Alphatec Holdings, Inc. — Earnings Quality Grade F
ATEC · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 46 days, change -3 days YoY
AR growth 17.3% vs revenue growth 25.0%
Revenue 25.0%, CFFO 201.3%. Cash follows revenue
Expense Quality
Inventory -3.3% vs COGS 24.0%. Normal
CapEx growth -46.7% vs revenue 25.0%. Normal
SG&A/Gross Profit = 93.7%, exceeds 70%
Gross margin 69.6%, change +0.2pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -23.8%. Low accruals
Cash $0.2B covers only 27% of debt $0.6B
Balance Sheet Health
Goodwill+Intangibles $0.2B = 1357% of equity. Over 50%
Interest coverage = -1.3x (<2x). Financial stress
Other assets grew 88.1% vs revenue 25.0%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change 3% YoY. Normal
Manipulation Score
M-Score = -3.40 (< -2.22). Unlikely manipulator
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25