Apellis Pharmaceuticals (APLS) AI Stock Analysis

• Market Cap: $2.97B
• Dividend Yield: N/A
• Average Volume (3M): 2.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: 20.02%
• EPS Growth: 33.45%
• Country: US
• Employees: 705
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.33
• Shares Outstanding: 126,289,910
• 10 Day Avg. Volume: 2,240,987
• 30 Day Avg. Volume: 2,265,065
• PEG Ratio: 0.31
• Price to Book (P/B): 17.30
• Price to Sales (P/S): 5.06
• P/FCF Ratio: -44.79
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 3.02
• Enterprise Value/Gross Profit: 3.61
• Enterprise Value/Ebitda: -12.78
• 1Y Price Target: $37.38
• Price Target Upside: 64.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 47 Neutral
• Price Target: $24.00 ▲(5.45% Upside)

Apellis Pharmaceuticals shows strong revenue growth, particularly in its SYFOVRE segment, and strategic achievements like FDA approvals. However, profitability challenges, high financial leverage, and revenue impacts from free goods usage weigh on the overall score. The company's strong cash position and positive cash flow shift are promising, but sustained efforts are needed to achieve long-term profitability.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong market demand and successful commercialization of Apellis's therapies, particularly SYFOVRE, which strengthens the company's market position and supports future expansion.

FDA Approvals

The FDA approval for EMPAVELI's label expansion enhances Apellis's product portfolio and market potential, providing a competitive advantage and opening new revenue streams in treating C3 myelopathy and primary IC-MPGN.

Strong Cash Position

A strong cash position provides Apellis with financial flexibility to invest in R&D, manage operational needs, and pursue strategic opportunities, supporting long-term growth and stability.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, with negative EBIT and net profit margins, indicate difficulties in achieving sustainable profitability, which could hinder long-term financial health and investment capacity.

High Financial Leverage

High financial leverage, as indicated by the increased debt-to-equity ratio, can strain cash flow and limit Apellis's ability to finance growth initiatives, posing a risk to long-term financial stability.

Revenue Impact from Free Goods

The high usage of free goods impacting revenue suggests challenges in converting demand into profitable sales, which could affect revenue growth and profitability if not addressed.

Apellis Pharmaceuticals Business Overview & Revenue Model

Company Description

Apellis Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapeutic compounds through the inhibition of the complement system for autoimmune and inflammatory diseases. The company's lead product candidate is pegcetacoplan that is in Phase III clinical trials for the treatment of geographic atrophy (GA) in age-related macular degeneration and paroxysmal nocturnal hemoglobinuria (PNH) diseases. It also develops EMPAVELI (systemic pegcetacoplan) for the treatment of cold agglutinin disease (CAD), and hematopoietic stem cell transplantation-associated thrombotic microangiopathy (HSCT-TMA) in hematology; C3 glomerulopathy (C3G), and immune complex membranoproliferative glomerulonephritis (IC-MPGN) in nephrology; and amyotrophic lateral sclerosis (ALS) in neurology. In addition, the company develops APL-2006, a bispecific C3 and VEGF inhibitor for treating complement-mediated disorders; APL-1030, a C3 inhibitor for the treatment of multiple neurodegenerative diseases; and the combination of EMPAVELI and a small interfering RNA, or siRNA for reducing the production of C3 proteins by the liver. It has a collaboration and license agreement with Swedish Orphan Biovitrum AB (publ) to co-develop pegcetacoplan; and a research collaboration with Beam Therapeutics Inc. focused on the use of Beam's base editing technology to discover new treatments for complement-driven diseases. Apellis Pharmaceuticals, Inc. was incorporated in 2009 and is based in Waltham, Massachusetts.

