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CARGO Therapeutics, Inc. (CRGX)
NASDAQ:CRGX
US Market

CARGO Therapeutics, Inc. (CRGX) AI Stock Analysis

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CARGO Therapeutics, Inc.

(NASDAQ:CRGX)

Rating:40Underperform
Price Target:
CARGO Therapeutics faces significant challenges with no revenue and increasing losses. The company's decision to reduce workforce and pipeline efforts reflects financial distress. Although the technical indicators show some short-term upward momentum, the longer-term outlook remains weak. The negative valuation metrics further highlight profitability concerns. The strategic focus on CAR T therapy and potential partnerships may provide future opportunities but require careful financial management.
Positive Factors
New Developments
Cargo plans to initiate enrollment for the Phase I study evaluating CRG-023, an autologous CAR-T cell therapy that expresses three fully human CAR molecules targeting CD19, CD20, and CD22.
Strategic Focus
The company is prioritizing development of its novel allogeneic platform.
Negative Factors
Clinical Trial Discontinuation
CRGX announced the discontinuation of the Phase 2 FIRCE-1 study of Firi-cel due to disappointing efficacy and safety results, which rendered the product less competitive to pursue further.
Safety Concerns
Safety data showed 18% of patients developed immune effector cell-associated hemophagocytic lymphohistiocytosis-like syndrome that were Grade 3 or higher, including both Grade 4 and 5.
Workforce Reduction
Cargo Therapeutics is implementing a workforce reduction of approximately 50% to preserve cash.

CARGO Therapeutics, Inc. (CRGX) vs. SPDR S&P 500 ETF (SPY)

CARGO Therapeutics, Inc. Business Overview & Revenue Model

Company DescriptionCARGO Therapeutics, Inc., a clinical-stage biotechnology company, develops chimeric antigen receptor (CAR) T-cell therapies for cancer patients. The company's lead program is CRG-022, an autologous CD22 CAR T-cell product candidate designed to address resistance mechanisms by targeting CD22, an alternate tumor antigen that is expressed in B-cell malignancies. It also develops CRG-023, a tri-specific CAR T product candidate that targets tumor cells with three B-cell antigen targets. The company was formerly known as Syncopation Life Sciences, Inc. and changed its name to CARGO Therapeutics, Inc. in September 2022. CARGO Therapeutics, Inc. was incorporated in 2019 and is headquartered in San Mateo, California.
How the Company Makes MoneyCARGO Therapeutics, Inc. generates revenue primarily through the development and commercialization of its proprietary CAR-T cell therapies. The company earns money by licensing its technologies to pharmaceutical partners, engaging in strategic collaborations, and securing funding through research grants and venture capital investments. Additionally, CARGO Therapeutics may receive milestone payments and royalties from partners who utilize its CAR-T therapies or related technologies. Clinical trial success and subsequent regulatory approvals play a crucial role in driving the company's revenue growth, as they pave the way for market entry and sales of approved therapies. Significant partnerships with larger pharmaceutical companies can also contribute to earnings, providing the company with resources and expertise to accelerate development and commercialization efforts.

CARGO Therapeutics, Inc. Financial Statement Overview

Summary
CARGO Therapeutics faces substantial financial challenges, reflected in its income statement with no revenue and increasing losses. While the balance sheet is supported by a strong cash position, the high liabilities and negative equity ratio are concerning. The cash flow statement shows the company is reliant on external financing to sustain operations, highlighting a need for effective cash management and potential restructuring to achieve financial stability.
Income Statement
10
Very Negative
CARGO Therapeutics has consistently reported zero revenue over the past years, which is a significant concern for any company's income prospects. The company has also been experiencing increasing net losses, with net income falling further negative in 2024 compared to previous years. The lack of revenue growth and widening losses indicate challenges in its business model or market position.
Balance Sheet
45
Neutral
The balance sheet shows a strong cash position with cash and short-term investments exceeding total debt, resulting in negative net debt. However, the company has a high debt-to-equity ratio due to significant liabilities compared to equity. Despite this, the equity position has improved over time, reflecting some financial stability. The company must manage liabilities effectively as it continues to operate without revenue.
Cash Flow
25
Negative
CARGO Therapeutics has negative operating and free cash flows, indicating challenges in generating cash from operations. The free cash flow has also become more negative, suggesting increasing cash burn. However, the company has been able to finance its operations through significant financing cash flows, which has helped maintain liquidity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue0.000.000.000.000.00
Gross Profit-2.06M0.00-3.69M-1.44M-147.00K
EBITDA-172.38M-160.43M-93.02M-33.35M-5.70M
Net Income-216.19M-167.50M-98.15M-40.95M-5.85M
Balance Sheet
Total Assets361.96M414.05M453.04M10.24M4.50M
Cash, Cash Equivalents and Short-Term Investments318.84M339.70M405.73M1.87M41.00K
Total Debt30.45M29.43M28.54M24.00M3.17M
Total Liabilities79.50M53.83M47.65M45.48M4.68M
Stockholders Equity282.46M360.23M405.39M-35.24M-175.00K
Cash Flow
Free Cash Flow-150.68M-144.19M-90.16M-32.35M-5.38M
Operating Cash Flow-147.29M-139.74M-81.16M-29.07M-4.94M
Investing Cash Flow23.92M-305.08M-8.99M-3.28M-442.00K
Financing Cash Flow103.61M103.47M494.58M34.19M5.41M

