Onconetix (ONCO) AI Stock Analysis

• Market Cap: $3.74M
• Dividend Yield: N/A
• Average Volume (3M): 33.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.38
• Revenue Growth: N/A
• EPS Growth: -97.16%
• Country: US
• Employees: 12
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): -88.84
• Shares Outstanding: 44,358,420
• 10 Day Avg. Volume: 82,978,037
• 30 Day Avg. Volume: 33,008,676
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.41
• Enterprise Value/Market Cap: 3.47
• Enterprise Value/Revenue: 3.12
• Enterprise Value/Gross Profit: -16.82
• Enterprise Value/Ebitda: -0.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 33 Underperform
• Price Target: ―

Onconetix's overall score reflects substantial financial difficulties with significant operating losses and negative profitability metrics. The technical analysis suggests a bearish trend, and the valuation metrics are unfavorable due to negative earnings. These factors combine to give the stock a low attractiveness score.

Onconetix Business Overview & Revenue Model

Company Description

Onconetix, Inc., a biotechnology and pharmaceutical company, focuses on developing and commercializing transformational therapies to address health challenges worldwide. The company owns Entadfi, an FDA-approved, once daily pill that combines finasteride and tadalafil for the treatment of benign prostatic hyperplasia. It is also developing a streptococcus pneumoniae vaccine candidate, which is designed to prevent infectious middle ear infections in children, and prevention of pneumonia in the elderly; and universal flu vaccine that provide protection from all virulent strains in addition to licensing a novel norovirus S&P nanoparticle versatile virus-like particle vaccine platform from Cincinnati Children's to develop vaccines for multiple infectious diseases, including Marburg and monkeypox, and others. The company was formerly known as Blue Water Biotech, Inc. and changed its name to Onconetix, Inc. in December 2023. Onconetix, Inc. was incorporated in 2018 and is headquartered in Cincinnati, Ohio.

How the Company Makes Money

Onconetix makes money primarily through the sale of its diagnostic assays and therapeutic solutions to healthcare providers, research institutions, and pharmaceutical companies. The company generates revenue by licensing its proprietary technologies and intellectual property to other firms in the oncology space. Additionally, Onconetix may engage in strategic partnerships and collaborations with larger biotech and pharmaceutical companies to co-develop and commercialize its products, sharing in the profits generated from these joint ventures. Revenues may also be supplemented by grants and funding from government and non-profit organizations dedicated to cancer research and innovation.

Onconetix Financial Statement Overview

Summary

Onconetix is facing significant financial challenges, characterized by substantial operating losses, negative profit margins, and strained cash flows. While there is some revenue growth, the overall financial health is weakened by high costs, negative equity returns, and operational cash deficits. The company's leverage is moderate but requires careful management to avoid liquidity issues.

Income Statement

Onconetix's income statement shows significant challenges with negative profitability metrics. The TTM gross profit margin is negative due to higher costs than revenues, and net income is deeply negative, resulting in a net profit margin of -2758.4%. The company has shown some revenue growth, as seen from a significant increase in TTM revenue compared to previous years, but this is outweighed by the high operating losses.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 0.29, indicating moderate leverage. The return on equity (ROE) is negative due to persistent net losses, and the equity ratio stands at 54.8%, suggesting a fair proportion of equity in the capital structure. However, the decline in stockholders' equity and total assets over the period indicates potential financial strain.

Cash Flow

Cash flow metrics highlight operational difficulties, with negative free cash flow and a free cash flow to net income ratio of 0.15, indicating limited cash generation relative to net losses. Despite some financing cash inflows, the operating cash flow remains negative, which is concerning for sustainable operations.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.87M	58.47K	0.00	0.00	0.00	0.00
	Gross Profit
-771.15K	-1.13M	-6.75K	-4.89K	-3.06K	-573.00
	EBIT
-25.25M	-36.03M	-13.48M	-3.42M	-1.62M	-880.23K
	EBITDA
-49.74M	-36.71M	-13.54M	-3.41M	-1.62M	-821.34K
	Net Income Common Stockholders
-51.60M	-37.41M	-13.42M	-3.42M	-1.60M	-821.91K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.46M	4.55M	25.75M	1.93M	4.31M	6.05M
	Total Assets
75.03M	87.52M	26.31M	3.08M	4.81M	6.08M
	Total Debt
15.40M	9.89M	0.00	0.00	0.00	0.00
	Net Debt
10.94M	5.33M	-25.75M	-1.93M	-4.31M	-6.05M
	Total Liabilities
25.29M	23.18M	3.92M	1.64M	78.31K	82.62K
	Stockholders Equity
42.70M	58.63M	22.39M	1.45M	4.73M	6.00M
Cash Flow		Free Cash Flow
-7.83M	-13.64M	-8.71M	-2.05M	-1.74M	-829.63K
	Operating Cash Flow
-13.89M	-13.58M	-8.70M	-2.04M	-1.73M	-825.13K
	Investing Cash Flow
1.19M	-8.65M	-9.34K	-1.92K	-11.79K	-4.50K
	Financing Cash Flow
5.44M	1.04M	32.53M	-334.19K	0.00	6.88M

Onconetix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONCO, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 1.89, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.60 is Neutral, neither overbought nor oversold. The STOCH value of 10.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ONCO.

Onconetix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.14B	3.03	-43.89%	2.83%	16.75%	-0.06%
GRI	45 Neutral	$2.68M	―	-468.00%	―	―	98.55%
ONCO	33 Underperform	$3.74M	―	-233.77%	―	―	-97.16%
SLRX	30 Underperform	$1.65M	―	-300.16%	―	―	79.57%
PCSA	29 Underperform	$2.85M	―	-192.72%	―	―	56.26%
SCPX	23 Underperform	$514.09K	―	-174.06%	―	-10.75%	82.25%
VINC	15 Underperform	$1.44M	―	-431.29%	―	―	48.17%