CytomX Therapeutics (CTMX) AI Stock Analysis

• Market Cap: $39.62M
• Dividend Yield: N/A
• Average Volume (3M): 2.93M
• Price to Earnings (P/E): 1.4
• Beta (1Y): 2.09
• Revenue Growth: 36.45%
• EPS Growth: N/A
• Country: US
• Employees: 119
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): 0.39
• Shares Outstanding: 80,099,890
• 10 Day Avg. Volume: 1,324,663
• 30 Day Avg. Volume: 2,928,478
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.39
• Price to Cash Flow (P/CF): -0.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.38
• Price Target Upside: 537.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

CytomX Therapeutics presents a mixed outlook. While there are positive developments in revenue growth and strategic partnerships, significant financial challenges pose risks. The technical analysis also indicates bearish trends, suggesting caution in the short term. Valuation appears attractive, but the lack of a dividend yield may deter some investors. Overall, the stock reflects potential upside if financial stability improves, balanced by current operational and market challenges.

Positive Factors

Financial Performance

CytomX reported its FY2024 financials, recording a net profit of $0.38 per share for the period vs. prior estimate of net profit of $0.14 per share.

Revenue Growth

CytomX recorded $33.4M in revenue for 3Q24, vs. most recent estimate of $25.0M.

Strategic Initiatives

CytomX announced a corporate restructuring and revealed its pipeline priorities, with CX-2051 development in colorectal cancer taking the lead.

Negative Factors

Clinical Risks

Risks include the emergence of unexpected side effects with CX-904, CX-2051, CX-801, or probody T-cell bispecifics in future clinical data.

Pipeline Setbacks

CX-904 discontinuation adds to history of pipeline setbacks.

CytomX Therapeutics Business Overview & Revenue Model

Company Description

CytomX Therapeutics, Inc. operates as an oncology-focused biopharmaceutical company in the United States. The company develops antibody therapeutics based on its Probody technology platform for the treatment of cancer. The company's product candidates include CX-2009, an antibody drug conjugates (ADC) against CD166, which is in Phase II clinical trials for the treatment of breast cancer; CX-2029 that is in Phase II clinical trials for the treatment of squamous non-small cell lung cancer, head and neck squamous cell carcinoma, esophageal and gastro-esophageal junction cancers, and diffuse large B-cell lymphoma; BMS-986249, a CTLA-4 Probody therapeutic drug, which is in Phase I/II clinical trials for the treatment of metastatic melanoma; and BMS-986288, an anti-CTLA-4 Probody drug, which is in Phase I clinical trials for the treatment of solid tumors. It also develops CX-2043, a conditionally activated ADC targeting the epithelial cell adhesion molecule, as well as CX-904, a conditionally activated epidermal growth factor receptor for the treatment of solid tumor. The company has strategic collaborations with AbbVie Ireland Unlimited Company, Amgen, Inc., Bristol-Myers Squibb Company, ImmunoGen, Inc., Pfizer Inc., and Astellas Pharma Inc. to develop Probody therapeutics. CytomX Therapeutics, Inc. was founded in 2008 and is headquartered in South San Francisco, California.

How the Company Makes Money

CytomX Therapeutics generates revenue primarily through collaboration and licensing agreements with larger pharmaceutical companies. These partnerships typically involve upfront payments, milestone payments, and royalties on sales of products developed using its Probody platform. Key collaborations include alliances with industry leaders such as Bristol-Myers Squibb, AbbVie, and Amgen, among others. Additionally, the company may engage in research and development grants and contracts that contribute to its revenue stream. The success and progression of its proprietary drug candidates through clinical trials also play a critical role in attracting further investment and partnership opportunities.

CytomX Therapeutics Financial Statement Overview

Summary

CytomX Therapeutics has shown positive revenue growth and improvements in profitability margins, indicating a turnaround in operational performance. However, the company faces significant balance sheet challenges, including negative equity and potential solvency risks. Cash flow difficulties persist, with negative free cash flow trends and challenges in cash conversion. While there are positive signs of operational recovery, financial instability and cash flow concerns present substantial risks to sustainability.

