Breaking Down Alpha Pro Tech, Ltd. (APT) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? Have you taken a good look at the financial health of Alpha Pro Tech, Ltd. (APT)? In 2024, the company saw its net sales dip to $57.8 million, a 5.5% decrease compared to the $61.2 million reported in 2023. Net income also experienced a slight decrease, landing at $3.9 million. But what does this mean for investors like you? Dive in to uncover key insights into APT's financial performance and strategic outlook.

Alpha Pro Tech, Ltd. (APT) Revenue Analysis

To understand the financial health of Alpha Pro Tech, Ltd. (APT), a detailed analysis of its revenue streams is essential. This involves examining where the company's money comes from, how quickly its revenue is growing, and how different parts of the business contribute to the overall income.

Alpha Pro Tech, Ltd. primarily generates revenue through the following sources:

• Building Supply Products: This segment includes a variety of construction weatherization products, such as house wrap and roof underlayment.
• Protective Apparel Products: This involves manufacturing and marketing disposable protective garments.

Analyzing the year-over-year revenue growth rate provides insights into the company's performance trends. For instance, examining historical data reveals periods of significant growth as well as times when revenue decreased. These fluctuations can be influenced by various factors, including market conditions, competition, and specific company strategies.

A breakdown of revenue contribution by segment helps to identify which areas of the business are most critical to Alpha Pro Tech, Ltd.'s financial success. Understanding the percentage of revenue derived from building supplies versus protective apparel offers a clearer picture of the company's operational focus and market strengths.

Significant changes in revenue streams can indicate strategic shifts or responses to market dynamics. For example, the introduction of new products, expansion into new geographic regions, or changes in pricing strategies can all have a notable impact on revenue composition.

Here's an example of how revenue might be broken down (Note: This is an illustrative table, and actual data should be sourced from Alpha Pro Tech, Ltd.'s financial reports):

Understanding these components provides a comprehensive view of Alpha Pro Tech, Ltd.'s revenue generation and its overall financial stability. For more insights into the company's values and direction, you can explore: Mission Statement, Vision, & Core Values of Alpha Pro Tech, Ltd. (APT).

Alpha Pro Tech, Ltd. (APT) Profitability Metrics

Analyzing Alpha Pro Tech, Ltd. (APT)'s profitability involves examining several key metrics. For the year ended December 31, 2024, the company's financial performance reveals the following:

• Gross Profit: Increased slightly by 0.5% to $22.9 million, compared to $22.8 million in 2023.
• Gross Profit Margin: Improved to 39.6% for 2024, up from 37.3% in 2023. This increase was positively influenced by margin improvements in both the Disposable Protective Apparel and Building Supply segments.
• Operating Income: Available data indicates an operating income of $3.449 million for the year 2024.
• Net Income: Decreased to $3.9 million, or $0.35 per diluted share, compared to $4.2 million, or $0.35 per diluted share, in 2023.
• Net Income Margin: Remained stable at 6.8% for both 2024 and 2023.

Here's a summary of Alpha Pro Tech, Ltd.'s profitability metrics:

The gross profit margin was 37.6% for the three months ended December 31, 2024, compared to 37.4% for the three months ended December 31, 2023.

For the nine months ended September 30, 2024:

• Gross profit margin was 40.3% compared to 37.3% for the same period in 2023.
• Net income was $3.082 million, a slight decrease from $3.128 million in 2023.
• Net income as a percentage of net sales was 7.0%, compared to 6.8% in 2023.

For the three months ended March 31, 2024:

• Gross profit margin was 40.2%, up from 36.1% in 2023.
• Net income as a percentage of net sales was 4.3%, compared to 4.0% in 2023.

A comparison of profitability ratios with industry averages would provide a more comprehensive understanding of Alpha Pro Tech, Ltd.'s performance. However, specific industry averages are not available in the provided search results.

Alpha Pro Tech, Ltd.'s operational efficiency can be further analyzed through the following points:

• Cost Management: The company's management expects that the gross profit margin could be negatively affected during 2025 by ocean freight rates that experienced significant volatility in 2024, due to factors such as geopolitical tensions, labor disputes and market dynamics.
• Gross Margin Trends: The gross profit margin in 2024 was positively affected by a margin increase in both the Disposable Protective Apparel and Building Supply segments.

For further insights into Alpha Pro Tech, Ltd.'s mission, vision, and core values, you can refer to: Mission Statement, Vision, & Core Values of Alpha Pro Tech, Ltd. (APT).

Despite a decrease in net sales, Alpha Pro Tech, Ltd. maintained a stable net income margin, indicating effective management of expenses and a solid financial position with $18.6 million in cash and no debt as of December 31, 2024.

Alpha Pro Tech, Ltd. (APT) Debt vs. Equity Structure

Understanding how Alpha Pro Tech, Ltd. (APT) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity funding.

As of the fiscal year 2024, Alpha Pro Tech, Ltd. (APT) exhibits a financial structure with no long-term debt. The absence of long-term debt can be seen as a sign of financial strength and stability. This allows the company greater financial flexibility and reduces its exposure to interest rate fluctuations.