CARGO Therapeutics, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.58
Price Trends
50DMA
4.29
Positive
100DMA
4.18
Positive
200DMA
10.08
Negative
Market Momentum
MACD
0.04
Negative
RSI
62.18
Neutral
STOCH
75.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRGX, the sentiment is Positive. The current price of 4.58 is above the 20-day moving average (MA) of 4.35, above the 50-day MA of 4.29, and below the 200-day MA of 10.08, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 62.18 is Neutral, neither overbought nor oversold. The STOCH value of 75.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRGX.

CARGO Therapeutics, Inc. Risk Analysis

CARGO Therapeutics, Inc. disclosed 88 risk factors in its most recent earnings report. CARGO Therapeutics, Inc. 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.
Our business could be negatively affected as a result of actions of activist stockholders, and such activism could impact the trading value of our securities. Q4, 2024
2.
We may be unable to realize the level of the anticipated benefits that we expect from restructuring our operations, which may adversely impact our business and results of operations. Q4, 2024
3.
Developing process and analytical methods for cell therapy products is complex and challenging. Unexpected technical challenges could arise during CMC development and manufacturing that may result in substantial timeline delays. Q4, 2024

CARGO Therapeutics, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
¥338.86B10.95-2.99%2.58%11.77%-10.17%
54
Neutral
$266.44M322.49%-30.66%36.48%
52
Neutral
$168.22M5.05-27.61%-43.75%-8479.41%
47
Neutral
$321.26M-60.67%3.88%
46
Neutral
$195.49M-32.97%
45
Neutral
$370.71M-1869.55%-60.19%56.60%
40
Underperform
$211.20M-65.94%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRGX
CARGO Therapeutics, Inc.
4.60
-12.60
-73.26%
VYGR
Voyager Therapeutics
3.47
-5.47
-61.19%
CKPT
Checkpoint Therapeutics
4.26
2.01
89.33%
CMPS
COMPASS Pathways
3.53
-3.69
-51.11%
FHTX
Foghorn Therapeutics
5.51
-0.36
-6.13%
FDMT
4D Molecular Therapeutics
4.42
-21.37
-82.86%

CARGO Therapeutics, Inc. Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
CARGO Therapeutics Announces Major Workforce Reduction
Negative
Mar 18, 2025

On March 13, 2025, CARGO Therapeutics announced a significant reduction in its workforce by 90% and the suspension of all pipeline development efforts as it explores strategic alternatives, including a potential reverse merger. This decision, aimed at preserving cash and maximizing shareholder value, involves appointing Anup Radhakrishnan as interim CEO and incurring expenses between $24 million to $29 million. The company acknowledges the contributions of departing executives, including CEO Gina Chapman and CMO Dr. Ginna Laport, who will leave by May 19, 2025, under separation agreements. CARGO’s strategic shift reflects its focus on maximizing shareholder value and finding a new direction for its remaining assets.

Product-Related AnnouncementsBusiness Operations and Strategy
CARGO Therapeutics Highlights Progress in CAR T Therapy
Positive
Feb 24, 2025

On February 24, 2025, CARGO Therapeutics, Inc. released a corporate presentation aimed at investors and analysts, highlighting the progress and potential of its clinical and preclinical programs. The presentation discussed the company’s strategic plans, including the advancement of CRG-023, a tri-cistronic CAR T therapy, and improvements in manufacturing processes. CARGO’s strong management team and cash reserves are expected to support its operations through 2028, positioning the company for potential partnerships and advancements in cell therapy.

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 24, 2025