Equillium (EQ) AI Stock Analysis

• Market Cap: $11.25M
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -19.76%
• EPS Growth: -13.20%
• Country: US
• Employees: 35
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.34
• Shares Outstanding: 35,719,320
• 10 Day Avg. Volume: 255,570
• 30 Day Avg. Volume: 1,230,332
• PEG Ratio: -0.07
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.55
• Enterprise Value/Market Cap: 4.91
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 1.82
• Enterprise Value/Ebitda: -1.64
• 1Y Price Target: $1.00
• Price Target Upside: 212.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: $0.50 ▲(56.25%Upside)

The most significant factor impacting Equillium's score is its financial performance, characterized by revenue growth but hindered by profitability and operational challenges. Technical analysis suggests bearish momentum, and valuation metrics reflect the company's financial difficulties. These factors collectively result in a lower overall stock score.

Positive Factors

Earnings

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

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

Clinical Trials

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

Regulatory Approval

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

Uncertainty

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. is a biotechnology company focused on developing innovative therapies to treat severe autoimmune and inflammatory disorders. Operating in the biotechnology and pharmaceutical sectors, Equillium is primarily engaged in the research and development of novel drug candidates targeting critical immunology pathways. Its lead product candidate, itolizumab, is being investigated for multiple indications, including acute graft-versus-host disease and lupus nephritis.

How the Company Makes Money

Equillium makes money primarily through the development and commercialization of its drug candidates. The company aims to generate revenue by advancing its pipeline products through clinical trials and eventually bringing them to market, either independently or through strategic partnerships with larger pharmaceutical companies. Equillium may also earn milestone payments and royalties from existing and future collaborations or licensing agreements related to its proprietary drug candidates, such as itolizumab.

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
EBITDA	-13.70M	-7.57M	-12.14M	-61.26M	-37.91M	-28.67M
Net Income	-13.99M	-8.07M	-13.34M	-107.71M	-38.98M	-29.77M
Balance Sheet
Total Assets	16.73M	25.60M	50.53M	78.42M	85.41M	85.43M
Cash, Cash Equivalents and Short-Term Investments	14.50M	22.57M	40.87M	71.02M	80.71M	82.16M
Total Debt	295.00K	384.00K	824.00K	10.19M	9.98M	8.28M
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: Negative
• Last Price: 0.32
• 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 Negative. The current price of 0.32 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.38, and below the 200-day MA of 0.67, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 43.32 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQ.

Equillium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.50B	0.32	-61.87%	2.27%	17.10%	1.59%
CING	47 Neutral	$18.43M	―	-358.06%	―	―	95.52%
EQ	41 Neutral	$11.25M	―	-88.32%	―	-19.76%	-13.20%
CLDI	37 Underperform	$7.44M	―	354.78%	―	―	64.19%
EDSA	35 Underperform	$14.26M	―	-58.78%	―	―	-126.54%
LPTX	31 Underperform	$11.93M	―	-202.81%	―	―	64.01%
UBX	31 Underperform	$5.13M	―	-231.27%	―	―	35.08%

Equillium Corporate Events

Equillium Granted Extension for Nasdaq Compliance

Equillium, Inc. received a notice from Nasdaq on December 13, 2024, indicating non-compliance with the Minimum Bid Price Requirement as its stock price had been below $1.00 for 30 consecutive business days. Initially given until June 11, 2025, to rectify this, the company was granted an extension until December 8, 2025. Failure to meet the requirement by this date could lead to delisting, though Equillium plans to monitor its stock price and consider options like a reverse stock split to regain compliance. The notification does not immediately affect the trading of its stock, which continues under the symbol ‘EQ.’

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.

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.