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Alpha Teknova (TKNO)
NASDAQ:TKNO
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Alpha Teknova
(NASDAQ:TKNO)
48Neutral
Positive Factors
Customer Growth
TKNO ended 2024 with a 41% increase in clinical solutions customers and an 8% increase in lab essentials customers.
Financial Performance
Q4 revenues of $9.3M beat the Street's $8.8M, showing stronger than expected performance.
Investor Confidence
Teknova's path to profitability should boost investor confidence given the high level of visibility.
Negative Factors
Financial Outlook
2025 revenue guidance of $39-42M is below consensus estimates, leading to modest expected top line growth.
Macroeconomic Concerns
Management noted that some customers have delayed orders and reduced budgets due to macro uncertainty.
Stock Valuation
Concerns on the valuation of the stock contribute to the reiteration of a Neutral rating on TKNO.
Alpha Teknova (TKNO) vs. S&P 500 (SPY)
Market Cap
$340.39M
Dividend YieldN/A
Average Volume (3M)430.19K
Price to Earnings (P/E)―
Beta (1Y)0.39
Revenue Growth2.89%
EPS Growth50.02%
CountryUS
Employees173
SectorHealthcare
Sector Strength74
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.58
Shares Outstanding53,436,806
10 Day Avg. Volume415,232
30 Day Avg. Volume430,189
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.30
Price to Cash Flow (P/CF)-83.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.00Price Target Upside56.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Alpha Teknova Business Overview & Revenue Model
Company DescriptionAlpha Teknova (TKNO) is a biotechnology company that specializes in the manufacture and supply of critical reagents used in the research, discovery, development, and production of biopharmaceutical products. Operating within the life sciences sector, Teknova provides a range of high-quality custom and catalog products, including buffers, reagents, and cell culture media, which are essential for laboratory experiments and production processes in various scientific fields.
How the Company Makes MoneyAlpha Teknova generates revenue primarily through the sale of its custom and catalog products to biopharmaceutical companies, academic institutions, and research organizations. The company's revenue streams are largely driven by its ability to provide high-quality, customized solutions that meet the specific needs of its clients in the life sciences industry. Teknova's partnerships with leading biopharmaceutical companies and research institutions play a significant role in its earnings, as these collaborations often lead to repeat business and long-term contracts. Additionally, Teknova's focus on innovation and its ability to quickly adapt to the evolving demands of the biotechnology sector further contribute to its financial success.
Alpha Teknova Financial Statement Overview
Summary
Alpha Teknova is facing significant financial challenges, characterized by recurring losses and negative cash flows. Despite some improvements in EBITDA, the overall scenario indicates operational and profitability challenges. The low debt levels provide some stability, but the company's ability to generate cash and achieve profitability is a major concern.Income Statement
Alpha Teknova's income statement reveals a challenging financial situation. The company experienced a decrease in revenue from 2022 to 2023, with a slight recovery in 2024. Gross profit margin is low, indicating high COGS relative to revenue. The net profit margin is negative, reflecting consistent losses. Despite negative EBIT and EBITDA margins, there are signs of improvement in EBITDA from 2023 to 2024. Overall, the company faces significant profitability challenges.45
Neutral
Balance Sheet
The balance sheet shows a moderate level of financial stability. The debt-to-equity ratio is low, indicating conservative leverage, which is a positive aspect. However, the equity ratio has been declining, pointing to increased liabilities relative to assets. Return on equity is negative due to consistent net losses, and total assets have slightly decreased over the years. While the company maintains a decent equity base, the declining trend in equity ratio and negative ROE are concerns.55
Neutral
Cash Flow
Cash flow analysis indicates significant challenges in generating positive cash flow. The operating cash flow has been negative for several years, and the free cash flow remains deeply negative due to high capital expenditures. While there was a reduction in operating cash outflow in 2024, the free cash flow improvement is marginal. The lack of positive cash flow generation presents a risk to the company's financial health.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 37.74M | 36.68M | 41.42M | 36.89M | 31.30M | Gross Profit |
| 7.23M | 10.30M | 17.48M | 17.62M | 17.75M | EBIT |
| -26.15M | -35.56M | -28.86M | -12.01M | 4.66M | EBITDA |
| -26.15M | -25.54M | -25.69M | -9.13M | 6.71M | Net Income Common Stockholders |
| -26.75M | -36.78M | -47.47M | -9.80M | 3.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 30.40M | 28.48M | 42.24M | 87.52M | 5.13M | Total Assets |
| 118.77M | 128.59M | 152.26M | 166.51M | 62.91M | Total Debt |
| 20.73M | 30.46M | 42.31M | 11.87M | 0.00 | Net Debt |
| 17.02M | 1.97M | 74.00K | -75.65M | -3.31M | Total Liabilities |
| 36.38M | 38.55M | 52.38M | 23.31M | 46.14M | Stockholders Equity |
| 82.39M | 90.04M | 99.89M | 143.20M | 16.77M |
| Cash Flow | Free Cash Flow | |||
| -13.52M | -26.75M | -55.55M | -28.95M | -2.96M | Operating Cash Flow |
| -12.39M | -18.81M | -27.40M | -9.07M | 2.50M | Investing Cash Flow |
| -27.27M | -7.74M | -28.15M | -17.52M | -1.74M | Financing Cash Flow |
| 14.89M | 12.80M | 10.27M | 110.79M | -1.60M |
Alpha Teknova Technical Analysis
Positive
6.37
Price Trends
7.47
Negative
7.53
Negative
5.63
Positive
Market Momentum
-0.48
Negative
49.36
Neutral
62.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKNO, the sentiment is Positive. The current price of 6.37 is above the 20-day moving average (MA) of 5.94, below the 50-day MA of 7.47, and above the 200-day MA of 5.63, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 49.36 is Neutral, neither overbought nor oversold. The STOCH value of 62.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TKNO.
