Alpha Tau Medical Ltd (DRTS) AI Stock Analysis

• Market Cap: $253.82M
• Dividend Yield: N/A
• Average Volume (3M): 51.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: N/A
• EPS Growth: -8.07%
• Country: US
• Employees: 125
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): -0.12
• Shares Outstanding: 84,699,720
• 10 Day Avg. Volume: 49,482
• 30 Day Avg. Volume: 51,831
• PEG Ratio: 0.29
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.15
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -187.52
• Enterprise Value/Ebitda: -1.55
• 1Y Price Target: $7.33
• Price Target Upside: 147.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 38 Underperform
• 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 Business Overview & Revenue Model

Company Description

Alpha 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 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 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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-1.07M	-1.10M	-1.07M	-979.00K	-776.00K	-86.00K
	EBIT
-36.35M	-36.04M	35.68M	-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 Sheet		Cash, Cash Equivalents and Short-Term Investments
71.03M	59.60M	81.79M	104.53M	31.32M	46.02M
	Total Assets
96.05M	86.20M	107.39M	120.15M	42.22M	52.99M
	Total Debt
12.56M	12.54M	13.28M	5.19M	53.96M	53.96M
	Net Debt
6.68M	-1.19M	619.00K	-643.00K	30.73M	38.37M
	Total Liabilities
22.03M	23.54M	22.91M	14.49M	76.99M	61.42M
	Stockholders Equity
74.02M	62.67M	84.47M	105.66M	-34.78M	-8.43M
Cash Flow		Free 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
0.00	20.77M	18.68M	-89.94M	19.27M	-7.82M
	Financing Cash Flow
0.00	25.00K	5.30M	96.91M	111.00K	29.32M

Alpha Tau Medical Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.25B	3.29	-44.34%	6.27%	16.79%	-0.10%
FHTX	49 Neutral	$267.00M	―	322.49%	―	-30.66%	36.48%
NBTX	49 Neutral	$233.48M	―	2152.93%	―	―	54.68%
IKT	46 Neutral	$129.35M	―	-79.02%	―	-100.00%	38.72%
PRME	43 Neutral	$196.94M	―	-115.21%	―	―	20.58%
DRTS	38 Underperform	$253.82M	―	-47.95%	―	―	-8.07%
ANNX	38 Underperform	$267.70M	―	-66.13%	―	―	43.21%