Compugen (CGEN) AI Stock Analysis

• Market Cap: $164.58M
• Dividend Yield: N/A
• Average Volume (3M): 228.48K
• Price to Earnings (P/E): 87.5
• Beta (1Y): 1.72
• Revenue Growth: -23.40%
• EPS Growth: 17.80%
• Country: US
• Employees: 74
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.08
• Shares Outstanding: 93,512,985
• 10 Day Avg. Volume: 164,044
• 30 Day Avg. Volume: 228,476
• PEG Ratio: 0.00
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.77
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 8.09
• Enterprise Value/Ebitda: -0.48
• 1Y Price Target: $7.00
• Price Target Upside: 297.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: $1.50 ▼(-14.77%Downside)

Compugen's overall stock score reflects the financial challenges typical in biotechnology, with improved cash flow management as a positive. The earnings call provided optimism through strategic collaborations and clinical advancements, but valuation concerns due to a negative P/E ratio and revenue decline weigh heavily. Technical indicators suggest cautious stability.

Positive Factors

Cash Reserves

Compugen ended the quarter with $104M cash and equivalents, which is expected to fund operations into 2027.

Long-term Valuation

Potential single-digit royalties and milestones from AZN’s Fc-silent TIGIT x PD-1 bispecific rilvegostomig supports a positive long-term valuation for Compugen.

Negative Factors

Dependency on Trials

Significant CGEN upside or downside is tied to Arcus and Gilead’s earlier Ph 3 trials of their Fc-silent TIGIT in gastric and lung cancers.

Compugen Business Overview & Revenue Model

Company Description

Compugen Ltd., a clinical-stage therapeutic discovery and development company, researches, develops, and commercializes therapeutic and product candidates in Israel, the United States, and Europe. The company's immuno-oncology pipeline consists of COM701, an anti-PVRIG antibody that is in Phase I clinical study used for the treatment of solid tumors; COM902, a therapeutic antibody targeting TIGIT, which is in Phase I clinical study in patients with advanced malignancies as a monotherapy; Bapotulimab, a therapeutic antibody targeting ILDR2 that is in Phase I clinical study in patients with solid tumors; and AZD2936, a novel anti-TIGIT/PD-1 bispecific antibody, which is in Phase I/II clinical study in patients with advanced or metastatic non-small cell lung cancer. Its therapeutic pipeline also includes early-stage immuno-oncology programs focused primarily on myeloid targets. The company has collaboration agreement with Bayer Pharma AG for the research, development, and commercialization of antibody-based therapeutics against the company's immune checkpoint regulators; Bristol-Myers Squibb to evaluate the safety and tolerability of COM701 in combination with Bristol-Myers Squibb's PD-1 immune checkpoint inhibitor Opdivo in patients with advanced solid tumors; and Johns Hopkins School of Medicine to evaluate novel T cell and myeloid checkpoint targets. It has license agreement with AstraZeneca for the development of bi-specific and multi-specific immuno-oncology antibody products; and research collaboration with Johns Hopkins University for myeloid. Compugen Ltd. was incorporated in 1993 and is headquartered in Holon, Israel.

How the Company Makes Money

Compugen generates revenue primarily through collaborative agreements with leading pharmaceutical and biotechnology companies. These partnerships typically involve upfront payments, milestone payments, and royalties based on the commercial success of jointly developed therapies. Additionally, Compugen may receive research and development funding from its partners to support the advancement of drug candidates in its pipeline. The company's revenue model heavily relies on the success of its discovery platforms and the progression of its proprietary and partnered drug candidates through clinical trials.

Compugen Financial Statement Overview

Summary

Compugen's financial performance reflects typical challenges in the biotechnology sector, with fluctuating revenue growth, consistent profitability challenges, and improved cash flow management in recent periods. While there are signs of operational improvement, the company faces risks in sustaining profitability and maintaining financial stability.

Income Statement

Compugen has shown fluctuating revenue growth, with a positive increase from 2021 to 2023 but a decline in 2024. The consistent negative net income and EBIT margins reflect ongoing challenges in profitability, typical in the biotechnology sector. Despite improvements in gross profit, the company's net profit margins remain negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet reveals a stable equity position but high volatility in debt levels. The debt-to-equity ratio remains low, suggesting manageable leverage. However, the declining equity ratio and fluctuations in stockholders' equity indicate potential risks in maintaining financial stability.

Cash Flow

Cash flow analysis shows significant improvement in operating cash flow and free cash flow by 2024, highlighting better cash management. However, the company experienced negative free cash flow in previous years, raising concerns about long-term cash sustainability. The positive cash flow trend in 2024 is a promising sign of recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.50M	27.86M	33.46M	7.50M	6.00M	2.00M
Gross Profit	6.53M	19.93M	31.45M	6.53M	5.32M	1.94M
EBITDA	-34.01M	-14.40M	-12.52M	-35.37M	-34.61M	-31.50M
Net Income	-31.56M	-14.23M	-18.75M	-33.69M	-32.87M	-27.26M
Balance Sheet
Total Assets	67.61M	115.00M	121.33M	94.18M	132.16M	138.32M
Cash, Cash Equivalents and Short-Term Investments	57.51M	103.25M	50.69M	83.71M	117.76M	124.43M
Total Debt	1.41M	2.91M	1.35M	1.93M	2.75M	3.17M
Total Liabilities	14.38M	60.08M	55.77M	16.50M	25.47M	18.53M
Stockholders Equity	53.23M	54.91M	65.56M	77.68M	106.69M	119.78M
Cash Flow
Free Cash Flow	-23.38M	49.49M	-36.06M	-34.99M	-23.04M	-28.49M
Operating Cash Flow	-23.03M	49.60M	-35.89M	-34.51M	-22.75M	-28.32M
Investing Cash Flow	40.39M	-46.25M	35.51M	37.06M	6.62M	-82.17M
Financing Cash Flow	-18.41M	554.00K	3.08M	353.00K	16.84M	108.46M

Compugen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGEN, the sentiment is Positive. The current price of 1.76 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.54, and above the 200-day MA of 1.69, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 59.85 is Neutral, neither overbought nor oversold. The STOCH value of 71.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGEN.

Compugen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CGEN	57 Neutral	$164.58M	87.50	-24.22%	―	-23.40%	17.80%
SLN	55 Neutral	$260.71M	―	-99.23%	―	-40.10%	-16.60%
SEER	55 Neutral	$133.58M	―	-24.73%	―	-1.02%	-8.59%
PRQR	51 Neutral	$229.36M	―	-52.64%	―	82.38%	3.63%
ADCT	51 Neutral	$282.66M	―	123.38%	―	10.49%	47.31%
Sector *	49 Neutral	AU$2.50B	4.42	-64.25%	2.77%	36.51%	13.14%