Alphatec Holdings, Inc. (NASDAQ: ATEC)

Sector: Healthcare Industry: Medical Devices CIK: 0001350653
Market Cap 2.01 Bn
P/B 174.82
P/E -12.98
P/S 2.76
ROIC (Qtr) -16.10
Div Yield % 0.00
Rev 1y % (Qtr) 30.38
Total Debt (Qtr) 591.15 Mn
Debt/Equity (Qtr) 51.38
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About

Alphatec Holdings, Inc., also known as ATEC, is a medical technology company that operates in the healthcare industry. The company is renowned for its design, development, and advancement of technology for improved surgical treatment of spine disorders. With its headquarters in Carlsbad, California, ATEC is dedicated to revolutionizing the approach to spine surgery through clinical distinction. ATEC's primary business activities revolve around the creation of sophisticated surgical solutions for spine disorders. These solutions integrate seamlessly...

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Investment thesis

Bull case

  • Healthy cash reserves of 155.74M provide 2.19x coverage of short-term debt 71.11M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 616.01M provide exceptional 61.18x coverage of deferred revenue 10.07M, showing strong service capability backing.
  • Operating cash flow of 35.07M provides strong 3.48x coverage of deferred revenue 10.07M, indicating service delivery capability.
  • Tangible assets of 616.01M provide robust 5.46x coverage of other current liabilities 112.84M, indicating strong asset backing.
  • Operating cash flow of 35.07M fully covers other non-current liabilities 24.80M by 1.41x, showing strong long-term stability.

Bear case

  • Operating cash flow of 35.07M barely covers its investment activities of (41.42M), with a coverage ratio of -0.85, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (41.42M) provide weak support for R&D spending of 76.78M, which is -0.54x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 35.07M shows concerning coverage of stock compensation expenses of 75.85M, with a 0.46 ratio indicating potential earnings quality issues.
  • Operating earnings of (114.37M) show weak coverage of depreciation charges of 83.49M, with a -1.37 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 3.61M provides weak coverage of capital expenditures of 31.47M, with a 0.11 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Medical Devices
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ABT Abbott Laboratories 173.80 Bn 32.73 5.47 12.94 Bn
2 SYK Stryker Corp 141.15 Bn 43.48 5.62 15.86 Bn
3 MDT Medtronic plc 123.47 Bn 25.92 3.55 29.10 Bn
4 BSX Boston Scientific Corp 112.80 Bn 38.92 5.62 11.44 Bn
5 EW Edwards Lifesciences Corp 45.66 Bn 33.38 7.76 0.70 Bn
6 DXCM Dexcom Inc 27.52 Bn 32.91 5.90 1.34 Bn
7 STE STERIS plc 24.13 Bn 34.08 4.14 2.05 Bn
8 PODD Insulet Corp 17.33 Bn 70.38 6.87 1.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.10 2.13
EV to Cash from Ops. EV/CFO 69.60 2.75
EV to Debt EV to Debt 4.13 17.25
EV to EBIT EV/EBIT -21.34 2.89
EV to EBITDA EV/EBITDA -175.33 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF 676.95 29.36
EV to Market Cap EV to Market Cap 1.21 25.09
EV to Revenue EV/Rev 3.35 32.80
Price to Book Value [P/B] P/B 174.82 4.73
Price to Earnings [P/E] P/E -12.98 -2.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 40.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.59
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.37
Interest Coverage Int. cover (Qtr) -2.85 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 70.58 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 92.33 8,476.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 26.39 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 82.00 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) 26.80 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) 13.36 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) 18.11 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) 101.93 10.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 26.67 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.92 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.71 1.80
Current Ratio Curr Ratio (Qtr) 1.99 4.18
Debt to Equity Ratio Debt/Equity (Qtr) 51.38 1.20
Interest Cover Ratio Int Coverage (Qtr) -2.85 196.93
Times Interest Earned Times Interest Earned (Qtr) -2.85 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -4.20 -2,396.63
EBIT Margin % EBIT Margin % (Qtr) -15.71 -2,478.60
EBT Margin % EBT Margin % (Qtr) -21.23 -2,690.42
Gross Margin % Gross Margin % (Qtr) 69.20 30.80
Net Profit Margin % Net Margin % (Qtr) -21.30 -2,821.53