Sagimet Biosciences, Inc. Class A (SGMT) AI Stock Analysis

• Market Cap: $95.09M
• Dividend Yield: N/A
• Average Volume (3M): 615.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.85
• Revenue Growth: -100.00%
• EPS Growth: -12.66%
• Country: US
• Employees: 14
• Sector: Healthcare
• Sector Strength: 38
• Industry: Biotechnology
• EPS (TTM): -0.56
• Shares Outstanding: 30,674,854
• 10 Day Avg. Volume: 459,761
• 30 Day Avg. Volume: 615,470
• PEG Ratio: 0.64
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.36
• Enterprise Value/Market Cap: 0.25
• Enterprise Value/Revenue: 6.06
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -0.20
• 1Y Price Target: $25.80
• Price Target Upside: 711.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Sagimet Biosciences' overall score reflects substantial financial difficulties marked by persistent losses and reliance on external funding. While technical indicators show short-term bullish momentum, the lack of profitability and negative equity pose significant long-term risks. Valuation metrics further highlight the challenges in viewing this stock as an attractive investment.

Positive Factors

Acne Treatment Opportunities

Sagimet Biosciences' expansion into acne is considered upside, given the large opportunity and mechanistic rationale.

Combinable Treatments

Denifanstat's lack of GI side effects makes it more combinable with GLP-1s than other analogs.

Market Valuation

SGMT is considered an attractive play on the broader NASH space, trading at a relative discount to competitors.

Negative Factors

Delayed Advancements

Given the tough funding environment and capital intensive nature of a F2–3 MASH Ph3 study, SGMT is deferring the pivotal advancement of denifanstat.

Financial Challenges

Sagimet Biosciences reported a net loss of $18.2 million for the quarter, reflecting financial challenges.

Funding Dependency

Dosing for the Phase 3 MASH trial will only start upon securing sufficient financing, highlighting a financial dependency.

Sagimet Biosciences, Inc. Class A Business Overview & Revenue Model

Company Description

Sagimet Biosciences, Inc. Class A (SGMT) is a clinical-stage biopharmaceutical company specializing in the development of novel therapeutics targeting key metabolic pathways to treat diseases with unmet medical needs. The company focuses primarily on the development of innovative drugs for the treatment of liver diseases, cancer, and other metabolic disorders, leveraging its expertise in fatty acid synthase (FASN) inhibition.

How the Company Makes Money

Sagimet Biosciences generates revenue through the development and potential commercialization of its proprietary drug candidates. The company's revenue model is primarily based on progressing its drug pipeline through phases of clinical trials, with the aim of achieving successful regulatory approvals. Additionally, Sagimet may engage in strategic partnerships and licensing agreements with larger pharmaceutical companies, which can provide milestone payments, upfront fees, and royalties on sales. These collaborations can significantly contribute to the company's earnings by providing financial support for research and development activities, as well as expanding market reach. However, as a clinical-stage company, it may currently rely on external funding sources such as venture capital, public offerings, and grants to support its operations.

Sagimet Biosciences, Inc. Class A Financial Statement Overview

Summary

Sagimet Biosciences faces significant financial challenges with persistent losses, negative equity, and high leverage. The reliance on external financing over sustainable free cash flow raises concerns about its long-term viability.

Income Statement

Sagimet Biosciences has shown an erratic revenue pattern with occasional small revenues and significant losses. Despite a brief revenue appearance in 2023, there is a consistent negative EBIT and net income trend, indicating ongoing operational challenges and a lack of profitability. The company is struggling to generate sustainable income, which is critical for future growth and stability.

Balance Sheet

The balance sheet reflects a somewhat stable cash position with a substantial increase in cash and short-term investments in 2024. However, the company has a negative stockholders' equity, indicating high liabilities relative to assets. The debt-to-equity structure is highly unfavorable, suggesting potential financial instability and high leverage risk.

Cash Flow

The cash flow statement reveals negative operating cash flow, indicating the company is not generating sufficient cash from operations. Although there was positive financing cash flow in 2024, it primarily stemmed from external financing rather than operational success. The reliance on external financing over sustainable free cash flow growth poses a risk to long-term financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	2.00M	0.00	0.00	0.00
	Gross Profit
0.00	2.00M	-130.00K	-134.00K	-124.00K
	EBIT
-54.45M	-30.74M	-31.05M	-23.72M	-11.40M
	EBITDA
-45.57M	-30.74M	-30.37M	-24.31M	-11.25M
	Net Income Common Stockholders
-45.57M	-27.88M	-30.50M	-24.44M	-11.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
151.25M	94.90M	32.34M	56.73M	68.70M
	Total Assets
160.26M	96.72M	33.03M	59.03M	68.96M
	Total Debt
78.00K	65.00K	211.00K	348.00K	210.00K
	Net Debt
-75.76M	-75.07M	53.00K	-56.38M	-68.49M
	Total Liabilities
4.45M	5.65M	219.98M	217.29M	204.87M
	Stockholders Equity
155.81M	91.06M	-186.95M	-158.26M	-135.91M
Cash Flow		Free Cash Flow
-42.44M	-23.77M	-24.49M	-21.71M	-10.42M
	Operating Cash Flow
-42.44M	-23.77M	-24.49M	-21.71M	-10.42M
	Investing Cash Flow
-61.68M	12.58M	-32.01M	0.00	20.00K
	Financing Cash Flow
104.82M	86.17M	-73.00K	9.74M	68.89M

Sagimet Biosciences, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.18
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGMT, the sentiment is Positive. The current price of 3.18 is below the 20-day moving average (MA) of 3.18, above the 50-day MA of 3.16, and below the 200-day MA of 4.00, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 53.46 is Neutral, neither overbought nor oversold. The STOCH value of 14.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SGMT.

Sagimet Biosciences, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.04B	3.15	-44.58%	2.85%	16.08%	-0.27%
EPIX	46 Neutral	$74.13M	―	-23.07%	―	―	-19.93%
SGMT	44 Neutral	$95.09M	―	-34.72%	―	-100.00%	-12.66%
TCRX	44 Neutral	$72.44M	―	-78.93%	―	-70.15%	―
ADVM	41 Neutral	$43.03M	―	-127.99%	―	―	37.54%
ADAG	36 Underperform	$81.03M	―	-55.14%	―	-99.43%	-69.40%