Citius Oncology (CTOR) AI Stock Analysis

• Market Cap: $91.59M
• Dividend Yield: N/A
• Average Volume (3M): 486.86K
• Price to Earnings (P/E): 5.3
• Beta (1Y): -0.09
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 79
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.27
• Shares Outstanding: 71,552,400
• 10 Day Avg. Volume: 1,359,875
• 30 Day Avg. Volume: 486,863
• PEG Ratio: >-0.01
• Price to Book (P/B): 28.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 11.25
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -161.15
• 1Y Price Target: $3.00
• Price Target Upside: 111.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: ―

Citius Oncology's stock score reflects significant financial challenges and bearish technical indicators, offset slightly by its low P/E ratio suggesting potential undervaluation. The absence of revenue and consistent net losses underscore a high-risk profile typical of an early-stage pharmaceutical company. Technical indicators point to negative momentum, while the valuation presents a more optimistic perspective due to the low P/E ratio.

Positive Factors

Market Potential

There is optimism about Lymphir's potential to become a significant revenue driver within cutaneous T cell lymphoma and broader immune oncology.

Product Launch

Lymphir is on track to launch in 1Q25, and the CTCL market is attractive with minimal direct competition, allowing Lymphir to potentially gain rapid market share.

Regulatory and Reimbursement

Citius Oncology is working with payers and healthcare providers to secure reimbursement pathways and has submitted an application for a unique J Code.

Negative Factors

Capital Requirements

Citius Pharma, owning 90% of Citius Oncology, needs additional capital to support operations, limiting the ability to advance Lymphir.

Financial Constraints

Financial constraints elevate risks to bring Lymphir to market, leading to a downgrade of Citius Oncology shares to Hold from Buy.

Revenue Projections

The company has removed Lymphir revenues from its model for FY25, which results in lower revenue and expense estimates.

Citius Oncology Business Overview & Revenue Model

Company Description

Citius Oncology, Inc. focuses on the development of novel targeted oncology therapies. It also engages in the development of LYMPHIR, an orphan indication for the treatment of adults with relapsed or refractory cutaneous T-cell lymphoma. The company is headquartered in New York, New York. Citius Oncology, Inc. operates as a subsidiary of Citius Pharmaceuticals, Inc.

How the Company Makes Money

Citius Oncology makes money primarily through the research, development, and commercialization of its cancer treatment drugs. The company's revenue streams include licensing agreements, where it partners with other pharmaceutical companies to co-develop or distribute its products, and sales of approved therapies. Additionally, Citius Oncology may receive milestone payments and royalties from partnerships and collaborations with other entities in the healthcare sector. The company's earnings are influenced by the successful clinical trials and regulatory approval of its drug candidates, as well as strategic partnerships that enhance its market reach.

Citius Oncology Financial Statement Overview

Summary

Citius Oncology's financial performance indicates significant challenges, typical of a pharmaceutical company in development stages. The absence of revenue and consistent net losses highlight a high-risk profile. The balance sheet shows volatility with negative equity in some periods, and cash flow statements reveal liquidity challenges and reliance on financing activities.

Income Statement

Citius Oncology shows a challenging income situation with consistent net losses over the reported periods. The absence of revenue and gross profit highlights the early-stage nature or restructuring phase of the company. Despite some improvement in EBIT from 2023 to 2024, the overall profitability metrics remain weak, given the negative net income.

Balance Sheet

The balance sheet reveals high volatility with fluctuating stockholders' equity and liabilities. Although there is a significant increase in assets from 2023 to 2024, the negative equity in some periods and inconsistent asset base pose stability concerns. The absence of debt could indicate cautious financing, but the negative equity ratios in some periods showcase financial vulnerability.

Cash Flow

Cash flow statements show inconsistent operating cash flows and negative free cash flow, indicating liquidity challenges. The reliance on financing activities to support cash flows is evident, but the lack of consistent positive cash flow from operations could hinder growth prospects. The free cash flow growth rate is negative, which poses a risk for future financial health.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022
Income Statement		Total Revenue
0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	0.00	0.00
	EBIT
0.00	-20.57M	-12.12M	-4.86M
	EBITDA
-6.39M	-20.57M	-12.12M	-4.86M
	Net Income Common Stockholders
-6.66M	-21.15M	-12.70M	-5.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
112.00	112.00	0.00	0.00
	Total Assets
90.48M	84.37M	47.73M	42.69M
	Total Debt
3.80M	3.80M	0.00	0.00
	Net Debt
3.80M	3.80M	0.00	0.00
	Total Liabilities
49.19M	38.23M	22.20M	6.42M
	Stockholders Equity
41.29M	46.14M	25.54M	36.27M
Cash Flow		Free Cash Flow
-364.06K	-4.87M	0.00	0.00
	Operating Cash Flow
-364.06K	126.35K	0.00	0.00
	Investing Cash Flow
-22.55K	-5.00M	0.00	0.00
	Financing Cash Flow
353.65K	4.87M	0.00	0.00

Citius Oncology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTOR, the sentiment is Positive. The current price of 1.42 is above the 20-day moving average (MA) of 0.97, above the 50-day MA of 0.84, and above the 200-day MA of 1.11, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 87.16 is Negative, neither overbought nor oversold. The STOCH value of 85.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTOR.

Citius Oncology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIIB	72 Outperform	$19.85B	13.14	9.19%	―	1.25%	26.10%
GSK	70 Neutral	$83.01B	21.19	22.26%	4.15%	4.17%	-29.96%
GRFS	65 Neutral	$7.41B	29.10	3.34%	―	9.67%	1.92%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
CTOR	47 Neutral	$91.59M	5.27	-34.78%	―	―	―
SCLX		$41.92M	―		―	―	―
OGN	57 Neutral	$2.61B	3.48	254.24%	0.80%	-0.84%	-28.91%