CARGO Therapeutics, Inc. (CRGX) AI Stock Analysis

• Market Cap: $206.59M
• Dividend Yield: N/A
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 167
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -4.66
• Shares Outstanding: 46,113,354
• 10 Day Avg. Volume: 2,736,203
• 30 Day Avg. Volume: 2,007,703
• PEG Ratio: 0.04
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.41
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -87.95
• Enterprise Value/Ebitda: -0.29
• 1Y Price Target: $5.00
• Price Target Upside: 11.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• 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

Advancement of Tri-specific Program

Cargo will continue to advance CRG-023, its tri-specific CAR-T therapeutic candidate, into a Phase 1 dose escalation study.

Pipeline Development

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.

Negative Factors

Discontinuation of Firi-cel Trial

CRGX announced surprising and disappointing news and will discontinue the lead Phase II Firi-cel (CD22 CART) due to safety and durability.

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. Business Overview & Revenue Model

Company Description

CARGO Therapeutics, Inc. (CRGX) is a biotechnology company focused on developing advanced therapies in the field of oncology. The company specializes in creating innovative chimeric antigen receptor T-cell (CAR-T) therapies designed to target and eliminate cancer cells. Operating within the biotechnology and healthcare sectors, CARGO Therapeutics is committed to advancing cancer treatment through cutting-edge research and clinical trials aimed at providing patients with effective and personalized therapeutic options.

How the Company Makes Money

CARGO 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00
Gross Profit	0.00	-3.69M	-1.44M	-147.00K
EBITDA	-160.43M	-93.02M	-33.35M	-5.70M
Net Income	-167.50M	-98.15M	-40.95M	-5.85M
Balance Sheet
Total Assets	414.05M	453.04M	10.24M	4.50M
Cash, Cash Equivalents and Short-Term Investments	339.70M	405.73M	1.87M	41.00K
Total Debt	29.43M	28.54M	24.00M	3.17M
Total Liabilities	53.83M	47.65M	45.48M	4.68M
Stockholders Equity	360.23M	405.39M	-35.24M	-175.00K
Cash Flow
Free Cash Flow	-144.19M	-90.16M	-32.35M	-5.38M
Operating Cash Flow	-139.74M	-81.16M	-29.07M	-4.94M
Investing Cash Flow	-305.08M	-8.99M	-3.28M	-442.00K
Financing Cash Flow	103.47M	494.58M	34.19M	5.41M

CARGO Therapeutics, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRGX, the sentiment is Neutral. The current price of 4.48 is above the 20-day moving average (MA) of 4.45, above the 50-day MA of 4.34, and below the 200-day MA of 9.32, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 28.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRGX.

CARGO Therapeutics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FHTX	57 Neutral	$360.65M	―	322.49%	―	-30.66%	36.48%
VYGR	51 Neutral	$181.50M	5.05	-27.61%	―	-43.75%	-8479.41%
Sector *	50 Neutral	AU$2.60B	2.95	-57.47%	2.44%	36.73%	13.67%
CMPS	47 Neutral	$410.39M	―	-60.67%	―	―	3.88%
FDMT	46 Neutral	$218.19M	―	-32.97%	―	―	―
CKPT	45 Neutral	$370.71M	―	-1869.55%	―	-60.19%	56.60%
CRGX	40 Underperform	$206.59M	―	-65.94%	―	―	―

CARGO Therapeutics, Inc. Corporate Events

CARGO Therapeutics Announces Major Workforce Reduction

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.

CARGO Therapeutics Highlights Progress in CAR T Therapy

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.