Alphatec Holdings Inc (ATEC, Financial), a company specializing in the medical devices and instruments industry, has experienced a notable fluctuation in its stock price recently. With a market capitalization of $2 billion, ATEC's current stock price stands at $14.65. Over the past week, the stock has seen a decline of 9.07%, yet when looking at the broader picture over the past three months, ATEC has gained an impressive 23.23%. According to the GF Value, which is currently set at $17.49, ATEC remains modestly undervalued, a consistent valuation from its past GF Value of $17.83.
Understanding Alphatec Holdings Inc
Alphatec Holdings Inc is at the forefront of medical technology, focusing on the design, development, and advancement of products for the surgical treatment of spinal disorders. The company's innovative spine approach technologies cater to a range of procedures, including Posterior Cervical Fusion and Anterior Cervical Discectomy and Fusion. ATEC's commitment to improving patient outcomes in spinal surgery has positioned it as a key player in the medical devices sector. 
Profitability Analysis
Despite its innovative contributions to spinal surgery, ATEC's financials reflect some challenges in profitability. The company's Profitability Rank is currently at 2 out of 10. Its Operating Margin stands at -31.28%, which, while not ideal, is better than 33.62% of 821 companies in the industry. The ROA is at -29.88%, and the ROIC is -38.80%, both metrics surpassing a significant percentage of industry peers. These figures suggest that while ATEC is not the most profitable, it is performing better than many of its competitors. 
Growth Prospects
ATEC's Growth Rank is 3 out of 10. The company has seen a 3-Year Revenue Growth Rate per Share of 16.00%, outperforming 70.14% of 720 companies in the industry. However, the 5-Year Revenue Growth Rate per Share shows a decline of 11.20%. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is estimated at 16.33%, which is better than 73.46% of companies. The 3-Year EPS without NRI Growth Rate is at -11.20%, but the 5-Year EPS without NRI Growth Rate shows a slight improvement at 1.70%. These mixed growth indicators suggest that while ATEC has faced challenges, it also has potential for future revenue expansion. 
Notable Shareholders
ATEC's shareholder base includes several prominent investors. Steven Cohen (Trades, Portfolio) leads the pack with 1,635,668 shares, representing 1.2% of the company. Following him is Jim Simons (Trades, Portfolio), holding 324,439 shares, which equates to 0.24% share percentage. Chuck Royce (Trades, Portfolio) also has a significant stake with 261,000 shares, accounting for 0.19% of ATEC. The involvement of these notable investors underscores a level of confidence in ATEC's market position and future prospects.
Competitive Landscape
When compared to its competitors, ATEC holds its ground with a market cap of $2 billion. PROCEPT BioRobotics Corp (PRCT, Financial) has a slightly higher market cap at $2.08 billion, while Tandem Diabetes Care Inc (TNDM, Financial) and InMode Ltd (INMD, Financial) follow closely with market caps of $1.81 billion and $1.74 billion, respectively. These companies represent the competitive environment within the medical devices industry, where innovation and market share are key to success.
Conclusion
In summary, Alphatec Holdings Inc's recent stock performance reflects a company that is modestly undervalued according to the GF Value. The company's focus on spinal surgery products positions it well within the medical devices industry, despite some profitability challenges. ATEC's growth metrics show potential for future revenue expansion, and the presence of high-profile investors suggests confidence in its trajectory. When juxtaposed with its competitors, ATEC's market capitalization indicates that it is a significant player in the industry, poised for continued relevance and potential growth.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
