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Fate Therapeutics (FATE)
NASDAQ:FATE
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Fate Therapeutics
(NASDAQ:FATE)
47Neutral
Positive Factors
Clinical Advancements
FT825 has demonstrated a favorable safety profile with no dose-limiting toxicities to date in its ongoing dose escalation study.
Financial Performance
FATE reported a net loss per share that was better than the consensus expectation.
Regulatory Support
The company received RMAT designation for FT819, indicating regulatory support and recognition of the therapy's potential.
Negative Factors
Program Prioritization
Signs of FT522’s de-prioritization indicate a decided preference for CAR-T over CAR-NK cell therapies.
Regulatory Uncertainty
Sentiment will be pressured by uncertainty regarding new CBER leadership’s commitment to accelerated approval pathways for novel cell therapies.
Fate Therapeutics (FATE) vs. S&P 500 (SPY)
Market Cap
$122.66M
Dividend YieldN/A
Average Volume (3M)2.21M
Price to Earnings (P/E)―
Beta (1Y)2.86
Revenue Growth105.85%
EPS Growth22.13%
CountryUS
Employees181
SectorHealthcare
Sector Strength41
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.32
Shares Outstanding114,633,020
10 Day Avg. Volume2,057,493
30 Day Avg. Volume2,213,452
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.44
Price to Sales (P/S)0.00
P/FCF Ratio-0.98
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue3.05
Enterprise Value/Gross Profit-7.03
Enterprise Value/Ebitda-0.23
Forecast
1Y Price Target
$5.15Price Target Upside322.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Fate Therapeutics Business Overview & Revenue Model
Company DescriptionFate Therapeutics, Inc. is a clinical-stage biopharmaceutical company engaged in the development of programmed cellular immunotherapies for cancer and immune disorders. The company's primary focus is on creating off-the-shelf cell products derived from induced pluripotent stem cells (iPSCs) to treat both hematologic malignancies and solid tumors. By leveraging its proprietary iPSC product platform, Fate aims to advance a pipeline of cellular immunotherapies with improved safety, potency, and accessibility.
How the Company Makes MoneyFate Therapeutics generates revenue primarily through collaborations and partnerships with other pharmaceutical companies and research institutions. These partnerships often involve upfront payments, milestone payments based on the achievement of specific development goals, and potential royalties on sales of successfully commercialized products. Additionally, the company might receive grants and research funding to support its development programs. Fate Therapeutics' revenue model is largely dependent on the successful advancement of its clinical pipeline and the establishment of strategic alliances to support the commercialization of its therapies.
Fate Therapeutics Financial Statement Overview
Summary
Fate Therapeutics faces substantial financial challenges, with persistent losses and negative cash flow raising concerns about its operational sustainability. While the company's low debt-to-equity ratio suggests manageable leverage, the declining equity base and consistent cash flow deficits highlight the need for strategic redirection to achieve profitability and positive cash generation.Income Statement
Fate Therapeutics has faced significant challenges in its income statement metrics. The company experienced a significant decline in total revenue from 2020 to 2024, with a revenue growth rate of -78.54% from 2023 to 2024. The gross profit margin has been negative for several years, indicating high costs relative to revenues. Net profit margins are also deeply negative, reflecting persistent losses. EBIT and EBITDA margins are similarly negative, demonstrating the company’s struggle to cover its operating costs and generate positive earnings.40
Negative
Balance Sheet
The balance sheet reveals a mixed picture. The debt-to-equity ratio has remained reasonably low, suggesting manageable leverage levels. However, the return on equity is negative due to consistent net losses, indicating a lack of profitability. The equity ratio is relatively high at 72.31% in 2024, showcasing financial stability and reliance on equity financing. Still, the equity base has shrunk over the years, raising concerns over long-term sustainability.50
Neutral
Cash Flow
Cash flow metrics highlight the company’s ongoing cash challenges. Free cash flow remains negative, though there was a small improvement in 2024. The operating cash flow to net income ratio is negative, indicating operational cash flow deficits. The free cash flow to net income ratio also remains negative, underlining the company's struggle to generate sufficient cash to cover its expenditures without external financing.45
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 13.34M | 13.63M | 63.53M | 96.30M | 55.85M | 31.43M | Gross Profit |
| -22.90M | -5.33M | -98.16M | 82.54M | 50.00M | -94.19M | EBIT |
| -200.49M | -210.28M | -190.51M | -308.39M | -216.99M | -128.09M | EBITDA |
| -171.61M | -167.30M | -172.23M | -294.63M | -211.14M | -125.00M | Net Income Common Stockholders |
| -175.88M | -186.26M | -160.93M | -255.06M | -206.30M | -170.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 240.43M | 279.07M | 315.18M | 436.23M | 615.91M | 482.92M | Total Assets |
| 398.67M | 440.69M | 506.22M | 705.56M | 921.46M | 622.46M | Total Debt |
| 83.33M | 85.27M | 103.54M | 109.34M | 114.82M | 97.30M | Net Debt |
| 38.41M | 49.21M | 61.67M | 48.01M | -18.77M | -70.05M | Total Liabilities |
| 110.26M | 121.97M | 137.80M | 221.62M | 242.62M | 238.01M | Stockholders Equity |
| 288.41M | 318.73M | 368.42M | 483.94M | 678.84M | 384.44M |
| Cash Flow | Free Cash Flow | ||||
| -125.17M | -123.60M | -138.42M | -283.77M | -213.57M | -44.16M | Operating Cash Flow |
| -123.33M | -122.87M | -132.26M | -248.21M | -162.87M | -39.23M | Investing Cash Flow |
| 37.58M | 12.22M | 112.67M | 166.75M | -324.02M | -161.08M | Financing Cash Flow |
| 4.40M | 99.89M | 85.00K | 9.21M | 453.13M | 282.84M |
Fate Therapeutics Technical Analysis
Positive
1.22
Price Trends
1.02
Positive
1.20
Positive
2.14
Negative
Market Momentum
>-0.01
Positive
57.04
Neutral
52.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FATE, the sentiment is Positive. The current price of 1.22 is above the 20-day moving average (MA) of 1.16, above the 50-day MA of 1.02, and below the 200-day MA of 2.14, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 52.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FATE.
