ASX:ATH

Stock Analysis Report

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Executive Summary

Alterity Therapeutics Limited researches and develops therapeutic drugs for the treatment of Alzheimer’s disease, Huntington disease, Parkinson’s disease, and other neurological disorders in Australia.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has Alterity Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ATH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-15.0%

ATH

-4.0%

AU Biotechs

3.8%

AU Market


1 Year Return

-52.8%

ATH

39.5%

AU Biotechs

-8.5%

AU Market

Return vs Industry: ATH underperformed the Australian Biotechs industry which returned 39.5% over the past year.

Return vs Market: ATH underperformed the Australian Market which returned -8.5% over the past year.


Shareholder returns

ATHIndustryMarket
7 Day-15.0%-4.0%3.8%
30 Day-15.0%-3.6%12.0%
90 Day21.4%-7.9%-8.6%
1 Year-52.8%-52.8%41.0%39.5%-4.7%-8.5%
3 Year-65.3%-65.3%121.5%114.0%13.4%-1.6%
5 Year-90.6%-90.6%214.0%194.5%30.8%2.5%

Price Volatility Vs. Market

How volatile is Alterity Therapeutics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alterity Therapeutics undervalued compared to its fair value and its price relative to the market?

1.32x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ATH's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ATH's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ATH is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: ATH is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ATH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ATH is good value based on its PB Ratio (1.3x) compared to the AU Biotechs industry average (2.9x).


Next Steps

Future Growth

How is Alterity Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.4%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Alterity Therapeutics has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Alterity Therapeutics performed over the past 5 years?

-13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATH is currently unprofitable.

Growing Profit Margin: ATH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ATH is unprofitable, and losses have increased over the past 5 years at a rate of -13.4% per year.

Accelerating Growth: Unable to compare ATH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ATH is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.3%).


Return on Equity

High ROE: ATH has a negative Return on Equity (-112.86%), as it is currently unprofitable.


Next Steps

Financial Health

How is Alterity Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: ATH's short term assets (A$14.4M) exceed its short term liabilities (A$3.2M).

Long Term Liabilities: ATH's short term assets (A$14.4M) exceed its long term liabilities (A$47.9K).


Debt to Equity History and Analysis

Debt Level: ATH is debt free.

Reducing Debt: ATH had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ATH has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: ATH has sufficient cash runway for 1.2 years if free cash flow continues to grow at historical rates of 4.7% each year.


Next Steps

Dividend

What is Alterity Therapeutics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ATH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ATH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ATH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATH's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.4yrs

Average management tenure


CEO

Geoffrey Kempler (64yo)

15yrs

Tenure

AU$424,053

Compensation

Mr. Geoffrey Paul Kempler, B.Sc, Grad.Dip.App.Soc.Psych, co-founded Alterity Therapeutics Limited (formerly known as Prana Biotechnology Limited). and has been its Chief Executive Officer since June 15, 20 ...


CEO Compensation Analysis

Compensation vs Market: Geoffrey's total compensation ($USD287.34K) is about average for companies of similar size in the Australian market ($USD252.98K).

Compensation vs Earnings: Geoffrey's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Geoffrey Kempler
Co-Founder15yrsAU$424.05k1.38% A$242.8k
Kathryn J. Andrews
Chief Financial Officer5.58yrsAU$272.42kno data
David Stamler
Chief Medical Officer & Senior VP of Clinical Development3yrsAU$547.62kno data
Rudolph Tanzi
Chief Scientific Advisor and Member of Research & Development Advisory Board13.25yrsno datano data
Steven Targum
Chief Medical Advisor13.25yrsno datano data
Robert Cherny
Head of Research13.17yrsno datano data
Phillip Hains
Company Secretary5.58yrsAU$100.00kno data

8.4yrs

Average Tenure

59yo

Average Age

Experienced Management: ATH's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Geoffrey Kempler
Co-Founder15yrsAU$424.05k1.38% A$242.8k
Rudolph Tanzi
Chief Scientific Advisor and Member of Research & Development Advisory Board13.25yrsno datano data
Brian Meltzer
Non-Executive Independent Director20.5yrsAU$80.00k0.031% A$5.6k
Colin Masters
Member of Research & Development Advisory Board13.25yrsAU$241.36kno data
Peter Marks
Non-Executive Independent Director14.92yrsAU$60.00k0.0042% A$733.6
David Sinclair
Non-Executive Director1.17yrsAU$10.75kno data
Lawrence Gozlan
Non-Executive Director8.83yrsAU$580.00kno data
Ira Shoulson
Chairman of Research & Development Advisory Boardno dataAU$78.76kno data
Tristan Edwards
Non-Executive Director1.17yrsAU$10.75kno data

13.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: ATH's board of directors are seasoned and experienced ( 13.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.5%.


Top Shareholders

Company Information

Alterity Therapeutics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alterity Therapeutics Limited
  • Ticker: ATH
  • Exchange: ASX
  • Founded: 1997
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$17.635m
  • Shares outstanding: 1.04b
  • Website: https://www.alteritytherapeutics.com

Number of Employees


Location

  • Alterity Therapeutics Limited
  • 460 Bourke Street
  • Level 3
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRNA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2000
ATHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2000
PBNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2000
ATHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2000
ATHENasdaqCM (Nasdaq Capital Market)SPON ADR EA REPR 60 ORD (POST REV SPLIT)USUSDSep 2002
PBNNDB (Deutsche Boerse AG)SPON ADR EA REPR 60 ORD (POST REV SPLIT)DEEURSep 2002

Biography

Alterity Therapeutics Limited researches and develops therapeutic drugs for the treatment of Alzheimer’s disease, Huntington disease, Parkinson’s disease, and other neurological disorders in Australia. The company’s lead drug candidates include PBT434 that is in Phase I clinical trial for the treatment of Parkinson’s disease and other movement disorders. It is also developing PBT2 for patients with Alzheimer’s disease. The company was formerly known as Prana Biotechnology Limited and changed its name to Alterity Therapeutics Limited in April 2019. The company was founded in 1997 and is based in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 14:07
End of Day Share Price2020/06/02 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.