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Compass Therapeutics (CMPX)
NASDAQ:CMPX
US Market

Compass Therapeutics (CMPX) AI Stock Analysis

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Compass Therapeutics

(NASDAQ:CMPX)

60Neutral
Compass Therapeutics' stock is moderately attractive, driven by strong market momentum and strategic leadership changes. However, significant operational losses, negative cash flows, and lack of current profitability weigh down the financial performance score. While technical indicators are positive, valuation remains a concern due to the negative P/E ratio.
Positive Factors
Clinical trial progress
Tovecimig has demonstrated promising early clinical data in combination with Paclitaxel in biliary tract cancer where there are currently limited treatment options.
Financial stability
CMPX reported $127mn in cash and cash equivalents, which they expect to provide runway into the first quarter of 2027.
Market opportunity
Tovecimig addresses a potential $1.4Bn US total addressable market in second-line biliary tract cancer and a potential $1.3Bn US total addressable market in DLL4+ metastatic colorectal cancer.
Negative Factors
Clinical uncertainties
There are a number of clinical and regulatory uncertainties around the tovecimig program.
Competitive risks
Potential risks to the valuation include the emergence of new competitors, particularly in the PD-1 x VEGF space, and any potential R&D, regulatory, and commercial setbacks.
Trial results
The success of the tovecimig trial is critical, especially because tovecimig failed to meet the pre-specified threshold to advance as a monotherapy in colorectal cancer.

Compass Therapeutics (CMPX) vs. S&P 500 (SPY)

Compass Therapeutics Business Overview & Revenue Model

Company DescriptionCompass Therapeutics (CMPX) is a clinical-stage biotechnology company focused on developing and commercializing next-generation antibody therapeutics. The company operates in the biopharmaceutical sector, concentrating on innovative treatments that target complex diseases such as cancer and autoimmune disorders. Compass Therapeutics leverages its proprietary StitchMabsTM technology, which enables the development of bispecific and multispecific antibody therapeutics aimed at enhancing immune system response and improving patient outcomes.
How the Company Makes MoneyCompass Therapeutics makes money primarily through the development and commercialization of its proprietary antibody therapeutics. The company generates revenue through partnerships and collaborations with other pharmaceutical companies, licensing agreements, and potential sales of developed therapies. Significant partnerships with larger biopharmaceutical firms may provide upfront payments, milestone payments, and royalties on sales, contributing to its earnings. Additionally, as its drug candidates progress through clinical trials and receive regulatory approval, Compass Therapeutics aims to commercialize these products, either independently or through strategic alliances, to drive revenue growth.

Compass Therapeutics Financial Statement Overview

Summary
Compass Therapeutics shows promising revenue growth but faces significant challenges with ongoing operational losses and negative cash flows. The strong balance sheet with a high equity ratio and low leverage indicates financial stability, yet the negative return on equity reflects the absence of profitability.
Income Statement
35
Negative
Compass Therapeutics has shown a significant increase in revenue to $3.69 million in the TTM (Trailing-Twelve-Months) from zero in previous years. However, the company is still grappling with substantial losses, as reflected in the negative net income and EBIT margins. The gross profit margin stands at 74.80% for TTM, indicating some operational efficiency. Yet, the net profit margin is significantly negative due to the high operational costs and losses, which are common in the biotechnology sector during the development phase.
Balance Sheet
60
Neutral
The company maintains a strong equity position with a high equity ratio of 92.81% in the TTM, reflecting financial stability and low leverage. The debt-to-equity ratio is minimal at 0.05, showcasing prudent management of debt. However, the return on equity is negative due to ongoing losses, which indicates that the company is not yet generating returns on shareholders' investments.
Cash Flow
45
Neutral
Compass Therapeutics has faced a decline in operating cash flow, highlighting challenges in generating cash from operations. The free cash flow is negative, though has shown some improvement compared to previous periods. The operating cash flow to net income ratio is close to 1, suggesting alignment between cash outflows and accounting losses. Despite this, the company relies heavily on financing activities to sustain its cash balance.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Mar 2020
Income StatementTotal Revenue
3.69M0.000.000.000.000.00
Gross Profit
2.76M-1.89M-1.90M-1.62M-2.40M-2.12M
EBIT
-55.45M-50.36M-41.66M-81.88M-27.81M-34.05M
EBITDA
-53.59M-48.47M-37.39M-29.61M-25.32M-31.19M
Net Income Common Stockholders
-47.76M-42.49M-36.80M-82.55M-29.50M-34.74M
Balance SheetCash, Cash Equivalents and Short-Term Investments
156.25M152.46M186.61M144.51M47.08M25.30M
Total Assets
161.14M156.88M199.65M153.76M51.91M30.38M
Total Debt
1.41M1.73M2.94M4.04M9.33M14.87M
Net Debt
-22.26M-22.50M-32.01M-140.48M-37.74M-10.43M
Total Liabilities
4.08M8.34M18.01M13.68M11.97M148.98M
Stockholders Equity
157.06M148.54M181.64M140.08M39.95M-118.60M
Cash FlowFree Cash Flow
-48.10M-40.65M-34.34M-21.23M-26.91M-32.21M
Operating Cash Flow
-48.05M-40.62M-34.13M-19.67M-26.80M-31.74M
Investing Cash Flow
37.72M26.96M-151.20M-1.77M38.00K-466.00K
Financing Cash Flow
17.27M2.94M75.76M118.61M48.54M37.63K

Compass Therapeutics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.90
Price Trends
50DMA
2.81
Negative
100DMA
2.23
Positive
200DMA
1.80
Positive
Market Momentum
MACD
-0.20
Positive
RSI
44.45
Neutral
STOCH
32.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMPX, the sentiment is Neutral. The current price of 1.9 is below the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.81, and above the 200-day MA of 1.80, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of 32.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CMPX.

Compass Therapeutics Risk Analysis

Compass Therapeutics disclosed 77 risk factors in its most recent earnings report. Compass Therapeutics 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 Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$262.74M-36.07%-7.93%
52
Neutral
$5.66B-31.26%104.04%87.80%
48
Neutral
$6.86B1.11-50.22%2.47%16.71%1.53%
42
Neutral
$97.33M-54.21%-78.55%-0.92%
41
Neutral
$139.71M123.38%1.84%43.40%
41
Neutral
$317.21M-55.13%-86.25%36.10%
36
Underperform
$31.48M41.08%-0.55%49.85%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CMPX
Compass Therapeutics
2.24
0.44
24.44%
FATE
Fate Therapeutics
0.76
-6.04
-88.82%
KPTI
Karyopharm Therapeutics
3.54
-17.38
-83.08%
BPMC
Blueprint Medicines
85.94
-5.62
-6.14%
ALLO
Allogene Therapeutics
1.37
-2.70
-66.34%
ADCT
ADC Therapeutics
1.35
-2.96
-68.68%

Compass Therapeutics Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Compass Therapeutics Appoints New CFO Amid Strategic Moves
Positive
Dec 10, 2024

Compass Therapeutics has appointed Barry Shin as Chief Financial Officer, bringing over two decades of experience in finance and the biopharmaceutical industry. With past roles at Trevena, Inc. and investment banking firms, Shin’s expertise is expected to advance Compass’s clinical and pre-clinical assets, including the promising CTX-009. His appointment comes as the company anticipates key catalysts in 2025, aiming to deliver value to shareholders.

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.