Silence Therapeutics (SLN) AI Stock Analysis

• Market Cap: $180.89M
• Dividend Yield: N/A
• Average Volume (3M): 280.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -40.10%
• EPS Growth: -16.60%
• Country: US
• Employees: 116
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.20
• Shares Outstanding: 47,230,280
• 10 Day Avg. Volume: 208,869
• 30 Day Avg. Volume: 280,365
• PEG Ratio: -0.08
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $31.80
• Price Target Upside: 673.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Silence Therapeutics faces significant challenges with profitability and financial stability, reflected in negative profit margins and stockholders' equity. While technical indicators and earnings call details show some positive aspects, such as revenue growth and clinical trial success, the valuation remains unattractive due to negative earnings. The company's ability to secure financing and extend its cash runway is a positive sign, but substantial improvements in financial performance are necessary for a more favorable stock outlook.

Positive Factors

Clinical Development

Divesiran continues to build momentum as a high-priority asset in polycythemia vera (PV), with additional Phase 1 data to be presented during an oral session at the upcoming European Hematology Association (EHA 2025) Congress.

Financial Stability

Cash runway has been extended into 2028 due to additional cost-saving measures, providing financial stability for the company.

Regulatory Support

With broad regulatory support, a compelling trial design, and a massive addressable market that could ultimately encompass ~20% of the global population, zerlasiran is well positioned to anchor the next wave of cardiovascular innovation.

Negative Factors

Development Delays

The PhIII start for the Lp(a) program is now paused until a partner is secured.

Partnership Uncertainty

The advancement of zerlasiran into Phase 3 will require a partner, and discussions are still ongoing, reflecting uncertainty in its development.

Price Target Concerns

A more cautious view on zerlasiran has led to a lowered price target, indicating concerns about its future potential without a partnership.

Silence Therapeutics Business Overview & Revenue Model

Company Description

Silence Therapeutics plc (SLN) is a biotechnology company focused on developing innovative therapies using its proprietary RNA interference (RNAi) platform. Based in the United Kingdom, the company aims to harness the natural pathways of gene silencing to develop treatments for a wide range of diseases, particularly in areas with high unmet medical needs. Silence Therapeutics is committed to advancing the field of precision medicine by targeting specific genes implicated in the pathology of diseases.

How the Company Makes Money

Silence Therapeutics generates revenue primarily through collaborative agreements, licensing deals, and milestone payments associated with its RNAi platform. The company partners with pharmaceutical and biotechnology firms to co-develop therapies, leveraging its expertise in RNA interference technology. These partnerships often involve upfront payments, research funding, and potential milestone and royalty payments contingent upon the successful development and commercialization of new therapies. Additionally, Silence Therapeutics may receive revenue from licensing its technology to third parties, enabling them to use its RNAi platform for their own therapeutic developments.

Silence Therapeutics Financial Statement Overview

Summary

Silence Therapeutics is experiencing revenue growth, but profitability challenges persist due to negative EBIT and net income margins. The negative stockholders' equity and high liabilities signal financial instability, although substantial cash reserves provide some comfort. The negative free cash flow highlights ongoing cash challenges, despite the ability to secure financing.

Income Statement

Silence Therapeutics has demonstrated significant revenue growth over the years, with a notable increase from 2023 to 2024. However, the company continues to face challenges with profitability, as evidenced by negative EBIT and net income margins. The consistent negative profit margins highlight a need for enhanced cost management or increased revenue to achieve profitability.

Balance Sheet

The company's balance sheet reveals a concerning negative stockholders' equity as of 2024, indicating financial instability. The debt-to-equity ratio is not favorable due to the negative equity, and although the company maintains substantial cash reserves, the high liabilities present a risk. Improving equity and managing liabilities are critical for financial health.

