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Cogent Biosciences (COGT)
NASDAQ:COGT
US Market

Cogent Biosciences (COGT) AI Stock Analysis

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Cogent Biosciences

(NASDAQ:COGT)

Rating:37Underperform
Price Target:
Cogent Biosciences is currently facing significant financial difficulties, with no recent revenue, ongoing operating losses, and negative cash flows. The technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio and absence of dividends. These factors contribute to the lowest overall stock score, highlighting substantial risks for investors.
Positive Factors
Efficacy and Safety
Bezuclastinib is expected to demonstrate efficacy far superior over Ayvakit, with a manageable safety profile.
Market Opportunity
Cogent estimates the annual non-advanced systemic mastocytosis opportunity in the US is over $2 billion.
Negative Factors
Financial Health
The company has an annualized cash burn of $246 million, with approximately 1.5 years of cash left.
Safety Concerns
Safety questions have arisen concerning bezuclasnib, particularly regarding ALT/AST elevations.

Cogent Biosciences (COGT) vs. SPDR S&P 500 ETF (SPY)

Cogent Biosciences Business Overview & Revenue Model

Company DescriptionCogent Biosciences, Inc. is a biotechnology company focused on developing precision therapies to treat genetically driven diseases. The company operates primarily in the biopharmaceutical sector and is dedicated to advancing its core product pipeline, which includes experimental therapies for specific genetic mutations linked to rare disorders and cancers. Cogent Biosciences aims to address unmet medical needs through targeted treatment options, leveraging its expertise in genetic and molecular biology.
How the Company Makes MoneyCogent Biosciences makes money primarily through the development and commercialization of its precision therapies. The company generates revenue by advancing its drug candidates through clinical trials, securing regulatory approvals, and eventually launching these products into the market. Revenue streams include potential sales of approved therapies, milestone payments, and royalties from partnerships with larger pharmaceutical companies who may assist in the distribution and marketing of their products. Significant partnerships with other biotech firms and research institutions may also contribute to earnings by sharing resources, expertise, and financial support in the development of their therapies.

Cogent Biosciences Financial Statement Overview

Summary
Cogent Biosciences faces significant financial challenges with no recent revenue, substantial operating losses, and consistent net losses. The strong equity position is overshadowed by negative operating and free cash flows, indicating a reliance on external financing and heightened financial vulnerabilities.
Income Statement
20
Very Negative
Cogent Biosciences has experienced declining revenue over the years, with no recorded revenue in recent periods. Despite a high gross profit in earlier years, recent operating losses have been substantial, leading to negative EBIT and net income. The absence of revenue growth and consistent net losses indicate a challenging profitability environment.
Balance Sheet
35
Negative
The company's balance sheet shows a strong equity position with a high equity ratio, indicating limited financial leverage. However, persistent negative net income has impacted equity growth. Despite a relatively low debt-to-equity ratio, the lack of revenue generation poses a risk to financial stability.
Cash Flow
30
Negative
Cogent Biosciences has consistently negative operating and free cash flows, which raises concerns about long-term sustainability. While financing activities have historically supported liquidity, the reliance on external funding and absence of positive cash flow from operations suggest financial vulnerabilities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.007.87M
Gross Profit-1.08M0.00-3.59M-5.88M-147.00K7.85M
EBITDA-284.05M-275.94M-205.86M-134.36M-75.40M-34.57M
Net Income-269.50M-255.86M-192.41M-132.64M-71.81M-66.45M
Balance Sheet
Total Assets283.80M327.90M313.44M300.81M232.09M250.92M
Cash, Cash Equivalents and Short-Term Investments245.66M287.08M265.71M259.28M219.68M242.19M
Total Debt17.09M17.47M18.85M19.65M3.15M5.21M
Total Liabilities64.80M71.61M55.63M45.08M17.91M16.25M
Stockholders Equity219.00M256.29M257.80M255.74M214.18M234.67M
Cash Flow
Free Cash Flow-222.82M-208.36M-156.42M-125.50M-60.48M-35.85M
Operating Cash Flow-221.77M-207.79M-153.62M-118.64M-58.76M-35.85M
Investing Cash Flow106.61M38.28M-97.82M-124.72M-1.72M8.42M
Financing Cash Flow25.36M214.45M163.54M163.56M37.98M232.20M

Cogent Biosciences Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.41
Price Trends
50DMA
5.86
Positive
100DMA
6.25
Positive
200DMA
7.98
Negative
Market Momentum
MACD
0.41
Positive
RSI
64.24
Neutral
STOCH
43.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COGT, the sentiment is Positive. The current price of 7.41 is above the 20-day moving average (MA) of 7.09, above the 50-day MA of 5.86, and below the 200-day MA of 7.98, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 64.24 is Neutral, neither overbought nor oversold. The STOCH value of 43.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COGT.

Cogent Biosciences Risk Analysis

Cogent Biosciences disclosed 50 risk factors in its most recent earnings report. Cogent Biosciences 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 3 New Risks
1.
We have experienced significant growth and expect to continue to expand our company to support research, development and future commercial capabilities and may face challenges in managing our growth. Q4, 2024
2.
Information obtained from expanded access studies may not reliably predict the efficacy of our future product candidates in company-sponsored clinical trials and may lead to adverse events that could limit approval. Q4, 2024
3.
If our trademarks and trade names are not adequately protected, then we may not be able to build name recognition in our trademarks of interest and our business may be adversely affected. Q4, 2024

Cogent Biosciences Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$796.52M-40.13%-3.08%
51
Neutral
$7.55B0.30-61.90%2.27%17.11%1.58%
48
Neutral
$515.91M34.94%
46
Neutral
$336.96M-23.46%54.55%36.41%
46
Neutral
$845.79M-24.47%68.93%
44
Neutral
$593.18M-949.46%25.38%15.00%
37
Underperform
$822.04M-84.04%-2.53%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
COGT
Cogent Biosciences
7.41
-1.03
-12.20%
PRTA
Prothena
6.32
-13.94
-68.81%
AVXL
Anavex Life Sciences
10.57
6.38
152.27%
EOLS
Evolus
9.21
-1.72
-15.74%
LENZ
LENZ Therapeutics
30.96
12.91
71.52%
BCAX
Bicara Therapeutics Inc.
9.20
-16.21
-63.79%
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.Date of analysis: Apr 21, 2025