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Alpha Tau Medical Ltd (DRTS)
:DRTS
US Market

Alpha Tau Medical Ltd (DRTS) AI Stock Analysis

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Alpha Tau Medical Ltd

(NASDAQ:DRTS)

Rating:38Underperform
Price Target:
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
The company received an IDE from the FDA to conduct a U.S. pilot study of Alpha DaRT in patients with recurrent glioblastoma multiforme (GBM).
Facility Expansion
The Hudson, NH facility is slated to complete its first phase of construction and come online for production of Alpha DaRT, indicating progress in manufacturing capabilities.
Strategic Investment
A $36.9M strategic investment from Oramed validates Alpha Tau’s novel technology and its potential in oncology therapeutics.
Negative Factors
Clinical Trial Risks
Failure of Alpha DaRT in clinical trials poses a significant risk to the company's future success.
Commercial Success Risks
Failure to achieve commercial success is a notable risk for the company's future financial performance.
Regulatory Approval Risks
Risks include failure of Alpha DaRT in clinical trials, failure to secure regulatory approval in the U.S., failure to achieve commercial success, and potential dilution risk.

Alpha Tau Medical Ltd (DRTS) vs. SPDR S&P 500 ETF (SPY)

Alpha Tau Medical Ltd Business Overview & Revenue Model

Company DescriptionAlpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, and breast cancers; and preclinical studies for hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.
How the Company Makes MoneyAlpha 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 with no revenue generation and consistent losses. Although there's 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
10
Very Negative
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
30
Negative
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
25
Negative
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
-1.07M-1.10M-1.07M-979.00K-776.00K-86.00K
EBIT
-36.35M-36.04M35.68M-32.14M-13.79M-9.24M
EBITDA
-34.48M-30.30M-28.03M-32.74M-13.21M-9.16M
Net Income Common Stockholders
-27.63M-31.75M-29.16M-33.76M-27.27M-8.88M
Balance SheetCash, Cash Equivalents and Short-Term Investments
71.03M59.60M81.79M104.53M31.32M46.02M
Total Assets
96.05M86.20M107.39M120.15M42.22M52.99M
Total Debt
12.56M12.54M13.28M5.19M53.96M53.96M
Net Debt
6.68M-1.19M619.00K-643.00K30.73M38.37M
Total Liabilities
22.03M23.54M22.91M14.49M76.99M61.42M
Stockholders Equity
74.02M62.67M84.47M105.66M-34.78M-8.43M
Cash FlowFree Cash Flow
-3.78K-22.02M-24.36M-24.78M-14.74M-11.02M
Operating Cash Flow
-3.78K-19.78M-17.96M-23.88M-11.81M-7.25M
Investing Cash Flow
0.0020.77M18.68M-89.94M19.27M-7.82M
Financing Cash Flow
0.0025.00K5.30M96.91M111.00K29.32M

Alpha Tau Medical Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.96
Price Trends
50DMA
2.82
Positive
100DMA
2.87
Positive
200DMA
2.77
Positive
Market Momentum
MACD
0.04
Positive
RSI
47.61
Neutral
STOCH
28.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRTS, the sentiment is Neutral. The current price of 2.96 is below the 20-day moving average (MA) of 3.00, above the 50-day MA of 2.82, and above the 200-day MA of 2.77, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 28.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DRTS.

Alpha Tau Medical Ltd Risk Analysis

Alpha Tau Medical Ltd disclosed 85 risk factors in its most recent earnings report. Alpha Tau Medical Ltd reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Alpha Tau Medical Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$5.25B3.29-44.34%6.27%16.79%-0.10%
49
Neutral
$267.00M322.49%-30.66%36.48%
49
Neutral
$233.48M2152.93%54.68%
IKIKT
46
Neutral
$129.35M-79.02%-100.00%38.72%
43
Neutral
$196.94M-115.21%20.58%
38
Underperform
$253.82M-47.95%-8.07%
38
Underperform
$267.70M-66.13%43.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DRTS
Alpha Tau Medical Ltd
2.96
0.70
30.97%
ANNX
Annexon Biosciences
2.34
-2.86
-55.00%
FHTX
Foghorn Therapeutics
4.75
-0.49
-9.35%
IKT
Inhibikase Therapeutics
1.70
0.27
18.88%
NBTX
Nanobiotix
4.29
0.08
1.90%
PRME
Prime Medicine, Inc.
1.80
-4.35
-70.73%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.