Income Statement

CytomX Therapeutics showed a positive revenue growth rate from 2023 to 2024, with total revenue increasing from $101.21 million to $138.10 million, representing a growth rate of approximately 36.4%. The gross profit margin remained strong at 100% due to no cost of goods sold. However, the net profit margin improved significantly in 2024, reaching approximately 23.1%, compared to a negative margin in 2023. The EBIT and EBITDA margins also turned positive, indicating improved operational efficiency. Despite these improvements, historical volatility and past losses present a risk.

Balance Sheet

The balance sheet reflects a concerning negative equity position in 2024, with stockholders' equity at -$456,000, indicating liabilities exceed assets. The debt-to-equity ratio is not calculable due to negative equity, but total debt decreased over the year. The equity ratio is negative, which poses a significant risk to financial stability. This indicates potential solvency issues despite reducing total debt.

Cash Flow

The cash flow statement shows a deterioration in free cash flow from -$56.88 million in 2023 to -$86.54 million in 2024, indicating a decline in cash generation capabilities. The operating cash flow to net income ratio is negative, suggesting challenges in converting income into cash. Free cash flow to net income is also negative, highlighting cash flow difficulties despite positive net income in 2024. The high variability in cash flows suggests potential liquidity issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
138.10M	101.21M	53.16M	69.57M	100.36M
	Gross Profit
138.10M	101.21M	47.31M	63.73M	100.36M
	EBIT
25.00M	-6.48M	-101.33M	-83.78M	-48.60M
	EBITDA
25.00M	-4.31M	-98.89M	-113.34M	-77.97M
	Net Income Common Stockholders
31.87M	-569.00K	-97.30M	-80.65M	-32.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
100.62M	174.51M	193.65M	305.23M	316.12M
	Total Assets
120.53M	201.79M	260.89M	339.41M	358.66M
	Total Debt
9.38M	13.97M	18.06M	18.06M	24.87M
	Net Debt
-28.67M	-3.20M	-175.59M	-187.47M	-166.99M
	Total Liabilities
120.99M	249.24M	346.64M	250.03M	308.86M
	Stockholders Equity
-456.00K	-47.45M	-85.75M	89.38M	49.80M
Cash Flow		Free Cash Flow
-86.54M	-56.88M	-112.53M	-120.64M	2.95M
	Operating Cash Flow
-86.23M	-56.03M	-110.79M	-119.03M	5.26M
	Investing Cash Flow
99.70M	-150.67M	98.26M	22.49M	-18.72M
	Financing Cash Flow
7.52M	30.23M	648.00K	110.21M	16.89M

CytomX Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTMX, the sentiment is Negative. The current price of 0.53 is below the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.68, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 38.29 is Neutral, neither overbought nor oversold. The STOCH value of 33.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTMX.

CytomX Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTMX	54 Neutral	$39.62M	1.35	-58.97%	―	36.45%	―
BPMC	52 Neutral	$5.17B	―	-31.26%	―	104.04%	87.80%
Sector *	48 Neutral	$6.35B	1.19	-46.26%	2.67%	19.24%	1.75%
ADAP	46 Neutral	$55.03M	―	-273.36%	―	194.23%	45.50%
FATE	42 Neutral	$107.18M	―	-54.21%	―	-78.55%	-0.92%
XOMA	39 Underperform	$238.70M	―	-16.20%	―	498.72%	49.92%
KPTI	36 Underperform	$36.10M	―	41.08%	―	-0.55%	49.85%

CytomX Therapeutics Corporate Events

CytomX Therapeutics Announces Executive Departure and Severance

On January 30, 2025, CytomX Therapeutics announced the termination of employment for Jeffrey Landau, the Senior Vice President, Chief Business Officer, and Head of Strategy, effective February 7, 2025. The company has arranged a Separation Agreement that provides economic payments consistent with Mr. Landau’s prior severance agreement, and includes a general release of claims against the company.