Alpha Teknova (TKNO) AI Stock Analysis

• Market Cap: $123.12M
• Dividend Yield: N/A
• Average Volume (3M): 318.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 9.50%
• EPS Growth: 53.74%
• Country: US
• Employees: 173
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.08
• Shares Outstanding: 53,529,175
• 10 Day Avg. Volume: 259,294
• 30 Day Avg. Volume: 318,881
• PEG Ratio: 0.29
• Price to Book (P/B): 4.74
• Price to Sales (P/S): 10.34
• P/FCF Ratio: -28.88
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 3.41
• Enterprise Value/Gross Profit: 11.02
• Enterprise Value/Ebitda: -11.72
• 1Y Price Target: $7.00
• Price Target Upside: 204.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $2.50 ▲(8.70% Upside)

The score is held back primarily by weak financial performance (ongoing losses and weak free cash flow) and strongly bearish technicals (price below major moving averages with negative MACD). Earnings-call commentary provides some support via improving margins, cost control, and maintained revenue guidance, but segment weakness in Clinical Solutions and continued biopharma softness limit the upside. Valuation is not compelling given the negative P/E and no dividend yield provided.

Positive Factors

Recurring consumable revenue

Teknova’s product mix includes recurring reagents and consumables that embed into customer workflows. This creates durable revenue visibility as customers repeat orders when processes progress from R&D to clinical/commercial stages, supporting predictable demand and long-term revenue resilience.

Consistent revenue growth trend

Five consecutive quarters of year-over-year revenue growth indicate expanding market traction across product lines, particularly lab essentials. Sustained top-line growth supports scale benefits, improves operating leverage potential, and underpins long-term investments in manufacturing and R&D.

Improving gross margins and operational projects

Material margin improvement reflects better product mix and operational efficiency. Combined with projects like electronic batch records and high-throughput dispensing, margin gains appear sustainable as these initiatives reduce costs and improve throughput once fully operational in 2026.

Negative Factors

Ongoing unprofitable operations

Persistent net losses and negative EBIT margins signal the company is not yet generating sustainable profits. Continued unprofitability constrains reinvestment, limits retained earnings accumulation, and increases reliance on external funding to support growth and capital projects.

Weak free cash flow and liquidity pressure

Negative free cash flow growth and strained operating cash coverage indicate ongoing cash burn. Even with TTM operating cash improvements, weak FCF heightens financing risk, narrows strategic flexibility, and makes the company more sensitive to delays in customer payments or slower revenue conversion.

Clinical Solutions demand weakness

A 13% decline in Clinical Solutions revenue highlights structural softness in custom biopharma purchases. Given custom products represent a meaningful part of revenue and depend on funding cycles, continued weakness limits high-margin growth opportunities and delays potential commercialization-driven volume ramps.

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 primarily through the sale of its custom reagents and molecular biology products, which are tailored to meet the specific needs of its customers. The company offers a wide range of products, including buffers, enzymes, and other laboratory supplies, which are sold both directly and through distribution partnerships. Key revenue streams include bulk orders from pharmaceutical companies and recurring sales to research institutions and laboratories. Additionally, Teknova may engage in collaborations or partnerships with larger biotech firms, enhancing its reach and providing opportunities for co-development projects, which can further contribute to its earnings.

Alpha Teknova Financial Statement Overview

Summary

Overall financials remain weak, driven by persistent losses (income statement score 45) and pressured free cash flow/liquidity (cash flow score 40). The balance sheet is comparatively steadier with manageable leverage (balance sheet score 55), but negative ROE and ongoing cash burn keep the combined financial performance score below average.

Income Statement

Alpha Teknova's income statement shows a challenging financial position with negative net profit margins and EBIT margins over the past years. Despite a slight revenue growth in the TTM period, the company has consistently reported losses, indicating ongoing profitability issues. The gross profit margin has improved in the TTM period compared to the previous year, but overall profitability remains weak.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating manageable leverage. However, the return on equity is negative, highlighting the company's inability to generate profits from shareholders' equity. The equity ratio remains stable, suggesting a reasonable level of financial stability despite ongoing losses.

Cash Flow

Cash flow analysis reveals significant challenges, with negative free cash flow growth and operating cash flow coverage ratios in recent years. Although there is a positive operating cash flow in the TTM period, the free cash flow remains weak, indicating potential liquidity issues. The company needs to improve its cash generation to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.80M	37.74M	36.68M	41.42M	36.89M	31.30M
Gross Profit	12.32M	7.23M	10.30M	17.48M	17.62M	17.75M
EBITDA	-11.59M	-19.57M	-25.54M	-25.69M	-9.13M	6.71M
Net Income	-18.22M	-26.75M	-36.78M	-47.47M	-9.80M	3.57M
Balance Sheet
Total Assets	107.63M	118.77M	128.59M	152.26M	166.51M	62.91M
Cash, Cash Equivalents and Short-Term Investments	3.20M	30.40M	28.48M	42.24M	87.52M	5.13M
Total Debt	15.90M	30.17M	30.46M	42.31M	11.87M	0.00
Total Liabilities	34.98M	36.38M	38.55M	52.38M	23.31M	46.14M
Stockholders Equity	72.65M	82.39M	90.04M	99.89M	143.20M	16.77M
Cash Flow
Free Cash Flow	-10.39M	-13.52M	-26.75M	-55.55M	-28.95M	-2.96M
Operating Cash Flow	-9.02M	-12.39M	-18.81M	-27.40M	-9.07M	2.50M
Investing Cash Flow	6.08M	-27.27M	-7.74M	-28.15M	-17.52M	-1.74M
Financing Cash Flow	1.00K	14.89M	12.80M	10.27M	110.79M	-1.60M

Alpha Teknova Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 2.3 is below the 20-day moving average (MA) of 3.32, below the 50-day MA of 4.00, and below the 200-day MA of 4.93, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 18.17 is Positive, neither overbought nor oversold. The STOCH value of 13.95 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
BIOA	59 Neutral	$841.31M	-9.45	-25.64%	―	―	-1.89%
IRWD	58 Neutral	$729.61M	28.82	―	―	-10.42%	―
DERM	57 Neutral	$280.02M	-22.74	-47.05%	―	2.82%	60.26%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TKNO	46 Neutral	$123.12M	-6.74	-22.79%	―	9.50%	53.74%
LFCR	45 Neutral	$295.98M	-5.80	―	―	0.47%	-430.88%