Janux Therapeutics Inc (JANX) AI Stock Analysis

• Market Cap: $1.41B
• Dividend Yield: N/A
• Average Volume (3M): 709.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: -97.10%
• EPS Growth: -96.30%
• Country: US
• Employees: 91
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.55
• Shares Outstanding: 60,093,933
• 10 Day Avg. Volume: 637,175
• 30 Day Avg. Volume: 709,513
• 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: 0.32
• Enterprise Value/Revenue: -56.50
• Enterprise Value/Gross Profit: -44.85
• Enterprise Value/Ebitda: -3.17
• 1Y Price Target: $73.53
• Price Target Upside: 213.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 45 Neutral
• Price Target: $23.00 ▼(-1.92% Downside)

Janux Therapeutics Inc faces significant challenges with profitability and cash generation, as reflected in its financial performance score. The technical analysis indicates a bearish trend, and the valuation is unattractive due to the negative P/E ratio. These factors contribute to a lower overall stock score.

Positive Factors

Revenue Growth

The 30.4% revenue growth indicates strong demand for Janux's innovative cancer therapies, potentially enhancing market position and future profitability.

Balance Sheet Strength

Minimal leverage reduces financial risk, providing Janux with flexibility to invest in R&D and strategic partnerships, supporting long-term growth.

Proprietary Technology

Janux's proprietary technology offers a competitive edge in developing targeted cancer treatments, potentially leading to successful product commercialization.

Negative Factors

Profitability Challenges

Ongoing losses and negative margins highlight operational inefficiencies, which may hinder Janux's ability to achieve sustainable profitability.

Cash Generation Issues

Inability to generate cash from operations suggests reliance on external financing, which could limit financial flexibility and growth initiatives.

Equity Financing Dependence

Heavy reliance on equity financing may dilute existing shareholders and indicate challenges in achieving self-sustaining financial operations.

Janux Therapeutics Inc Business Overview & Revenue Model

Company Description

Janux Therapeutics, Inc., a biopharmaceutical company, develops therapeutics based on proprietary Tumor Activated T Cell Engager (TRACTr) platform technology to treat patients suffering from cancer. The company's lead TRACTr product candidates that are in preclinical or discovery stage target prostate-specific membrane antigen, epidermal growth factor receptor, and trophoblast cell surface antigen 2. Janux Therapeutics, Inc. is also developing a Tumor Activated Immunomodulator (TRACIr) costimulatory bispecific product candidate against programmed death-ligand 1 and CD28 designed to improve the anti-tumor activity of T cells. In addition, its EGFR-TRACTr is designed to target EGFR in many cancer types with multiple approved monoclonal antibodies. The company was incorporated in 2017 and is headquartered in La Jolla, California.

How the Company Makes Money

Janux Therapeutics Inc generates revenue primarily through strategic collaborations and partnerships with larger pharmaceutical companies. These partnerships often include upfront payments, milestone payments, and potential royalties on sales if the developed therapies receive regulatory approval and market success. Additionally, Janux may engage in licensing agreements for its proprietary technology, contributing to its revenue streams. The company invests heavily in research and development to advance its pipeline of immunotherapy candidates, which, upon successful clinical trials and regulatory approval, could lead to commercialization and direct sales revenue.

Janux Therapeutics Inc Financial Statement Overview

Summary

Janux Therapeutics Inc shows strong revenue growth and a robust balance sheet with minimal debt. However, the company faces challenges with profitability and cash generation from operations, as indicated by negative net income and operating cash flows. The reliance on financing to support cash needs is also a concern.

Income Statement

Janux Therapeutics Inc has shown a significant increase in revenue from $8.08 million in 2023 to $10.59 million in 2024, representing a growth rate of approximately 30.4%. However, the company continues to operate at a net loss with a net profit margin of -651.6% for 2024. The gross profit margin remains high at 100%, but negative EBIT and EBITDA margins indicate operational inefficiencies and high expenses relative to revenue.

Balance Sheet

The company maintains a strong equity base with a stockholders' equity of $1.02 billion, indicating solid foundational support. The debt-to-equity ratio is low at 0.02, suggesting minimal leverage which reduces financial risk. However, the equity ratio at 96.3% shows heavy reliance on equity financing. Return on equity is negative, reflecting ongoing losses.

Cash Flow

Operating cash flow is negative, showing the company is not generating cash from its core operations. Nevertheless, there was an improvement in free cash flow from -$52.43 million in 2023 to -$44.17 million in 2024, reflecting a positive growth rate in free cash flow. The financing cash flow remains strong due to significant cash inflows from financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-8.07M	10.59M	8.08M	8.61M	3.64M	0.00
Gross Profit	-10.17M	8.53M	6.13M	7.77M	3.52M	-13.00K
EBITDA	-143.86M	-98.85M	-71.02M	-66.25M	-32.82M	-6.57M
Net Income	-105.64M	-68.99M	-58.29M	-63.06M	-32.56M	-5.25M
Balance Sheet
Total Assets	1.03B	1.06B	380.41M	364.01M	379.82M	16.22M
Cash, Cash Equivalents and Short-Term Investments	996.01M	1.03B	344.03M	327.02M	374.96M	7.81M
Total Debt	22.19M	23.02M	24.54M	25.30M	194.00K	0.00
Total Liabilities	41.70M	38.73M	36.06M	43.27M	13.50M	30.86M
Stockholders Equity	990.52M	1.02B	344.35M	320.74M	366.33M	6.99M
Cash Flow
Free Cash Flow	-60.70M	-44.17M	-52.42M	-49.37M	-18.46M	-4.37M
Operating Cash Flow	-59.79M	-43.81M	-50.58M	-42.92M	-16.98M	-4.37M
Investing Cash Flow	-292.23M	-258.02M	-41.19M	58.27M	-340.96M	0.00
Financing Cash Flow	389.81M	713.24M	59.55M	500.00K	386.52M	11.52M

Janux Therapeutics Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JANX, the sentiment is Negative. The current price of 23.45 is below the 20-day moving average (MA) of 23.71, below the 50-day MA of 24.50, and below the 200-day MA of 32.59, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 25.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JANX.

Janux Therapeutics Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRDN	61 Neutral	1.59B	-4.56	-66.79%	―	5.90%	-0.36%
JANX	45 Neutral	$1.41B	―	-12.82%	―	-97.10%	-96.30%
PHVS	42 Neutral	1.62B	-7.53	0.00%	―	0.00%	-36.92%
EWTX	40 Underperform	1.50B	-9.17	0.00%	―	0.00%	-1.46%
BHVN	40 Underperform	1.56B	-2.03	0.00%	―	0.00%	16.36%
VERA	39 Underperform	1.63B	-7.15	0.00%	―	0.00%	-62.51%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%