Investment Thesis
Alpha Pro Tech demonstrates solid financial health with exceptional liquidity and zero debt, but faces headwinds from declining profitability despite modest revenue growth. The company's modest 6.0% net margin and 4.8% ROA suggest limited operational efficiency, while weak free cash flow conversion (2.9% FCF margin) indicates capital allocation challenges.
APT Strengths
- Exceptional liquidity with 12.94x current ratio and 7.13x quick ratio providing financial flexibility
- Debt-free balance sheet with zero long-term debt and strong equity position of $62.5M
- Stable revenue base in surgical appliances sector with $59.1M in annual revenue
APT Risks
- Net income declining 10.1% YoY while revenue only grows 2.3% suggests margin compression and operational challenges
- Low profitability metrics with 6.5% operating margin and 5.7% ROE indicate weak operational returns on shareholder capital
- Operating cash flow of only $2.4M relative to $59.1M revenue represents poor cash generation efficiency
Key Metrics to Watch
- Gross margin trend - currently at 38.1% but needs monitoring for cost pressures
- Operating cash flow growth - critical metric as current $2.4M is concerning relative to revenue scale
- Net margin recovery - must reverse the -10.1% YoY decline to demonstrate operational improvement
APT Financial Metrics
APT Profitability Ratios
APT Balance Sheet & Liquidity
APT 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 Growth Metrics (YoY)
APT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $16.1M | $552.0K | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
APT Capital Allocation
APT SEC Filings
Access official SEC EDGAR filings for ALPHA PRO TECH LTD (CIK: 0000884269)