Equillium (EQ) AI Stock Analysis

• Market Cap: $85.68M
• Dividend Yield: N/A
• Average Volume (3M): 883.61K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.32
• Revenue Growth: -61.16%
• EPS Growth: -139.15%
• Country: US
• Employees: 35
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.16
• Shares Outstanding: 59,503,223
• 10 Day Avg. Volume: 862,141
• 30 Day Avg. Volume: 883,611
• PEG Ratio: 0.08
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -1.38
• Enterprise Value/Market Cap: <0.01
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: >-0.01
• 1Y Price Target: $4.00
• Price Target Upside: 312.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $1.00 ▲(3.09% Upside)

Equillium's overall score is primarily impacted by its financial performance and technical analysis. While revenue growth is strong, profitability and cash flow issues weigh heavily. Technical indicators suggest oversold conditions, offering a potential rebound opportunity. However, the negative valuation metrics highlight significant financial challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Equillium's drug candidates, enhancing its market position and potential for future profitability.

Low Leverage

Low leverage provides financial stability and flexibility, allowing Equillium to invest in R&D and withstand industry volatility.

Free Cash Flow Improvements

Improving free cash flow suggests better cash management and potential for self-sustained operations, crucial for long-term growth.

Negative Factors

Unprofitability

Ongoing unprofitability limits reinvestment in growth and may necessitate external financing, impacting long-term sustainability.

Negative Operating Cash Flow

Negative operating cash flow highlights operational inefficiencies and reliance on external funding, challenging financial health.

Declining Equity Ratio

A declining equity ratio can weaken the company's financial structure, reducing its ability to absorb shocks and invest in growth.

Equillium Business Overview & Revenue Model

Company Description

Equillium, Inc. is a clinical-stage biotechnology company focused on developing innovative therapies for severe autoimmune and inflammatory diseases. The company specializes in the discovery and development of unique monoclonal antibody treatments that target specific immune pathways, aimed at addressing unmet medical needs in various chronic conditions. Equillium's core products are centered around its proprietary drug candidates, including those targeting disorders such as alopecia areata and other severe inflammatory conditions.

How the Company Makes Money

Equillium generates revenue primarily through the development and commercialization of its drug candidates. The company focuses on advancing its clinical trials to obtain regulatory approvals, which can lead to product sales and licensing agreements. Key revenue streams include milestone payments from partnerships with larger pharmaceutical companies, as well as potential royalties from future sales of its approved therapies. Additionally, Equillium may receive funding from grants and collaborations that support its research and development efforts, contributing to its overall financial sustainability.

Equillium Financial Statement Overview

Summary

Equillium shows strong revenue growth but struggles with profitability and operational cash flows. The balance sheet is stable with low leverage, but the company needs to address operational inefficiencies for long-term sustainability.

Income Statement

Equillium has shown a consistent increase in revenue from 2020 to 2024, with significant growth from 2022 to 2023. However, despite the revenue growth, the company remains unprofitable with negative net income and EBIT margins, indicating ongoing operational challenges. The gross profit margin is stable at 100%, as all revenue translates to gross profit, an indication of low variable costs.

Balance Sheet

The balance sheet shows moderate strength with positive stockholders' equity and a low debt-to-equity ratio, indicating relatively low leverage. However, the declining equity ratio over the years suggests increasing liabilities relative to assets. The company maintains a solid cash position, although total assets have been decreasing.

