COMPASS Pathways (CMPS) AI Stock Analysis

Compare

1,897 Followers

Top Page

COMPASS Pathways

(NASDAQ:CMPS)

Rating:47Neutral

Price Target:―

Compass Pathways demonstrates potential due to its strong equity position and progress in clinical trials. However, significant financial risks due to a lack of revenue and increasing operational costs weigh heavily on its performance. The stock's upward momentum is promising, but valuation remains challenging due to negative profitability. The recent earnings call underscores both strategic progress and financial challenges, which tempers the overall outlook.

Positive Factors

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.

Therapeutic Innovation

COMPASS Pathways is pioneering the development of a new model of psilocybin therapy, which could potentially revolutionize mental health treatment.

Negative Factors

Competition

SPRAVATO's continued success and its recent FDA approval as a monotherapy for TRD may prepare the market positively for COMP360.

Financial Performance

1Q25 net loss was $17.9MM; LPS was ($0.20).

COMPASS Pathways (CMPS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$407.60M

Dividend YieldN/A

Average Volume (3M)1.25M

Price to Earnings (P/E)―

Beta (1Y)1.64

Revenue GrowthN/A

EPS Growth3.88%

CountryUS

Employees166

SectorHealthcare

Sector Strength59

IndustryMedical - Care Facilities

Share Statistics

EPS (TTM)-0.24

Shares Outstanding93,561,750

10 Day Avg. Volume1,742,975

30 Day Avg. Volume1,253,350

Financial Highlights & Ratios

PEG Ratio-0.18

Price to Book (P/B)1.88

Price to Sales (P/S)0.00

P/FCF Ratio-3.21

Enterprise Value/Market Cap0.49

Enterprise Value/Revenue27.08

Enterprise Value/Gross Profit-3.16K

Enterprise Value/Ebitda-0.32

Forecast

1Y Price Target

$19.29

Price Target Upside339.41% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

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 Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 17.38%|

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 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

Very Negative

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.

Balance Sheet

Neutral

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.

Cash Flow

Negative

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-63.07K	0.00	-242.94K	-329.80K	-174.98K	-112.00K
	EBIT
-189.25M	-178.21M	-136.92M	-110.40M	-83.22M	-51.39M
	EBITDA
-171.93M	-178.21M	-123.80M	-110.40M	-83.22M	-47.04M
	Net Income Common Stockholders
-137.80M	-155.12M	-118.46M	-91.50M	-71.74M	-60.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
260.11M	165.08M	220.20M	143.21M	273.24M	190.33M
	Total Assets
319.13M	213.67M	275.99M	197.29M	300.90M	203.46M
	Total Debt
10.48M	32.19M	33.05M	1.93M	3.61M	0.00
	Net Debt
-249.63M	-132.89M	-187.15M	-141.28M	-269.63M	-190.33M
	Total Liabilities
123.67M	58.97M	50.24M	16.01M	16.49M	6.89M
	Stockholders Equity
195.47M	154.69M	225.74M	181.28M	284.41M	196.56M
Cash Flow		Free Cash Flow
-109.60M	-119.19M	-97.44M	-106.05M	-68.08M	-41.51M
	Operating Cash Flow
-144.01M	-119.19M	-97.38M	-105.45M	-67.75M	-41.38M
	Investing Cash Flow
0.00	0.00	-64.00K	-596.00K	-334.00K	-628.00K
	Financing Cash Flow
140.73M	63.82M	173.83M	1.04M	156.65M	194.16M

COMPASS Pathways Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price4.39

Price Trends

50DMA

3.86

Positive

100DMA

3.83

Positive

200DMA

4.62

Negative

Market Momentum

MACD

0.19

Positive

RSI

52.90

Neutral

STOCH

38.89

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMPS, the sentiment is Neutral. The current price of 4.39 is below the 20-day moving average (MA) of 4.42, above the 50-day MA of 3.86, and below the 200-day MA of 4.62, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 52.90 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUNA	64 Neutral	$469.24M	11.02	9.93%	―	6.97%	―
BTMD	64 Neutral	$144.75M	6.19	-7.92%	―	6.44%	322.20%
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%
DCGO	52 Neutral	$149.65M	12.68	-0.21%	―	-26.00%	-103.18%
TOI	48 Neutral	$227.03M	―	-227.77%	―	17.64%	13.86%
CMPS	47 Neutral	$407.60M	―	-60.67%	―	―	3.88%
PIII	43 Neutral	$48.01M	―	-131.17%	―	9.79%	-47.01%

* Healthcare Sector Average

Performance Comparison

CMPS

COMPASS Pathways

4.39

-2.41

-35.44%

TOI

Oncology Institute

2.47

2.02

448.89%

DCGO

DocGo

1.45

-1.68

-53.67%

PIII

P3 Health Partners

6.68

-25.32

-79.13%

BTMD

biote

3.78

-2.87

-43.16%

AUNA

Auna S.A. Class A

6.32

-1.79

-22.07%

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

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.