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COMPASS Pathways (CMPS)
NASDAQ:CMPS
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COMPASS Pathways
(NASDAQ:CMPS)
Rating:47Neutral
Price Target:―
Positive Factors
Clinical Trials
The potential for a +/- 25%-50% impact to CMPS from the 005 data remains positively inclined heading into the readout.
Financial Stability
The company's cash & equivalents balance of ~$260M is expected to provide a runway through 2H26+, indicating strong financial stability.
Market Potential
Management aims to commercialize COMP360 in the US independently, showing confidence in the product's market potential.
Negative Factors
Financial Performance
1Q25 net loss was $17.9MM; LPS was ($0.20).
Market Readiness
With COMP360 on track to become a blockbuster treatment, if approved, the current valuation fails to reflect the full scope of its opportunity across multiple large-market psychiatric disorders.
COMPASS Pathways (CMPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$388.11M
Dividend YieldN/A
Average Volume (3M)968.63K
Price to Earnings (P/E)―
Beta (1Y)1.72
Revenue GrowthN/A
EPS Growth3.88%
CountryUS
Employees166
SectorHealthcare
Sector Strength43
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.24
Shares Outstanding93,561,750
10 Day Avg. Volume1,064,432
30 Day Avg. Volume968,630
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)1.57
Price to Sales (P/S)0.00
P/FCF Ratio-2.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.75Price Target Upside348.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
COMPASS Pathways Business Overview & Revenue Model
Company DescriptionCOMPASS Pathways plc operates as a mental health care company primarily in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that has completed Phase IIb clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020. COMPASS Pathways plc was incorporated in 2020 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyCOMPASS Pathways makes money primarily through the development and commercialization of its proprietary psilocybin therapy. The company generates revenue by conducting clinical trials and eventually getting regulatory approval to market its therapies. Once approved, COMPASS can license its therapies to healthcare providers or sell them directly to institutions and clinics specializing in mental health treatments. Key revenue streams include potential partnerships with pharmaceutical companies, research grants, and future sales of approved treatments. Strategic collaborations with academic institutions and mental health organizations also play a significant role in advancing their clinical programs and expanding market reach.
COMPASS Pathways Financial Statement Overview
Summary
Compass Pathways is in a typical biotechnology growth phase, characterized by high R&D expenses, no revenue, and reliance on financing. While the balance sheet indicates strong equity and manageable debt, the lack of revenue and significant losses in net income and cash flow highlight the company's ongoing development stage and associated financial risks.Income Statement
Compass Pathways has consistently reported no revenue, highlighting its early-stage nature in the biotechnology sector. The company has faced widening losses with net income decreasing year-over-year, indicating increasing operational costs without revenue offset. The EBIT and EBITDA margins are negative, reflecting ongoing challenges in reaching profitability.15
Very Negative
Balance Sheet
The balance sheet shows a strong equity position, with stockholders' equity covering total liabilities significantly, leading to a healthy equity ratio. However, the company's negative net income impacts the return on equity, and the presence of debt, although minor, adds to financial leverage. Overall, the balance sheet exhibits stability, but profitability remains a concern.45
Neutral
Cash Flow
The cash flow situation reflects high operational cash outflows, which is typical for a biotech firm in the R&D phase. The free cash flow is negative, and financing activities significantly contribute to cash reserves. While the company succeeds in securing financing, the reliance on financing for cash flow stability presents a potential risk.35
Negative
| 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 |
| 0.00 | -242.94K | -329.80K | -174.98K | -112.00K | EBIT |
| -178.21M | -136.92M | -110.40M | -83.22M | -51.39M | EBITDA |
| -178.21M | -123.80M | -110.40M | -83.22M | -47.04M | Net Income Common Stockholders |
| -155.12M | -118.46M | -91.50M | -71.74M | -60.33M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 165.08M | 220.20M | 143.21M | 273.24M | 190.33M | Total Assets |
| 213.67M | 275.99M | 197.29M | 300.90M | 203.46M | Total Debt |
| 7.54M | 33.05M | 1.93M | 3.61M | 0.00 | Net Debt |
| -157.54M | -187.15M | -141.28M | -269.63M | -190.33M | Total Liabilities |
| 58.97M | 50.24M | 16.01M | 16.49M | 6.89M | Stockholders Equity |
| 154.69M | 225.74M | 181.28M | 284.41M | 196.56M |
| Cash Flow | Free Cash Flow | |||
| -119.19M | -97.44M | -106.05M | -68.08M | -41.51M | Operating Cash Flow |
| -119.19M | -97.38M | -105.45M | -67.75M | -41.38M | Investing Cash Flow |
| 0.00 | -64.00K | -596.00K | -334.00K | -628.00K | Financing Cash Flow |
| 63.82M | 173.83M | 1.04M | 156.65M | 194.16M |
COMPASS Pathways Technical Analysis
Positive
4.18
Price Trends
3.47
Positive
3.74
Positive
4.80
Negative
Market Momentum
0.22
Negative
61.43
Neutral
43.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMPS, the sentiment is Positive. The current price of 4.18 is above the 20-day moving average (MA) of 4.02, above the 50-day MA of 3.47, and below the 200-day MA of 4.80, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 43.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMPS.