Here’s a detailed look:

• Overview of Debt Levels: Alpha Pro Tech, Ltd. (APT) reported $0 in long-term debt as of 2024. This indicates that the company is not relying on long-term borrowing to finance its operations.
• Debt-to-Equity Ratio: Since Alpha Pro Tech, Ltd. (APT) has no long-term debt, calculating a traditional debt-to-equity ratio is not applicable. The company's reliance on equity rather than debt suggests a conservative financial approach.
• Recent Financing Activities: There are no recent debt issuances or refinancing activities to report, given the company's current debt-free status.
• Balancing Debt and Equity: Alpha Pro Tech, Ltd. (APT)’s strategy leans heavily towards equity funding, providing a stable financial base without the obligations of debt repayment.

The following table provides a snapshot of Alpha Pro Tech, Ltd. (APT)'s debt profile:

Alpha Pro Tech, Ltd. (APT)'s financial strategy reflects a conscious decision to avoid debt, which can be advantageous in volatile economic conditions. However, it also means the company relies more on its equity, which can affect shareholder returns and growth strategies.

Learn more about Alpha Pro Tech, Ltd. (APT) and its investors: Exploring Alpha Pro Tech, Ltd. (APT) Investor Profile: Who’s Buying and Why?

Alpha Pro Tech, Ltd. (APT) Liquidity and Solvency

Assessing Alpha Pro Tech, Ltd.'s (APT) financial health involves a close look at its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability.

Here’s an overview of Alpha Pro Tech, Ltd.'s (APT) liquidity, based on the 2024 financial results:

• Current Ratio: As of December 31, 2024, the company's current ratio was 16:1. This indicates a strong ability to cover short-term liabilities with its current assets.
• Quick Ratio: The quick ratio for the quarter that ended in December 2024 was 8.94, suggesting good short-term financial strength.
• Cash and Cash Equivalents: The company had $18.6 million in cash as of December 31, 2024, compared to $20.4 million as of December 31, 2023.
• Working Capital: $47.5 million as of December 31, 2024.

The company's working capital trends can be further analyzed using the following data:

Here's a summary of Alpha Pro Tech, Ltd.'s (APT) cash flow trends:

• Operating Cash Flow: For 2024, Alpha Pro Tech, Ltd.'s (APT) operating cash flow was $5.7 million.
• Free Cash Flow: The free cash flow for 2024 was $1.89 million. In the fourth quarter of 2024, the free cash flow was $935.06K.

In 2024, Alpha Pro Tech, Ltd. (APT) demonstrated a solid liquidity position with a healthy current ratio and substantial working capital. The company's cash flow from operating activities remains positive, supporting its financial stability. While net sales saw a slight decrease, the company maintains a strong financial position overall.

Explore more about Alpha Pro Tech, Ltd. (APT): Exploring Alpha Pro Tech, Ltd. (APT) Investor Profile: Who’s Buying and Why?

Alpha Pro Tech, Ltd. (APT) Valuation Analysis

Determining whether Alpha Pro Tech, Ltd. (APT) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. These elements, when assessed together, can provide a clearer picture of the company's intrinsic value relative to its current market price.

Key metrics to consider include:

• Price-to-earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A lower P/E ratio might suggest undervaluation, while a higher ratio could indicate overvaluation, relative to industry peers or its historical average.
• Price-to-book (P/B) Ratio: The P/B ratio measures the market's valuation of a company relative to its book value of equity. A lower P/B ratio can suggest that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It's useful for evaluating companies with varying capital structures.

Analyzing Alpha Pro Tech, Ltd.'s (APT) stock price trends over the last 12 months, or longer, provides context on market sentiment and overall performance. Significant price fluctuations may reflect company-specific events, industry trends, or broader market conditions. As of today, April 20, 2025, examining the recent stock performance is crucial for an up-to-date valuation perspective.

Other important factors include:

• Dividend Yield and Payout Ratios: If Alpha Pro Tech, Ltd. (APT) distributes dividends, the dividend yield (annual dividend per share divided by stock price) and payout ratio (percentage of earnings paid out as dividends) can be telling. A higher dividend yield might attract income-seeking investors, while the payout ratio indicates the sustainability of dividend payments.
• Analyst Consensus: Investment analysts regularly provide ratings (buy, hold, or sell) and price targets for stocks. These ratings represent the collective wisdom of experts who have analyzed the company's financials and prospects.

For example, consider a hypothetical scenario based on fiscal year 2024 data:

In this hypothetical scenario, a P/E Ratio of 15x, compared to an industry average of 20x, might suggest that Alpha Pro Tech, Ltd. (APT) is undervalued. Similarly, a P/B Ratio of 1.2x could indicate undervaluation if the book value accurately reflects the company's assets. An EV/EBITDA of 8x could be competitive within its sector, and a dividend yield of 2.5% might be attractive to investors, but it's crucial to consider the payout ratio to ensure sustainability.

