Opthea (OPT) AI Stock Analysis

• Market Cap: AU$738.77M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 2.69
• Revenue Growth: -24.46%
• EPS Growth: -7.90%
• Country: AU
• Employees: 33
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.16
• Shares Outstanding: 1,231,287,400
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.03
• Price to Book (P/B): -19.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.96
• Enterprise Value/Market Cap: 0.05
• Enterprise Value/Revenue: 57.45
• Enterprise Value/Gross Profit: -321.38
• Enterprise Value/Ebitda: -0.04
• 1Y Price Target: AU$0.05
• Price Target Upside: -92.38% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 30 Underperform
• Price Target: ―

Opthea Limited's overall score is significantly impacted by its weak financial performance, with persistent losses and negative equity suggesting high risk. Technical analysis reflects bearish sentiment, although oversold indicators suggest a potential for short-term recovery. Valuation concerns due to negative earnings further weigh on the score, making it a high-risk investment.

Opthea Business Overview & Revenue Model

Company Description

Opthea Limited, a clinical stage biopharmaceutical company, develops and commercializes therapies primarily for eye disease in Australia. The company's development activities are based on the intellectual property portfolio covering Vascular Endothelial Growth Factors (VEGF) VEGF-C, VEGF-D, and VEGF Receptor-3 for the treatment of diseases associated with blood and lymphatic vessel growth, as well as vascular leakage. Its lead asset is OPT 302, a soluble form of VEGFR 3 in clinical development as a novel therapy for wet neovascular age related macular degeneration and diabetic macular edema (DME), as well as a first in class VEGF-C/D inhibitors for treatment with VEGF-A inhibitors to treat wet neovascular AMD and other retinal diseases. The company was formerly known as Circadian Technologies Limited and changed its name to Opthea Limited in December 2015. Opthea Limited was incorporated in 1984 and is based in South Yarra, Australia.

How the Company Makes Money

Opthea Limited primarily generates revenue through the development and commercialization of its proprietary therapies targeting eye diseases. The company's revenue model is focused on advancing its lead candidate, OPT-302, through various stages of clinical trials and eventually obtaining regulatory approval for its commercial use. Once approved, Opthea plans to monetize OPT-302 through direct sales, licensing agreements, and potential strategic partnerships with other pharmaceutical companies. These partnerships could involve co-development, co-marketing, or royalty-based agreements, providing significant revenue streams. Additionally, Opthea may secure funding through grants, research collaborations, and equity financing to support ongoing research and development activities.

Opthea Financial Statement Overview

Summary

Opthea Limited faces significant financial challenges with persistent losses, negative equity, and reliance on external financing. The company's financial health is weak, with limited signs of improvement in profitability or cash flow stability, posing high risks to stakeholders.

Income Statement

Opthea Limited shows persistent net losses with a negative net profit margin of -176651% for the recent year, indicating significant challenges in achieving profitability. The gross profit margin is positive but does not offset operating losses, as evidenced by the negative EBIT and EBITDA margins. Revenue growth is volatile with significant fluctuations.

Balance Sheet

The balance sheet reveals negative stockholders' equity, suggesting financial instability. High debt levels lead to a negative equity ratio, and the debt-to-equity ratio is not meaningful due to negative equity. The company is heavily reliant on debt and external financing.

Cash Flow

Opthea's cash flow situation shows substantial negative free cash flow, reflecting ongoing operational challenges. The operating cash flow to net income ratio is negative, indicating that cash outflows exceed earnings. The company relies on financing activities to sustain operations.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	124.67K	161.16K	125.05K	91.98K	145.90K
Gross Profit	124.67K	-89.31K	-107.42K	-480.00K	-371.37K
EBITDA	-199.29M	-223.30M	-133.16M	-52.85M	-24.92M
Net Income	-220.24M	-211.88M	-127.99M	-60.79M	-16.12M
Balance Sheet
Total Assets	188.79M	148.19M	87.32M	184.36M	71.89M
Cash, Cash Equivalents and Short-Term Investments	172.47M	133.99M	64.90M	157.43M	62.02M
Total Debt	141.65M	272.98K	0.00	150.47K	265.08K
Total Liabilities	264.60M	156.98M	17.55M	4.16M	7.08M
Stockholders Equity	-75.81M	-8.79M	69.77M	180.20M	64.81M
Cash Flow
Free Cash Flow	-161.05M	-179.34M	-98.39M	-61.08M	―
Operating Cash Flow	-161.02M	-179.30M	-98.37M	-61.06M	-8.24M
Investing Cash Flow	-33.49K	-32.64K	-23.32K	880.07K	482.83K
Financing Cash Flow	243.73M	248.70M	236.62K	156.76M	48.06M

Opthea Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OPT, the sentiment is Negative. The current price of 0.6 is above the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.60, and below the 200-day MA of 0.73, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 21.86 is Positive, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:OPT.

