📊 APT Key Takeaways
Is Alpha Pro Tech Ltd. (APT) a Good Investment?
Alpha Pro Tech maintains a fortress balance sheet with zero debt and exceptional liquidity, but fundamental operations are deteriorating with negative free cash flow (-$105K), minimal revenue growth (2.3% YoY), and a troubling $690K gap between net income ($702K) and operating cash flow ($12K) indicating severe quality-of-earnings concerns. Exceptionally weak returns on equity (1.1%) and assets (1.0%) combined with declining EPS (-5.7%) suggest the business is in structural decline despite profitable accounting results.
Alpha Pro Tech shows solid balance-sheet quality, with no long-term debt, nearly $17.0M in cash, and exceptionally strong liquidity, which materially limits financial risk. However, fundamentals are only mixed: revenue growth is modest, net income and diluted EPS declined year over year, and free cash flow generation remains relatively weak versus sales and equity capital. The company appears financially safe but lacks the profitability strength and growth quality needed for a more bullish fundamental rating.
Alpha Pro Tech Ltd. Key Strengths (APT)
- Zero debt burden with Debt/Equity ratio of 0.00x
- Exceptional liquidity position with Current Ratio of 19.81x and $16.9M cash reserves
- Operates in stable orthopedic and surgical supplies sector with established market presence
- Debt-free balance sheet with strong cash reserves and very high current and quick ratios
- Positive profitability with 38.1% gross margin and continued operating income generation
- Low financial risk due to modest liabilities relative to a large equity base
APT Stock Risks: Alpha Pro Tech Ltd. Investment Risks
- Critical disconnect between net income ($702K) and operating cash flow ($12K) reveals severe earnings quality issues and potential accounting manipulation
- Persistent negative free cash flow (-$105K) with minimal operating cash flow indicates operational cash burn despite paper profitability
- Anemic revenue growth (2.3% YoY) coupled with declining EPS (-5.7% YoY) and razor-thin margins (4.0% operating, 4.8% net) signals business deterioration
- Net income and diluted EPS declined despite revenue growth, indicating margin or cost pressure
- Returns on equity and assets are modest, suggesting limited capital efficiency
- Free cash flow margin is low at 2.9%, which weakens earnings quality if sustained
Key Metrics to Watch
- Operating cash flow trend and reconciliation to net income
- Free cash flow sustainability and cash depletion rate
- Revenue growth trajectory and gross margin expansion/contraction
- Operating margin and net margin trend
- Operating cash flow and free cash flow conversion
Alpha Pro Tech Ltd. (APT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 19.81x current ratio provides a solid financial cushion.
APT Profit Margin, ROE & Profitability Analysis
APT vs Healthcare Sector: How Alpha Pro Tech Ltd. Compares
How Alpha Pro Tech Ltd. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Alpha Pro Tech Ltd. Stock Overvalued? APT Valuation Analysis 2026
Based on fundamental analysis, Alpha Pro Tech Ltd. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Alpha Pro Tech Ltd. Balance Sheet: APT Debt, Cash & Liquidity
APT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Alpha Pro Tech Ltd.'s revenue has declined by 42% over the 5-year period, indicating business contraction. The most recent EPS of $0.35 reflects profitable operations.
APT Revenue Growth, EPS Growth & YoY Performance
APT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $13.8M | $613.0K | $0.06 |
| Q3 2025 | $14.3M | $576.0K | $0.08 |
| Q2 2025 | $16.3M | $576.0K | $0.12 |
| Q1 2025 | $13.5M | $576.0K | $0.05 |
| Q3 2024 | $14.3M | $552.0K | $0.08 |
| Q2 2024 | $16.1M | $552.0K | $0.10 |
| Q1 2024 | $13.5M | $552.0K | $0.05 |
| Q3 2023 | $14.7M | $503.0K | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Alpha Pro Tech Ltd. Dividends, Buybacks & Capital Allocation
APT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Alpha Pro Tech Ltd. (CIK: 0000884269)
📋 Recent SEC Filings
❓ Frequently Asked Questions about APT
What is the AI rating for APT?
Alpha Pro Tech Ltd. (APT) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are APT's key strengths?
Claude: Zero debt burden with Debt/Equity ratio of 0.00x. Exceptional liquidity position with Current Ratio of 19.81x and $16.9M cash reserves. ChatGPT: Debt-free balance sheet with strong cash reserves and very high current and quick ratios. Positive profitability with 38.1% gross margin and continued operating income generation.
What are the risks of investing in APT?
Claude: Critical disconnect between net income ($702K) and operating cash flow ($12K) reveals severe earnings quality issues and potential accounting manipulation. Persistent negative free cash flow (-$105K) with minimal operating cash flow indicates operational cash burn despite paper profitability. ChatGPT: Net income and diluted EPS declined despite revenue growth, indicating margin or cost pressure. Returns on equity and assets are modest, suggesting limited capital efficiency.
What is APT's revenue and growth?
Alpha Pro Tech Ltd. reported revenue of $14.6M.
Does APT pay dividends?
Alpha Pro Tech Ltd. does not currently pay dividends.
Where can I find APT SEC filings?
Official SEC filings for Alpha Pro Tech Ltd. (CIK: 0000884269) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is APT's EPS?
Alpha Pro Tech Ltd. has a diluted EPS of $0.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is APT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Alpha Pro Tech Ltd. has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is APT stock overvalued or undervalued?
Valuation metrics for APT: ROE of 1.1% (sector avg: 15%), net margin of 4.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is APT's AI grade for 2026?
Our dual AI analysis gives Alpha Pro Tech Ltd. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is APT's free cash flow?
Alpha Pro Tech Ltd.'s operating cash flow is $12.0K, with capital expenditures of $117.0K. FCF margin is -0.7%.
How does APT compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 4.8% (avg: 12%), ROE 1.1% (avg: 15%), current ratio 19.81 (avg: 2).