One-glance verdict
Overvalued
$-1.68 our estimate vs market $10.58
Wall Street consensus: $15.79 (-1,041.7% lower than our fair-value estimate)
731% below our estimate, beyond the bull case
Fundamentals snapshot
Alphatec Holdings, Inc.
ATEC · NMS · Healthcare · Medical Devices
Current price
$10.58
52-week range
$6.82 - $23.29
Market cap
$1.63B
Balance sheet
Distressed
-1.26x Concerning
Net debt $485.36M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -373.4% last year — the company lost money on shareholders' equity.
- Risk Net debt grew 39.9% over 3 years.
What this company does
Alphatec Holdings, Inc.
Alphatec Holdings is a medical device company that creates and sells a full suite of products for spine surgery. They offer everything from advanced imaging and robotic systems to the actual spinal implants and biological materials used to help patients heal. The company makes money by providing this entire ecosystem (a collection of interconnected products designed to work together) to surgeons, aiming to improve the outcomes of complex back operations.
How the company got here
Founded in 1990, Alphatec spent many years as a smaller player in the medical device industry. A major turning point came around 2018 when new leadership took over with a fresh strategy. The company decided to focus exclusively on the complex and demanding field of spine surgery in the United States. This shift involved acquiring new technologies and revamping its product lineup to create more complete solutions for surgeons.
What it actually does
Alphatec creates the tools and implants surgeons use to treat serious back and neck problems. Think of it as a complete toolkit for spine surgery, including screws, rods, and artificial discs that are implanted in the patient. They also make the specialized instruments needed to perform these delicate operations. Hospitals and surgical centers buy these products so their spine surgeons can help patients with conditions like degenerative disc disease or spinal deformities.
Surgical Revenue
This is the company's main business and makes up the vast majority of its sales. It includes all the physical hardware that surgeons use during an operation, such as spinal implants, fixation systems (the screws and rods that hold everything in place), and biologics (special materials that help bones fuse together). Hospitals and surgery centers pay Alphatec for these products on a per-procedure basis. This segment grows as more surgeons choose to use Alphatec's systems for their operations.
EOS Revenue
This is a smaller but important part of the company's business, centered on its EOS imaging technology. The EOS system provides detailed, full-body images of a patient's skeleton in a standing position using significantly less radiation than traditional X-rays or CT scans. Hospitals purchase these large imaging machines to help surgeons better plan for complex spine surgeries and assess the results afterward. This revenue (money the company earns) comes from selling the imaging machines themselves.
What management is betting on now
Management's core strategy is to convince surgeons to adopt its entire ecosystem of products for spine surgery, not just one or two items. They are focused on integrating imaging (EOS), nerve monitoring, and implants into a single, seamless procedure. The bet is that by providing a complete and clinically superior solution, they can win deep loyalty from surgeons. This increases the revenue per surgery and makes surgeons more likely to continue using ATEC's full platform for all their patients.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-21.18M
FY2024 Q4
$8.55M
FY2025 Q1
$-14.97M
FY2025 Q2
$5.22M
FY2025 Q3
$4.81M
FY2025 Q4
$7.72M
FY2026 Q1
$-10.80M
FY2026 Q2
$582.00K
Revenue
—
Net income
$-25.78M
Diluted EPS
-0.16
Operating cash flow
$20.51M
Free cash flow
$582.00K
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Sources
Revenue
—
Net income
$-33.91M
Diluted EPS
-0.22
Operating cash flow
$1.29M
Free cash flow
$-10.80M
Fetching…
Sources
Revenue
—
Net income
$-21.73M
Diluted EPS
-0.15
Operating cash flow
$20.68M
Free cash flow
$7.72M
Fetching…
Sources
Revenue
—
Net income
$-28.58M
Diluted EPS
-0.19
Operating cash flow
$14.04M
Free cash flow
$4.81M
Fetching…
Sources
Revenue
—
Net income
$-41.14M
Diluted EPS
-0.27
Operating cash flow
$15.55M
Free cash flow
$5.22M
Fetching…
Sources
Revenue
—
Net income
$-51.91M
Diluted EPS
-0.35
Operating cash flow
$-5.04M
Free cash flow
$-14.97M
Fetching…
Sources
Revenue
—
Net income
$-33.33M
Diluted EPS
-0.22
Operating cash flow
$10.52M
Free cash flow
$8.55M
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Sources
Revenue
—
Net income
$-39.62M
Diluted EPS
-0.28
Operating cash flow
$-5.34M
Free cash flow
$-21.18M
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Sources
Is it cheap or expensive?
Fair value $-1.68 vs current price $10.58
Wall Street consensus is the average analyst price target: $15.79 (-1,041.7% lower than our fair-value estimate).
Our most-likely fair value is $-1.68 a share — about 115.8% below today's price of $10.58, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $485.4M. Interest coverage -1.3x.
Net debt
$485.36M
Interest coverage
-1.26x
Alphatec Holdings, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
ATEC
BASELINE
Alphatec Holdings, Inc.
Total debt $604.02M Interest coverage -1.26x This is the baseline the peer rows are being compared against.
Total debt $111.91M Interest coverage 75.23x This peer still has a real interest-payment cushion, while ATEC does not.
Total debt $261.90M Interest coverage -4.72x Neither company has much profit cushion over interest right now.
Total debt $42.80M Interest coverage -8.50x Neither company has much profit cushion over interest right now.
Total debt $2.05B Interest coverage 0.21x This peer still has a real interest-payment cushion, while ATEC does not.
Total debt $834.25M Interest coverage 3.30x This peer still has a real interest-payment cushion, while ATEC does not.
What you should know
The case for and against ATEC
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -373.4% last year — the company lost money on shareholders' equity.
-
Net debt grew 39.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
17.62x
P/B
-133.92x
P/S
2.00x
EV/EBITDA
55.86x
PEG ratio
0.48x
Profitability
How much profit each dollar creates
Gross margin
70.8%
Operating margin
-0.9%
Net margin
-13.5%
ROE
-373.4%
ROA
-3.1%
Health
Liquidity and balance-sheet strength
Debt / equity
52.37x
Current ratio
1.89x
Quick ratio
0.99x
Total debt
$604.02M
Total cash
$118.66M
Growth
How the business has been compounding
Revenue TTM
$92.63M
Revenue 5Y CAGR
-16.0%
EPS TTM
-0.85
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$56.52M
Free CF TTM
$2.78M
FCF margin
3.0%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—