Alpha Tau Medical Ltd (DRTS) AI Stock Analysis

• Market Cap: $218.83M
• Dividend Yield: N/A
• Average Volume (3M): 30.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: N/A
• EPS Growth: -8.07%
• Country: US
• Employees: 125
• Sector: Healthcare
• Sector Strength: 60
• Industry: Biotechnology
• EPS (TTM): -0.45
• Shares Outstanding: 84,490,690
• 10 Day Avg. Volume: 32,925
• 30 Day Avg. Volume: 30,227
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -155.46
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.33
• Price Target Upside: 181.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Alpha Tau Medical Ltd is struggling with significant financial challenges, primarily due to a lack of revenue and ongoing cash burn. While technical indicators show a neutral trend, the valuation metrics reflect the company's unprofitability. The absence of earnings call insights and corporate events limits additional context. Overall, the stock is risky with a low score of 38, suggesting caution for potential investors.

Positive Factors

Clinical Trials

Over 91% disease control rate in pancreatic cancer trials indicates promising efficacy of Alpha DaRT therapy.

Regulatory Progress

Alpha DaRT has been accepted into the Total Product Life Cycle Advisory Program (TAP) Pilot of the U.S. FDA to accelerate market access for patients with recurrent glioblastoma multiforme (GBM).

Strategic Investment

A $36.9M strategic investment from Oramed validates Alpha Tau’s novel technology and its potential in oncology therapeutics.

Negative Factors

Market Competition

Options to invest in publicly traded radiopharma names have grown increasingly scarce, making DRTS an overlooked exception.

Alpha Tau Medical Ltd Business Overview & Revenue Model

Company Description

Alpha Tau Medical Ltd (DRTS) is a medical technology company focused on the research, development, and commercialization of innovative cancer treatment solutions. The company specializes in the development of Alpha DaRT (Diffusing Alpha-emitters Radiation Therapy), a breakthrough approach to cancer therapy that harnesses the power of alpha-emitting isotopes to selectively destroy cancerous tumors while minimizing damage to surrounding healthy tissue. Alpha Tau Medical operates within the biotechnology and healthcare sectors, striving to advance cancer treatment options and improve patient outcomes.

How the Company Makes Money

Alpha Tau Medical Ltd generates revenue primarily through the commercialization of its proprietary Alpha DaRT technology. The company's revenue model includes direct sales of its products to healthcare providers and hospitals, as well as licensing agreements that allow other medical institutions and companies to utilize its technology. Additionally, Alpha Tau Medical may engage in strategic partnerships and collaborations with pharmaceutical companies and research institutions to further develop and expand the applications of its technology, potentially resulting in additional revenue streams through milestone payments and royalties. The company's finances are also supported by investments and funding from venture capital and other investors interested in innovative cancer treatment solutions.

Alpha Tau Medical Ltd Financial Statement Overview

Summary

Alpha Tau Medical Ltd faces significant financial challenges. The lack of revenue generation and consistent losses raise concerns about the company's ability to achieve profitability. While there is some improvement in equity and asset financing, the heavy reliance on external funding and ongoing cash burn highlight the need for strategic adjustments to ensure long-term sustainability.

Income Statement

Alpha Tau Medical Ltd's income statement reveals significant challenges, with no revenue generated over the past years. Gross profit margins are negative due to the absence of revenue and consistent operating expenses. Net income remains negative, reflecting ongoing operational losses. The EBIT and EBITDA metrics are also unfavorable, indicating a lack of profitability in core operations.

Balance Sheet

The balance sheet shows some improvement in stockholders' equity, which is now positive, reflecting a recovery from previous negative positions. However, the debt-to-equity ratio is concerning due to substantial liabilities relative to equity in earlier years. The equity ratio has improved, indicating better asset financing through equity, but the overall financial stability remains weak given the company's historical leverage issues.

Cash Flow

Cash flow analysis reveals persistent negative free cash flow, highlighting ongoing cash burn. The operating cash flow remains negative, indicating the company is not generating sufficient cash from operations. While the company has seen some inflow from financing activities, it relies heavily on external funding, which poses sustainability concerns.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
-1.07M	-979.00K	-776.00K	-86.00K	0.00
	EBIT
35.68M	-32.14M	-13.79M	-9.24M	-8.01M
	EBITDA
-28.03M	-32.74M	-13.21M	-9.16M	-7.94M
	Net Income Common Stockholders
-29.16M	-33.76M	-27.27M	-8.88M	-8.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
81.79M	104.53M	31.32M	46.02M	28.13M
	Total Assets
107.39M	120.15M	42.22M	52.99M	31.56M
	Total Debt
13.28M	5.19M	53.96M	53.96M	0.00
	Net Debt
619.00K	-643.00K	30.73M	38.37M	-1.83M
	Total Liabilities
22.91M	14.49M	76.99M	61.42M	31.75M
	Stockholders Equity
84.47M	105.66M	-34.78M	-8.43M	-193.00K
Cash Flow		Free Cash Flow
-24.36M	-24.78M	-14.74M	-11.02M	-8.20M
	Operating Cash Flow
-17.96M	-23.88M	-11.81M	-7.25M	-6.91M
	Investing Cash Flow
18.68M	-89.94M	19.27M	-7.82M	-10.16M
	Financing Cash Flow
5.30M	96.91M	111.00K	29.32M	5.32M

Alpha Tau Medical Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.60
• 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 DRTS, the sentiment is Negative. The current price of 2.6 is above the 20-day moving average (MA) of 2.59, below the 50-day MA of 2.64, and below the 200-day MA of 2.64, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DRTS.

Alpha Tau Medical Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.24B	3.76	-41.88%	2.85%	17.01%	0.78%
IKT	46 Neutral	$167.27M	―	-52.00%	―	-100.00%	38.72%
NBTX	46 Neutral	$162.04M	―	2152.93%	―	―	54.68%
FHTX	44 Neutral	$235.80M	―	322.49%	―	-33.83%	27.89%
PRME	43 Neutral	$220.35M	―	-136.88%	―	―	20.58%
DRTS	38 Underperform	$218.83M	―	-43.16%	―	―	-8.07%
ANNX	38 Underperform	$216.14M	―	-50.84%	―	―	43.21%