Alpha Teknova Risk Analysis
Alpha Teknova disclosed 71 risk factors in its most recent earnings report. Alpha Teknova reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alpha Teknova Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $9.58B | 61.60 | 7.82% | 0.53% | 4.46% | -29.62% | |
67 Neutral | $13.79B | 19.45 | 15.78% | ― | 1.75% | 50.25% | |
52 Neutral | $1.92B | ― | -16.38% | ― | -0.53% | -4131.19% | |
49 Neutral | $7.18B | ― | -24.09% | ― | -3.92% | -202.80% | |
49 Neutral | $6.94B | 0.66 | -52.58% | 2.47% | 22.65% | 0.94% | |
48 Neutral | $340.39M | ― | -31.02% | ― | 2.89% | 50.02% | |
46 Neutral | $2.42B | ― | -50.74% | ― | -7.03% | -20233.78% |
* Healthcare Sector Average
Performance Comparison
TKNO
Alpha Teknova
6.37
3.96
164.32%
BIO
Bio-Rad Laboratories
256.65
-84.46
-24.76%
HOLX
Hologic
61.89
-13.76
-18.19%
NEOG
Neogen
8.86
-6.33
-41.67%
QDEL
QuidelOrtho
36.51
-10.96
-23.09%
TECH
Bio-Techne
61.07
-7.85
-11.39%
Alpha Teknova Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: 5.46% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in clinical customers and key segments like custom biopharma while also noting improvements in operational efficiency and cash flow. However, challenges included flat overall revenue growth, a decline in gross margins, and market-specific hurdles that tempered the company's outlook.Highlights
Clinical Customer Growth
In 2024, Alpha Teknova supported 48 clinical customers, up from 34 at the end of 2023, a 41% annual increase.
Revenue Growth in Key Segments
Revenue from sales to cell and gene therapy-related customers grew by 27% in 2024. The custom biopharma segment grew about 40% compared to 2023.
Operational Efficiency
Operating expenses were reduced by $8.1 million in 2024 compared to 2023, excluding nonrecurring charges.
Improved Cash Outflow
Total cash outflow was $13.5 million, better than the initial guidance of $18 million, and significantly improved from $26.7 million in 2023.
New Product Launches
Three new offerings were launched in 2024: Build Tech, Express Tech, and RUO Plus.
Lowlights
Flat Revenue Growth
Total revenue for the full year 2024 was $37.7 million, a 3% increase from $36.7 million in 2023.
Gross Margin Decline
Gross margin for the full year of 2024 was 19.2%, down from 28.1% in 2023. Excluding a $2.8 million charge, it would have been 26.5%.
Revenue Per Customer Decrease
Average revenue per customer in 2024 decreased by 25% to $148,000 for clinical solutions customers.
Market Challenges
The custom reagents in life science tools and diagnostic segments faced a challenging year with reduced orders from larger life science tools companies.
Company Guidance
In the recent Alpha Teknova, Inc. earnings call, the company provided guidance indicating a positive outlook for 2025, projecting total revenue growth of 7% at the midpoint, with expectations ranging from $39 million to $42 million. The company anticipates mid-single-digit growth in its catalog business and life science tools and diagnostic segments. Meanwhile, custom products sold to biopharma accounts are expected to grow by at least 15%. Alpha Teknova aims to improve its gross margins to the high twenties percentage range. The company also shared that its free cash outflow for 2025 is expected to be less than $12 million, showcasing a continued focus on financial management and operational efficiency. The firm plans to expand its product portfolio through collaborations and acquisitions, further strengthening its strategic positioning.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.