NasdaqGS:ATEC

Stock Analysis Report

Executive Summary

Alphatec Holdings, Inc., a medical technology company, designs, develops, and markets products for the surgical treatment of spine disorders.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Alphatec Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-15.3%

ATEC

0.08%

US Medical Equipment

-2.0%

US Market


1 Year Return

20.8%

ATEC

-7.1%

US Medical Equipment

-15.1%

US Market

Return vs Industry: ATEC exceeded the US Medical Equipment industry which returned -8.2% over the past year.

Return vs Market: ATEC exceeded the US Market which returned -14.9% over the past year.


Shareholder returns

ATECIndustryMarket
7 Day-15.3%0.08%-2.0%
30 Day-45.9%-13.7%-19.7%
90 Day-53.1%-18.1%-23.2%
1 Year20.8%20.8%-6.3%-7.1%-13.4%-15.1%
3 Year50.9%50.9%42.4%38.5%10.9%3.7%
5 Year-81.4%-81.4%71.1%53.4%28.4%14.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Alphatec Holdings undervalued compared to its fair value and its price relative to the market?

4.5x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ATEC is overvalued based on its PB Ratio (4.5x) compared to the US Medical Equipment industry average (2.9x).


Next Steps

Future Growth

How is Alphatec Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

55.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATEC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: ATEC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ATEC's is expected to become profitable in the next 3 years.

Revenue vs Market: ATEC's revenue (18.6% per year) is forecast to grow faster than the US market (7.1% per year).

High Growth Revenue: ATEC's revenue (18.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ATEC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Alphatec Holdings performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATEC is currently unprofitable.

Growing Profit Margin: ATEC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ATEC is unprofitable, but has reduced losses over the past 5 years at a rate of 16.5% per year.

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

Earnings vs Industry: ATEC is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (1%).


Return on Equity

High ROE: ATEC has a negative Return on Equity (-84.63%), as it is currently unprofitable.


Next Steps

Financial Health

How is Alphatec Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ATEC's short term assets ($108.3M) exceed its short term liabilities ($36.4M).

Long Term Liabilities: ATEC's short term assets ($108.3M) exceed its long term liabilities ($66.3M).


Debt to Equity History and Analysis

Debt Level: ATEC's debt to equity ratio (80.1%) is considered high.

Reducing Debt: ATEC's debt to equity ratio has increased from 47% to 80.1% over the past 5 years.


Balance Sheet

Inventory Level: ATEC has a high level of physical assets or inventory.

Debt Coverage by Assets: ATEC's debt is covered by short term assets (assets are 2x debt).


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: ATEC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: ATEC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -17.4% each year


Next Steps

Dividend

What is Alphatec Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if ATEC'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 ATEC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Pat Miles (53yo)

2.08s

Tenure

US$3,176,253

Compensation

Mr. Patrick S. Miles, also known as Pat, has been an Executive Chairman of Alphatec Holdings, Inc since October 1, 2017 and its Chief Executive Officer since March 06, 2018 and also serves as its President ...


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD3.18M) is above average for companies of similar size in the US market ($USD1.49M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Miles
Executive Chairman2.08yrsUS$3.18m3.54% $7.1m
Jeffrey Black
Executive VP & CFO3.08yrsUS$926.93k0.15% $311.6k
Craig Hunsaker
Executive VP of People & Culture3.08yrsUS$1.00m0.82% $1.7m
Brian Snider
Executive Vice President of Marketing & Development3.08yrsno data0.31% $625.8k
David Sponsel
Executive Vice President of Sales1yrno data0.12% $245.7k
Jonathan Allen
Executive Vice President of Commercial Operations3.33yrsno datano data
Luiz Pimenta
Chief Medical Officer2.08yrsno datano data
Kelli Howell
Executive Vice President of Clinical Strategies2.08yrsno data0.20% $407.5k
Mark Ojeda
Executive Vice President of Cervical & Biologics1.58yrsno datano data
Eric Dasso
Executive Vice President of Adjunctive Technologies0.67yrno datano data

2.1yrs

Average Tenure

50yo

Average Age

Experienced Management: ATEC's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Miles
Executive Chairman2.08yrsUS$3.18m3.54% $7.1m
Mortimer Berkowitz
Lead Director2.5yrsno data1.06% $2.1m
Stephen Hochschuler
Chairman of Scientific Advisory Board14.5yrsUS$42.42kno data
James Yue
Member of Scientific Advisory Boardno datano datano data
Frank Phillips
Member of Scientific Advisory Boardno datano datano data
Frank Eismont
Member of Scientific Advisory Boardno datano datano data
Bret Abshire
Member of Scientific Advisory Board13.58yrsno datano data
Frank Cammisa
Member of Scientific Advisory Board12.83yrsno datano data
J. Johnson
Member of Scientific Advisory Board13.17yrsno datano data
Donald Williams
Independent Director5yrsUS$92.87k0.074% $148.6k

12.8yrs

Average Tenure

63yo

Average Age

Experienced Board: ATEC's board of directors are seasoned and experienced ( 12.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ATEC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 47.9%.


Top Shareholders

Company Information

Alphatec Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alphatec Holdings, Inc.
  • Ticker: ATEC
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$201.582m
  • Shares outstanding: 62.99m
  • Website: https://www.atecspine.com

Number of Employees


Location

  • Alphatec Holdings, Inc.
  • 5818 El Camino Real
  • Carlsbad
  • California
  • 92008
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATECNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 2006
L1Z1DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2006

Biography

Alphatec Holdings, Inc., a medical technology company, designs, develops, and markets products for the surgical treatment of spine disorders. The company offers MIS products consisting of Battalion Lateral Spacer System and Squadron Lateral Retractor, and Illico Minimally Invasive Surgery System; and thoracolumbar fixation products, such as Arsenal Degenerative, Arsenal Deformity, Arsenal CBx Cortical Bone Fixation, and Zodiac Degenerative Spinal Fixation Systems. It also provides cervical and cervico-thoracic products, including Trestle Luxe Anterior Cervical Plate System, and Solanas Posterior Cervico/Thoracic Fixation System and Avalon Occipital Plate; and interbody systems, such as Battalion Universal Spacer System, Novel PEEK and Titanium Spinal Spacers, and Alphatec Solus Locking ALIF Spinal Spacer. In addition, the company offers biologics consisting of AlphaGraft Structural Allograft Spacers, AlphaGraft ProFuse Demineralized Bone Scaffold, Amnioshield Amniotic Tissue Barrier, Alphagraft Demineralized Bone Matrix, and Neocore Osteoconductive Matrix. It sells its products through a network of independent distributors and direct sales representatives in the United States. Alphatec Holdings, Inc. was founded in 1990 and is headquartered in Carlsbad, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 02:00
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.