Alterity Therapeutics (ATHE) AI Stock Analysis

• Market Cap: $71.38M
• Dividend Yield: N/A
• Average Volume (3M): 170.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: N/A
• EPS Growth: 63.85%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.43
• Shares Outstanding: 18,125,694
• 10 Day Avg. Volume: 475,425
• 30 Day Avg. Volume: 170,291
• PEG Ratio: 0.09
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 12.18
• P/FCF Ratio: -5.79
• Enterprise Value/Market Cap: 0.37
• Enterprise Value/Revenue: 4.88
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: -1.82
• 1Y Price Target: $12.00
• Price Target Upside: 185.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: $4.50 ▲(6.89% Upside)

The overall stock score for Alterity Therapeutics is primarily influenced by its financial performance, which highlights strong revenue growth but significant profitability and cash flow challenges. Technical analysis suggests a neutral trend, while valuation concerns due to negative earnings further impact the score. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Positive Trial Results

The successful Phase 2 trial results for ATH434 enhance Alterity's position in the neurodegenerative treatment market, potentially leading to future revenue streams and solidifying its competitive edge in addressing Multiple System Atrophy.

Strong Gross Profit Margins

High gross profit margins indicate effective cost management, which can support sustainable operations and provide a buffer against market fluctuations, enhancing long-term financial stability.

Low Leverage

A low leverage position provides financial flexibility and reduces risk, allowing Alterity to invest in R&D and strategic initiatives without the burden of high debt costs.

Negative Factors

Negative Cash Flows

Persistent negative cash flows threaten liquidity and operational sustainability, requiring Alterity to secure additional funding or improve cash generation to maintain its R&D efforts and business operations.

Profitability Challenges

Ongoing profitability challenges, despite revenue growth, highlight the need for Alterity to optimize its cost structure and achieve economies of scale to ensure long-term viability and investor confidence.

Negative Return on Equity

A negative return on equity suggests that Alterity is not effectively utilizing its equity base to generate profits, which can deter investment and hinder its ability to fund future growth initiatives.

Alterity Therapeutics Business Overview & Revenue Model

Company Description

Alterity Therapeutics Limited engages in the research and development of therapeutic drugs to treat Alzheimer's disease, Huntington disease, Parkinson's disease, and other neurological disorders in Australia. The company's lead drug candidate is ATH434 that has completed Phase I clinical trial for the treatment of Parkinson's disease. It is also developing PBT2 that has completed Phase IIa clinical trial to treat Alzheimer's disease. The company was formerly known as Prana Biotechnology Limited and changed its name to Alterity Therapeutics Limited in April 2019. Alterity Therapeutics Limited was incorporated in 1997 and is headquartered in Melbourne, Australia.

How the Company Makes Money

Alterity Therapeutics generates revenue primarily through the development and commercialization of its pharmaceutical products. The company may receive funding through various channels, including government grants, partnerships with larger pharmaceutical firms, and licensing agreements for its drug candidates. Additionally, Alterity could potentially earn revenue through milestone payments and royalties from any successful drug sales once they are commercialized. Collaborations with biotech or pharmaceutical companies can also provide financial support and resources, which help sustain its research and development efforts.

Alterity Therapeutics Financial Statement Overview

Summary

Alterity Therapeutics demonstrates strong revenue growth and effective cost management, as seen in its high gross profit margins. However, persistent losses and negative cash flows pose significant challenges. The company's low leverage is a positive aspect, but it must address profitability and cash flow issues to ensure long-term viability in the competitive biotechnology industry.

Income Statement

Alterity Therapeutics shows a strong gross profit margin, consistently above 90%, indicating effective cost management relative to revenue. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. Despite a notable revenue growth rate of 46% in the latest year, the company remains unprofitable, which is a concern for long-term sustainability.

