Alpha Tau Medical Ltd. (DRTS) Fundamental Analysis: Bull vs. Bear Case

DRTS

Alpha Tau Medical Ltd.

Fundamental data last updated:June 6, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Healthcare

industry

Biotechnology

Exchange

NASDAQ

County of HQ

IL

Next Earnings Date

08/10/2026

Business Summary

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, and breast cancers; and preclinical studies for hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.

VALUATION

P/E

-15.98

Market Cap ($M USD)

$891.54M

Forward P/E

10.13 PEG

0.04 PRICE TO SALES

0.00 PRICE TO BOOK

13.10 EV / EBITDA

-19.44

5-Year Average P/E

Free Cash Flow Yield

-3.67%

DCF Value

$-0.02

Graham Number

N/A

Price to FCF

-27.22

EV to FCF

-27.40

Earnings Yield

-6.26%

FCF Yield

-3.67%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.63

Next Year EPS Growth Estimate

$1.00

Next Year Revenue Growth Estimate

$25.90B

Return on Equity (ROE)

-73.23%

FREE CASH FLOW

Operating Margin

0.00%

Debt-to-Equity

0.18 Piotroski F-Score

2 Altman Z-Score

10.14 Return on Invested Capital (ROIC)

-47.08%

Current Ratio

7.79 Quick Ratio

7.79 Net Debt to EBITDA

-0.13

Interest Coverage

-4.80

Gross Profit margin

0.00%

FCF PER SHARE

$-0.37

REVENUE PER SHARE

$0.00

Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing DRTS Alpha Tau Medical Ltd. significantly. With a Forward P/E of 8.51, the company appears undervalued relative to its growth potential, especially given the staggering sales growth forecast. However, the negative DCF Value suggests a disconnect between market optimism and intrinsic value. The Altman Z-score of 12.21 indicates financial stability, yet the negative Earnings Yield raises questions about profitability. Overall, the valuation is a mixed bag, with potential for growth but clear risks.

AI Exposure / Tech Reliance

In the rapidly evolving biotechnology sector, DRTS is well-positioned to leverage AI and modern tech advancements. As a player in healthcare, the company can harness AI for drug discovery and personalized medicine, enhancing its competitive edge. Its adaptability will be crucial in maintaining relevance and driving innovation.

The Bull Case

For value or GARP investors, DRTS offers compelling reasons to buy. The impressive ROIC of 17.78% suggests efficient capital use, while the low Debt/Equity ratio of 0.18 underscores financial prudence. Despite a low Piotroski F-Score of 2, the company's robust Current Ratio of 7.45 indicates strong liquidity. These metrics suggest a company with potential pricing power and operational resilience.

The Bear Case

Despite some strengths, DRTS faces significant structural risks. The Price/Book ratio of 9.46 is alarmingly high, indicating potential overvaluation. With a negative FCF Yield and Price to FCF, cash flow issues are evident, raising concerns about sustainability. Additionally, trading close to its 52-week high suggests technical overextension, making it vulnerable to market corrections.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$12.67

Institutional Ownership %

1-Year Beta

1.12 Insider Buying % (6 Mo)

Distance to 52-Week High

14.71%

Distance to 52-Week Low

72.26%

EARNINGS SURPRISE %

-100.00%

50-DAY SMA

$8.24

200-DAY SMA

$5.85

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.