To gain more insight into the investors of Alpha Pro Tech, Ltd. (APT), check out: Exploring Alpha Pro Tech, Ltd. (APT) Investor Profile: Who’s Buying and Why?

Alpha Pro Tech, Ltd. (APT) Risk Factors

Alpha Pro Tech, Ltd. (APT) faces a variety of risks that could impact its financial health. These risks can be broadly categorized into internal and external factors, encompassing industry competition, regulatory changes, market conditions, and specific operational and strategic challenges.

One significant external risk is the intense competition within the disposable protective apparel market. Several companies, both domestic and international, compete with Alpha Pro Tech, Ltd. (APT) on the basis of price, product performance, customer service, and distribution. Increased competition could lead to pricing pressures and reduced market share, negatively affecting revenue and profitability. Furthermore, changes in regulations concerning product standards or healthcare policies could require costly adjustments to product lines or manufacturing processes.

Market conditions also present a constant risk. Fluctuations in raw material costs, particularly for polypropylene and other polymers used in their products, can impact profit margins. Economic downturns or global health crises can significantly alter demand for protective apparel and infection control products, as seen during the COVID-19 pandemic. A decrease in demand could lead to lower sales volumes and increased inventory holding costs.

Internally, Alpha Pro Tech, Ltd. (APT) faces operational and strategic risks. Maintaining product quality and safety is paramount. Any product recalls or safety concerns could damage the company's reputation and lead to legal liabilities. Additionally, the company relies on key suppliers for raw materials and components. Disruptions in the supply chain, whether due to natural disasters, geopolitical events, or supplier financial difficulties, could impact production and increase costs.

According to the Alpha Pro Tech, Ltd. (APT) most recent 10-K filing, the company identifies several key risk factors that could affect its business, financial condition, and results of operations. These include:

• Dependence on Key Customers: A significant portion of Alpha Pro Tech, Ltd. (APT) sales are derived from a limited number of customers. The loss of one or more of these key customers could have a material adverse effect on the company's financial performance.
• Raw Material Price Fluctuations: The cost of raw materials, particularly polypropylene, can fluctuate significantly. Increases in raw material costs that cannot be passed on to customers could reduce profit margins.
• Competition: The protective apparel market is highly competitive. Increased competition could lead to pricing pressures and reduced market share.
• Product Liability Claims: The company faces the risk of product liability claims if its products are found to be defective or cause injury.
• Intellectual Property Protection: Alpha Pro Tech, Ltd. (APT) relies on patents and trademarks to protect its intellectual property. The failure to adequately protect its intellectual property could harm its competitive position.

Alpha Pro Tech, Ltd. (APT) strategies to mitigate these risks typically involve diversifying its customer base, hedging against raw material price fluctuations, investing in research and development to maintain a competitive product portfolio, and maintaining robust quality control procedures. However, the effectiveness of these strategies can vary depending on market conditions and other factors.

Investors interested in learning more about Alpha Pro Tech, Ltd. (APT) investor profile can explore this link: Exploring Alpha Pro Tech, Ltd. (APT) Investor Profile: Who’s Buying and Why?

Alpha Pro Tech, Ltd. (APT) Growth Opportunities

Alpha Pro Tech, Ltd. (APT) faces a dynamic future, driven by several key factors that investors should consider. These include strategic initiatives, market expansions, and the company's positioning within its competitive landscape. Understanding these elements is crucial for assessing APT's potential for sustained growth.

Key growth drivers for Alpha Pro Tech, Ltd. (APT) include:

• Product Innovations: Continued investment in research and development to introduce new and enhanced products.
• Market Expansion: Exploring opportunities to expand into new geographic markets and customer segments.
• Strategic Acquisitions: Pursuing acquisitions that complement existing product lines and expand market share.

While specific future revenue growth projections and earnings estimates for Alpha Pro Tech, Ltd. (APT) are subject to market conditions and company performance, several strategic initiatives could significantly influence its trajectory:

• Partnerships: Collaborating with other companies to expand product reach and market penetration.
• New Product Lines: Introducing innovative products that address emerging market needs.
• Operational Efficiencies: Implementing measures to improve efficiency and reduce costs, thereby enhancing profitability.

Alpha Pro Tech, Ltd. (APT) holds several competitive advantages that could position it for growth:

• Established Brand Reputation: A strong brand name that fosters trust and customer loyalty.
• Proprietary Technology: Unique technologies that provide a competitive edge in product performance and innovation.
• Efficient Distribution Network: A well-established distribution network that ensures products reach customers effectively.

To provide a clearer picture, consider the following hypothetical projections and data points, keeping in mind that these are illustrative and not based on actual 2024 financial data:

Investors should closely monitor Alpha Pro Tech, Ltd. (APT)'s progress in these areas to gauge its ability to capitalize on growth opportunities and deliver long-term value.

For more detailed insights, check out: Breaking Down Alpha Pro Tech, Ltd. (APT) Financial Health: Key Insights for Investors