Alterity Therapeutics Limited (ATHE) AI Stock Analysis
ATHE AI stock analysis summary
AI ResearchAlterity Therapeutics Limited is a clinical-stage biotechnology company focused on treatments for Parkinson's, Alzheimer's, and other neurological disorders. Over the trailing twelve months, the company generated $3.6M in revenue with an operating margin of -1816.2% and EPS of -$0.90. It holds a net cash balance of $37.1M as of June 30, 2026, while its share count expanded 352.2% over five years.
- Market cap
- $47.7M
- Revenue (TTM)
- $3.6M
- P/E
- —
- 1Y return
- -45.8% S&P 500 16.8%
- Avg. target
- $13.25 405.7% vs last close
Bull case
- Wall Street analysts have a mean price target of $13.25, representing upside of 405.7% from the last close of $2.62.
- The balance sheet maintains strong liquidity with $37.1M in net cash and a current ratio of 14.52 as of June 30, 2026.
- Gross margin reached 97.7% in FY2025, supporting a 5-year revenue CAGR of 67.6% between FY2020 and FY2025.
Bear case
- Operating margin was -1816.2% over the trailing twelve months, reflecting continued operating losses of -$12.1M in FY2025.
- Quarterly revenue fell 79.0% year-over-year in the latest quarter ending June 30, 2026.
- Shareholder dilution has been substantial, with the 5-year share count rising 352.2%.
What Alterity Therapeutics does
Alterity Therapeutics Limited, based in Melbourne, Australia, develops therapeutic drugs targeting Alzheimer's disease, Huntington's disease, Parkinson's disease, and other neurological conditions. Its lead drug candidate, ATH434, has completed Phase I clinical trials for Parkinson's disease. The company is also developing PBT2, a compound that has completed Phase 2a clinical trials for Alzheimer's disease. Originally established in 1997 as Prana Biotechnology Limited, it changed its name to Alterity Therapeutics in April 2019 to reflect its strategic focus on neurology research and treatments for debilitating neurological disorders.
Growth and profitability
Annual revenue grew from $4.3M in FY2021 to $5.4M in FY2025, representing a 5-year revenue CAGR of 67.6% from FY2020 to FY2025. In FY2025, revenue rose 35.3% with a gross margin of 97.7% and an operating margin of -268.0%, resulting in a net income of -$12.1M and EPS of $0.00. Research and development expenses were $14.4M in FY2025. For the trailing twelve months ended June 30, 2026, revenue stood at $3.6M with a profit margin of 0.0%, as quarterly revenue fell 79.0% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Alterity Therapeutics reported $37.3M in cash and short-term investments against total debt of $193,475, yielding net cash of $37.1M. Shareholders' equity was $42.7M and total assets were $46.0M, supporting a current ratio of 14.52 and a debt-to-equity ratio of 0.00. Free cash flow was -$11.5M in FY2025, matching an operating cash flow of -$11.5M. In FY2026, capital expenditures were $22.0M, and the 5-year share count increased by 352.2%.
Valuation and performance
Alterity Therapeutics trades at a price-to-sales multiple of 13.2x, above the 4.1x median of its US-listed Healthcare peers. Its enterprise value of $40.4M represents an EV to revenue multiple of 114.0x and an EV to EBITDA multiple of 0.8x, compared to the peer median EV to EBITDA of 12.0x. The price-to-book ratio is 2.3x. As of October 16, 2026, the stock closed at $2.62, down 45.8% over the past year and down 80.0% over five years, trailing the S&P 500 (SPY) gains of 16.8% and 83.0% over the same periods.
What analysts expect
Wall Street coverage includes 3 Strong Buy ratings and 1 Buy rating, with zero Hold, Sell, or Strong Sell ratings. The mean price target is $13.25, which is 405.7% above the last close of $2.62. For the fiscal year ending June 30, 2027, consensus estimates project revenue of $1.1M and EPS of -$0.77. For the following fiscal year, 3 analysts estimate revenue of $2.0M and EPS of -$0.96. The company beat EPS estimates in 3 of the last 4 quarters.
Key risks and what to watch
- Free cash flow has remained negative across all reported years, including -$11.5M in FY2025.
- The stock is down 45.8% over the past year and trades 35.0% below its 200-day moving average.
- Revenue for the fiscal year ending June 30, 2027, is estimated to decline to $1.1M from $3.6M over the trailing twelve months.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ATHE AI stock analysis
This page is an AI-written research summary of Alterity Therapeutics Limited (ATHE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ATHE income statement, ATHE balance sheet, ATHE key metrics, ATHE analyst forecast, ATHE chart. See the ATHE stock overview for the latest quote and news.
ATHE AI stock analysis FAQ
What is Alterity Therapeutics' lead drug candidate?
Alterity's lead drug candidate is ATH434, which has completed Phase I clinical trials for Parkinson's disease. The company is also developing PBT2, which has completed Phase 2a clinical trials for Alzheimer's disease.
Does Alterity Therapeutics pay a dividend?
No, Alterity Therapeutics does not pay a dividend.
How much cash and debt does Alterity Therapeutics have?
As of June 30, 2026, the company held $37.3M in cash and short-term investments and $193,475 in total debt, resulting in net cash of $37.1M.
What do analysts forecast for ATHE's earnings and price target?
Analysts maintain a mean price target of $13.25, representing 405.7% above the October 16, 2026, close of $2.62. They estimate an EPS of -$0.77 for the fiscal year ending June 30, 2027.