tiprankstipranks
Trending News
More News >
Compugen (CGEN)
:CGEN
Advertisement

Compugen (CGEN) AI Stock Analysis

Compare
1,010 Followers

Top Page

CGEN

Compugen

(NASDAQ:CGEN)

Rating:54Neutral
Price Target:
$1.50
▲(3.45%Upside)
The overall stock score is influenced significantly by the company's financial performance and technical analysis. While strategic partnerships and improved cash flow management are promising, ongoing profitability challenges and valuation concerns weigh on the stock's attractiveness.
Positive Factors
Long-term valuation
Potential single-digit royalties and milestones from AZN’s Fc-silent TIGIT x PD-1 bispecific rilvegostomig supports a positive long-term valuation for Compugen.
Pharmaceutical development
AZN continues to aggressively initiate Ph 3 studies with rilvegostomig, increasing the probability that Compugen will receive royalties from this program.
Price target revision
The price target has been revised to $10 from $7, reiterating an outperform (OP) rating.
Negative Factors
Trial outcomes
Significant CGEN upside or downside is tied to Arcus and Gilead’s earlier Ph 3 trials of their Fc-silent TIGIT in gastric and lung cancers.

Compugen (CGEN) vs. SPDR S&P 500 ETF (SPY)

Compugen Business Overview & Revenue Model

Company DescriptionCompugen Ltd. is a clinical-stage therapeutic discovery and development company focused on the field of immuno-oncology. Headquartered in Israel, Compugen leverages its proprietary computational discovery platforms to identify novel drug targets and develop therapeutic antibodies. The company's core products include a pipeline of immune checkpoint inhibitors designed to harness the body's immune system to fight cancer.
How the Company Makes MoneyCompugen generates revenue primarily through collaborative agreements with leading pharmaceutical and biotechnology companies. These partnerships typically involve upfront payments, milestone payments, and royalties based on the commercial success of jointly developed therapies. Additionally, Compugen may receive research and development funding from its partners to support the advancement of drug candidates in its pipeline. The company's revenue model heavily relies on the success of its discovery platforms and the progression of its proprietary and partnered drug candidates through clinical trials.

Compugen Earnings Call Summary

Earnings Call Date:May 19, 2025
(Q1-2025)
|
% Change Since: 4.32%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strategic shift in leadership, strong financial health, and promising clinical advancements, particularly with AstraZeneca. However, revenue decline and challenges in the TIGIT space were noted.
Q1-2025 Updates
Positive Updates
Leadership Transition and Strategic Vision
Anat Cohen-Dayag announced her transition to Executive Chair, with Eran Ophir taking over as CEO. This change aims to build on a robust foundation and ensure growth, with a cash runway secured until 2027.
Advancements in Clinical Trials
Initiation of a sub-trial for COM701 in ovarian cancer, targeting an unmet medical need. This is part of a broader strategy to advance immuno-oncology pipeline.
Strategic Collaborations with AstraZeneca
AstraZeneca's initiation of multiple Phase 3 trials using the TIGIT component derived from COM902, with potential for substantial commercial opportunity and future milestone payments and royalties for Compugen.
Solid Financial Position
Compugen reported a strong balance sheet with approximately $103.7 million in cash and no debt, supporting operations into 2027.
Negative Updates
Revenue Decline
Revenues for Q1 2025 were $2.3 million, down from $2.6 million in Q1 2024, due to recognition of payments from Gilead's licensing agreement.
TIGIT Clinical Trial Challenges
Despite interest, the TIGIT space faced multiple Phase 3 trial failures, raising questions about the efficacy of TIGIT antibodies and market sentiment.
Company Guidance
During Compugen's First Quarter 2025 Results Conference Call, key guidance was provided regarding the company's future plans and ongoing projects. The company is focusing on advancing its clinical immuno-oncology pipeline, particularly the anti-PVRIG antibody COM701, with a sub-trial in ovarian cancer expected to share interim analysis in the second half of 2026. There is a noted emphasis on achieving a three-month improvement in progression-free survival over placebo. Compugen also highlighted the potential commercial opportunity with AstraZeneca's rilvegostomig, targeting over $5 billion in peak year revenues. Financially, Compugen reported a cash balance of $103.7 million as of March 31, 2025, and a net loss of $7.2 million for the quarter, maintaining a cash runway into 2027. The call underscored the company's strategic plans to capitalize on its innovative pipeline in the coming years.

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
50
Neutral
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
55
Neutral
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.86M33.46M7.50M6.00M2.00M
Gross Profit19.93M31.45M6.53M5.32M1.94M
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 Assets115.00M121.33M94.18M132.16M138.32M
Cash, Cash Equivalents and Short-Term Investments103.25M50.69M83.71M117.76M124.43M
Total Debt2.91M1.35M1.93M2.75M3.17M
Total Liabilities60.08M55.77M16.50M25.47M18.53M
Stockholders Equity54.91M65.56M77.68M106.69M119.78M
Cash Flow
Free Cash Flow49.49M-36.06M-34.99M-23.04M-28.49M
Operating Cash Flow49.60M-35.89M-34.51M-22.75M-28.32M
Investing Cash Flow-46.25M35.51M37.06M6.62M-82.17M
Financing Cash Flow554.00K3.08M353.00K16.84M108.46M

Compugen Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.45
Price Trends
50DMA
1.61
Negative
100DMA
1.52
Negative
200DMA
1.67
Negative
Market Momentum
MACD
-0.04
Positive
RSI
39.62
Neutral
STOCH
16.61
Positive
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 1.45 is below the 20-day moving average (MA) of 1.57, below the 50-day MA of 1.61, and below the 200-day MA of 1.67, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 16.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGEN.

Compugen Risk Analysis

Compugen disclosed 79 risk factors in its most recent earnings report. Compugen reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Compugen Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
¥352.42B10.85-2.99%2.46%11.67%-10.31%
55
Neutral
$124.75M-24.73%-1.02%-8.59%
54
Neutral
$138.40M87.50-24.22%-23.40%17.80%
53
Neutral
$266.79M123.38%10.49%47.31%
52
Neutral
$290.94M-99.23%-40.10%-16.60%
51
Neutral
$218.84M-52.64%82.38%3.63%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CGEN
Compugen
1.48
-0.27
-15.43%
PRQR
ProQR
2.08
0.30
16.85%
ADCT
ADC Therapeutics
2.69
-0.19
-6.60%
SLN
Silence Therapeutics
6.17
-12.68
-67.27%
SEER
Seer
2.13
0.29
15.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 12, 2025