Opthea Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	HK$15.31B	5.72	-7.43%	4.61%	11.60%	-21.06%
RAC	54 Neutral	AU$203.28M	―	-37.20%	―	―	32.02%
CU6	53 Neutral	AU$873.14M	―	-53.99%	―	―	-40.19%
BOT	53 Neutral	AU$607.95M	―	-56.99%	―	10.76%	-195.89%
DXB	47 Neutral	AU$351.08M	―	-524.68%	―	322.26%	-53.98%
OPT	30 Underperform	AU$738.77M	―		―	-24.46%	-7.90%
PRRUF		$230.49M	―	-31.16%	―	―	―

Opthea Corporate Events

Opthea Announces Director Change: Quinton Oswald Steps Down

Opthea Limited announced the cessation of Quinton Oswald as a director effective June 2, 2025. This change in the board may influence the company’s strategic direction, particularly in its ongoing development of treatments for eye diseases. Oswald held significant unquoted options, which may impact stakeholder interests and the company’s financial strategies moving forward.

The most recent analyst rating on (AU:OPT) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Opthea stock, see the AU:OPT Stock Forecast page.

Opthea Announces Director Change and Securities Update

Opthea Limited has announced the cessation of Susan Orr as a director, effective June 2, 2025. This update, provided under listing rule 3.19A.3, includes details of her interests in unquoted options to purchase shares, which may have implications for the company’s governance and strategic direction.

The most recent analyst rating on (AU:OPT) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Opthea stock, see the AU:OPT Stock Forecast page.

Opthea Announces Director Departure and Impact on Strategic Direction

Opthea Limited announced the cessation of Julia Haller as a director of the company, effective June 2, 2025. This change in the board of directors could impact the company’s strategic direction and stakeholder interests, as Haller held significant unquoted options in the company, which could influence market perceptions and investor confidence.

The most recent analyst rating on (AU:OPT) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Opthea stock, see the AU:OPT Stock Forecast page.

Opthea Faces Leadership Changes Amidst Clinical Trial Setbacks

Opthea Limited announced the resignation of four directors following the failure of its Phase 3 trials to meet primary endpoints and a significant workforce reduction. The company is in negotiations with Development Funding Agreement investors to explore future options, amidst trading suspensions on ASX and Nasdaq due to financial uncertainties.

The most recent analyst rating on (AU:OPT) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Opthea stock, see the AU:OPT Stock Forecast page.

JPMorgan Ceases Substantial Holding in Opthea

Opthea Ltd has announced that JPMorgan Chase & Co. and its affiliates have ceased to be substantial holders of the company’s voting securities. This change in holdings, involving several subsidiaries of JPMorgan, indicates a shift in the investment landscape for Opthea, potentially impacting its market dynamics and stakeholder interests.

Opthea Halts Wet AMD Trials and Cuts Workforce Amid Financial Uncertainty

Opthea announced the discontinuation of its wet AMD trials after the COAST and ShORE Phase III trials failed to meet primary endpoints, leading to a 65% reduction in staff. The company remains in discussions with its Development Funding Agreement investors to explore options for the future, amid uncertainties about its ability to continue as a going concern. Opthea’s cash balance decreased to $101.4 million by the end of March 2025, reflecting operational spending and trial advancements, while the company is in trading suspension.

Opthea Announces Major Workforce Reduction Following Trial Setbacks

Opthea Limited has announced a significant reduction in its workforce by approximately 65% following negative results from its Phase 3 clinical trials for OPT-302 in combination with Aflibercept and Ranibizumab. This decision aims to conserve cash, with estimated cash reserves of US$100M as of March 2025, amid ongoing negotiations with Development Funding Agreement investors. The workforce reduction is expected to save around US$1M monthly in employee costs, although it raises concerns about the company’s ability to continue as a going concern, with trading in its securities suspended until further clarity is provided.