Equillium (EQ) AI Stock Analysis

• Market Cap: $12.52M
• Dividend Yield: N/A
• Average Volume (3M): 655.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -19.76%
• EPS Growth: -13.20%
• Country: US
• Employees: 35
• Sector: Healthcare
• Sector Strength: 44
• Industry: Biotechnology
• EPS (TTM): -0.34
• Shares Outstanding: 35,719,320
• 10 Day Avg. Volume: 1,853,981
• 30 Day Avg. Volume: 655,751
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.97
• Enterprise Value/Market Cap: -1.05
• Enterprise Value/Revenue: -0.08
• Enterprise Value/Gross Profit: -0.43
• Enterprise Value/Ebitda: 0.39
• 1Y Price Target: $1.00
• Price Target Upside: 156.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: $0.50 ▲(28.21%Upside)

Equillium's stock score is primarily impacted by its financial performance and valuation. The company shows promising revenue growth but struggles with profitability and operational efficiency, leading to a negative P/E ratio. Technical indicators suggest a bearish trend, further weighing on the overall score.

Positive Factors

Study Results

EQ reported positive topline results from a Phase 2 study of lead asset itolizumab in ulcerative colitis, demonstrating encouraging activity and being well tolerated with no notable safety signals.

Valuation and Data

The modest valuation for EQ at current levels, combined with positive data, successful regulatory interaction, and additional capital, could drive meaningful upside to EQ shares.

Negative Factors

Regulatory Challenges

The FDA declined to support an accelerated approval pathway for itolizumab in first-line treatment of acute graft-versus-host disease.

Study Outcome

The EQUATOR trial failed to achieve its primary endpoint of complete response at Day 29 and both key secondary endpoints.

Uncertainty and Financing

There is significant uncertainty on the path forward for itolizumab, as well as the company's financing overhang.

Equillium Business Overview & Revenue Model

Company Description

Equillium, Inc., a clinical-stage biotechnology company, develops and sells products to treat severe autoimmune and inflammatory, or immuno-inflammatory disorders with unmet medical need. The company's lead product candidate is itolizumab (EQ001), a clinical-stage monoclonal antibody that targets the novel immune checkpoint receptor CD6, which is in Phase III clinical trials for the treatment of acute graft-versus-host disease; completed Phase Ib clinical trial for the treatment of asthma disease; and Phase Ib clinical trial for the treatment of and lupus nephritis. It also develops EQ101 for treatment of cutaneous T cell lymphoma and alopecia areata; and EQ102 to treat various gastrointestinal diseases. The company was formerly known as Attenuate Biopharmaceuticals, Inc. and changed its name to Equillium, Inc. in May 2017. Equillium, Inc. was incorporated in 2017 and is headquartered in La Jolla, California.

How the Company Makes Money

Equillium generates revenue primarily through strategic collaborations, partnerships, and potential licensing agreements. The company focuses on advancing its clinical-stage product candidates towards regulatory approval and commercialization, which could lead to milestone payments and royalties from partners. Equillium's revenue model is heavily reliant on the successful development and commercialization of its lead asset, itolizumab, and securing strategic alliances with larger pharmaceutical companies to support its pipeline and financial sustainability.

Equillium Financial Statement Overview

Summary

Equillium shows strong revenue growth but continues to face profitability challenges and negative operating cash flows. The balance sheet is moderately strong with low leverage, but declining equity ratio and ongoing operational inefficiencies pose risks.

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
30.41M	41.09M	36.08M	15.76M	0.00	0.00
	Gross Profit
30.34M	40.96M	35.96M	15.64M	-72.00K	-45.00K
	EBIT
-14.35M	-8.27M	-14.52M	-62.08M	-37.79M	-29.55M
	EBITDA
-13.70M	-7.57M	-12.14M	-61.26M	-37.91M	-28.67M
	Net Income Common Stockholders
-13.99M	-8.07M	-13.34M	-107.71M	-38.98M	-29.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.50M	22.57M	40.87M	71.02M	80.71M	82.16M
	Total Assets
16.73M	25.60M	50.53M	78.42M	85.41M	85.43M
	Total Debt
295.00K	384.00K	824.00K	10.19M	9.98M	8.28M
	Net Debt
-14.21M	-17.70M	-22.39M	-48.92M	-38.58M	-15.71M
	Total Liabilities
6.15M	6.54M	27.96M	46.48M	18.90M	15.57M
	Stockholders Equity
10.58M	19.06M	22.57M	31.94M	66.50M	69.85M
Cash Flow		Free Cash Flow
-18.46M	-19.11M	-21.83M	-9.01M	-32.14M	-24.83M
	Operating Cash Flow
-18.39M	-19.03M	-21.78M	-8.73M	-32.08M	-24.62M
	Investing Cash Flow
21.14M	13.81M	-4.76M	18.68M	27.41M	-18.59M
	Financing Cash Flow
255.00K	164.00K	-9.23M	-1.22M	31.06M	53.95M

Equillium Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.39
• 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 EQ, the sentiment is Neutral. The current price of 0.39 is above the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.42, and below the 200-day MA of 0.71, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 57.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EQ.

Equillium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%
CING	47 Neutral	$21.02M	―	-358.06%	―	―	95.52%
EQ	42 Neutral	$12.52M	―	-88.32%	―	-19.76%	-13.20%
CLDI	37 Underperform	$10.23M	―	354.78%	―	―	64.19%
EDSA	35 Underperform	$13.34M	―	-58.78%	―	―	-126.54%
LPTX	31 Underperform	$17.31M	―	-202.81%	―	―	64.01%
UBX	31 Underperform	$13.94M	―	-231.27%	―	―	35.08%

Equillium Corporate Events

Equillium Holds Annual Stockholders Meeting on Key Proposals

On May 21, 2025, Equillium, Inc. held its Annual Meeting of Stockholders where several key proposals were voted upon. The stockholders elected three Class I directors, approved a reverse stock split amendment, ratified KPMG LLP as the independent auditor, and approved an amendment to the 2018 Equity Incentive Plan to increase the number of shares authorized for issuance.

The most recent analyst rating on (EQ) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Equillium stock, see the EQ Stock Forecast page.