Puma Biotechnology (PBYI) AI Stock Analysis

• Market Cap: $258.40M
• Dividend Yield: N/A
• Average Volume (3M): 531.69K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.93
• Revenue Growth: 8.63%
• EPS Growth: 429.84%
• Country: US
• Employees: 172
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.12
• Shares Outstanding: 50,370,724
• 10 Day Avg. Volume: 526,811
• 30 Day Avg. Volume: 531,689
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 0.71
• Enterprise Value/Ebitda: 1.95
• 1Y Price Target: $3.00
• Price Target Upside: -41.52% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: ―

Puma Biotechnology's overall stock score reflects its financial improvements, technical momentum, and attractive valuation. However, the company's challenges with revenue consistency and leverage, combined with mixed earnings call insights, temper the outlook. Long-term prospects may depend on successful execution of strategic initiatives and stabilization of revenue.

Positive Factors

Regulatory Approvals

New regulatory approvals in Turkey and Thailand expand NERLYNX's market presence, potentially increasing long-term revenue by accessing new patient populations.

Cash Flow Management

Improved cash flow management enhances financial stability, providing Puma Biotechnology with greater flexibility to invest in R&D and strategic initiatives.

Clinical Trials Progress

Advancements in clinical trials for neratinib and alisertib indicate potential future product offerings, supporting long-term growth and market competitiveness.

Negative Factors

Revenue Fluctuations

Fluctuating revenue from core product NERLYNX suggests challenges in maintaining consistent sales, impacting financial predictability and planning.

Royalty Revenue Decline

A significant drop in royalty revenue, particularly from China, could limit future earnings potential and highlight dependency on key markets.

Prescription Challenges

Declining new prescriptions indicate potential market saturation or competitive pressures, which could hinder long-term growth and market share.

Puma Biotechnology Business Overview & Revenue Model

Company Description

Puma Biotechnology, Inc., a biopharmaceutical company, focuses on the development and commercialization of products to enhance cancer care in the United States and internationally. The company's drug candidates include PB272 neratinib (oral) for the patients with early stage HER2-overexpressed/amplified breast cancer; PB272 (neratinib, oral) for the use of neratinib in combination with capecitabine for the treatment of adult patients with advanced or metastatic HER2-positive breast cancer; PB272 (neratinib, oral) for HER2 mutation-positive solid tumors. It has a license agreement with Pfizer, Inc.; and sub-license agreement with Specialised Therapeutics Asia Pte Ltd., CANbridge BIOMED Limited, Pint Pharma International SA, Knight Therapeutics, Inc., Pierre Fabre Medicament SAS, and Bixink Therapeutics Co., Ltd. The company was founded in 2010 and is headquartered in Los Angeles, California.

How the Company Makes Money

Puma Biotechnology generates revenue primarily through the sales of its flagship product, NERLYNX. The company earns money by selling this prescription drug to wholesalers, specialty pharmacies, and distributors, who then supply it to healthcare providers and patients. Additionally, Puma may receive milestone payments and royalties from licensing agreements or partnerships with other pharmaceutical companies interested in marketing NERLYNX in regions outside the United States. These collaborations can significantly contribute to the company's earnings by expanding its market reach and leveraging the distribution and marketing capabilities of its partners.

Puma Biotechnology Financial Statement Overview

Summary

Puma Biotechnology's financial performance shows improvements with a positive net income and enhanced cash flow management. However, challenges persist with revenue fluctuations and high leverage, which weigh on the overall financial stability.

Income Statement

Puma Biotechnology's income statement shows moderate performance with a consistent gross profit margin of around 72% over the years. However, the revenue has shown fluctuations, with a recent decline from 2023 to 2024. Net income has improved significantly, transitioning from negative figures in previous years to a positive $30.28 million in 2024. EBIT and EBITDA margins have improved, indicating better operational efficiency, but the overall revenue growth remains a concern.

Balance Sheet

The balance sheet reflects improvement in stockholders' equity, rising to $92.13 million in 2024 from negative figures in previous years. The debt-to-equity ratio has improved due to increased equity, although it still indicates a leveraged position. The equity ratio has stabilized, reflecting better asset management, but the high total liabilities continue to pose a risk.

Cash Flow

Cash flow analysis shows strong growth in free cash flow, which increased significantly in 2024. Operating cash flow to net income ratio indicates efficient cash management, and free cash flow to net income ratio is favorable. The company has managed capital expenditures well, contributing to improved free cash flow, though past fluctuations in cash flow need monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	238.06M	230.47M	235.64M	228.00M	253.20M	225.10M
Gross Profit	172.19M	166.06M	172.96M	172.90M	189.50M	185.70M
EBITDA	63.29M	48.08M	47.52M	20.97M	-5.40M	-38.54M
Net Income	48.45M	30.28M	21.59M	2.00K	-29.10M	-60.00M
Balance Sheet
Total Assets	194.92M	213.33M	230.53M	222.06M	226.59M	244.22M
Cash, Cash Equivalents and Short-Term Investments	96.02M	100.97M	95.94M	81.07M	82.11M	93.39M
Total Debt	38.36M	74.08M	111.49M	114.28M	116.64M	120.95M
Total Liabilities	90.20M	121.21M	177.09M	200.45M	229.03M	250.17M
Stockholders Equity	104.72M	92.13M	53.44M	21.60M	-2.40M	-6.00M
Cash Flow
Free Cash Flow	44.22M	38.86M	14.37M	-22.80M	20.70M	-19.25M
Operating Cash Flow	44.34M	38.92M	27.01M	-15.80M	20.70M	800.00K
Investing Cash Flow	-11.78M	-20.44M	-19.13M	7.10M	-10.90M	23.30M
Financing Cash Flow	-45.05M	-33.85M	0.00	12.20M	-31.90M	100.00K

Puma Biotechnology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PBYI, the sentiment is Positive. The current price of 5.13 is above the 20-day moving average (MA) of 4.73, above the 50-day MA of 4.56, and above the 200-day MA of 3.53, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 83.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PBYI.

Puma Biotechnology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PBYI	69 Neutral	$258.40M	5.23	63.24%	―	8.63%	429.84%
VYGR	58 Neutral	$269.58M	5.05	-37.26%	―	-70.38%	-683.06%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HRTX	48 Neutral	$241.98M	―	40.36%	―	9.78%	98.13%
FHTX	41 Neutral	$262.30M	―	322.49%	―	-31.30%	36.26%
TNYA	36 Underperform	$264.02M	―	-85.21%	―	―	38.94%
VOR	33 Underperform	$256.27M	―	-125.43%	―	―	-686.12%