74M	-13.21M	-9.16M	-7.94M
	Net Income Common Stockholders
-27.63M	-29.16M	-33.76M	-27.27M	-8.88M	-8.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.03M	81.79M	104.53M	31.32M	46.02M	28.13M
	Total Assets
7.89M	107.39M	120.15M	42.22M	52.99M	31.56M
	Total Debt
0.00	13.28M	5.19M	53.96M	53.96M	0.00
	Net Debt
-457.75K	619.00K	-643.00K	30.73M	38.37M	-1.83M
	Total Liabilities
7.94M	22.91M	14.49M	76.99M	61.42M	31.75M
	Stockholders Equity
-48.25K	84.47M	105.66M	-34.78M	-8.43M	-193.00K
Cash Flow		Free Cash Flow
-3.78K	-24.36M	-24.78M	-14.74M	-11.02M	-8.20M
	Operating Cash Flow
-3.78K	-17.96M	-23.88M	-11.81M	-7.25M	-6.91M
	Investing Cash Flow
0.00	18.68M	-89.94M	19.27M	-7.82M	-10.16M
	Financing Cash Flow
0.00	5.30M	96.91M	111.00K	29.32M	5.32M

Alpha Tau Medical Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRTS, the sentiment is Negative. The current price of 2.54 is below the 20-day moving average (MA) of 2.58, below the 50-day MA of 2.85, and below the 200-day MA of 2.61, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 35.37 is Neutral, neither overbought nor oversold. The STOCH value of 11.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DRTS.

Alpha Tau Medical Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.36B	1.24	-44.94%	2.70%	18.33%	1.47%
EDAP	46 Neutral	$56.84M	―	-51.63%	―	11.26%	-14.21%
DRTS	43 Neutral	$178.77M	―	-43.16%	―	―	-16.78%
SENS	43 Neutral	$392.74M	―	-166.29%	―	0.37%	-20.49%
ICCM	41 Neutral	$64.49M	―	-160.70%	―	1.92%	6.23%
AVGR	36 Underperform	$1.57M	―	-480.23%	―	-6.26%	62.60%
PAVM	36 Underperform	$11.63M	―	-499.57%	―	22.15%	―