Agios Pharma (AGIO) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: N/A
• Average Volume (3M): 708.55K
• Price to Earnings (P/E): 2.4
• Beta (1Y): 1.70
• Revenue Growth: 36.07%
• EPS Growth: N/A
• Country: US
• Employees: 486
• Sector: Healthcare
• Sector Strength: 66
• Industry: Biotechnology
• EPS (TTM): 11.39
• Shares Outstanding: 57,296,165
• 10 Day Avg. Volume: 802,950
• 30 Day Avg. Volume: 708,546
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 49.14
• Price to Cash Flow (P/CF): -3.40
• P/FCF Ratio: 0.00
• 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: $55.83
• Price Target Upside: 104.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Agios Pharma's stock score reflects a mix of factors. Strengths include strong revenue growth and a solid balance sheet. However, operational inefficiencies and negative cash flows are concerning. The technical outlook is bearish, but the low P/E ratio suggests undervaluation. The earnings call provided positive pipeline developments, yet challenges remain with operating expenses and limited revenue growth in certain areas.

Positive Factors

Clinical Efficacy

Phase 2 data from the RISE UP study in sickle cell disease have shown highly encouraging results, with superior hemoglobin increase and reduction in vaso-occlusive crises compared to competitors.

Market Expansion

Mitapivat, the lead asset of Agios, is expected to have three approved indications by the end of 2026, expanding its potential market significantly.

Negative Factors

Risk Perception

The updated Pyrukynd label includes a warning for liver injury, which has been an overhang for AGIO shares, contributing to a significant decline in stock value.

Safety Concerns

Concerns over hepatocellular injury have negatively impacted AGIO stock, which is down approximately 45% due to these issues observed in thalassemia patients.

Agios Pharma Business Overview & Revenue Model

Company Description

Agios Pharmaceuticals, Inc. (AGIO) is a biopharmaceutical company focused on the development and commercialization of a pipeline of precision medicines for the treatment of genetically defined diseases. The company specializes in the areas of oncology and rare genetic diseases, leveraging its scientific expertise in cellular metabolism and genetics to develop innovative therapies. Agios aims to provide transformative treatments that address unmet medical needs and improve patient outcomes.

How the Company Makes Money

Agios Pharmaceuticals primarily generates revenue through the commercialization of its proprietary pharmaceutical products. The company earns money by selling its approved drugs to healthcare providers, hospitals, and specialty pharmacies. Additionally, Agios engages in strategic collaborations and partnerships with other pharmaceutical and biotechnology companies to co-develop or license its therapies, which can result in milestone payments and royalties. These partnerships are significant as they provide additional financial resources and expertise to advance the development and distribution of Agios' products. Moreover, Agios invests in research and development to expand its product pipeline, aiming to introduce new therapies that can further enhance its revenue potential.

Agios Pharma Financial Statement Overview

Summary

Agios Pharma presents a mixed financial picture. While revenue improvements and a strong balance sheet provide a solid foundation, persistent operational losses and negative cash flows highlight underlying challenges. The focus should be on enhancing operational efficiency and cash generation to sustain growth and profitability in the long term.

Income Statement

Agios Pharma shows a challenging income statement with a substantial net profit margin improvement in the latest year due to a significant net income increase, likely from one-time events. However, EBIT and EBITDA margins remain deeply negative, indicating operational inefficiencies or high operating costs. The revenue growth is notable, but profitability remains a concern.

Balance Sheet

The balance sheet reflects a strong equity base with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting conservative leverage use. Despite low liabilities, the company holds a strong cash position, supporting its operational runway. However, consistent net losses could weaken equity over time.

Cash Flow

Free cash flow remains negative, though investing cash flows are positive, indicating strategic investments. Operating cash flow to net income ratio is concerning due to negative operating cash flows despite positive net income, suggesting non-recurring income sources. The company needs to improve cash generation from core operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
36.50M	26.82M	14.24M	0.00	203.20M
	Gross Profit
32.33M	17.32M	12.54M	-18.78M	200.39M
	EBIT
-425.74M	-391.49M	-389.05M	-378.42M	-316.15M
	EBITDA
-425.74M	-384.86M	-380.48M	-337.73M	-326.13M
	Net Income Common Stockholders
673.73M	-352.09M	-74.56M	1.60B	-335.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
893.71M	776.93M	1.10B	1.29B	670.54M
	Total Assets
1.66B	937.12M	1.24B	1.44B	852.95M
	Total Debt
56.99M	72.00M	85.66M	97.09M	105.20M
	Net Debt
-19.26M	-16.21M	-53.60M	-106.03M	-22.24M
	Total Liabilities
122.24M	126.10M	137.90M	145.76M	453.45M
	Stockholders Equity
1.54B	811.02M	1.10B	1.29B	399.50M
Cash Flow		Free Cash Flow
-391.53M	-297.06M	-314.36M	-413.06M	-305.67M
	Operating Cash Flow
-389.84M	-296.06M	-309.48M	-407.32M	-290.76M
	Investing Cash Flow
363.44M	239.57M	243.26M	1.25B	75.75M
	Financing Cash Flow
14.44M	5.43M	2.35M	-765.77M	261.52M

Agios Pharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGIO, the sentiment is Negative. The current price of 27.34 is below the 20-day moving average (MA) of 27.97, below the 50-day MA of 31.08, and below the 200-day MA of 40.97, indicating a bearish trend. The MACD of -1.24 indicates Negative momentum. The RSI at 43.72 is Neutral, neither overbought nor oversold. The STOCH value of 80.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AGIO.

Agios Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRMY	77 Outperform	$1.64B	11.35	25.84%	―	22.80%	18.12%
ARQT	57 Neutral	$1.54B	―	-113.76%	―	229.74%	70.23%
AGIO	56 Neutral	$1.58B	2.43	57.29%	―	36.07%	―
Sector *	50 Neutral	$5.14B	3.10	-40.94%	2.95%	17.94%	2.00%
JANX	46 Neutral	$1.73B	―	-10.09%	―	30.99%	4.61%
TVTX	41 Neutral	$1.32B	―	-246.75%	―	17.27%	10.01%
VERA	39 Underperform	$1.36B	―	-44.83%	―	―	-20.03%

Agios Pharma Corporate Events

Agios Pharma Board Member Announces Resignation

On February 10, 2025, Dr. David P. Schenkein announced his resignation from the Board of Directors of Agios Pharmaceuticals, effective February 28, 2025. Despite stepping down from the Board and its Science and Technology Committee, Dr. Schenkein will continue to play a strategic advisory role, aiding the company’s leadership in advancing clinical development programs.