COMPASS Pathways Risk Analysis
COMPASS Pathways disclosed 98 risk factors in its most recent earnings report. COMPASS Pathways 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
COMPASS Pathways Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $143.61M | 6.14 | -7.92% | ― | 6.44% | 322.20% | |
64 Neutral | $504.77M | 11.91 | 9.93% | ― | 6.97% | ― | |
55 Neutral | $266.69M | ― | -227.77% | ― | 17.64% | 13.86% | |
53 Neutral | $5.14B | 3.06 | -43.57% | 2.81% | 16.81% | -0.12% | |
48 Neutral | $132.80M | 12.68 | -0.21% | ― | -26.00% | -103.18% | |
47 Neutral | $388.11M | ― | -60.67% | ― | ― | 3.88% | |
39 Underperform | $54.69M | ― | -131.17% | ― | 9.79% | -47.01% |
* Healthcare Sector Average
Performance Comparison
CMPS
COMPASS Pathways
4.36
-3.12
-41.71%
TOI
Oncology Institute
2.99
2.47
475.00%
DCGO
DocGo
1.34
-1.71
-56.07%
PIII
P3 Health Partners
7.30
-22.20
-75.25%
BTMD
biote
3.68
-2.67
-42.05%
AUNA
Auna S.A. Class A
6.82
-1.39
-16.93%
COMPASS Pathways Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 11.76%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call showcased several positive developments including the completion of dosing in a key trial, strong financial standing, strategic collaborations, and promising long-term data. However, concerns over suicidality and challenges related to trial variability and placebo effects were noted, which are significant but not overwhelming.Q1-2025 Updates
Positive Updates
Completion of Dosing in Phase 3 Trial
COMPASS Pathways announced the completion of dosing for all participants in Part A of their pivotal Phase III trial for treating resistant depression (TRD), marking an important milestone.
Strong Financial Position
The company reported cash and cash equivalents of $260 million at the end of March, up from $165 million at the end of 2024, expected to fund operations through Phase 3 trial COMP006 data readout in 2026.
Strategic Collaboration with HealthPort
COMPASS Pathways announced a strategic collaboration with HealthPort, a community health center focused on equitable access to mental health treatments, highlighting the company’s focus on underserved populations.
Positive Long-term Data from Phase 2b Trial
52-week follow-up data from the Phase 2b trial showed that a single 25 mg dose of COMP360 offered long-term benefits, with an average time to depressive event of over 12 weeks.
Negative Updates
Concerns Over Suicidality
There were concerns raised about suicidality as a core feature of depression, with a focus on monitoring this aspect closely in the Phase 3 trials.
Variability and Placebo Effect Challenges
The call highlighted challenges in the psychedelic space with high variability and placebo effects across trials, making efficacy comparisons difficult.
Company Guidance
During the COMPASS Pathways First Quarter 2025 Earnings Call, key guidance was provided regarding their pivotal Phase III trials for COMP360 in treatment-resistant depression (TRD). The company announced the completion of dosing in Part A of their 005 trial, with top-line results expected in late June, focusing on the difference in change from baseline on the MADRS scale, associated p-value, and confidence interval. Enrollment for the second Phase III trial, COMP006, is progressing well, targeting 26-week results in the second half of 2026. The call also highlighted successful financial positioning, with cash and equivalents at $260 million, sufficient to fund operations through the COMP006 readout. Additionally, strategic collaborations, including a new partnership with HealthPort, aim to enhance access to innovative mental health treatments, potentially including COMP360, if FDA approved.COMPASS Pathways Corporate Events
Executive/Board Changes
COMPASS Pathways Amends Executive Employment Agreements
Neutral
Apr 16, 2025
On April 14, 2025, COMPASS Pathways‘ Board of Directors approved amendments to the employment agreements for its named executive officers. These amendments ensure accelerated vesting of equity awards if an executive’s employment is terminated without cause or they resign for ‘good reason’ within twelve months following a change in control transaction.
Spark’s Take on CMPS Stock
According to Spark, TipRanks’ AI Analyst, CMPS is a Neutral.
Compass Pathways’ overall stock score reflects the challenges and opportunities typical of an early-stage biotechnology firm. The company is in a development phase with no revenue and increasing financial losses, impacting its financial performance score. However, strong equity and manageable debt provide some stability. Technical analysis indicates bearish momentum, while valuation metrics highlight high risk. The earnings call and recent corporate events provide some positive aspects, such as solid financial positioning and strategic progress in clinical trials, balancing some of the financial risks.
To see Spark’s full report on CMPS stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.