Balance Sheet

The balance sheet reflects a low debt-to-equity ratio, suggesting minimal leverage and a conservative capital structure. However, the return on equity is negative, indicating that the company is not generating sufficient returns on its equity base. The equity ratio is relatively stable, but the negative ROE highlights profitability challenges.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, which are concerning for liquidity and operational sustainability. The free cash flow to net income ratio is consistently around 1, indicating that cash flow is closely aligned with net income, albeit both are negative. The company needs to improve cash generation to support its operations and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.44M	5.44M	4.02M	3.92M	5.12M	4.34M
Gross Profit	5.31M	5.31M	3.80M	3.63M	4.76M	3.98M
EBITDA	-14.63M	-14.63M	-19.57M	-14.60M	-17.39M	-15.16M
Net Income	-12.15M	-12.15M	-19.12M	-13.81M	-12.85M	-15.31M
Balance Sheet
Total Assets	46.03M	46.03M	19.22M	27.32M	41.36M	33.59M
Cash, Cash Equivalents and Short-Term Investments	40.66M	40.66M	12.64M	15.77M	34.81M	28.12M
Total Debt	155.46K	155.46K	159.04K	210.38K	117.49K	65.65K
Total Liabilities	3.62M	3.62M	5.43M	4.50M	5.89M	3.12M
Stockholders Equity	42.40M	42.40M	13.80M	22.81M	35.47M	30.47M
Cash Flow
Free Cash Flow	-10.71M	-11.45M	-12.61M	-20.04M	-12.43M	-17.34M
Operating Cash Flow	-10.71M	-11.45M	-12.61M	-20.04M	-12.34M	-17.33M
Investing Cash Flow	-7.50M	-7.50M	-5.72K	-36.46K	-89.15K	-10.47K
Financing Cash Flow	25.61M	39.67M	9.22M	124.34K	16.30M	36.69M

Alterity Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4.21 is below the 20-day moving average (MA) of 4.59, below the 50-day MA of 4.63, and below the 200-day MA of 4.27, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.66 is Neutral, neither overbought nor oversold. The STOCH value of 26.23 is Neutral, 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
RPTX	―	$84.20M	-0.76	-69.96%	―	-99.64%	-59.17%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ATHE	―	$71.38M	-5.65	-42.68%	―	―	63.85%
KLRS	―	$77.50M	―	-50.68%	―	―	73.18%
UNCY	―	$90.60M	-1.52	-3987.11%	―	―	68.02%
CVM	―	$56.67M	-0.72	-328.04%	―	―	42.29%

Alterity Therapeutics Corporate Events

Alterity Therapeutics Reports Change in Substantial Holding by Regal Funds

On October 14, 2025, Alterity Therapeutics Limited reported a change in substantial holding as per a notice filed by Regal Funds Management Pty Limited. The change, which occurred on October 10, 2025, increased Regal’s voting power in Alterity from 13.76% to 14.93%. This adjustment in holdings reflects a strategic move by Regal Funds Management, potentially impacting Alterity’s shareholder dynamics and influencing future corporate decisions.

Alterity Therapeutics Reports Positive ATH434 Phase 2 Trial Results at 2025 MDS Congress

Alterity Therapeutics announced positive results from their ATH434 Phase 2 trial, presented at the 2025 International Congress of Parkinson’s Disease and Movement Disorders. The trial demonstrated that ATH434 slows disease progression and stabilizes orthostatic hypotension in patients with Multiple System Atrophy (MSA). New analyses increased confidence in the trial results, showing significant efficacy at a 75 mg dose. The company aims to advance ATH434 development and improve MSA treatment paradigms, reinforcing its potential market leadership position.

Alterity Therapeutics Sets AGM and Director Nomination Dates

Alterity Therapeutics Limited announced that its next Annual General Meeting (AGM) is scheduled for November 21, 2025. The closing date for director nominations is set for October 1, 2025. This announcement is a routine part of the company’s governance process, providing stakeholders with important dates for participation in corporate decision-making.

Alterity Therapeutics Initiates Trading Halt for Capital Raising Announcement

On September 4, 2025, Alterity Therapeutics Limited announced a trading halt on its securities, pending a significant announcement related to a capital raising. The halt is expected to last until the earlier of the announcement release or the commencement of normal trading on September 8, 2025. This move signals a potential strategic financial maneuver that could impact the company’s market position and stakeholder interests.

Alterity Therapeutics Initiates Trading Halt for Capital Raising

On September 4, 2025, Alterity Therapeutics Limited announced a trading halt on its securities, pending an announcement related to a capital raising. The halt will remain in effect until the company releases the announcement or until the commencement of normal trading on September 8, 2025. This move is aimed at facilitating a smooth capital raising process, which could have significant implications for the company’s financial strategy and investor relations.