How the Company Makes Money

Apellis Pharmaceuticals generates revenue primarily through the sale of its approved therapies, notably pegcetacoplan, which is marketed for the treatment of geographic atrophy, a complication of age-related macular degeneration. The company's revenue model is based on a combination of product sales, potential royalties from partnerships, and collaborations with other pharmaceutical companies. Significant partnerships with larger pharmaceutical firms enhance its research capabilities and market reach, contributing to Apellis's earnings. Additionally, the company may receive milestone payments from partners based on the achievement of specific development and commercial milestones.

Apellis Pharmaceuticals Financial Statement Overview

Summary

Apellis Pharmaceuticals demonstrates significant revenue growth, primarily from SYFOVRE, but struggles with profitability and financial leverage. The company shows a strong growth trajectory but faces challenges due to negative EBIT, net profit margins, and a high debt-to-equity ratio. Positive free cash flow is a promising sign, indicating efforts towards better cash management.

Income Statement

Apellis Pharmaceuticals shows moderate revenue growth over the years but is struggling with profitability as evidenced by negative EBIT and net profit margins. Revenue has grown from $66.56M in 2021 to $747.54M in TTM (Trailing-Twelve-Months), indicating a strong growth trajectory. However, persistent losses, with a net income of -$228.17M in TTM, highlight the challenge of achieving profitability.

Balance Sheet

The company has a relatively high debt-to-equity ratio, which increased from 0.52 in 2020 to 0.70 in TTM, indicating a reliance on debt financing. The return on equity remains negative due to ongoing losses. The equity ratio is low at 19.04% in TTM, reflecting limited equity buffer but a manageable asset base with $821.39M in total assets.

Cash Flow

While free cash flow remains negative in historical periods, the TTM shows a positive free cash flow of $4.41M, indicating some improvement. The operating cash flow to net income ratio is low due to negative net income, but the positive shift in free cash flow suggests efforts towards better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	754.65M	781.37M	396.59M	75.42M	66.56M	250.65M
Gross Profit	631.80M	663.64M	338.08M	69.79M	61.36M	225.60M
EBITDA	-178.43M	-154.53M	-495.21M	-617.39M	-731.27M	-312.23M
Net Income	-228.17M	-197.88M	-528.63M	-652.17M	-746.35M	-344.87M
Balance Sheet
Total Assets	821.39M	885.05M	788.73M	760.22M	881.76M	960.57M
Cash, Cash Equivalents and Short-Term Investments	371.47M	411.29M	352.30M	551.80M	700.55M	877.65M
Total Debt	469.77M	469.78M	110.93M	112.71M	210.22M	377.73M
Total Liabilities	665.09M	656.51M	594.21M	590.35M	683.10M	756.01M
Stockholders Equity	156.31M	228.54M	194.52M	169.87M	198.66M	204.56M
Cash Flow
Free Cash Flow	4.41M	-88.27M	-595.51M	-515.27M	-564.23M	-165.91M
Operating Cash Flow	4.49M	-87.87M	-594.74M	-513.75M	-563.13M	-160.49M
Investing Cash Flow	-77.00K	-403.00K	-674.00K	59.89M	247.62M	-316.99M
Financing Cash Flow	5.37M	149.24M	394.50M	365.66M	392.24M	692.18M

Apellis Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APLS, the sentiment is Negative. The current price of 22.76 is below the 20-day moving average (MA) of 25.69, below the 50-day MA of 24.32, and below the 200-day MA of 24.04, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 34.85 is Neutral, neither overbought nor oversold. The STOCH value of 14.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APLS.

Apellis Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKRO	60 Neutral	3.80B	-12.49	―	―	―	-11.39%
MIRM	58 Neutral	3.73B	-61.34	-22.95%	―	62.33%	48.34%
ZLAB	52 Neutral	3.62B	-15.87	-26.84%	―	32.38%	33.47%
CRNX	52 Neutral	3.31B	-8.55	-22.52%	―	―	-9.10%
APLS	47 Neutral	$2.97B	―	-108.49%	―	20.02%	33.45%
MLTX	41 Neutral	3.46B	-19.34	―	―	―	-208.46%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%