Equillium (EQ) AI Stock Analysis

• Market Cap: $85.25M
• Dividend Yield: N/A
• Average Volume (3M): 883.61K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.17
• Revenue Growth: -90.43%
• EPS Growth: -382.07%
• Country: US
• Employees: 35
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.06
• Shares Outstanding: 60,893,284
• 10 Day Avg. Volume: 862,141
• 30 Day Avg. Volume: 883,611
• PEG Ratio: 0.08
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -1.38
• Enterprise Value/Market Cap: <0.01
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: >-0.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.50 ▲(7.14% Upside)

Equillium's score is primarily impacted by its financial performance, with strong revenue growth overshadowed by profitability and cash flow challenges. Technical indicators suggest mixed market sentiment, while valuation metrics highlight significant concerns due to ongoing losses.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Equillium's products and potential for market expansion, supporting long-term business viability.

Low Leverage

Low leverage provides financial flexibility, reducing risk and allowing Equillium to invest in growth opportunities without significant debt burden.

Stable Gross Profit Margin

A stable gross profit margin suggests effective cost management and pricing power, contributing to potential profitability as revenue scales.

Negative Factors

Profitability Challenges

Ongoing unprofitability indicates operational inefficiencies and challenges in converting revenue growth into sustainable profits, impacting long-term financial health.

Negative Operating Cash Flow

Negative operating cash flow suggests the company is not generating enough cash from its operations, which could hinder its ability to fund growth and innovation.

Board and Partnership Changes

Frequent leadership changes and partnership terminations can disrupt strategic direction and operational stability, affecting long-term growth prospects.

Equillium Business Overview & Revenue Model

Company Description

Equillium, Inc. is a biotechnology company focused on developing innovative therapies for autoimmune and inflammatory diseases. The company is based in the United States and specializes in the research and development of monoclonal antibodies designed to target pathways involved in disease processes. Equillium's lead product candidate, Itolizumab, is aimed at addressing severe autoimmune conditions, with a focus on providing solutions that improve patient outcomes.

How the Company Makes Money

Equillium generates revenue primarily through the development and commercialization of its therapeutic products. The company may receive funding through partnerships with larger pharmaceutical companies, which can include upfront payments, milestone payments based on the achievement of clinical development targets, and royalties on future sales. Additionally, Equillium may seek funding through strategic alliances that enhance its research capabilities or expand its market reach. Grants and public funding for research in biotechnology and healthcare can also contribute to its revenue streams, particularly during the early stages of product development.

Equillium Financial Statement Overview

Summary

Equillium shows strong revenue growth but struggles with profitability and operational cash flows. The balance sheet is stable with low leverage, but operational inefficiencies need addressing for long-term sustainability.

Income Statement

Equillium has shown a consistent increase in revenue from 2020 to 2024, with significant growth from 2022 to 2023. However, despite the revenue growth, the company remains unprofitable with negative net income and EBIT margins, indicating ongoing operational challenges. The gross profit margin is stable at 100%, as all revenue translates to gross profit, an indication of low variable costs.

Balance Sheet

The balance sheet shows moderate strength with positive stockholders' equity and a low debt-to-equity ratio, indicating relatively low leverage. However, the declining equity ratio over the years suggests increasing liabilities relative to assets. The company maintains a solid cash position, although total assets have been decreasing.

Cash Flow

Operating cash flow has been negative, indicating cash outflows from core operations, which is concerning. However, the company has managed free cash flow relatively well, with improvements in free cash flow growth in the recent year. The reliance on financing activities in earlier years has decreased, suggesting a move towards more self-sustained cash operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.39M	41.09M	36.08M	15.76M	0.00	0.00
Gross Profit	4.30M	41.09M	36.08M	15.76M	-72.00K	-45.00K
EBITDA	-24.63M	-7.57M	-12.14M	-61.26M	-37.91M	-28.67M
Net Income	-24.42M	-8.07M	-13.34M	-62.43M	-38.98M	-29.81M
Balance Sheet
Total Assets	34.51M	25.60M	50.53M	78.42M	85.41M	85.43M
Cash, Cash Equivalents and Short-Term Investments	33.12M	22.57M	40.87M	71.02M	80.71M	82.16M
Total Debt	745.00K	384.00K	824.00K	10.19M	11.79M	9.94M
Total Liabilities	3.57M	6.54M	27.96M	46.48M	18.90M	15.57M
Stockholders Equity	30.94M	19.06M	22.57M	31.94M	66.50M	69.85M
Cash Flow
Free Cash Flow	-22.92M	-19.11M	-21.83M	-9.01M	-32.14M	-24.83M
Operating Cash Flow	-22.91M	-19.03M	-21.78M	-8.73M	-32.08M	-24.62M
Investing Cash Flow	10.49M	13.81M	-4.76M	18.68M	27.41M	-18.59M
Financing Cash Flow	30.22M	164.00K	-9.23M	-1.22M	31.06M	53.95M

Equillium Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQ, the sentiment is Positive. The current price of 1.4 is above the 20-day moving average (MA) of 1.04, above the 50-day MA of 1.15, and above the 200-day MA of 0.86, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 64.48 is Neutral, neither overbought nor oversold. The STOCH value of 56.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EQ.

Equillium 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%
HYFT	51 Neutral	$80.78M	-2.88	-121.76%	―	-17.94%	21.43%
STRO	47 Neutral	$88.35M	-0.40	-1810.01%	―	-34.36%	-59.98%
NRXP	45 Neutral	$71.35M	-1.02	―	―	―	-9.32%
EQ	44 Neutral	$85.25M	-2.14	-90.24%	―	-90.43%	-382.07%
PRLD	35 Underperform	$127.95M	-1.36	-103.99%	―	250.00%	15.15%

Equillium Corporate Events

Equillium Announces Board Restructuring and Biocon Agreement Termination

On September 30, 2025, Equillium announced significant changes in its board and executive structure. Stephen Connelly, Ph.D., and Bala Manian, Ph.D., resigned from the board, effective October 1, 2025, leading to a reduction in board size from nine to seven members. Charles McDermott and Mark Pruzanski, M.D., were appointed to key committee roles, and Daniel M. Bradbury transitioned to Chairman of the Board. Dr. Connelly was appointed as the company’s President, while Bruce Steel continued as CEO. Simultaneously, Equillium terminated its collaboration and license agreements with Biocon Limited, with all licenses, including those for itolizumab, reverting to Biocon. Equillium will receive a technical service fee of $363,000 from Biocon, offset against amounts owed by Equillium.

Equillium Files Prospectus for $75 Million Stock Sale

On September 19, 2025, Equillium, Inc. announced the filing of a prospectus supplement with the SEC for the offer and sale of up to $75 million in common stock under an amended sales agreement with LifeSci Capital LLC. This move follows previous sales of shares that generated $0.96 million, indicating a strategic effort to raise capital and potentially expand its market presence.