ATAI Life Sciences (ATAI) AI Stock Analysis

• Market Cap: $273.53M
• Dividend Yield: N/A
• Average Volume (3M): 4.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.50
• Revenue Growth: -0.90%
• EPS Growth: -89.51%
• Country: US
• Employees: 83
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -0.80
• Shares Outstanding: 193,992,870
• 10 Day Avg. Volume: 2,032,973
• 30 Day Avg. Volume: 3,996,056
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 765.50
• Price to Cash Flow (P/CF): -3.30
• 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: 609.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

ATAI Life Sciences scores a 52 overall, indicating a challenging financial position with significant ongoing losses and cash flow issues. However, positive corporate events and a stable technical outlook provide some optimism. Improvement in financial performance and successful execution of clinical trials will be crucial for enhancing the company's stock potential.

Positive Factors

Clinical Trials

BPL-003 is on track for top-line data in a Phase 2b treatment-resistant depression trial.

Strategic Partnerships

The partnership with Beckley positions the company as a leading player in short-acting psychedelics, enhancing its market position and strategic reach.

Negative Factors

Shareholder Dilution

There is a risk of shareholder dilution due to modeled equity raises of $150M-$200M to fund clinical and business development.

ATAI Life Sciences Business Overview & Revenue Model

Company Description

ATAI Life Sciences is a biopharmaceutical company focused on developing innovative treatments for mental health disorders. It operates within the healthcare and biotechnology sectors, leveraging a decentralized platform model to accelerate the development of various therapeutic compounds. ATAI's core products include a pipeline of psychedelic and non-psychedelic compounds, aimed at addressing conditions such as depression, anxiety, and addiction.

How the Company Makes Money

ATAI Life Sciences generates revenue primarily through the development and commercialization of its therapeutic compounds. The company partners with multiple subsidiaries and research organizations to advance its drug candidates through clinical trials. Revenue streams include milestone payments, licensing agreements, and potential future sales of approved drugs. Significant partnerships with academic institutions and healthcare companies also contribute to its earnings by sharing research costs and expanding market reach. As a development-stage biopharmaceutical company, ATAI relies heavily on funding rounds and strategic collaborations to support its research and development activities.

ATAI Life Sciences Financial Statement Overview

Summary

ATAI Life Sciences is facing significant financial hurdles, with ongoing losses and cash flow challenges. The income statement shows negative net income and declining gross profit margins, while the balance sheet reveals a moderate debt-to-equity ratio but negative return on equity. Cash flow analysis indicates consistent negative free cash flow, reflecting cash burn issues. These factors highlight the need for improved revenue streams and cash management to ensure long-term viability.

Income Statement

ATAI Life Sciences shows a challenging financial situation with consistent negative net income and declining gross profit margins. The TTM data indicates a negative revenue growth rate, highlighting a need to improve revenue-generating capabilities. The company has been unable to achieve profitability as reflected by negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicating reasonable leverage. However, the company’s negative return on equity suggests inefficiencies in generating returns from equity investments. The equity ratio is relatively stable but needs improvement to enhance financial resilience.

Cash Flow

Cash flow analysis shows a consistent negative free cash flow, indicating cash burn issues. However, the operating cash flow to net income ratio is relatively stable, suggesting some efficiency in managing cash operations despite profitability challenges. There is a need to improve free cash flow generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
331.00K	314.00K	233.00K	20.38M	0.00	0.00
	Gross Profit
65.00K	314.00K	65.00K	20.33M	-24.00K	―
	EBIT
-105.88M	-125.47M	-144.79M	-135.81M	-104.16M	1.57M
	EBITDA
-124.71M	-36.31M	-135.01M	-120.28M	-92.12M	-17.47M
	Net Income Common Stockholders
-128.60M	-40.22M	-141.41M	-132.61M	-102.12M	-17.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.06M	179.26M	273.11M	362.27M	97.25M	30.06M
	Total Assets
0.00	293.48M	305.44M	414.17M	111.55M	62.12M
	Total Debt
0.00	19.14M	15.12M	743.00K	2.18M	157.00K
	Net Debt
30.06M	-25.89M	-175.50M	-361.52M	-95.07M	-29.91M
	Total Liabilities
0.00	49.16M	300.42M	405.12M	16.18M	2.48M
	Stockholders Equity
59.78M	242.96M	260.74M	-348.14M	90.82M	58.75M
Cash Flow		Free Cash Flow
-56.68M	-84.71M	-105.49M	-64.37M	-20.82M	-7.87M
	Operating Cash Flow
-79.24M	-84.12M	-104.47M	-63.25M	-20.77M	-7.85M
	Investing Cash Flow
52.42M	-53.30M	-86.85M	-81.28M	-28.27M	-9.03M
	Financing Cash Flow
-3.24M	-8.36M	20.79M	409.86M	113.05M	40.39M

ATAI Life Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.41
• 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 ATAI, the sentiment is Negative. The current price of 1.41 is below the 20-day moving average (MA) of 1.84, below the 50-day MA of 1.72, and below the 200-day MA of 1.44, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 37.44 is Neutral, neither overbought nor oversold. The STOCH value of 13.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATAI.

ATAI Life Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATAI	52 Neutral	$273.53M	―	-62.43%	―	-0.90%	-89.51%
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%
CMPS	43 Neutral	$242.67M	―	-81.56%	―	―	3.88%
CYBN	42 Neutral	$1.97M	―	-58.79%	―	―	51.37%
MNMD	38 Underperform	$474.82M	―	-68.01%	―	―	26.24%
RLMD	36 Underperform	$8.21M	―	-116.60%	―	―	22.59%
GHRS	36 Underperform	$694.72M	―	-19.58%	―	―	-9.46%

ATAI Life Sciences Corporate Events

ATAI Life Sciences Board Member Resignation and Changes

On January 19, 2025, Michael Auerbach resigned from ATAI Life Sciences N.V.’s supervisory board of directors and compensation committee. His resignation did not stem from any disagreements with the company, which expressed gratitude for his contributions. Following his departure, the board reduced its members from seven to six.

ATAI Life Sciences Revamps Leadership Amid Clinical Trials

atai Life Sciences announced significant leadership changes with Srinivas Rao assuming the role of sole CEO, alongside promotions and new appointments to enhance the company’s capabilities in clinical development, scientific innovation, and operational excellence. These changes come as the company advances key clinical programs, such as VLS-01 and EMP-01, into Phase 2 trials, which are crucial steps towards developing scalable psychedelic therapies for treatment-resistant depression, potentially impacting the mental health therapeutic market.

ATAI Life Sciences Reports Q3 Results and New Trials

atai Life Sciences, a biopharmaceutical company focused on mental health treatments, announced its third-quarter 2024 financial results and upcoming clinical trials. The company is set to begin Phase 2 trials for VLS-01 in treatment-resistant depression and EMP-01 for social anxiety disorder by the end of 2024. With FDA clearance for VLS-01 and a strategic acquisition of IntelGenx, atai is poised for significant advancements in psychedelic therapy. Despite a financial loss this quarter, atai remains funded through 2026, aiming to revolutionize mental health treatment.