Fate Therapeutics Risk Analysis
Fate Therapeutics disclosed 84 risk factors in its most recent earnings report. Fate Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fate Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $121.86M | ― | -24.73% | ― | -1.02% | -8.59% | |
52 Neutral | $5.19B | 3.04 | -44.64% | 2.82% | 16.45% | -0.53% | |
49 Neutral | $234.26M | ― | -99.23% | ― | -40.10% | -16.60% | |
47 Neutral | $122.66M | ― | -49.23% | ― | 105.85% | 22.13% | |
46 Neutral | $187.45M | ― | 123.38% | ― | 10.49% | 47.31% | |
45 Neutral | $147.52M | ― | -60.22% | ― | ― | 85.19% | |
40 Underperform | $159.36M | ― | -32.97% | ― | ― | ― |
* Healthcare Sector Average
Performance Comparison
FATE
Fate Therapeutics
1.22
-2.69
-68.80%
KRRO
Korro Bio
15.71
-38.89
-71.23%
ADCT
ADC Therapeutics
2.34
-1.77
-43.07%
SLN
Silence Therapeutics
4.96
-18.39
-78.76%
SEER
Seer
2.07
-0.01
-0.48%
FDMT
4D Molecular Therapeutics
3.80
-22.20
-85.38%
Fate Therapeutics Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2024)
| % Change Since: 22.00%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in clinical trials, particularly with FT819 and FT522, alongside a strong financial position. However, revenue growth remains limited and operating expenses are high, suggesting a balanced outlook with promising clinical achievements countered by financial challenges.Q1-2024 Updates
Positive Updates
FT819 and FT522 Data Presentation
Presented promising data from FT819 and FT522 programs at the ASGCT Annual Meeting, showing potential disease-modifying effects and immune reset in B-cell-mediated autoimmune diseases.
First Lupus Patient Treated
The first lupus patient was treated with FT819, showing no notable adverse events post-treatment.
Strong Financial Position and Fundraising
Raised $100 million through an underwritten offering and a private placement, ending the quarter with $391 million in cash, cash equivalents, and investments.
FT522 Safety Assessment
First 3 patients in FT522 study completed safety assessment without dose-limiting toxicities.
Negative Updates
Limited Revenue Growth
Reported revenue of $1.9 million, consistent with prior quarters, reflecting limited growth.
High Operating Expenses
Total operating expenses for the quarter increased by 7% relative to the fourth quarter of 2023 to $53 million.
Company Guidance
During the Fate Therapeutics Q1 2024 earnings call, the company provided guidance on its clinical and financial outlook. Key program initiatives were discussed, including the FT819 CAR T-cell and FT522 CAR NK cell programs, with notable translational data presented at the American Society of Gene and Cell Therapy Annual Meeting. The company highlighted its plans to achieve several clinical milestones across its iPSC product pipeline, targeting both cancer and autoimmune diseases. Financially, Fate Therapeutics raised $100 million through an underwritten offering and private placement, ending the first quarter with approximately $391 million in cash. Operating expenses for the full year are projected between $215 million and $230 million, with a year-end cash balance exceeding $270 million. The company's strategic focus is on demonstrating the disease-modifying potential of its therapies while maintaining a strong financial position to support ongoing and future clinical development.Fate Therapeutics Corporate Events
Executive/Board Changes
Fate Therapeutics Announces Executive Leadership Transition
Neutral
Jan 6, 2025
Fate Therapeutics announced the retirement of J. Scott Wolchko from his executive roles, effective December 31, 2024, and the appointment of Bahram Valamehr as his successor starting January 1, 2025. The company entered into a strategic advisory services agreement with Mr. Wolchko, allowing him to provide advisory services throughout 2025 with compensations and continued vesting of his equity awards, ensuring a smooth transition and maintaining continuity in leadership.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.