Alpha Teknova (TKNO) AI Stock Analysis

• Market Cap: $292.86M
• Dividend Yield: N/A
• Average Volume (3M): 363.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 3.79%
• EPS Growth: 55.19%
• Country: US
• Employees: 173
• Sector: Healthcare
• Sector Strength: 53
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.09
• Shares Outstanding: 53,440,810
• 10 Day Avg. Volume: 258,377
• 30 Day Avg. Volume: 363,184
• PEG Ratio: -0.81
• Price to Book (P/B): 4.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -27.47
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 2.73
• Enterprise Value/Gross Profit: 57.37
• Enterprise Value/Ebitda: -4.02
• 1Y Price Target: $11.00
• Price Target Upside: 100.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 50 Neutral
• Price Target: $6.00 ▲(9.49%Upside)

Alpha Teknova's stock score is primarily influenced by its challenging financial performance, characterized by ongoing losses and negative cash flows. While technical analysis provides some positive signals, the company's negative valuation metrics and mixed earnings call results contribute to a cautious outlook.

Positive Factors

Earnings

Teknova's first-quarter results beat on the top line and were in line on total revenue.

Financial Performance

Continued momentum on the top line coupled with continued cost control efforts helped drive profitability improvements.

Growth Strategy

Teknova has done a nice job of adding new clinical customers, though they remain cautious on the macro environment.

Negative Factors

Market Conditions

Cautiousness from customers related to the funding environment and other macro uncertainties are important considerations that management confirmed are baked into the low end of the guide.

Revenue Guidance

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

Valuation

The company's premium valuation relative to its small cap peer group is a factor in maintaining a Neutral rating on TKNO.

Alpha Teknova Business Overview & Revenue Model

Company Description

Alpha Teknova, Inc. provides critical reagents for life sciences market in the United States and internationally. Its reagents enable the discovery, development, and production of biopharmaceutical products, such as drug therapies, novel vaccines, and molecular diagnostics. The company offers pre-poured media plates for cell growth and cloning; liquid cell culture media and supplements for cellular expansion; and molecular biology reagents for sample manipulation, resuspension, and purification. It serves life sciences market, including pharmaceutical and biotechnology companies, contract development and manufacturing organizations, in vitro diagnostic franchises, and academic and government research institutions. The company was founded in 1996 and is headquartered in Hollister, California.

How the Company Makes Money

Alpha Teknova generates revenue through the sale of its proprietary reagents and laboratory solutions to biotechnology and pharmaceutical companies, academic institutions, and research organizations. The company leverages its expertise in bioprocessing and formulation to provide customized solutions that meet the specific needs of its clients. Key revenue streams include direct sales of standard product offerings, as well as custom manufacturing services for tailored reagent solutions. Strategic partnerships and collaborations with leading biotech firms also play a significant role in expanding Teknova's market reach and enhancing its revenue potential.

Alpha Teknova Financial Statement Overview

Summary

Alpha Teknova is experiencing financial difficulties, highlighted by recurring losses and negative cash flows. The income statement indicates a challenging situation with low gross and negative net profit margins, though there are slight improvements in EBITDA. The balance sheet shows moderate stability with low debt but declining equity ratios. Cash flow remains a critical concern due to persistent negative operating and free cash flow.

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
-19.57M	-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
30.17M	30.46M	42.31M	11.87M	0.00
	Net Debt
26.46M	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
-12.42M	-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: Negative
• Last Price: 5.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKNO, the sentiment is Negative. The current price of 5.48 is below the 20-day moving average (MA) of 5.94, below the 50-day MA of 6.04, and below the 200-day MA of 6.57, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 35.60 is Neutral, neither overbought nor oversold. The STOCH value of 16.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$464.37M	9.57	25.47%	10.13%	-23.37%	-39.03%
RMTI	55 Neutral	$32.47M	―	-2.12%	―	12.82%	96.46%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%
AQST	53 Neutral	$351.62M	―	77.48%	―	5.29%	-37.31%
EBS	52 Neutral	$338.69M	―	-21.63%	―	-18.56%	76.88%
TKNO	50 Neutral	$292.86M	―	-28.76%	―	3.79%	55.19%
LFCR	46 Neutral	$246.96M	―	-83.58%	―	6.88%	-17.54%