Alpha Teknova (TKNO) AI Stock Analysis

• Market Cap: $254.20M
• Dividend Yield: N/A
• Average Volume (3M): 318.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• 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: 53,515,167
• 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: 1.05
• Enterprise Value/Revenue: 6.72
• Enterprise Value/Gross Profit: 21.70
• Enterprise Value/Ebitda: -23.07
• 1Y Price Target: $7.00
• Price Target Upside: 47.37% 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: $4.50 ▼(-5.26% Downside)

Alpha Teknova's overall stock score is primarily impacted by its financial performance, which shows persistent losses and weak cash flow generation. Technical analysis indicates a bearish trend, further weighing on the score. Valuation metrics are unfavorable due to negative earnings. The earnings call provides some optimism with revenue growth and strategic investments, but challenges in key segments remain.

Positive Factors

Revenue Growth

Consistent revenue growth, especially in Lab Essentials, indicates strong demand and effective market positioning, supporting long-term business expansion.

Operational Efficiency

Investments in operational efficiency projects are expected to enhance productivity and reduce costs, improving long-term profitability and competitiveness.

Improved Gross Margin

Significant improvement in gross margin reflects better cost management and pricing strategies, which can lead to sustainable profitability.

Negative Factors

Weak Cash Flow

Weak cash flow generation limits the company's ability to invest in growth opportunities and manage financial obligations, posing long-term risks.

Biopharma Market Challenges

Challenges in the biopharma market may hinder revenue growth and affect strategic partnerships, impacting long-term business prospects.

Clinical Solutions Revenue Decline

Declining revenue in Clinical Solutions indicates potential issues in product demand or market competition, affecting overall revenue diversification.

Alpha Teknova Business Overview & Revenue Model

Company Description

Alpha Teknova (TKNO) is a biotechnology company focused on providing critical products and services for the life sciences sector. The company specializes in the development and manufacturing of custom reagents, molecular biology solutions, and other essential tools used in research, diagnostics, and bioproduction. Teknova serves a diverse clientele, including academic institutions, pharmaceutical companies, and biotech firms, enabling advancements in various applications such as drug discovery, vaccine development, and genomic research.

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

Alpha Teknova faces significant financial challenges, with persistent losses and weak cash flow generation. Despite some improvements in revenue and gross profit margins, profitability and cash flow issues remain critical concerns. The balance sheet shows moderate leverage, but negative returns on equity highlight the need for strategic improvements.

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: 4.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 4.75 is above the 20-day moving average (MA) of 4.65, below the 50-day MA of 5.15, and below the 200-day MA of 5.40, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 83.11 is Negative, 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
DERM	57 Neutral	$212.47M	―	-47.05%	―	2.82%	60.26%
IRWD	54 Neutral	$311.87M	―	―	―	-10.42%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LFCR	48 Neutral	$254.02M	-5.20	―	―	0.47%	-430.88%
TKNO	46 Neutral	$254.20M	-11.67	-27.74%	―	9.50%	53.74%
BIOA	33 Underperform	$267.80M	-3.34	-25.64%	―	―	―

Alpha Teknova Corporate Events

Alpha Teknova Earnings Call: Mixed Outlook with Strategic Growth

Alpha Teknova, Inc. Earnings Call Highlights: A Mixed Outlook with Strategic Investments

Alpha Teknova Reports Strong Q3 2025 Growth

Alpha Teknova, Inc., a key player in the life sciences sector, specializes in producing critical reagents essential for the development of novel therapies, vaccines, and molecular diagnostics. The company, headquartered in Hollister, California, is known for its customizable solutions and rapid turnaround times, supporting advancements in molecular diagnostics and synthetic biology.

Alpha Teknova’s Earnings Call: Growth Amid Challenges

In the recent earnings call, Alpha Teknova, Inc. presented a balanced mix of positive and negative sentiments. The company reported solid revenue growth, improved gross margins, and operational efficiency, yet challenges persist with net loss and cash flow. The market conditions for smaller biotech firms remain difficult, impacting custom product sales, leading to a balanced outlook overall.

Teknova Reports Strong Q2 2025 Revenue Growth

Alpha Teknova, Inc. is a prominent company in the life sciences sector, specializing in the production of critical reagents for the discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics.