enGene Holdings (ENGN) AI Stock Analysis

• Market Cap: $332.23M
• Dividend Yield: N/A
• Average Volume (3M): 258.96K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.68
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 56
• Sector: Real Estate
• Sector Strength: 53
• Industry: Biotechnology
• EPS (TTM): -0.57
• Shares Outstanding: 51,191,772
• 10 Day Avg. Volume: 341,637
• 30 Day Avg. Volume: 258,965
• PEG Ratio: 0.06
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.03
• Enterprise Value/Market Cap: 0.07
• Enterprise Value/Revenue: 48.03
• Enterprise Value/Gross Profit: -235.23
• Enterprise Value/Ebitda: -0.25
• 1Y Price Target: $23.33
• Price Target Upside: 261.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 42 Neutral
• Price Target: ―

enGene Holdings shows significant financial challenges, with no revenue generation and persistent losses impacting both income and cash flow statements. Technical indicators suggest bearish momentum, with the stock underperforming key moving averages. The valuation is further hampered by a negative P/E ratio and absence of dividends. These factors collectively result in a low overall stock score, highlighting the company's urgent need to establish a revenue model and improve operational efficiency.

Positive Factors

Proprietary Technology

enGene Holdings' proprietary non-viral gene delivery platform offers a competitive advantage in the biotech industry, potentially leading to breakthroughs in gene therapy and chronic disease treatment, enhancing long-term growth prospects.

Strategic Partnerships

Strategic partnerships with established pharmaceutical companies can accelerate product development and commercialization, providing enGene Holdings with a robust pathway to market and potential revenue streams.

Market Focus

By targeting unmet medical needs in immunology and oncology, enGene Holdings positions itself in high-demand sectors, potentially driving future growth as these areas continue to expand and attract investment.

Negative Factors

Revenue Generation Challenges

The lack of revenue generation is a significant challenge, impacting enGene Holdings' ability to sustain operations and invest in growth, necessitating the establishment of a viable revenue model for long-term viability.

Negative Cash Flow

Persistent negative cash flow from operations indicates ongoing financial strain, requiring enGene Holdings to secure additional funding or improve operational efficiency to achieve financial sustainability.

Operational Losses

Ongoing operational losses and negative margins highlight significant inefficiencies, challenging enGene Holdings to improve cost management and operational execution to reach profitability.

enGene Holdings Business Overview & Revenue Model

Company Description

enGene Holdings Inc., through its subsidiary enGene, Inc., operates as a clinical-stage biotechnology company that develops genetic medicines through the delivery of therapeutics to mucosal tissues and other organs. Its lead product candidate is EG-70 (detalimogene voraplasmid), which is a non-viral immunotherapy to treat non-muscle invasive bladder cancer patients with carcinoma-in-situ (Cis), who are unresponsive to treatment with Bacillus Calmette-Guérin. The company was founded in 2023 and is based in Saint-Laurent, Canada.

How the Company Makes Money

enGene Holdings makes money primarily through the development and commercialization of its gene therapy products. The company's revenue model includes licensing its proprietary technology to pharmaceutical partners, collaborating with research institutions for joint product development, and directly selling its therapeutic products upon regulatory approval. Key revenue streams include milestone payments and royalties from partnerships, as well as potential sales from its own product pipeline. Significant partnerships with established pharmaceutical companies enhance its market reach and contribute to its earnings by accelerating the development and commercialization processes.

enGene Holdings Financial Statement Overview

Summary

enGene Holdings faces significant financial challenges, primarily due to its inability to generate revenue and consistent operational losses. The income statement shows zero revenue and negative profit margins. The balance sheet shows some improvement in equity position, yet it still relies heavily on equity financing. Cash flow statements highlight negative cash flows from operations and free cash flow, indicating the need for capital raising activities. Overall, financial stability requires establishing a revenue stream and improving operational efficiency.

Income Statement

enGene Holdings has consistently reported zero revenue, highlighting a significant challenge in generating sales. The net profit margin is negative due to persistent losses, and the EBIT and EBITDA margins are also deeply negative, reflecting ongoing operational challenges. The absence of revenue growth further emphasizes the critical need for the company to establish a revenue-generating model.

Balance Sheet

The company's debt-to-equity ratio has improved with positive stockholder equity in recent periods, indicating better capital structure management. However, the equity ratio shows a high reliance on equity financing. The persistent losses and negative net income impact the return on equity. Overall, while there is a stable cash position, the company must focus on reducing liabilities to strengthen its balance sheet.

Cash Flow

Operating cash flow remains negative, indicating cash outflows from core operations. However, the company shows strong financing cash flows, suggesting capital raising activities. Free cash flow remains negative, reflecting ongoing operational and capital investment challenges. Improving cash flow from operations is crucial for long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	480.00K	0.00	0.00	0.00	0.00
Gross Profit	-98.00K	-323.00K	-175.00K	0.00	0.00
EBITDA	-90.78M	-52.04M	-94.77M	30.73K	-225.44K
Net Income	-43.09M	-55.14M	-99.92M	30.73K	-23.44M
Balance Sheet
Total Assets	245.55M	311.17M	86.96M	23.91M	15.03M
Cash, Cash Equivalents and Short-Term Investments	201.91M	238.33M	81.52M	20.43M	11.02M
Total Debt	8.26M	25.02M	9.78M	32.11M	4.16M
Total Liabilities	44.88M	38.56M	14.47M	100.52M	68.47M
Stockholders Equity	200.67M	272.61M	72.49M	-23.50M	-324.00K
Cash Flow
Free Cash Flow	-95.13M	-49.21M	-25.06M	-17.75M	-16.23M
Operating Cash Flow	-93.84M	-48.28M	-24.74M	-17.59M	-15.98M
Investing Cash Flow	-190.90M	-125.95M	-318.00K	-153.00K	-247.00K
Financing Cash Flow	59.69M	265.72M	86.15M	27.97M	22.52M

enGene Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENGN, the sentiment is Positive. The current price of 6.45 is above the 20-day moving average (MA) of 5.97, above the 50-day MA of 4.70, and above the 200-day MA of 4.94, indicating a bullish trend. The MACD of 0.63 indicates Positive momentum. The RSI at 64.92 is Neutral, neither overbought nor oversold. The STOCH value of 57.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENGN.

enGene Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDTX	58 Neutral	$2.29B	-8.13	-103.99%	―	-100.00%	55.31%
OCGN	50 Neutral	$455.96M	-7.40	-1865.63%	―	33.39%	-7.11%
ENGN	42 Neutral	$332.23M	―	-43.95%	―	―	―
CRVS	41 Neutral	$550.66M	-7.28	―	―	―	-50.83%
CRGX	40 Underperform	$216.19M	-0.96	―	―	―	-32.05%
TVGN	33 Underperform	$156.64M	-4.36	―	―	―	-406.67%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

enGene Holdings Corporate Events

enGene Holdings Secures $60 Million for Genetic Medicines

enGene Holdings Inc. plans a $60 million private placement of 6.7 million common shares at $8.90 each, aiming to fund the development of its genetic medicines, particularly detalimogene for bladder cancer. This financing, involving investors like Deep Track Capital and OrbiMed, is expected to close on October 29, 2024. The proceeds are anticipated to support enGene’s operations through 2027. With placement agents including Leerink Partners and Piper Sandler, the securities offered are exempt from U.S. registration, aligning with Nasdaq rules.