Cash Flow

Silence Therapeutics has managed significant financing cash flow, which supports its operations despite negative operating cash flow. The free cash flow has been consistently negative, reflecting ongoing cash challenges. However, the company's ability to secure financing offers some operational flexibility. Improving free cash flow is essential for sustainable growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
43.26M	25.38M	17.50M	12.41M	5.48M
	Gross Profit
31.45M	15.06M	6.62M	4.96M	1.72M
	EBIT
-63.32M	-49.60M	-48.59M	-45.81M	-35.85M
	EBITDA
-48.99M	-49.78M	-47.88M	-45.42M	-35.53M
	Net Income Common Stockholders
-45.31M	-43.27M	-40.49M	-39.41M	-32.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
147.33M	54.03M	71.14M	73.54M	37.45M
	Total Assets
202.63M	93.82M	107.50M	96.19M	85.97M
	Total Debt
117.00K	272.00K	446.00K	137.00K	341.00K
	Net Debt
-121.21M	-53.76M	-54.37M	-73.40M	-27.11M
	Total Liabilities
68.61M	76.77M	85.43M	87.67M	76.91M
	Stockholders Equity
-134.02M	17.05M	22.07M	8.53M	9.06M
Cash Flow		Free Cash Flow
-67.85M	-39.40M	-45.90M	5.47M	-11.29M
	Operating Cash Flow
-67.64M	-39.35M	-45.46M	6.81M	-10.78M
	Investing Cash Flow
-21.97M	16.43M	-16.54M	8.68M	9.62M
	Financing Cash Flow
142.09M	25.16M	43.05M	30.71M	15.43M

Silence Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.11
• 50DMA: Positive
• 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 SLN, the sentiment is Positive. The current price of 4.11 is above the 20-day moving average (MA) of 3.52, above the 50-day MA of 3.48, and below the 200-day MA of 10.22, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 62.93 is Neutral, neither overbought nor oversold. The STOCH value of 53.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLN.

Silence Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.14B	3.39	-43.55%	2.83%	16.49%	-0.19%
RGLS	52 Neutral	$542.80M	―	-53.82%	―	―	44.85%
SLN	49 Neutral	$180.89M	―	-99.23%	―	-40.10%	-16.60%
ADCT	46 Neutral	$132.90M	―	123.38%	―	1.84%	43.40%
KRRO	45 Neutral	$146.02M	―	-60.22%	―	―	85.19%
FDMT	39 Underperform	$153.80M	―	-32.97%	―	―	―
KLRS	28 Underperform	$56.57M	―	-41.96%	―	―	72.12%

Silence Therapeutics Corporate Events

Silence Therapeutics Announces Board Changes and New Director

On May 5, 2025, Silence Therapeutics announced the retirement of James Ede-Golightly from its Board of Directors, effective at the conclusion of the 2025 Annual General Meeting. Ede-Golightly, who has been a key figure in the company’s transition to a Nasdaq-listed entity, will step down as chair of the Remuneration Committee immediately but remain a member until the AGM. Concurrently, Tim McInerney was appointed as a new director and chair of the Remuneration Committee, bringing over 30 years of experience in the pharmaceutical and biotechnology sectors. McInerney’s appointment is seen as a strategic move to strengthen Silence’s position as a leader in the siRNA field and to support its expansion into the U.S. markets.

Spark’s Take on SLN Stock

According to Spark, TipRanks’ AI Analyst, SLN is a Neutral.

Silence Therapeutics is positioned in a growth phase with strong revenue increases and positive clinical trial outcomes. However, profitability and financial stability remain concerns due to negative equity and cash flow challenges. The stock has positive short-term technical momentum, but valuation metrics underscore the need for improved financial performance. The company’s strategic plans for clinical advancements and cash management offer a potential path for long-term sustainability, albeit with notable risks.

To see Spark’s full report on SLN stock, click here.

Silence Therapeutics Extends Cash Runway to 2027

Silence Therapeutics reported its financial results for the year ending December 31, 2024, highlighting strong clinical execution and pipeline advancements. The company plans to prioritize investment in siRNA programs targeting rare conditions, with a focus on the divesiran program for polycythemia vera (PV) and the zerlasiran program for cardiovascular disease. Silence ended the year with $147 million in cash, and its decision to delay the zerlasiran Phase 3 study until a partner is secured extends its cash runway into 2027. The company received positive regulatory feedback for the zerlasiran study design and anticipates full enrollment in the SANRECO Phase 2 study of divesiran by the end of 2025.