Check-Cap (CHEK) AI Stock Analysis

• Market Cap: $9.13M
• Dividend Yield: N/A
• Average Volume (3M): 5.95M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 85
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -3.00
• Shares Outstanding: 7,020,502
• 10 Day Avg. Volume: 179,340
• 30 Day Avg. Volume: 5,951,576
• PEG Ratio: >-0.01
• Price to Book (P/B): -3.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -723.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 26 Underperform
• Price Target: ―

Check-Cap's overall score reflects its significant financial challenges, primarily due to a lack of revenue generation and persistent losses. While the technical analysis hints at possible recovery, the valuation is weak due to negative profitability indicators. The company's strong equity position is a positive aspect, but without revenue, it faces substantial risks.

Positive Factors

Strong Equity Position

A strong equity position with no debt provides financial stability and flexibility, allowing the company to potentially weather financial challenges and invest in growth opportunities without the burden of debt repayments.

Innovative Product Offering

The C-Scan technology represents a novel approach in colorectal cancer screening, potentially offering a competitive advantage in the medical diagnostics industry by providing a patient-friendly, preparation-free option.

Potential Revenue Streams

The potential for revenue through product sales, partnerships, and licensing agreements could provide significant growth opportunities, especially as the company seeks regulatory approvals and market expansion.

Negative Factors

Lack of Revenue Generation

The absence of revenue generation poses a significant risk to the company's long-term sustainability, as it relies on its cash reserves without generating income to support operations and growth.

Negative Cash Flows

Persistent negative cash flows indicate ongoing operational challenges, which can deplete cash reserves over time and hinder the company's ability to invest in growth or respond to market opportunities.

Persistent Losses

Ongoing losses highlight financial instability and the difficulty in achieving profitability, which may limit the company's ability to attract investment and sustain operations without external funding.

Check-Cap Business Overview & Revenue Model

Company Description

Check-Cap Ltd., a clinical stage medical diagnostics company, engages in the development of a capsule-based screening technology that utilizes ultra-low-dose X-rays to scan the inner lining of the colon for precancerous polyps, and other structural abnormalities in Israel. Its C-Scan system consists of C-Scan Cap, an X-ray scanning capsule for detection of suspected polyps; C-Scan Track, a disposable system attached to the patient's back through biocompatible adhesive skin patches; and C-Scan View software, a client/server-based application that enables procedure data download from the C-Scan Track, data analysis, and report generation. The company was incorporated in 2004 and is based in Isfiya, Israel.

How the Company Makes Money

Check-Cap generates revenue primarily through the development and commercialization of its C-Scan technology. Revenue streams include the sale of C-Scan systems and capsules to healthcare providers and institutions. The company may also earn income through partnerships or licensing agreements with larger healthcare or medical device companies, which can provide additional funding and distribution channels. Furthermore, Check-Cap might engage in collaborative research and development agreements that contribute to its revenue, especially as it seeks regulatory approvals and market expansion.

Check-Cap Financial Statement Overview

Summary

Check-Cap's financial health is precarious, with no revenue streams to support its operations, leading to continuous losses. The company's strong equity position and lack of debt provide a cushion, but the absence of revenue generation and persistent negative cash flows highlight significant risks.

Income Statement

Check-Cap's income statement reveals a lack of revenue generation over the years, with persistent negative net income and EBIT, indicating ongoing challenges in achieving profitability. The absence of revenue growth and consistently high operating losses underscore significant financial instability.

Balance Sheet

The balance sheet shows a strong equity position with zero total debt as of the latest report, which provides financial stability. However, the company's inability to generate revenue casts doubt on the sustainability of its equity position over the long term.

Cash Flow

The cash flow statement indicates negative operating and free cash flows, reflecting the company's operational inefficiencies. While there is a significant cash position, this is not backed by revenue-generating activities, posing a risk to cash burn over time.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	-161.00K	-212.00K	-405.00K	-205.00K	-148.00K
EBITDA	-9.30M	-17.65M	-18.69M	-16.98M	-13.69M
Net Income	-25.15M	-17.57M	-19.11M	-17.20M	-13.85M
Balance Sheet
Total Assets	377.00K	25.02M	45.44M	55.66M	19.64M
Cash, Cash Equivalents and Short-Term Investments	265.00K	24.76M	41.70M	51.56M	17.78M
Total Debt	136.00K	0.00	964.00K	1.15M	389.00K
Total Liabilities	1.83M	1.33M	4.13M	4.97M	3.26M
Stockholders Equity	-1.45M	23.69M	41.31M	50.69M	16.38M
Cash Flow
Free Cash Flow	-8.00K	-17.04M	-19.19M	-17.27M	-13.49M
Operating Cash Flow	-8.00K	-16.95M	-18.71M	-16.26M	-13.11M
Investing Cash Flow	-840.00	21.36M	-12.51M	-16.01M	-10.45M
Financing Cash Flow	0.00	0.00	8.85M	51.02M	23.58M

Check-Cap Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHEK, the sentiment is Positive. The current price of 1.71 is above the 20-day moving average (MA) of 1.60, below the 50-day MA of 1.75, and above the 200-day MA of 1.07, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 60.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHEK.

Check-Cap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MYNZ	41 Neutral	$7.52M	―	―	―	―	―
ISPC	39 Underperform	$6.36M	-0.07	-296.20%	―	-67.73%	58.35%
BIAF	39 Underperform	$9.40M	-0.10	-245.18%	―	-27.66%	13.18%
INBS	37 Underperform	$6.24M	―	-223.45%	―	3.26%	65.96%
CHEK	26 Underperform	$9.13M	―	―	―	―	―