enGene Holdings (ENGN) AI Stock Analysis

• Market Cap: $203.91M
• Dividend Yield: N/A
• Average Volume (3M): 38.15K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.99
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 56
• Sector: Real Estate
• Sector Strength: 75
• Industry: Biotechnology
• EPS (TTM): -1.52
• Shares Outstanding: 50,977,560
• 10 Day Avg. Volume: 56,821
• 30 Day Avg. Volume: 38,152
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -2.50
• 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: $21.57
• Price Target Upside: 444.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

enGene Holdings struggles with severe financial difficulties, underlined by zero revenue and consistent losses. The technical analysis suggests bearish momentum. The valuation is poor due to negative earnings and lack of dividends. These factors contribute to a low overall score, indicating significant risk and challenges for potential investors.

Positive Factors

Clinical Trial Progress

The LEGEND study in HR-NMIBC expanded to additional sites in Asia and Europe, which will facilitate the completion of enrollment in the pivotal cohort and additional cohorts.

Earnings Potential

ENGN believes the BCG-unresponsive NMIBC market will grow significantly, potentially increasing from $2 billion to $20 billion, with detalimogene being a first-option in community urology offices.

Product Differentiation

Detalimogene offers advantages in administration, with a straightforward instillation procedure and no post-treatment precautions required, unlike BCG or viral-based therapies.

Negative Factors

Market Sentiment

Investor sentiment has been influenced by cross-trial comparisons to more advanced programs—likely contributing to enGene’s stock trading near the lower end of its 52-week range.

Research and Development Costs

Research and Development costs of $20.0mm were above the consensus of $12.4mm, indicating higher than expected spending.

enGene Holdings Business Overview & Revenue Model

Company Description

enGene Holdings Inc., through its subsidiary enGene, Inc., operates as a clinical-stage biotechnology company that develops genetic medicines through the delivery of therapeutics to mucosal tissues and other organs. Its lead product candidate is EG-70 (detalimogene voraplasmid), which is a non-viral immunotherapy to treat non-muscle invasive bladder cancer patients with carcinoma-in-situ (Cis), who are unresponsive to treatment with Bacillus Calmette-Guérin. The company was founded in 2023 and is based in Saint-Laurent, Canada.

How the Company Makes Money

enGene Holdings makes money primarily through the development and commercialization of its gene therapy products. The company's revenue model includes licensing its proprietary technology to pharmaceutical partners, collaborating with research institutions for joint product development, and directly selling its therapeutic products upon regulatory approval. Key revenue streams include milestone payments and royalties from partnerships, as well as potential sales from its own product pipeline. Significant partnerships with established pharmaceutical companies enhance its market reach and contribute to its earnings by accelerating the development and commercialization processes.

enGene Holdings Financial Statement Overview

Summary

enGene Holdings faces significant financial challenges, primarily due to its inability to generate revenue and consistent operational losses. While the balance sheet shows some improvement in equity position, the cash flow statements highlight ongoing cash flow issues. The company needs to establish a revenue stream and improve operational efficiency to enhance financial stability.

Income Statement

enGene Holdings has consistently reported zero revenue, highlighting a significant challenge in generating sales. The net profit margin is negative due to persistent losses, and the EBIT and EBITDA margins are also deeply negative, reflecting ongoing operational challenges. The absence of revenue growth further emphasizes the critical need for the company to establish a revenue-generating model.

Balance Sheet

The company's debt-to-equity ratio has improved with positive stockholder equity in recent periods, indicating better capital structure management. However, the equity ratio shows a high reliance on equity financing. The persistent losses and negative net income impact the return on equity. Overall, while there is a stable cash position, the company must focus on reducing liabilities to strengthen its balance sheet.

Cash Flow

Operating cash flow remains negative, indicating cash outflows from core operations. However, the company shows strong financing cash flows, suggesting capital raising activities. Free cash flow remains negative, reflecting ongoing operational and capital investment challenges. Improving cash flow from operations is crucial for long-term sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
-160.00K	0.00	-175.00K	0.00	0.00
	EBIT
-78.14M	62.30M	-26.06M	-19.43M	-15.87M
	EBITDA
-65.69M	62.30M	-94.77M	-19.45M	-15.70M
	Net Income Common Stockholders
-69.05M	55.14M	-99.92M	-24.46M	-23.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
81.52M	238.33M	81.52M	20.43M	11.02M
	Total Assets
86.96M	311.17M	86.96M	23.91M	15.03M
	Total Debt
9.78M	1.85M	9.78M	32.11M	4.16M
	Net Debt
-71.74M	-171.15M	-71.74M	11.68M	-6.86M
	Total Liabilities
14.47M	38.56M	14.47M	100.52M	68.47M
	Stockholders Equity
72.49M	272.61M	72.49M	-76.61M	-53.44M
Cash Flow		Free Cash Flow
-67.33M	-49.21M	-25.06M	-17.75M	-16.23M
	Operating Cash Flow
-66.61M	-48.28M	-24.74M	-17.59M	-15.98M
	Investing Cash Flow
-210.41M	-125.95M	-318.00K	-153.00K	-247.00K
	Financing Cash Flow
253.72M	265.72M	86.15M	27.97M	22.52M

enGene Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.96
• 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 ENGN, the sentiment is Negative. The current price of 3.96 is below the 20-day moving average (MA) of 4.42, below the 50-day MA of 5.26, and below the 200-day MA of 6.98, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 31.83 is Neutral, neither overbought nor oversold. The STOCH value of 37.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENGN.

enGene Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$3.00B	12.40	0.61%	9872.56%	7.62%	-2.59%
CDTX	51 Neutral	$205.27M	―	-222.36%	―	-86.28%	-476.70%
OCGN	40 Underperform	$201.61M	―	-154.01%	―	187.79%	32.40%
ENGN	39 Underperform	$203.91M	―	-44.21%	―	―	―
CRVS	37 Underperform	$206.45M	―	-174.85%	―	―	-71.53%
CRGX	32 Underperform	$209.54M	―	-43.76%	―	―	―
TVGN	27 Underperform	$198.60M	―	-124.74%	―	―	-20.39%

enGene Holdings Corporate Events

enGene Holdings Secures $60 Million for Genetic Medicines

enGene Holdings Inc. plans a $60 million private placement of 6.7 million common shares at $8.90 each, aiming to fund the development of its genetic medicines, particularly detalimogene for bladder cancer. This financing, involving investors like Deep Track Capital and OrbiMed, is expected to close on October 29, 2024. The proceeds are anticipated to support enGene’s operations through 2027. With placement agents including Leerink Partners and Piper Sandler, the securities offered are exempt from U.S. registration, aligning with Nasdaq rules.