Alpha Teknova (TKNO) AI Stock Analysis

• Market Cap: $346.80M
• Dividend Yield: N/A
• Average Volume (3M): 480.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 2.89%
• EPS Growth: 50.02%
• Country: US
• Employees: 173
• Sector: Healthcare
• Sector Strength: 69
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.58
• Shares Outstanding: 53,436,806
• 10 Day Avg. Volume: 351,525
• 30 Day Avg. Volume: 480,358
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.30
• Price to Cash Flow (P/CF): -83.60
• 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: $10.00
• Price Target Upside: 54.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Alpha Teknova's overall stock score reflects significant financial and operational challenges, including recurring losses and negative cash flows, which weigh heavily on the assessment. Technical indicators suggest a cautious outlook with mixed signals. Valuation metrics are unattractive due to negative profitability. The earnings call provides some positive guidance and strategic initiatives, offering a glimpse of potential improvement, but substantial hurdles remain.

Positive Factors

Financial Performance

Q4 revenues of $9.3M beat the Street's $8.8M, showing stronger than expected performance.

Profitability

Teknova's path to profitability should boost investor confidence given the high level of visibility.

Negative Factors

Macro Environment

The company called out cautiousness from customers related to the funding environment and other macro uncertainties.

Revenue Guidance

2025 revenue guidance of $39-42M is below consensus estimates, leading to modest expected top line growth.

Alpha Teknova Business Overview & Revenue Model

Company Description

Alpha Teknova (TKNO) is a biotechnology company that specializes in the manufacture and supply of critical reagents used in the research, discovery, development, and production of biopharmaceutical products. Operating within the life sciences sector, Teknova provides a range of high-quality custom and catalog products, including buffers, reagents, and cell culture media, which are essential for laboratory experiments and production processes in various scientific fields.

How the Company Makes Money

Alpha Teknova generates revenue primarily through the sale of its custom and catalog products to biopharmaceutical companies, academic institutions, and research organizations. The company's revenue streams are largely driven by its ability to provide high-quality, customized solutions that meet the specific needs of its clients in the life sciences industry. Teknova's partnerships with leading biopharmaceutical companies and research institutions play a significant role in its earnings, as these collaborations often lead to repeat business and long-term contracts. Additionally, Teknova's focus on innovation and its ability to quickly adapt to the evolving demands of the biotechnology sector further contribute to its financial success.

Alpha Teknova Financial Statement Overview

Summary

Alpha Teknova is facing significant financial challenges, characterized by recurring losses and negative cash flows. Despite some improvements in EBITDA, the overall scenario indicates operational and profitability challenges. The low debt levels provide some stability, but the company's ability to generate cash and achieve profitability is a major concern.

Income Statement

Alpha Teknova's income statement reveals a challenging financial situation. The company experienced a decrease in revenue from 2022 to 2023, with a slight recovery in 2024. Gross profit margin is low, indicating high COGS relative to revenue. The net profit margin is negative, reflecting consistent losses. Despite negative EBIT and EBITDA margins, there are signs of improvement in EBITDA from 2023 to 2024. Overall, the company faces significant profitability challenges.

Balance Sheet

The balance sheet shows a moderate level of financial stability. The debt-to-equity ratio is low, indicating conservative leverage, which is a positive aspect. However, the equity ratio has been declining, pointing to increased liabilities relative to assets. Return on equity is negative due to consistent net losses, and total assets have slightly decreased over the years. While the company maintains a decent equity base, the declining trend in equity ratio and negative ROE are concerns.

Cash Flow

Cash flow analysis indicates significant challenges in generating positive cash flow. The operating cash flow has been negative for several years, and the free cash flow remains deeply negative due to high capital expenditures. While there was a reduction in operating cash outflow in 2024, the free cash flow improvement is marginal. The lack of positive cash flow generation presents a risk to the company's financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
37.74M	36.68M	41.42M	36.89M	31.30M
	Gross Profit
7.23M	10.30M	17.48M	17.62M	17.75M
	EBIT
-26.15M	-35.56M	-28.86M	-12.01M	4.66M
	EBITDA
-26.15M	-25.54M	-25.69M	-9.13M	6.71M
	Net Income Common Stockholders
-26.75M	-36.78M	-47.47M	-9.80M	3.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.40M	28.48M	42.24M	87.52M	5.13M
	Total Assets
118.77M	128.59M	152.26M	166.51M	62.91M
	Total Debt
20.73M	30.46M	42.31M	11.87M	0.00
	Net Debt
17.02M	1.97M	74.00K	-75.65M	-3.31M
	Total Liabilities
36.38M	38.55M	52.38M	23.31M	46.14M
	Stockholders Equity
82.39M	90.04M	99.89M	143.20M	16.77M
Cash Flow		Free Cash Flow
-13.52M	-26.75M	-55.55M	-28.95M	-2.96M
	Operating Cash Flow
-12.39M	-18.81M	-27.40M	-9.07M	2.50M
	Investing Cash Flow
-27.27M	-7.74M	-28.15M	-17.52M	-1.74M
	Financing Cash Flow
14.89M	12.80M	10.27M	110.79M	-1.60M

Alpha Teknova Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.49
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKNO, the sentiment is Positive. The current price of 6.49 is above the 20-day moving average (MA) of 5.50, above the 50-day MA of 6.05, and above the 200-day MA of 6.07, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 63.66 is Neutral, neither overbought nor oversold. The STOCH value of 83.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TKNO.

Alpha Teknova Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIGA	80 Outperform	$464.34M	7.84	28.70%	10.13%	-0.86%	-13.33%
Sector *	51 Neutral	$5.32B	3.41	-40.36%	2.89%	17.93%	2.52%
EBS	51 Neutral	$298.31M	―	-33.67%	―	-0.62%	75.57%
TKNO	50 Neutral	$346.80M	―	-31.02%	―	2.89%	50.02%
LFCR	49 Neutral	$236.22M	―	-83.58%	―	6.88%	-17.54%
RMTI	45 Neutral	$39.98M	―	-2.86%	―	21.38%	93.09%
AQST	40 Underperform	$283.76M	―	77.48%	―	13.80%	-389.41%