Cue Biopharma (CUE) AI Stock Analysis

• Market Cap: $56.71M
• Dividend Yield: N/A
• Average Volume (3M): 179.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: 69.16%
• EPS Growth: 32.51%
• Country: US
• Employees: 41
• Sector: Healthcare
• Sector Strength: 56
• Industry: Biotechnology
• EPS (TTM): -0.75
• Shares Outstanding: 75,349,884
• 10 Day Avg. Volume: 124,196
• 30 Day Avg. Volume: 179,139
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -2.07
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.00
• Price Target Upside: 166.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Cue Biopharma receives a low overall score due to significant challenges in profitability and cash generation, despite some revenue growth. The technical analysis indicates bearish trends, and the negative P/E ratio reflects unprofitability. The biotech industry is inherently high-risk due to R&D expenses, and while there is some potential, the company needs to improve operational efficiency and cash flow to enhance its outlook.

Positive Factors

Partnership Potential

With a potential partnership upcoming for CUE-501 and a cash position of $22.5MM, Cue remains an attractive investment opportunity with upside potential if a partnership materializes.

Product Development

Cue regained the global rights for CUE-401 from Ono and expects to submit an IND, indicating progress in their product development pipeline.

Strategic Pivot

Cue Biopharma is seen as a potential turnaround story due to its strategic pivot into the autoimmune disease space, partnership with Ono Pharmaceuticals, and a cash position of $30 million.

Negative Factors

Clinical Development Challenges

The presence of confounding variables and lack of a partner may hinder the clinical development progress of CUE-101.

Financial Concerns

The cash runway is expected to last until mid-2025, suggesting potential financial constraints if additional partnerships or funding are not secured.

Oncology Program Deprioritization

The company recently deprioritized the oncology programs and will refocus efforts in autoimmune disease indications.

Cue Biopharma Business Overview & Revenue Model

Company Description

Cue Biopharma, Inc. is a clinical-stage biopharmaceutical company focused on developing and commercializing a novel class of biologics designed to selectively engage and modulate the human immune system to treat a broad range of cancers, chronic infectious diseases, and autoimmune disorders. The company's proprietary Immuno-STAT™ platform enables the selective modulation of disease-relevant T cells in the patient's body, offering a potentially transformative approach to immunotherapy.

How the Company Makes Money

Cue Biopharma primarily makes money through collaborations and partnerships with other pharmaceutical companies, which may include upfront payments, research funding, milestone payments, and potential royalties on sales of products developed from their proprietary Immuno-STAT™ platform. The company is also focused on advancing its pipeline of proprietary drug candidates through clinical development, which could lead to future licensing opportunities and commercialization of its therapeutics. Additionally, Cue Biopharma may receive government grants or other funding to support its research and development activities.

Cue Biopharma Financial Statement Overview

Summary

Overall, Cue Biopharma faces significant financial challenges, particularly in achieving profitability and managing cash flows effectively. While the balance sheet shows some stability in terms of debt management, the income statement and cash flow metrics indicate substantial operational and financial hurdles. The company needs to address its high costs and improve its revenue generation to achieve a more sustainable financial position.

Income Statement

Cue Biopharma's income statement reveals significant challenges with profitability. The company has a negative gross profit margin of -17.81% TTM, indicating that production costs exceed revenues. The net profit margin of -468.07% TTM highlights substantial losses relative to revenue. Revenue growth is inconsistent, with a recent jump of 73.55% TTM compared to the previous year, but this is from a low base. The EBIT margin is deeply negative at -477.76% TTM, reflecting high operational inefficiencies. Overall, the income statement shows significant struggles with both scalability and cost management.

Balance Sheet

The balance sheet indicates moderate financial stability. The debt-to-equity ratio is 0.38 TTM, suggesting manageable debt levels compared to equity, though the stockholders' equity has decreased over recent periods. The equity ratio stands at 56.61% TTM, which is relatively healthy, indicating a moderate reliance on equity financing. However, the declining equity and assets are areas of concern. The company's balance sheet reflects a reasonable capital structure but with potential risks due to declining equity.

Cash Flow

Cash flow analysis highlights concerning trends in cash management. Operating cash flow is negative, and the free cash flow is worsening, with a negative growth rate from -$39.96 million to -$38.32 million TTM, showing slight improvement. The free cash flow to net income ratio is 0.86 TTM, indicating that the company is unable to cover net losses with free cash flow. While financing activities provide some relief, overall cash flow sustainability is questionable.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
5.49M	1.25M	14.94M	3.15M	3.46M
	Gross Profit
-32.61M	-560.83K	16.72M	-30.39M	-24.03M
	EBIT
-52.15M	-53.22M	-43.71M	-45.04M	-36.77M
	EBITDA
-46.05M	-50.49M	-45.44M	-43.99M	-35.96M
	Net Income Common Stockholders
-50.73M	-52.80M	-44.16M	-44.78M	-36.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.51M	76.29M	64.37M	84.87M	44.29M
	Total Assets
61.53M	91.28M	83.40M	99.53M	71.61M
	Total Debt
14.70M	19.32M	10.05M	7.15M	5.80M
	Net Debt
-33.82M	-32.30M	-54.32M	-67.72M	-38.49M
	Total Liabilities
24.45M	25.60M	17.91M	20.62M	17.02M
	Stockholders Equity
37.09M	65.68M	65.49M	78.91M	54.58M
Cash Flow		Free Cash Flow
-39.96M	-41.98M	-39.75M	-33.09M	-30.84M
	Operating Cash Flow
-39.96M	-41.81M	-38.84M	-32.49M	-30.80M
	Investing Cash Flow
25.00M	-24.61M	9.11M	4.46M	3.45M
	Financing Cash Flow
11.86M	53.66M	19.23M	58.61M	50.79M

Cue Biopharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.75
• 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 CUE, the sentiment is Negative. The current price of 0.75 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.92, and below the 200-day MA of 1.04, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 21.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CUE.

Cue Biopharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTMX	62 Neutral	$64.24M	2.04	-58.97%	―	36.45%	―
STRO	52 Neutral	$92.80M	―	-234.19%	―	-59.64%	-67.75%
Sector *	52 Neutral	$5.35B	3.81	-42.57%	2.86%	17.10%	1.33%
PDSB	50 Neutral	$62.65M	―	-166.65%	―	―	25.51%
MAIA	44 Neutral	$60.65M	―	-1131.02%	―	―	23.55%
CUE	41 Neutral	$56.71M	―	-149.03%	―	69.16%	32.51%
PYPD	41 Neutral	$28.43M	―	-1038.73%	―	―	34.97%

Cue Biopharma Corporate Events

Cue Biopharma Appoints Pasha Sarraf to Board

On March 10, 2025, Cue Biopharma, a company in the biopharmaceutical industry, appointed Pasha Sarraf to its board of directors. This appointment follows the recommendation of the Corporate Governance and Nominating Committee. Mr. Sarraf’s appointment does not involve any arrangements or transactions that require disclosure under regulatory guidelines. He will receive compensation according to the company’s Director Compensation Policy, including an option to purchase 48,800 shares of the company’s common stock, which will vest over three years. Additionally, Mr. Sarraf entered into an indemnification agreement with the company, which may require Cue Biopharma to cover certain expenses related to his service as a director.