Alpha Teknova (TKNO) AI Stock Analysis

• Market Cap: $307.71M
• Dividend Yield: N/A
• Average Volume (3M): 318.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 11.40%
• EPS Growth: 56.25%
• Country: US
• Employees: 173
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.07
• Shares Outstanding: 53,515,167
• 10 Day Avg. Volume: 259,294
• 30 Day Avg. Volume: 318,881
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 6.87
• Enterprise Value/Gross Profit: 29.04
• Enterprise Value/Ebitda: -14.70
• 1Y Price Target: $10.00
• Price Target Upside: 73.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 51 Neutral
• Price Target: $6.00 ▲(4.17% Upside)

Alpha Teknova's stock score is primarily impacted by its financial performance challenges, including negative profit margins and cash flow issues. While technical indicators show some positive momentum, the valuation remains weak due to ongoing losses. The earnings call reflects cautious optimism with some operational improvements, but significant challenges persist.

Positive Factors

Revenue Growth

Consistent revenue growth over four quarters indicates strong demand for Teknova's products, supporting long-term business expansion.

Improved Gross Margin

Improved gross margins reflect enhanced manufacturing efficiency, which can lead to better profitability and competitive pricing.

Expansion of Customer Base

A growing customer base indicates successful market penetration and increased demand for Teknova's offerings, supporting future revenue streams.

Negative Factors

Negative Profit Margins

Persistent negative profit margins highlight ongoing profitability challenges, which could hinder long-term financial stability and growth.

Cash Flow Issues

Negative cash flows indicate potential liquidity issues, limiting the company's ability to invest in growth opportunities and manage debts.

Challenges in Custom Products

Underperformance in custom products may affect revenue diversification and growth potential, especially in a challenging macro environment.

Alpha Teknova Business Overview & Revenue Model

Company Description

Alpha Teknova, Inc. provides critical reagents for life sciences market in the United States and internationally. Its reagents enable the discovery, development, and production of biopharmaceutical products, such as drug therapies, novel vaccines, and molecular diagnostics. The company offers pre-poured media plates for cell growth and cloning; liquid cell culture media and supplements for cellular expansion; and molecular biology reagents for sample manipulation, resuspension, and purification. It serves life sciences market, including pharmaceutical and biotechnology companies, contract development and manufacturing organizations, in vitro diagnostic franchises, and academic and government research institutions. The company was founded in 1996 and is headquartered in Hollister, California.

How the Company Makes Money

Alpha Teknova generates revenue primarily through the sale of its custom reagents and molecular biology products, which are tailored to meet the specific needs of its customers. The company offers a wide range of products, including buffers, enzymes, and other laboratory supplies, which are sold both directly and through distribution partnerships. Key revenue streams include bulk orders from pharmaceutical companies and recurring sales to research institutions and laboratories. Additionally, Teknova may engage in collaborations or partnerships with larger biotech firms, enhancing its reach and providing opportunities for co-development projects, which can further contribute to its earnings.

Alpha Teknova Financial Statement Overview

Summary

Alpha Teknova faces significant financial challenges. The income statement reflects persistent losses and declining profitability metrics, while the balance sheet indicates increased leverage and reduced equity. Cash flow analysis shows negative trends, with insufficient operational cash generation and reliance on external financing.

Income Statement

The income statement shows a concerning trend with declining revenue growth and negative profitability margins. The gross profit margin has decreased significantly over the years, and the net profit margin remains deeply negative, indicating substantial losses. Despite a slight increase in revenue in the TTM, the company's EBIT and EBITDA margins are substantially negative, reflecting operational inefficiency and high operating costs.

Balance Sheet

The balance sheet shows a decline in stockholders’ equity and a challenging debt position. The debt-to-equity ratio has increased, indicating higher leverage, which poses a financial risk. The equity ratio has deteriorated, showing a decrease in the proportion of equity financing. These factors signal potential financial stability issues, although the company maintains some liquidity.

Cash Flow

The cash flow statement reveals negative free cash flow trends, indicating that the company is not generating sufficient cash from operations to cover capital expenditures. The operating cash flow to net income ratio is negative, highlighting cash flow management challenges. The company is reliant on external financing, as evidenced by positive financing cash flows despite negative operating cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.92M	37.74M	36.68M	41.42M	36.89M	31.30M
Gross Profit	9.21M	7.23M	10.30M	17.48M	17.62M	17.75M
EBITDA	-18.18M	-19.57M	-25.54M	-25.69M	-9.13M	6.71M
Net Income	-21.50M	-26.75M	-36.78M	-47.47M	-9.80M	3.57M
Balance Sheet
Total Assets	110.49M	118.77M	128.59M	152.26M	166.51M	62.91M
Cash, Cash Equivalents and Short-Term Investments	3.28M	30.40M	28.48M	42.24M	87.52M	5.13M
Total Debt	15.94M	30.17M	30.46M	42.31M	11.87M	0.00
Total Liabilities	34.43M	36.38M	38.55M	52.38M	23.31M	46.14M
Stockholders Equity	76.06M	82.39M	90.04M	99.89M	143.20M	16.77M
Cash Flow
Free Cash Flow	-4.31M	-13.52M	-26.75M	-55.55M	-28.95M	-2.96M
Operating Cash Flow	-3.00M	-12.42M	-18.81M	-27.40M	-9.07M	2.50M
Investing Cash Flow	-21.32M	-27.27M	-7.74M	-28.15M	-17.52M	-1.74M
Financing Cash Flow	15.30M	14.89M	12.80M	10.27M	110.79M	-1.60M

Alpha Teknova Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5.76 is above the 20-day moving average (MA) of 5.54, above the 50-day MA of 4.97, and below the 200-day MA of 5.88, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 58.09 is Neutral, neither overbought nor oversold. The STOCH value of 77.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TKNO.

Alpha Teknova Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DERM	57 Neutral	$192.85M	―	-57.22%	―	-27.40%	-475.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TKNO	51 Neutral	$307.71M	―	-27.74%	―	11.40%	56.25%
IRWD	50 Neutral	$264.77M	-31.74	―	―	-22.98%	-173.28%
LFCR	46 Neutral	$252.52M	-5.22	-76.41%	―	0.47%	-430.88%
BIOA	33 Underperform	$185.70M	―	-35.88%	―	―	―

Alpha Teknova Corporate Events

Alpha Teknova’s Earnings Call: Growth Amid Challenges

In the recent earnings call, Alpha Teknova, Inc. presented a balanced mix of positive and negative sentiments. The company reported solid revenue growth, improved gross margins, and operational efficiency, yet challenges persist with net loss and cash flow. The market conditions for smaller biotech firms remain difficult, impacting custom product sales, leading to a balanced outlook overall.

Teknova Reports Strong Q2 2025 Revenue Growth

Alpha Teknova, Inc. is a prominent company in the life sciences sector, specializing in the production of critical reagents for the discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics.