Fate Therapeutics (FATE) AI Stock Analysis

• Market Cap: $162.61M
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.71
• Revenue Growth: -31.23%
• EPS Growth: 14.92%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.29
• Shares Outstanding: 115,329,700
• 10 Day Avg. Volume: 3,023,084
• 30 Day Avg. Volume: 1,933,243
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.05
• Enterprise Value/Revenue: -1.03
• Enterprise Value/Gross Profit: -1.68
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: $4.08
• Price Target Upside: 193.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 48 Neutral
• Price Target: $1.50 ▲(7.91% Upside)

Fate Therapeutics' overall stock score is primarily impacted by its challenging financial performance, characterized by persistent losses and negative cash flow. While technical indicators suggest short-term bullish momentum, the negative valuation metrics due to ongoing losses and lack of dividends weigh heavily on the stock's attractiveness. Investors should be cautious and consider the risks associated with the company's financial instability.

Positive Factors

Innovative Technology

The company's proprietary iPSC technology positions it at the forefront of cellular immunotherapy, offering a competitive edge in developing transformative cancer treatments.

Strategic Partnerships

Strategic alliances provide financial support and potential market access, crucial for advancing clinical programs and achieving commercialization.

Low Debt Levels

Low debt levels enhance financial flexibility, allowing the company to focus on R&D without the burden of high interest obligations.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates reliance on external funding, which could limit operational flexibility and increase financial risk.

Declining Revenue

Significant revenue decline suggests challenges in product commercialization and market penetration, impacting long-term growth prospects.

Persistent Losses

Ongoing losses highlight operational inefficiencies and the need for strategic changes to achieve profitability and sustainable growth.

Fate Therapeutics Business Overview & Revenue Model

Company Description

Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. Its NK- and T-cell immuno-oncology programs under development include FT516 for the treatment of acute myeloid leukemia (AML) B-cell lymphoma, and advanced solid tumor; FT596 to treat B-cell lymphoma and chronic lymphocytic leukemia; FT538 to treat AML and multiple myeloma; FT576 to treat multiple myeloma; FT819 to treat hematologic malignancies and solid tumors; FT536 to treat solid tumors; and FT500 for the treatment of advanced solid tumors. The company has a collaboration and option agreement with Ono Pharmaceutical Co. Ltd. for the development and commercialization of two off-the-shelf iPSC-derived CAR T-cell product candidates; strategic research collaboration and license agreement with Juno Therapeutics, Inc. to screen for and identify small molecule modulators that enhance the therapeutic properties of genetically-engineered T-cell immunotherapies; and a collaboration and option agreement with Janssen Biotech, Inc. Fate Therapeutics, Inc. was incorporated in 2007 and is headquartered in San Diego, California.

How the Company Makes Money

Fate Therapeutics generates revenue primarily through the development of its therapeutic candidates, which are funded by collaborations and partnerships with larger pharmaceutical companies. The company engages in strategic alliances that provide upfront payments, milestone payments tied to clinical progress, and royalties on future sales of products developed using its technology. Additionally, Fate Therapeutics may receive funding through government grants and research contracts. Its revenue model is heavily reliant on successful research and development outcomes, regulatory approvals for its therapies, and the commercialization of its products in collaboration with partners.

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. The company has a negative gross profit margin and deeply negative net profit margins. The balance sheet shows a manageable debt-to-equity ratio but a declining equity base, raising sustainability concerns.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.47M	13.63M	63.53M	96.30M	55.85M	31.43M
Gross Profit	5.19M	13.63M	-93.65M	82.54M	50.00M	-94.19M
EBITDA	-164.88M	-176.58M	-172.23M	-294.63M	-211.14M	-125.00M
Net Income	-171.52M	-186.26M	-160.93M	-281.72M	-212.15M	-173.39M
Balance Sheet
Total Assets	371.63M	440.69M	506.22M	705.56M	921.46M	622.46M
Cash, Cash Equivalents and Short-Term Investments	222.83M	279.07M	315.18M	436.23M	615.91M	482.92M
Total Debt	81.33M	85.27M	103.54M	109.34M	114.82M	97.30M
Total Liabilities	110.27M	121.97M	137.80M	221.62M	242.62M	238.01M
Stockholders Equity	261.36M	318.73M	368.42M	483.94M	678.84M	384.44M
Cash Flow
Free Cash Flow	-118.77M	-123.60M	-138.42M	-283.77M	-213.57M	-44.16M
Operating Cash Flow	-115.61M	-122.87M	-132.26M	-248.21M	-162.87M	-39.23M
Investing Cash Flow	110.54M	12.22M	112.67M	166.75M	-324.02M	-161.08M
Financing Cash Flow	4.46M	99.89M	85.00K	9.21M	453.13M	282.84M

Fate Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 1.39 is above the 20-day moving average (MA) of 1.07, above the 50-day MA of 1.07, and above the 200-day MA of 1.18, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 70.92 is Negative, neither overbought nor oversold. The STOCH value of 79.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FATE.

Fate Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CGEN	56 Neutral	$167.43M	87.50	-35.66%	―	-48.16%	-97.37%
STTK	55 Neutral	$163.56M	―	-73.39%	―	-27.33%	34.66%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
FATE	48 Neutral	$162.61M	―	-52.11%	―	-31.23%	14.92%
CRDF	47 Neutral	$146.36M	―	-91.93%	―	-17.89%	3.93%
ONC	43 Neutral	―	―	―	―	―	―
NKTX	39 Underperform	$152.70M	―	-26.94%	―	―	26.33%

Fate Therapeutics Corporate Events

Fate Therapeutics Announces Corporate Restructuring Plan

On August 7, 2025, Fate Therapeutics‘ Board of Directors approved a corporate restructuring to streamline operations, reduce expenses, and extend its cash runway, which includes a 12% reduction in workforce. The restructuring is expected to incur charges of $0.9 million to $1.2 million for severance and related costs in the third quarter of 2025. Additionally, the company reported significant progress in its clinical programs, particularly with its FT819 CAR T-cell product for autoimmune diseases, and plans to expand its trials to include other B cell-mediated autoimmune diseases. Fate Therapeutics is also advancing its pipeline with collaborations and new technologies, aiming to optimize resource allocation and extend its cash runway through the end of 2027.