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Compugen (CGEN)
:CGEN
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Compugen
(NASDAQ:CGEN)
Rating:57Neutral
Price Target:
$1.50
▼(-14.77%Downside)
Positive Factors
Cash Reserves
Compugen ended the quarter with $104M cash and equivalents, which is expected to fund operations into 2027.
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.
Negative Factors
Dependency on Trials
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)
Market Cap
$164.58M
Dividend YieldN/A
Average Volume (3M)228.48K
Price to Earnings (P/E)87.5
Beta (1Y)1.72
Revenue Growth-23.40%
EPS Growth17.80%
CountryUS
Employees74
SectorHealthcare
Sector Strength39
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.08
Shares Outstanding93,512,985
10 Day Avg. Volume164,044
30 Day Avg. Volume228,476
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.80
Price to Sales (P/S)0.00
P/FCF Ratio-1.77
Enterprise Value/Market Cap0.32
Enterprise Value/Revenue1.76
Enterprise Value/Gross Profit8.09
Enterprise Value/Ebitda-0.48
Forecast
1Y Price Target
$7.00Price Target Upside297.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
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: 26.62%|
Next Earnings Date:Jul 31, 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 performance reflects typical challenges in the biotechnology sector, with fluctuating revenue growth, consistent profitability challenges, and improved cash flow management in recent periods. While there are signs of operational improvement, the company faces risks in sustaining profitability and maintaining financial stability.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.50
Neutral
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.55
Neutral
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.60
Neutral
| 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 | -35.37M | -34.61M | -31.50M |
| Net Income | -31.56M | -14.23M | -18.75M | -33.69M | -32.87M | -27.26M |
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
Positive
1.76
Price Trends
1.54
Positive
1.61
Positive
1.69
Positive
Market Momentum
0.05
Negative
59.85
Neutral
71.01
Neutral
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 1.76 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.54, and above the 200-day MA of 1.69, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 59.85 is Neutral, neither overbought nor oversold. The STOCH value of 71.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $164.58M | 87.50 | -24.22% | ― | -23.40% | 17.80% | |
55 Neutral | $260.71M | ― | -99.23% | ― | -40.10% | -16.60% | |
55 Neutral | $133.58M | ― | -24.73% | ― | -1.02% | -8.59% | |
52 Neutral | $7.50B | 0.31 | -61.87% | 2.27% | 17.10% | 1.59% | |
51 Neutral | $229.36M | ― | -52.64% | ― | 82.38% | 3.63% | |
51 Neutral | $282.66M | ― | 123.38% | ― | 10.49% | 47.31% |
* Healthcare Sector Average
Performance Comparison
CGEN
Compugen
1.76
0.05
2.92%
PRQR
ProQR
2.18
0.52
31.33%
ADCT
ADC Therapeutics
2.85
-0.21
-6.86%
SLN
Silence Therapeutics
5.52
-13.44
-70.89%
SEER
Seer
2.27
0.67
41.87%
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.