Alto Neuroscience, Inc. (ANRO) AI Stock Analysis

• Market Cap: $83.88M
• Dividend Yield: N/A
• Average Volume (3M): 320.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.39
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 63
• Sector: General
• Sector Strength: N/A
• Industry: Biotechnology
• EPS (TTM): -2.13
• Shares Outstanding: 26,970,167
• 10 Day Avg. Volume: 467,239
• 30 Day Avg. Volume: 320,070
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 10.73
• Price to Cash Flow (P/CF): -1.80
• 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: $15.00
• Price Target Upside: 382.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Alto Neuroscience, Inc. is currently facing significant financial challenges, with no revenue, increasing operational losses, and negative equity. The technical analysis shows limited short-term momentum, but this is overshadowed by the high financial risk. The valuation metrics are unattractive due to negative earnings, leading to an overall low stock score.

Positive Factors

Clinical Trials

The interim read confirms that a favorable treatment effect is being observed.

Revenue Potential

ALTO-300 could generate risk-adjusted net revenue of approximately $1B in the U.S. for Major Depressive Disorder by FY36.

Negative Factors

Clinical Trial Setbacks

Phase IIb results for ALTO-100 in MDD reported were disappointing, but the market reaction was overdone and do not view the results as an indictment of the company's broader approach.

Alto Neuroscience, Inc. Business Overview & Revenue Model

Company Description

Alto Neuroscience, Inc. (ANRO) is a biotechnology company that operates in the healthcare sector, focusing on the development of precision psychiatry therapies. The company leverages advanced neuroscience and machine learning techniques to create personalized treatment options for mental health conditions. By integrating brain biomarkers with clinical data, Alto Neuroscience aims to enhance the efficacy of mental health treatments, thus addressing the variability in patient responses to existing therapies.

How the Company Makes Money

Alto Neuroscience, Inc. makes money primarily through the development and commercialization of innovative psychiatric drugs. The company invests in research and development to create proprietary treatments that can be patented and sold in the pharmaceutical market. Revenue streams include licensing agreements with larger pharmaceutical companies, potential milestone payments, and royalties from successfully commercialized therapies. Additionally, the company may receive funding from partnerships with healthcare organizations or research grants aimed at advancing mental health solutions. These collaborations can also enhance its financial stability and accelerate the development process.

Alto Neuroscience, Inc. Financial Statement Overview

Summary

Overall, Alto Neuroscience, Inc. is in a precarious financial position with no revenue, increasing losses, negative equity, and a reliance on external financing to sustain operations. The company's financial health is weak, posing significant risks to investors. Without revenue generation or improved cost management, the company faces challenges in achieving financial stability.

Income Statement

Alto Neuroscience, Inc. exhibits a challenging financial position with no revenue generated in recent years, leading to negative gross profit and net income. The company has seen a consistent increase in EBIT and net losses, indicating growing operational costs without revenue growth. This reflects a high risk for investors, given the lack of revenue to offset operational expenses.

Balance Sheet

The balance sheet shows a negative equity position, highlighting the company's financial instability. With total liabilities substantially exceeding total assets and negative stockholders' equity, Alto Neuroscience faces significant leverage and solvency risks. The debt-to-equity ratio is not calculable due to negative equity, but the high debt level poses a substantial financial burden.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, which have deteriorated over time. The company is heavily reliant on financing activities to support its cash needs, as indicated by substantial financing cash inflows. The inability to generate positive cash flow from operations raises concerns about long-term sustainability without further external funding.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
372.00K	0.00	0.00	210.00K
	Gross Profit
83.00K	-373.00K	-342.00K	65.00K
	EBIT
-63.38M	-37.81M	-29.19M	-12.06M
	EBITDA
-55.64M	-34.56M	-27.37M	-9.04M
	Net Income Common Stockholders
-57.45M	-36.30M	-27.71M	-9.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
82.55M	82.55M	48.34M	25.70M
	Total Assets
86.63M	86.63M	50.85M	28.79M
	Total Debt
9.99M	9.99M	82.11M	38.16M
	Net Debt
-72.56M	-72.56M	33.76M	12.46M
	Total Liabilities
158.30M	158.30M	89.26M	41.27M
	Stockholders Equity
-71.67M	-71.67M	-38.41M	-12.48M
Cash Flow		Free Cash Flow
-47.85M	-33.92M	-21.13M	-9.94M
	Operating Cash Flow
-45.93M	-33.45M	-20.39M	-9.26M
	Investing Cash Flow
-1.92M	-470.00K	-732.00K	-680.00K
	Financing Cash Flow
178.77M	68.13M	43.79M	31.69M

Alto Neuroscience, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANRO, the sentiment is Negative. The current price of 3.11 is below the 20-day moving average (MA) of 3.28, below the 50-day MA of 3.90, and below the 200-day MA of 8.53, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 38.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ANRO.

Alto Neuroscience, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNMD	55 Neutral	$456.86M	―	-37.30%	―	―	0.06%
Sector *	55 Neutral	$4.94B	-12.70	-22.85%	4.19%	34.55%	-59.69%
AXSM	51 Neutral	$6.20B	―	-503.76%	―	42.53%	-15.29%
CYTK	45 Neutral	$5.17B	―	435.49%	―	145.34%	3.20%
SAGE	45 Neutral	$450.04M	―	-86.15%	―	-52.30%	27.13%
NERV	26 Underperform	$10.70M	8.31	>-0.01%	―	―	―
ANRO	24 Underperform	$83.88M	―	50.65%	―	―	―