Alterity Therapeutics (ATHE) AI Stock Analysis

• Market Cap: $39.86M
• Dividend Yield: N/A
• Average Volume (3M): 22.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: N/A
• EPS Growth: 20.25%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -1.58
• Shares Outstanding: 15,212,284
• 10 Day Avg. Volume: 24,758
• 30 Day Avg. Volume: 22,400
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• 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: $8.00
• Price Target Upside: 154.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Alterity Therapeutics faces financial challenges with declining revenues and persistent losses, significantly impacting its financial performance and valuation score. Despite these challenges, the stock shows strong upward momentum, with positive technical indicators suggesting potential short-term opportunities. However, investors should be cautious of the overbought RSI and high risk associated with its financial instability.

Positive Factors

Clinical Trials

Alterity Therapeutics reported positive clinical results for its Phase 2 trial of ATH434 in Multiple System Atrophy, including 48% slowing of clinical progression at the 50 mg dose level.

Financial Performance

Alterity announced it raised A$40M (~$24.8M in USD) through a two-tranche placement of its fully paid ordinary shares.

Regulatory Approval

ATH434 has orphan drug designation for MSA in both the US and EU, enhancing its potential marketability and regulatory support.

Negative Factors

Stock Recommendation

The recommendation on ATHE shares is being lowered to Hold as these shares have exceeded the $4 price target.

Alterity Therapeutics Business Overview & Revenue Model

Company Description

Alterity Therapeutics (ATHE) is a biotechnology company focused on the development of therapies to treat neurodegenerative diseases. Based in Australia, the company primarily targets disorders characterized by the accumulation of misfolded proteins, such as Alzheimer's and Parkinson's diseases. Alterity's core products include its lead drug candidate ATH434, which is designed to treat Multiple System Atrophy (MSA), a form of atypical Parkinsonism.

How the Company Makes Money

Alterity Therapeutics generates revenue primarily through partnerships, collaborations, and licensing agreements with other pharmaceutical and biotechnology companies. These partnerships may involve joint development efforts, milestone payments, and royalties on sales of commercialized products. The company may also secure funding through government grants or subsidies aimed at supporting innovative medical research. Additionally, Alterity might engage in equity financing to raise capital for its ongoing research and development activities.

Alterity Therapeutics Financial Statement Overview

Summary

Alterity Therapeutics faces significant financial challenges, as evidenced by declining revenues, persistent losses, and negative cash flows. Despite a strong gross margin, profitability is severely impacted by high operating costs. The company maintains low leverage, but declining equity suggests ongoing financial strain. Improved operational efficiency and revenue growth are crucial for financial stability.

Income Statement

Alterity Therapeutics shows a declining revenue trend with revenue decreasing over the past year. The company has consistently faced operating losses, reflected in negative EBIT and net income margins. Gross profit margins remain positive, indicating some control over cost of goods sold, but overall profitability is hampered by high operating expenses.

Balance Sheet

The balance sheet reveals a low debt-to-equity ratio, suggesting a conservative approach to leverage. However, the equity ratio has declined, indicating a reduction in shareholder equity relative to assets. Return on equity remains negative due to persistent losses, highlighting a challenge in delivering shareholder value.

Cash Flow

The cash flow statements depict negative free cash flows, indicating cash outflows in operations have not been offset by sufficient inflows. The operating cash flow to net income ratio suggests inefficiencies in converting income into cash. While financing activities have provided liquidity, reliance on external financing could pose risks.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
3.72M	4.02M	3.92M	5.12M	4.34M	0.00
	Gross Profit
3.59M	3.80M	3.63M	4.76M	3.98M	-112.43K
	EBIT
-22.59M	-19.60M	-14.64M	-15.50M	-15.18M	-10.41M
	EBITDA
-22.14M	-19.57M	-17.51M	-17.39M	-19.36M	-13.34M
	Net Income Common Stockholders
-19.79M	-19.12M	-13.81M	-12.85M	-15.31M	-9.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.88M	12.64M	15.77M	34.81M	28.12M	9.20M
	Total Assets
3.65M	19.22M	27.32M	41.36M	33.59M	13.30M
	Total Debt
0.00	159.04K	210.38K	117.49K	65.65K	33.75K
	Net Debt
-2.88M	-12.48M	-15.56M	-34.69M	-28.05M	-9.16M
	Total Liabilities
1.10M	5.43M	4.50M	5.89M	3.12M	2.76M
	Stockholders Equity
2.55M	13.80M	22.81M	35.47M	30.47M	10.55M
Cash Flow		Free Cash Flow
-16.47M	-12.61M	-20.04M	-12.43M	-17.34M	-9.45M
	Operating Cash Flow
-16.47M	-12.61M	-20.04M	-12.34M	-17.33M	-9.43M
	Investing Cash Flow
-722.00	-5.72K	-36.46K	-89.15K	-10.47K	-16.74K
	Financing Cash Flow
310.61K	9.22M	124.34K	16.30M	36.69M	3.98M

Alterity Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATHE, the sentiment is Negative. The current price of 3.14 is below the 20-day moving average (MA) of 3.38, below the 50-day MA of 3.82, and above the 200-day MA of 2.27, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 34.39 is Neutral, neither overbought nor oversold. The STOCH value of 6.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATHE.

Alterity Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATHE	51 Neutral	$39.86M	―	-154.88%	―	―	20.25%
INMB	49 Neutral	$174.96M	―	-119.83%	―	-90.97%	-27.47%
Sector *	48 Neutral	$6.26B	1.15	-46.15%	2.69%	19.24%	1.69%
PRTA	47 Neutral	$552.26M	―	-23.34%	―	47.92%	17.84%
SAVA	42 Neutral	$57.49M	―	-17.19%	―	―	81.00%
CTXR	42 Neutral	$9.83M	―	-52.85%	―	―	8.99%
ANVS	38 Underperform	$25.14M	―	-3159.09%	―	―	68.75%