Tango Therapeutics (TNGX) AI Stock Analysis

• Market Cap: $949.05M
• Dividend Yield: N/A
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -42.84%
• EPS Growth: -17.32%
• Country: US
• Employees: 155
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.35
• Shares Outstanding: 111,260,250
• 10 Day Avg. Volume: 3,442,299
• 30 Day Avg. Volume: 2,097,379
• PEG Ratio: -0.25
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 8.02
• P/FCF Ratio: -2.55
• Enterprise Value/Market Cap: 0.44
• Enterprise Value/Revenue: 17.28
• Enterprise Value/Gross Profit: 17.73
• Enterprise Value/Ebitda: -2.75
• 1Y Price Target: $11.40
• Price Target Upside: 33.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 47 Neutral
• Price Target: $7.00 ▼(-17.94% Downside)

Tango Therapeutics' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and persistent losses. While technical indicators show some positive momentum, the negative valuation metrics and recent executive resignation add to the uncertainty. The company needs to address its financial and operational challenges to improve its stock attractiveness.

Positive Factors

Low Leverage

Low leverage indicates financial prudence, providing Tango Therapeutics with flexibility to manage its financial obligations and invest in growth opportunities without the burden of high debt.

High Gross Profit Margin

A high gross profit margin suggests effective cost control and the potential for profitability as revenue grows, providing a strong foundation for future financial performance.

Capital Structure Flexibility

Increasing authorized shares enhances Tango's ability to raise capital, supporting strategic initiatives and providing financial flexibility for growth and development.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining sales momentum, which could hinder the company's ability to fund R&D and achieve long-term growth objectives.

Executive Resignation

The resignation of a key executive can disrupt operations and strategic direction, potentially impacting Tango's ability to navigate legal and compliance challenges effectively.

Negative Cash Flow

Negative cash flow highlights operational inefficiencies and the need for external funding, which can strain financial resources and limit the company's ability to invest in growth.

Tango Therapeutics Business Overview & Revenue Model

Company Description

Tango Therapeutics, Inc., a biotechnology company, discovers and develops drugs for the treatment of cancer. Its lead program is TNG908, a synthetic lethal small molecule inhibitor of protein arginine methyltransferase 5 that is being developed as a treatment for cancers with methylthioadenosine phosphorylase deletions. The company also develops Ubiquitin-specific protease 1, an inhibitor to treat patients with BRCA1 or BRCA2-mutant cancers; and Target 3 for STK11-mutant cancers. Tango Therapeutics, Inc. has a strategic collaboration with Gilead Sciences, Inc. for the discovery, development, and commercialization of a pipeline of therapies for patients with cancer. The company was founded in 2017 and is based in Cambridge, Massachusetts.

How the Company Makes Money

Tango Therapeutics generates revenue primarily through partnerships and collaborations with pharmaceutical companies, which may involve licensing agreements for its proprietary drug candidates. Additionally, the company may receive milestone payments as its products progress through various stages of development and regulatory approval. Revenue may also come from grants and funding from research institutions or government bodies aimed at supporting its research initiatives. The company’s ability to monetize its intellectual property and the success of its therapeutic candidates in clinical trials are significant factors contributing to its earnings.

Tango Therapeutics Financial Statement Overview

Summary

Tango Therapeutics faces significant financial challenges, with declining revenues and persistent losses impacting profitability. The balance sheet shows low leverage, which is a positive, but the negative return on equity and cash flow issues highlight operational inefficiencies. The company needs to focus on improving revenue growth and cash flow management to enhance financial stability.

Income Statement

Tango Therapeutics shows a declining revenue trend with a significant drop in the TTM period. The gross profit margin remains high, indicating efficient cost management, but the company struggles with profitability as evidenced by negative net profit and EBIT margins. The revenue growth rate is negative, reflecting challenges in maintaining sales momentum.

Balance Sheet

The company maintains a low debt-to-equity ratio, suggesting conservative leverage. However, the return on equity is negative, indicating that the company is not generating profits from shareholders' equity. The equity ratio is stable, but the overall financial health is impacted by consistent losses.

Cash Flow

Operating and free cash flows are negative, reflecting cash burn typical in biotechnology firms. The free cash flow growth rate shows slight improvement, but the operating cash flow to net income ratio indicates inefficiencies in converting income into cash. The free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.30M	42.07M	36.53M	24.86M	37.04M	7.66M
Gross Profit	23.67M	42.07M	-78.67M	20.83M	35.08M	6.03M
EBITDA	-152.65M	-143.10M	-111.76M	-109.46M	-57.29M	-51.48M
Net Income	-145.57M	-130.30M	-101.74M	-108.18M	-58.23M	-51.86M
Balance Sheet
Total Assets	237.89M	316.49M	402.57M	436.47M	500.15M	207.25M
Cash, Cash Equivalents and Short-Term Investments	181.21M	257.92M	336.88M	366.13M	485.25M	190.32M
Total Debt	35.01M	36.49M	38.92M	41.13M	1.50M	7.88M
Total Liabilities	102.94M	116.97M	149.46M	186.99M	155.41M	168.65M
Stockholders Equity	134.95M	199.52M	253.11M	249.48M	344.75M	38.60M
Cash Flow
Free Cash Flow	-149.17M	-132.25M	-119.51M	-116.77M	-61.36M	68.97M
Operating Cash Flow	-148.25M	-131.50M	-117.98M	-109.08M	-59.53M	70.07M
Investing Cash Flow	132.00M	86.13M	41.43M	26.40M	-183.43M	-145.47M
Financing Cash Flow	3.95M	47.66M	82.41M	1.61M	357.32M	80.88M

Tango Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNGX, the sentiment is Positive. The current price of 8.53 is above the 20-day moving average (MA) of 7.17, above the 50-day MA of 6.90, and above the 200-day MA of 3.83, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 69.38 is Neutral, neither overbought nor oversold. The STOCH value of 90.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TNGX.

Tango Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FULC	56 Neutral	$478.17M	-7.28	-4.00%	―	-100.00%	-266.37%
RZLT	53 Neutral	$848.18M	-9.59	―	―	―	26.68%
ACIU	51 Neutral	$281.00M	-4.88	-45.35%	―	91.44%	18.94%
TNGX	47 Neutral	$949.05M	―	-76.09%	―	-42.84%	-17.32%
IKT	46 Neutral	$115.50M	-1.42	―	―	-100.00%	62.82%
DMAC	42 Neutral	$358.72M	-10.05	―	―	―	-31.78%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Tango Therapeutics Corporate Events

Tango Therapeutics’ Chief Legal Officer Resigns

On August 21, 2025, Douglas Barry announced his resignation as Chief Legal and Compliance Officer and Corporate Secretary of Tango Therapeutics, effective September 12, 2025, to pursue another opportunity. This change in leadership may impact Tango Therapeutics’ operations and strategic direction as they adjust to the departure of a key executive.

Tango Therapeutics Approves Key Proposals at Annual Meeting

On June 5, 2025, Tango Therapeutics held its annual stockholders meeting where several key proposals were approved. Notably, the amendment to increase authorized common stock shares from 200 million to 400 million was passed, potentially enhancing the company’s capital structure and flexibility. Additionally, Lesley Ann Calhoun was elected as a Class I director, and PricewaterhouseCoopers, LLP was ratified as the independent accounting firm for the fiscal year ending December 31, 2025. The stockholders also approved executive compensation policies and decided on an annual frequency for future advisory votes on executive compensation.