Compugen (CGEN) AI Stock Analysis

• Market Cap: $131.88M
• Dividend Yield: N/A
• Average Volume (3M): 220.93K
• Price to Earnings (P/E): 87.5
• Beta (1Y): 1.67
• Revenue Growth: -48.16%
• EPS Growth: -97.37%
• Country: US
• Employees: 74
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -0.08
• Shares Outstanding: 93,535,355
• 10 Day Avg. Volume: 228,875
• 30 Day Avg. Volume: 220,926
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 10.08
• Enterprise Value/Gross Profit: 11.58
• Enterprise Value/Ebitda: -2.22
• 1Y Price Target: $8.50
• Price Target Upside: 494.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: $1.50 ▲(4.90% Upside)

Compugen's overall stock score is primarily influenced by its financial performance and technical analysis. While there are signs of operational improvement and strategic advancements, the company faces significant challenges in profitability and market competition. The technical indicators suggest a bearish trend, and the valuation is weak due to negative earnings. The earnings call provided some positive insights, but these are not enough to offset the overall risks.

Positive Factors

Financial Stability

Compugen ended the quarter with $104M cash and equivalents, which is expected to fund operations into 2027.

Price Target Revision

The price target has been revised to $10 from $7, reiterating an outperform (OP) rating.

Royalty Streams

Compugen's partner AZN's continued expansion of rilvegostomig meaningfully derisks the royalty stream to Compugen, minimizing capital risk and setting a baseline valuation for CGEN.

Negative Factors

Investor Sentiment

Investor sentiment on the TIGIT class remains severely negative given multiple trial failures and discontinuations of Fc-competent TIGIT antagonists.

Post-Hoc Analysis

Investors are expected to put little value in post-hoc analysis of which patients benefit most from COM701.

Compugen Business Overview & Revenue Model

Company Description

Compugen Ltd., a clinical-stage therapeutic discovery and development company, researches, develops, and commercializes therapeutic and product candidates in Israel, the United States, and Europe. The company's immuno-oncology pipeline consists of COM701, an anti-PVRIG antibody that is in Phase I clinical study used for the treatment of solid tumors; COM902, a therapeutic antibody targeting TIGIT, which is in Phase I clinical study in patients with advanced malignancies as a monotherapy; Bapotulimab, a therapeutic antibody targeting ILDR2 that is in Phase I clinical study in patients with solid tumors; and AZD2936, a novel anti-TIGIT/PD-1 bispecific antibody, which is in Phase I/II clinical study in patients with advanced or metastatic non-small cell lung cancer. Its therapeutic pipeline also includes early-stage immuno-oncology programs focused primarily on myeloid targets. The company has collaboration agreement with Bayer Pharma AG for the research, development, and commercialization of antibody-based therapeutics against the company's immune checkpoint regulators; Bristol-Myers Squibb to evaluate the safety and tolerability of COM701 in combination with Bristol-Myers Squibb's PD-1 immune checkpoint inhibitor Opdivo in patients with advanced solid tumors; and Johns Hopkins School of Medicine to evaluate novel T cell and myeloid checkpoint targets. It has license agreement with AstraZeneca for the development of bi-specific and multi-specific immuno-oncology antibody products; and research collaboration with Johns Hopkins University for myeloid. Compugen Ltd. was incorporated in 1993 and is headquartered in Holon, Israel.

How the Company Makes Money

Compugen generates revenue through multiple streams, including licensing agreements, research collaborations, and potential milestone payments from its partners. The company typically partners with larger pharmaceutical companies to co-develop its drug candidates, which allows it to receive upfront payments and future royalties based on the sales of successfully commercialized products. Additionally, Compugen may earn revenue from grants and government funding for specific research projects. Significant partnerships with established biopharmaceutical firms enhance its financial stability and contribute to its earnings through shared research efforts and joint development initiatives.

Compugen Financial Statement Overview

Summary

Compugen's financial statements reflect typical challenges of a biotechnology firm, with fluctuating revenue growth and ongoing profitability issues. Improved cash flow management in recent periods is a positive sign, but sustaining profitability and maintaining financial stability remain key risks.

Income Statement

Compugen has shown fluctuating revenue growth, with a positive increase from 2021 to 2023 but a decline in 2024. The consistent negative net income and EBIT margins reflect ongoing challenges in profitability, typical in the biotechnology sector. Despite improvements in gross profit, the company's net profit margins remain negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet reveals a stable equity position but high volatility in debt levels. The debt-to-equity ratio remains low, suggesting manageable leverage. However, the declining equity ratio and fluctuations in stockholders' equity indicate potential risks in maintaining financial stability.

Cash Flow

Cash flow analysis shows significant improvement in operating cash flow and free cash flow by 2024, highlighting better cash management. However, the company experienced negative free cash flow in previous years, raising concerns about long-term cash sustainability. The positive cash flow trend in 2024 is a promising sign of recovery.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.86M	33.46M	7.50M	6.00M	2.00M
Gross Profit	19.93M	31.45M	6.53M	5.32M	1.94M
EBITDA	-14.40M	-12.52M	-35.37M	-34.61M	-31.50M
Net Income	-14.23M	-18.75M	-33.69M	-32.87M	-27.26M
Balance Sheet
Total Assets	115.00M	121.33M	94.18M	132.16M	138.32M
Cash, Cash Equivalents and Short-Term Investments	103.25M	50.69M	83.71M	117.76M	124.43M
Total Debt	2.91M	1.35M	1.93M	2.75M	3.17M
Total Liabilities	60.08M	55.77M	16.50M	25.47M	18.53M
Stockholders Equity	54.91M	65.56M	77.68M	106.69M	119.78M
Cash Flow
Free Cash Flow	49.49M	-36.06M	-34.99M	-23.04M	-28.49M
Operating Cash Flow	49.60M	-35.89M	-34.51M	-22.75M	-28.32M
Investing Cash Flow	-46.25M	35.51M	37.06M	6.62M	-82.17M
Financing Cash Flow	554.00K	3.08M	353.00K	16.84M	108.46M

Compugen Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.43
• 50DMA: Negative
• 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 CGEN, the sentiment is Negative. The current price of 1.43 is below the 20-day moving average (MA) of 1.46, below the 50-day MA of 1.54, and below the 200-day MA of 1.64, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 44.59 is Neutral, neither overbought nor oversold. The STOCH value of 36.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGEN.

Compugen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADCT	54 Neutral	$345.37M	―	123.38%	―	15.73%	38.73%
RGLS	52 Neutral		―		―	―	44.85%
CGEN	52 Neutral	$131.88M	87.50	-35.66%	―	-48.16%	-97.37%
Sector *	51 Neutral	$7.86B	-0.33	-41.57%	2.23%	23.26%	-2.03%
SLN	49 Neutral	$227.20M	―	-99.23%	―	-40.10%	-16.60%
SEER	49 Neutral	$115.50M	―	-25.25%	―	12.13%	-8.23%
PRQR	44 Neutral	$236.73M	―	-75.99%	―	7.59%	-53.46%