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Alpha Teknova, Inc. (TKNO)
:TKNO
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Alpha Teknova
(NASDAQ:TKNO)
53Neutral
Positive Factors
Customer Growth
TKNO ended 2024 with a 41% increase in clinical solutions customers and an 8% increase in lab essentials customers.
Profitability Prospects
Teknova's path to profitability should boost investor confidence given the high level of visibility.
Revenue Performance
Q4 revenues of $9.3M beat the Street's $8.8M, showing stronger than expected performance.
Negative Factors
Funding Environment
Cautiousness from customers related to the funding environment and other macro uncertainties are important considerations that management confirmed are baked into the low end of the guide.
Revenue Guidance
2025 revenue guidance of $39-42M is below consensus estimates, leading to modest expected top line growth.
Valuation Concerns
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
$353.51M
Dividend YieldN/A
Average Volume (3M)478.52K
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth3.79%
EPS Growth55.19%
CountryUS
Employees173
SectorHealthcare
Sector Strength41
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.09
Shares Outstanding53,440,810
10 Day Avg. Volume588,432
30 Day Avg. Volume478,520
Financial Highlights & Ratios
PEG Ratio-0.81
Price to Book (P/B)4.51
Price to Sales (P/S)0.00
P/FCF Ratio-27.47
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue2.73
Enterprise Value/Gross Profit57.37
Enterprise Value/Ebitda-4.02
Forecast
1Y Price Target
$11.00Price Target Upside66.16% 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 experiencing financial difficulties, highlighted by recurring losses and negative cash flows. The income statement indicates a challenging situation with low gross and negative net profit margins, though there are slight improvements in EBITDA. The balance sheet shows moderate stability with low debt but declining equity ratios. Cash flow remains a critical concern due to persistent negative operating and free cash flow.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 |
| -19.57M | -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 |
| 30.17M | 30.46M | 42.31M | 11.87M | 0.00 | Net Debt |
| 26.46M | 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 |
| -12.42M | -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
6.62
Price Trends
5.87
Positive
7.01
Negative
6.40
Positive
Market Momentum
0.19
Negative
55.66
Neutral
47.75
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 6.62 is above the 20-day moving average (MA) of 6.47, above the 50-day MA of 5.87, and above the 200-day MA of 6.40, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 47.75 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $427.93M | 8.82 | 25.47% | 10.13% | -23.37% | -39.03% | |
58 Neutral | $360.40M | ― | -21.63% | ― | -18.56% | 76.88% | |
55 Neutral | $34.52M | ― | -2.12% | ― | 12.82% | 96.46% | |
53 Neutral | $353.51M | ― | -28.76% | ― | 3.79% | 55.19% | |
52 Neutral | $5.15B | 3.02 | -44.64% | 2.82% | 16.45% | -0.47% | |
49 Neutral | $255.29M | ― | -83.58% | ― | 6.88% | -17.54% | |
42 Neutral | $236.40M | ― | 77.48% | ― | 5.29% | -37.31% |
* Healthcare Sector Average
Performance Comparison
TKNO
Alpha Teknova
6.62
4.83
269.83%
EBS
Emergent Biosolutions
6.64
0.84
14.48%
LFCR
Lifecore Biomedical
6.90
0.96
16.16%
RMTI
Rockwell Med
1.01
-0.79
-43.89%
SIGA
SIGA Technologies
5.99
-0.85
-12.43%
AQST
Aquestive Therapeutics
2.38
-0.81
-25.39%
Alpha Teknova Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 3.92%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with both positive and negative elements. While the company showed growth in overall revenue and improved gross margins, specific segments such as custom products and clinical solutions faced challenges. Additionally, uncertainties in the biotech funding environment could impact future performance. However, strategic collaborations and a reduction in net losses were positive indicators.Q1-2025 Updates
Positive Updates
Revenue Growth
Revenue increased by 5% in Q1 2025 compared to Q1 2024, reaching $9.8 million. LabEssentials revenue rose by 12% year-over-year.
Gross Margin Improvement
Gross margin improved to 30.7% in Q1 2025, up from 23.8% in Q1 2024, driven by higher revenue and lower overhead costs.
Custom Biopharma Segment Growth
The number of clinical customer accounts purchasing more than $5,000 annually increased from 13 in 2020 to 48 in 2024, with expected mid-teens growth in Q1 2025.
Collaboration with Pluristics
Signed a collaboration agreement with Pluristics for exclusive manufacturing and distribution of the Flurry Freeze product line in the US and Canada.
Decrease in Net Loss
Net loss reduced to $4.6 million in Q1 2025 from $8.1 million in Q1 2024, with adjusted EBITDA improving to negative $2.5 million from negative $3.8 million.
Negative Updates
Decline in Custom Products Revenue
Revenue from sales of custom products to life science tools and diagnostics customers declined more than 30% compared to Q1 2024.
Decrease in Clinical Solutions Revenue
Clinical solutions revenue decreased by 32% in Q1 2025 compared to Q1 2024, attributed to lower average revenue per customer.
Impact of Biotech Funding Environment
Reduction in biotech funding likely to delay or reduce purchases from small and midsized biotech customers.
Company Guidance
During Alpha Teknova's first quarter 2025 earnings call, the company reported a 5% increase in total revenue to $9.8 million compared to the same quarter in 2024. CEO Stephen Gunstream highlighted the company's diverse customer base and limited geopolitical exposure, with less than 5% of revenue from international sales and minimal impact expected from tariff changes. The company maintained its full-year revenue guidance of $39 million to $42 million, anticipating growth rates of mid-single digits for catalog products, at least 15% for biopharma products, and mid-single digits for custom life science tools and diagnostics. Notable financial metrics from CFO Matt Lowell included a gross margin increase to 30.7% from 23.8% the previous year and a net loss reduction to $4.6 million from $8.1 million. Teknova also discussed strategic initiatives, including a collaboration with Pluristics to expand its product portfolio, aiming for sustainable long-term growth with an expected annual growth rate of 20-25%.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.