Fundamentals snapshot

Alphatec Holdings, Inc.

ATEC · NMS · Healthcare · Medical Devices

Current price

$11.04

52-week range

$6.82 - $23.29

Market cap

$1.70B

One-glance verdict

Overvalued

$-2.39 our estimate vs market $11.04

Wall Street consensus: $15.79 (-760.6% lower than our fair-value estimate)

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.

View details ↓

What this company does

Alphatec Holdings, Inc.

Alphatec Holdings designs and sells medical technology, mainly implants and equipment, to help surgeons treat spine problems. Their money comes mostly from selling these products to hospitals and surgical centers, which matters because it shows how much demand there is for their specialized tools in the healthcare field.

How the company got here

Alphatec Holdings, Inc. was founded in 1990 and has evolved into a medical technology company focused on spinal disorders. The company's journey has involved developing and refining technologies aimed at improving surgical treatments for conditions affecting the spine. Over the years, Alphatec has built a portfolio of products designed to assist surgeons in performing these complex procedures more effectively and safely. Its headquarters are located in Carlsbad, California.

What it actually does

Alphatec Holdings designs, develops, and sells medical technologies specifically for the surgical treatment of spinal disorders. Think of them as creating the specialized tools and implants that surgeons use when operating on a patient's spine. This includes everything from the screws and rods that help stabilize the spine to advanced imaging and monitoring systems that aid the surgeon during the operation. They also offer materials that help bone to heal and grow, known as biologics.

Spinal Implants and Instruments

This is a core part of Alphatec's business, where they manufacture and sell the physical components used in spinal surgeries. These include implants like screws, rods, and cages that help to fuse or stabilize vertebrae (the bones in your spine). They also produce the specialized instruments surgeons need to precisely place these implants. Customers for these products are hospitals and surgical centers, who purchase them for use in operations. This segment represents a significant portion of the company's overall revenue.

Surgical Technologies and Imaging

Alphatec offers advanced technological platforms that enhance the surgical process. This includes the EOS imaging system, which provides full-body scans with lower radiation exposure, helping surgeons plan procedures. They also provide the SafeOp Neural InformatiX System for monitoring nerve function during surgery, and the Valence system, which integrates navigation and robotics to guide surgical instruments. These technologies are sold to hospitals and surgical facilities, contributing to the company's revenue stream by offering advanced solutions for complex spinal surgeries.

Biologics

This segment focuses on products that aid in bone healing and fusion after spinal surgery. Alphatec offers a range of biologics, which are materials derived from human tissue or synthetically created to encourage bone growth. Examples include demineralized bone matrix (DBM) and synthetic bone graft substitutes. These products are used by surgeons to help the bones in the spine fuse together properly, a critical part of many spinal procedures. This is a specialized but important area that complements their implant and instrument offerings.

What management is betting on now

Alphatec's management is focused on advancing its technological offerings and expanding its product portfolio within the spine surgery market. A key priority is the continued development and commercialization of their integrated technology platforms, such as their imaging and neuromonitoring systems, which aim to improve surgical outcomes. They are also investing in their biologics and implant solutions to provide a comprehensive suite of products for spinal disorder treatment. The strategy centers on innovation and providing surgeons with advanced tools to address a wide range of spinal conditions.

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.

Free cash flow by quarter (oldest to newest)

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

Revenue —

Net income $-33.91M

Diluted EPS -0.22

Operating cash flow $1.29M

Free cash flow $-10.80M

Revenue —

Net income $-21.73M

Diluted EPS -0.15

Operating cash flow $20.68M

Free cash flow $7.72M

Revenue —

Net income $-28.58M

Diluted EPS -0.19

Operating cash flow $14.04M

Free cash flow $4.81M

Revenue —

Net income $-41.14M

Diluted EPS -0.27

Operating cash flow $15.55M

Free cash flow $5.22M

Revenue —

Net income $-51.91M

Diluted EPS -0.35

Operating cash flow $-5.04M

Free cash flow $-14.97M

Revenue —

Net income $-33.33M

Diluted EPS -0.22

Operating cash flow $10.52M

Free cash flow $8.55M

Revenue —

Net income $-39.62M

Diluted EPS -0.28

Operating cash flow $-5.34M

Free cash flow $-21.18M

Is it cheap or expensive?

Fair value $-2.39 vs current price $11.04

Wall Street consensus is the average analyst price target: $15.79 (-760.6% lower than our fair-value estimate).

Our most-likely fair value is $-2.39 a share — about 121.7% below today's price of $11.04, so the stock currently looks expensive (overvalued).

overvalued

We estimate the cash this business should generate over the next 10 years and beyond, then convert it to today's money for a fair value per share, in its trading currency. Cautious, middle and optimistic growth cases give a range. Not for banks/insurers.

Base

Growth 12.0% · Discount 7.2% · Terminal 3.0%

$-2.39

Bear

Growth 5.0% · Discount 7.2% · Terminal 3.0%

$-2.64

Bull

Growth 20.0% · Discount 7.2% · Terminal 3.0%

$-1.96

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.

GMED Globus Medical, Inc.

Total debt $111.91M Interest coverage 75.23x This peer still has a real interest-payment cushion, while ATEC does not.

OFIX Orthofix Medical Inc.

Total debt $261.90M Interest coverage -4.72x Neither company has much profit cushion over interest right now.

SIBN SI-BONE, Inc.

Total debt $42.80M Interest coverage -8.50x Neither company has much profit cushion over interest right now.

IART Integra LifeSciences Holdings Corporation

Total debt $2.00B Interest coverage 0.21x This peer still has a real interest-payment cushion, while ATEC does not.

CNMD CONMED Corporation

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)

—

Forward P/E

18.38x

P/B

-139.68x

P/S

2.09x

EV/EBITDA

57.99x

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

-0.72

EPS 5Y CAGR

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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

0.0%

Payout ratio

0.0%

Last ex-div date

—

Alphatec Holdings, Inc.

$-2.39 our estimate vs market $11.04

-1.26x Concerning

1 rewards · 2 risks

Alphatec Holdings, Inc.

How the company got here

What it actually does

Spinal Implants and Instruments

Surgical Technologies and Imaging

Biologics

What management is betting on now

How the share price has moved

Last 8 quarters — what happened

Fair value ? $-2.39 vs current price $11.04

Distressed

The case for and against ATEC

Rewards

Risks

All the key metrics, grouped by purpose

How expensive the stock looks

How much profit each dollar creates

Liquidity and balance-sheet strength

How the business has been compounding

How much cash the business throws off

Shareholder payout

Fair value $-2.39 vs current price $11.04