Decoy Therapeutics (DCOY) AI Stock Analysis

• Market Cap: $5.81M
• Dividend Yield: N/A
• Average Volume (3M): 356.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: N/A
• EPS Growth: 68.08%
• Country: US
• Employees: 2
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -6.77
• Shares Outstanding: 6,384,177
• 10 Day Avg. Volume: 434,140
• 30 Day Avg. Volume: 356,875
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.39
• Enterprise Value/Market Cap: -0.52
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.75K
• Enterprise Value/Ebitda: 0.60
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $0.84 ▲(27.88% Upside)

The score is driven primarily by weak financial performance (no revenue, ongoing losses, and negative free cash flow), partially offset by a low-debt balance sheet. Technicals are also a headwind with a longer-term downtrend and negative MACD, while valuation is constrained by continued losses and no dividend data.

Positive Factors

Low leverage (zero debt)

A zero-debt balance sheet reduces refinancing and interest-rate risk, giving management flexibility to fund R&D or partnerships without immediate repayment burdens. This structural conservatism supports runway extension and strategic optionality versus leveraged peers.

Material narrowing of losses

Substantially smaller losses versus 2022 indicate improving cost control and execution discipline. A durable downward trend in cash burn and losses increases the prospects of reaching cash-flow sustainability or reducing funding needs over the next few quarters.

Improved cash burn trend

A structural reduction in cash burn versus prior years shows improved operational efficiency and better capital stewardship. Sustained improvement in burn rate lengthens runway and lowers the amount of future dilution required to continue clinical programs.

Negative Factors

Pre-revenue operations

Being pre-revenue leaves the company dependent on external capital to fund development. Without commercial sales, long-term viability hinges on successful clinical progress or licensing, increasing dilution and execution risk for investors over the next 2–6 months.

Persistent negative cash flow

Continued negative operating and free cash flow means recurring funding needs to sustain R&D and trials. This structural cash deficit elevates refinancing and dilution risk, potentially constraining strategic options and slowing program timelines if capital access tightens.

Thin capital base and tiny team

A small equity cushion and minimal asset base, combined with only two employees, limit operational bandwidth and the ability to scale trials or commercialization. This structural thinness increases vulnerability to setbacks and reliance on external partners or financing.

Decoy Therapeutics Business Overview & Revenue Model

Company Description

Decoy Therapeutics, Inc. is a preclinical-stage biotechnology company that is leveraging machine learning and AI tools alongside high-speed synthesis techniques to rapidly design, engineer and manufacture peptide conjugate drug candidates that target serious unmet medical needs. The company is headquartered in Cambridge, MA.

How the Company Makes Money

Salarius Pharmaceuticals generates revenue through a combination of strategic partnerships, licensing agreements, and government or private grants. The company's revenue model heavily relies on collaboration with larger pharmaceutical companies for the development and commercialization of its proprietary drug candidates. These partnerships often involve upfront payments, milestone payments based on the achievement of specific development or regulatory milestones, and potential royalties on net sales of successfully commercialized products. Additionally, Salarius may secure funding through research grants and subsidies aimed at supporting innovative cancer treatments. As of now, the company is largely in the clinical development phase, and its revenue streams are primarily associated with these developmental and collaborative efforts rather than direct product sales.

Decoy Therapeutics Financial Statement Overview

Summary

Income statement quality is very weak (pre-revenue, sizable operating and net losses), and cash flow remains negative with ongoing cash burn. Balance sheet leverage is a relative strength (no debt, positive equity), but continued losses raise dilution/funding risk.

Income Statement

Profitability is very weak and still deeply negative. TTM (Trailing-Twelve-Months) revenue is $0, while operating losses remain sizable (EBIT about -$5.1M) and net income is about -$5.0M, indicating the business is not yet generating commercial sales and continues to run at a loss. Losses have narrowed materially versus 2022 (net loss about -$31.6M), but the lack of revenue and persistent negative margins keep overall quality low.

Balance Sheet

Leverage appears modest: TTM (Trailing-Twelve-Months) total debt is $0 and debt-to-equity is 0, which reduces refinancing risk. Equity is positive at roughly $4.25M on about $6.10M of assets, but returns are very weak (TTM return on equity around -4.0), reflecting ongoing losses and potential future dilution risk if capital is needed.

Cash Flow

Cash generation remains a key weakness. TTM (Trailing-Twelve-Months) operating cash flow is about -$4.43M and free cash flow is about -$4.43M, showing continued cash burn to fund operations. Cash burn has improved substantially versus 2022–2023 levels, but free cash flow is still negative and not yet supported by revenue.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	5.23M
Gross Profit	-1.11K	0.00	0.00	0.00	0.00	5.23M
EBITDA	-5.04M	-5.73M	-12.88M	-22.97M	-12.79M	-7.59M
Net Income	-5.00M	-5.58M	-12.54M	-31.61M	-12.77M	-7.35M
Balance Sheet
Total Assets	6.10M	3.02M	6.59M	14.65M	40.83M	24.93M
Cash, Cash Equivalents and Short-Term Investments	4.81M	2.43M	5.90M	12.11M	29.21M	11.12M
Total Debt	0.00	221.87K	289.64K	0.00	0.00	477.03K
Total Liabilities	1.85M	1.51M	1.30M	4.27M	2.11M	2.77M
Stockholders Equity	4.25M	1.51M	5.29M	10.38M	38.72M	22.16M
Cash Flow
Free Cash Flow	-4.43M	-4.53M	-12.85M	-19.10M	-10.20M	-10.31M
Operating Cash Flow	-4.43M	-4.53M	-12.85M	-17.60M	-10.20M	-10.31M
Investing Cash Flow	-200.00K	0.00	0.00	-1.50M	0.00	-2.60K
Financing Cash Flow	6.16M	1.06M	6.64M	1.99M	28.30M	17.69M

Decoy Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.66
• 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 DCOY, the sentiment is Neutral. The current price of 0.66 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.96, and below the 200-day MA of 6.77, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 50.36 is Neutral, neither overbought nor oversold. The STOCH value of 44.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DCOY.

Decoy Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DCOY	44 Neutral	$5.81M	-0.02	-139.55%	―	―	68.08%
SCNI	43 Neutral	$737.84K	-0.07	―	―	178.82%	-4121.10%
BDRX	41 Neutral	$1.39M	-0.03	-60.37%	―	-100.00%	86.75%
ONCO	33 Underperform	$2.53M	>-0.01	-263.57%	―	-34.58%	96.41%
OGEN	29 Underperform	$3.96M	-0.06	-168.95%	―	―	90.27%