Cash Flow

Operating cash flow has been negative, indicating cash outflows from core operations, which is concerning. However, the company has managed free cash flow relatively well, with improvements in free cash flow growth in the recent year. The reliance on financing activities in earlier years has decreased, suggesting a move towards more self-sustained cash operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.55M	41.09M	36.08M	15.76M	0.00	0.00
Gross Profit	16.45M	40.96M	35.96M	15.64M	-72.00K	-45.00K
EBITDA	-20.40M	-7.57M	-12.14M	-61.26M	-37.91M	-28.67M
Net Income	-20.19M	-8.07M	-13.34M	-107.71M	-38.98M	-29.77M
Balance Sheet
Total Assets	12.40M	25.60M	50.53M	78.42M	85.41M	85.43M
Cash, Cash Equivalents and Short-Term Investments	11.49M	22.57M	40.87M	71.02M	80.71M	82.16M
Total Debt	259.00K	384.00K	824.00K	10.19M	11.79M	8.28M
Total Liabilities	7.34M	6.54M	27.96M	46.48M	18.90M	15.57M
Stockholders Equity	5.06M	19.06M	22.57M	31.94M	66.50M	69.85M
Cash Flow
Free Cash Flow	-22.15M	-19.11M	-21.83M	-9.01M	-32.14M	-24.83M
Operating Cash Flow	-22.14M	-19.03M	-21.78M	-8.73M	-32.08M	-24.62M
Investing Cash Flow	22.49M	13.81M	-4.76M	18.68M	27.41M	-18.59M
Financing Cash Flow	148.00K	164.00K	-9.23M	-1.22M	31.06M	53.95M

Equillium Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQ, the sentiment is Negative. The current price of 0.97 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.48, and above the 200-day MA of 0.83, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 32.01 is Neutral, neither overbought nor oversold. The STOCH value of 6.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQ.

Equillium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HYFT	48 Neutral	$79.85M	―	-110.94%	―	-9.61%	20.36%
NRXP	45 Neutral	$65.13M	-1.22	―	―	―	18.51%
EQ	41 Neutral	$85.68M	-2.54	-146.92%	―	-61.16%	-139.15%
STRO	40 Neutral	$86.47M	-0.40	-1810.01%	―	-34.36%	-59.97%
PRLD	35 Underperform	$99.61M	-0.99	-96.33%	―	―	7.72%

Equillium Corporate Events

Equillium Announces Board Restructuring and Biocon Agreement Termination

On September 30, 2025, Equillium announced significant changes in its board and executive structure. Stephen Connelly, Ph.D., and Bala Manian, Ph.D., resigned from the board, effective October 1, 2025, leading to a reduction in board size from nine to seven members. Charles McDermott and Mark Pruzanski, M.D., were appointed to key committee roles, and Daniel M. Bradbury transitioned to Chairman of the Board. Dr. Connelly was appointed as the company’s President, while Bruce Steel continued as CEO. Simultaneously, Equillium terminated its collaboration and license agreements with Biocon Limited, with all licenses, including those for itolizumab, reverting to Biocon. Equillium will receive a technical service fee of $363,000 from Biocon, offset against amounts owed by Equillium.

The most recent analyst rating on (EQ) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Equillium stock, see the EQ Stock Forecast page.

Equillium Files Prospectus for $75 Million Stock Sale

On September 19, 2025, Equillium, Inc. announced the filing of a prospectus supplement with the SEC for the offer and sale of up to $75 million in common stock under an amended sales agreement with LifeSci Capital LLC. This move follows previous sales of shares that generated $0.96 million, indicating a strategic effort to raise capital and potentially expand its market presence.

The most recent analyst rating on (EQ) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Equillium stock, see the EQ Stock Forecast page.

Equillium Regains Nasdaq Compliance with Bid Price Rule

On August 29, 2025, Equillium, Inc. announced that it has regained compliance with Nasdaq’s minimum bid price requirement, ensuring its continued inclusion on The Nasdaq Capital Market. The company had previously been notified of non-compliance on December 13, 2024, and was granted an additional 180-day period on June 12, 2025, to meet the requirement. Equillium successfully met the bid price rule by maintaining a closing bid price of $1.00 per share or more for at least 10 consecutive business days, achieving this on August 28, 2025.

The most recent analyst rating on (EQ) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Equillium stock, see the EQ Stock Forecast page.

Equillium Secures $30 Million in Private Placement

On August 10, 2025, Equillium, Inc. entered into a Securities Purchase Agreement with institutional and accredited investors to raise approximately $30 million through the sale of common stock and pre-funded warrants, with a potential additional $20 million contingent on achieving certain milestones. The funds from this private placement are expected to extend Equillium’s cash runway through 2027 and will be used to support the development of EQ504 and other corporate purposes, reflecting the company’s strategic focus on advancing its clinical programs.

The most recent analyst rating on (EQ) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Equillium stock, see the EQ Stock Forecast page.