Compugen (CGEN) AI Stock Analysis

• Market Cap: $162.75M
• Dividend Yield: N/A
• Average Volume (3M): 530.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -48.16%
• EPS Growth: -97.37%
• Country: US
• Employees: 74
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.08
• Shares Outstanding: 93,535,355
• 10 Day Avg. Volume: 812,026
• 30 Day Avg. Volume: 530,394
• PEG Ratio: 0.40
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 4.92
• P/FCF Ratio: 2.77
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 10.08
• Enterprise Value/Gross Profit: 11.58
• Enterprise Value/Ebitda: -2.22
• 1Y Price Target: $8.50
• Price Target Upside: 361.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: $1.50 ▼(-18.48% Downside)

Compugen's overall stock score reflects a mix of financial challenges typical in the biotech sector, balanced by positive cash flow trends and strategic advancements in its clinical pipeline. The technical analysis shows moderate bullish momentum, while valuation remains a concern due to lack of profitability. The earnings call provided a positive outlook with strong leadership and promising partnerships.

Positive Factors

Strategic Partnerships

Compugen's partnerships with major pharmaceutical companies like AstraZeneca provide financial stability and validate its drug development efforts, indicating potential for future revenue through milestone payments and royalties.

Cash Position

A strong cash position ensures Compugen can sustain its operations and invest in R&D without immediate financial pressure, supporting long-term strategic initiatives and pipeline development.

Pipeline Advancements

Progress in clinical trials, such as the MAIA-ovarian trial, highlights Compugen's commitment to innovation and addressing unmet medical needs, potentially leading to new market opportunities and revenue streams.

Negative Factors

Revenue Decline

The decline in revenue reflects reduced milestone payments and highlights the volatility in Compugen's financial performance, posing challenges to maintaining consistent cash flow and profitability.

Increased Net Loss

Rising net losses indicate ongoing financial challenges, potentially straining resources and limiting Compugen's ability to invest in growth and development, impacting long-term sustainability.

Competitive Pressures

Intense competition in the oncology market could hinder Compugen's ability to capture market share, affecting its strategic positioning and potential revenue from new therapies.

Compugen Business Overview & Revenue Model

Company Description

Compugen Ltd. (CGEN) is a biotechnology company focused on the discovery and development of therapeutic drug candidates and diagnostic tools for cancer and autoimmune diseases. The company leverages its proprietary computational platform to identify novel drug targets and develop biologics, including monoclonal antibodies and other therapeutic agents. Compugen operates primarily in the pharmaceutical and biotechnology sectors, aiming to improve patient outcomes by advancing innovative therapies.

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 performance reflects typical challenges in the biotechnology sector, with fluctuating revenue growth and consistent profitability issues. However, there is a positive trend in cash flow management, indicating potential for recovery.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.50M	27.86M	33.46M	7.50M	6.00M	2.00M
Gross Profit	6.53M	19.93M	31.45M	6.53M	5.32M	1.94M
EBITDA	-34.01M	-14.40M	-12.52M	-33.13M	-34.61M	-28.94M
Net Income	-31.56M	-14.23M	-18.75M	-33.69M	-34.20M	-29.70M
Balance Sheet
Total Assets	67.61M	115.00M	121.33M	94.18M	132.16M	138.32M
Cash, Cash Equivalents and Short-Term Investments	57.51M	103.25M	50.69M	83.71M	117.76M	124.43M
Total Debt	1.41M	2.91M	1.35M	1.93M	2.75M	3.17M
Total Liabilities	14.38M	60.08M	55.77M	16.50M	25.47M	18.53M
Stockholders Equity	53.23M	54.91M	65.56M	77.68M	106.69M	119.78M
Cash Flow
Free Cash Flow	-23.38M	49.49M	-36.06M	-34.99M	-23.04M	-28.49M
Operating Cash Flow	-23.03M	49.60M	-35.89M	-34.51M	-22.75M	-28.32M
Investing Cash Flow	40.39M	-46.25M	35.51M	37.06M	6.62M	-82.17M
Financing Cash Flow	-18.41M	554.00K	3.08M	353.00K	16.84M	108.46M

Compugen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGEN, the sentiment is Positive. The current price of 1.84 is above the 20-day moving average (MA) of 1.80, above the 50-day MA of 1.57, and above the 200-day MA of 1.65, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 53.22 is Neutral, neither overbought nor oversold. The STOCH value of 15.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGEN.

Compugen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CGEN	56 Neutral	$162.75M	―	-35.66%	―	-48.16%	-97.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NVCT	48 Neutral	$150.70M	―	-150.12%	―	―	10.63%
CCCC	47 Neutral	$212.19M	―	-52.99%	―	16.55%	16.73%
STTK	43 Neutral	$114.30M	―	-73.39%	―	-27.33%	34.66%
NKTX	39 Underperform	$160.52M	―	-26.94%	―	―	26.33%
ELTX	30 Underperform	$152.76M	―	-9999.00%	―	―	-4.60%

Compugen Corporate Events

Compugen Presents Promising COM701 Analysis at ESMO 2025

On October 13, 2025, Compugen Ltd. announced the presentation of a pooled analysis of COM701 in three Phase 1 trials for patients with platinum-resistant ovarian cancer at the ESMO 2025 conference. The analysis, which included 60 evaluable patients, demonstrated that COM701 was well tolerated and showed durable responses, particularly in patients without liver metastases. This supports the rationale for its use as maintenance therapy in earlier treatment settings. Compugen is currently conducting the MAIA-ovarian trial to assess COM701 as a maintenance treatment in relapsed platinum-sensitive ovarian cancer, with interim analysis results expected by the end of 2026. The company is expanding trial sites to include locations in the U.S., Israel, and France, and anticipates its cash reserves will support operations into 2027.

Compugen’s Shareholders Approve All Proposals at 2025 Annual Meeting

On September 16, 2025, Compugen Ltd. conducted its 2025 Annual General Meeting of Shareholders, where all proposals were approved by the necessary majority vote. This approval signifies continued shareholder support and could potentially strengthen Compugen’s strategic initiatives and market position in the biotechnology sector.

Compugen Ltd. Announces 2025 Annual General Meeting Details

On August 6, 2025, Compugen Ltd. announced the distribution of its proxy statement to shareholders for the upcoming annual general meeting scheduled for September 16, 2025, in Israel. The meeting will address the election of seven directors, approval of compensation for incoming executives, and re-appointment of the company’s independent accounting firm. This event is significant for stakeholders as it involves key decisions on leadership and financial oversight, impacting the company’s strategic direction and governance.

Compugen Reports Q2 2025 Results and Advances in Immuno-Oncology Trials

Compugen Ltd. reported its second quarter 2025 financial results on August 6, 2025, highlighting significant advancements in its immuno-oncology pipeline. The company dosed the first patient in its MAIA-ovarian trial for COM701 and is preparing to present a pooled analysis of Phase 1 trials at ESMO 2025. Compugen’s partner, AstraZeneca, is progressing with its rilvegostomig program, which could become a significant revenue source for Compugen. Financially, the company maintains a solid position with a cash runway expected to fund operations into 2027, despite a decrease in revenue compared to the previous year.