Alpha Tau Medical Ltd (DRTS) AI Stock Analysis

• Market Cap: $355.74M
• Dividend Yield: N/A
• Average Volume (3M): 63.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: N/A
• EPS Growth: -21.92%
• Country: US
• Employees: 125
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.13
• Shares Outstanding: 84,699,720
• 10 Day Avg. Volume: 70,102
• 30 Day Avg. Volume: 63,069
• PEG Ratio: -0.96
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.84
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -5.62
• 1Y Price Target: $8.50
• Price Target Upside: 110.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 38 Underperform
• Price Target: ―

Alpha Tau Medical Ltd is struggling with significant financial challenges, primarily due to a lack of revenue and ongoing cash burn. While technical indicators show a neutral trend, the valuation metrics reflect the company's unprofitability. The absence of earnings call insights and corporate events limits additional context. Overall, the stock is risky with a low score of 38, suggesting caution for potential investors.

Positive Factors

Innovative Technology

Alpha Tau's focus on Alpha DaRT technology positions it as a leader in innovative cancer treatments, offering potential for long-term growth and market differentiation in the healthcare sector.

Strategic Partnerships

Strategic partnerships can enhance Alpha Tau's R&D capabilities and expand its market reach, providing additional revenue streams through milestone payments and royalties.

Equity Financing Improvement

Positive equity financing indicates improved financial health, enabling Alpha Tau to better support its operations and invest in growth opportunities.

Negative Factors

Lack of Revenue Generation

The absence of revenue generation highlights significant challenges in monetizing its technology, impacting long-term sustainability and profitability.

Cash Burn and External Funding Reliance

Ongoing cash burn and heavy reliance on external funding raise concerns about Alpha Tau's ability to sustain operations without strategic adjustments.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and a lack of profitability, challenging Alpha Tau's ability to achieve financial stability.

Alpha Tau Medical Ltd Business Overview & Revenue Model

Company Description

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, and breast cancers; and preclinical studies for hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.

How the Company Makes Money

Alpha Tau Medical Ltd generates revenue primarily through the commercialization of its proprietary Alpha DaRT technology. The company's revenue model includes direct sales of its products to healthcare providers and hospitals, as well as licensing agreements that allow other medical institutions and companies to utilize its technology. Additionally, Alpha Tau Medical may engage in strategic partnerships and collaborations with pharmaceutical companies and research institutions to further develop and expand the applications of its technology, potentially resulting in additional revenue streams through milestone payments and royalties. The company's finances are also supported by investments and funding from venture capital and other investors interested in innovative cancer treatment solutions.

Alpha Tau Medical Ltd Financial Statement Overview

Summary

Alpha Tau Medical Ltd faces significant financial challenges with no revenue generation and consistent losses. Although there's 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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	-1.10M	-1.07M	-979.00K	-776.00K	-86.00K
EBITDA	-32.18M	-30.30M	-28.03M	-32.74M	-13.21M	-9.16M
Net Income	-35.20M	-31.75M	-29.16M	-33.76M	-27.27M	-8.88M
Balance Sheet
Total Assets	110.95M	86.20M	107.39M	120.15M	42.22M	52.99M
Cash, Cash Equivalents and Short-Term Investments	79.70M	59.60M	81.79M	104.53M	31.32M	46.02M
Total Debt	13.31M	12.54M	13.28M	5.19M	53.96M	53.96M
Total Liabilities	24.33M	23.54M	22.91M	14.49M	76.99M	61.42M
Stockholders Equity	86.62M	62.67M	84.47M	105.66M	-34.78M	-8.43M
Cash Flow
Free Cash Flow	0.00	-22.02M	-24.36M	-24.78M	-14.74M	-11.02M
Operating Cash Flow	0.00	-19.78M	-17.96M	-23.88M	-11.81M	-7.25M
Investing Cash Flow	0.00	20.77M	18.68M	-89.94M	19.27M	-7.82M
Financing Cash Flow	0.00	25.00K	5.30M	96.91M	111.00K	29.32M

Alpha Tau Medical Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRTS, the sentiment is Positive. The current price of 4.04 is below the 20-day moving average (MA) of 4.10, above the 50-day MA of 3.78, and above the 200-day MA of 3.20, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 53.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LRMR	49 Neutral	$372.32M	―	-60.25%	―	―	-40.03%
BNTC	47 Neutral	$416.33M	―	-42.31%	―	―	83.28%
CAPR	45 Neutral	$291.22M	―	-120.15%	―	-50.68%	-76.38%
AURA	43 Neutral	$352.22M	―	-55.39%	―	―	-9.14%
DRTS	38 Underperform	$355.74M	―	-43.83%	―	―	-21.92%
LXEO	38 Underperform	$497.89M	―	-75.32%	―	―	-20.53%