Fate Therapeutics (FATE) AI Stock Analysis

• Market Cap: $132.97M
• Dividend Yield: N/A
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.74
• Revenue Growth: 105.85%
• EPS Growth: 22.13%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): -0.32
• Shares Outstanding: 114,633,020
• 10 Day Avg. Volume: 1,639,089
• 30 Day Avg. Volume: 1,914,060
• PEG Ratio: -0.19
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.44
• Enterprise Value/Market Cap: 7.71
• Enterprise Value/Revenue: 19.44
• Enterprise Value/Gross Profit: -48.19
• Enterprise Value/Ebitda: -1.47
• 1Y Price Target: $4.40
• Price Target Upside: 282.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 50 Neutral
• Price Target: $1.00 ▼(-13.04%Downside)

Fate Therapeutics faces significant financial challenges and valuation concerns, impacting its overall score. However, the recent positive corporate developments and a neutral technical analysis provide some balance. The company's path to sustainability and profitability remains uncertain.

Positive Factors

Clinical Efficacy

Early efficacy data for FT819 in 5 patients are very encouraging, especially given its off-the-shelf nature and reduced conditioning differentiation.

Regulatory Progress

Fate plans to meet with the FDA to discuss potential pivotal study design in SLE/LN, aiming to remove the current hospitalization requirement post-treatment.

Safety Profile

FT819 was well-tolerated with no events of ICANS, GvHD or FT819-related SAEs, with all patients discharged 3-days post-dosing.

Negative Factors

Clinical Data Limitations

It's still too early to adjudicate on FT819's clinical benefit due to a small sample size and limited follow-up in a majority of patients.

Risks and Concerns

Risks include, but are not limited to: unknown clinical efficacy advantage with FT522 relative to other allogeneic and autologous CAR-T approaches; unexpected safety and immunogenicity concerns; partnership-related risks; negative reactions from regulatory agencies; and possible medium-term dilution risk.

Safety Concerns

Two patients had Grade 4 neutropenia and two patients had Grade 3+ infections.

Fate Therapeutics Business Overview & Revenue Model

Company Description

Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops programmed cellular immunotherapies for cancer and immune disorders worldwide. Its NK- and T-cell immuno-oncology programs under development include FT516 for the treatment of acute myeloid leukemia (AML) B-cell lymphoma, and advanced solid tumor; FT596 to treat B-cell lymphoma and chronic lymphocytic leukemia; FT538 to treat AML and multiple myeloma; FT576 to treat multiple myeloma; FT819 to treat hematologic malignancies and solid tumors; FT536 to treat solid tumors; and FT500 for the treatment of advanced solid tumors. The company has a collaboration and option agreement with Ono Pharmaceutical Co. Ltd. for the development and commercialization of two off-the-shelf iPSC-derived CAR T-cell product candidates; strategic research collaboration and license agreement with Juno Therapeutics, Inc. to screen for and identify small molecule modulators that enhance the therapeutic properties of genetically-engineered T-cell immunotherapies; and a collaboration and option agreement with Janssen Biotech, Inc. Fate Therapeutics, Inc. was incorporated in 2007 and is headquartered in San Diego, California.

How the Company Makes Money

Fate Therapeutics makes money primarily through research and development collaborations, licensing agreements, and strategic partnerships with pharmaceutical and biotechnology companies. These partnerships often involve upfront payments, milestone payments, and royalties based on sales of products developed using Fate's technologies. Additionally, the company may receive funding from government grants and research institutions to support its innovative platform and therapeutic development. Fate Therapeutics' revenue is also influenced by its ability to successfully advance its product candidates through clinical trials and towards regulatory approval, which can lead to commercialization and subsequent sales revenue.

Fate Therapeutics Financial Statement Overview

Summary

Fate Therapeutics faces substantial financial challenges, with persistent losses and negative cash flow raising concerns about its operational sustainability. While the company's low debt-to-equity ratio suggests manageable leverage, the declining equity base and consistent cash flow deficits highlight the need for strategic redirection to achieve profitability and positive cash generation.

Income Statement

Fate Therapeutics has faced significant challenges in its income statement metrics. The company experienced a significant decline in total revenue from 2020 to 2024, with a revenue growth rate of -78.54% from 2023 to 2024. The gross profit margin has been negative for several years, indicating high costs relative to revenues. Net profit margins are also deeply negative, reflecting persistent losses. EBIT and EBITDA margins are similarly negative, demonstrating the company’s struggle to cover its operating costs and generate positive earnings.

Balance Sheet

The balance sheet reveals a mixed picture. The debt-to-equity ratio has remained reasonably low, suggesting manageable leverage levels. However, the return on equity is negative due to consistent net losses, indicating a lack of profitability. The equity ratio is relatively high at 72.31% in 2024, showcasing financial stability and reliance on equity financing. Still, the equity base has shrunk over the years, raising concerns over long-term sustainability.

Cash Flow

Cash flow metrics highlight the company’s ongoing cash challenges. Free cash flow remains negative, though there was a small improvement in 2024. The operating cash flow to net income ratio is negative, indicating operational cash flow deficits. The free cash flow to net income ratio also remains negative, underlining the company's struggle to generate sufficient cash to cover its expenditures without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.34M	13.63M	63.53M	96.30M	55.85M	31.43M
Gross Profit	-21.27M	13.63M	-98.16M	82.54M	50.00M	-94.19M
EBITDA	-168.28M	-176.58M	-172.23M	-294.63M	-211.14M	-125.00M
Net Income	-175.88M	-186.26M	-160.93M	-255.06M	-206.30M	-170.30M
Balance Sheet
Total Assets	398.67M	440.69M	506.22M	705.56M	921.46M	622.46M
Cash, Cash Equivalents and Short-Term Investments	240.43M	279.07M	315.18M	436.23M	615.91M	482.92M
Total Debt	83.33M	85.27M	103.54M	109.34M	114.82M	97.30M
Total Liabilities	110.26M	121.97M	137.80M	221.62M	242.62M	238.01M
Stockholders Equity	288.41M	318.73M	368.42M	483.94M	678.84M	384.44M
Cash Flow
Free Cash Flow	-125.17M	-123.60M	-138.42M	-283.77M	-213.57M	-44.16M
Operating Cash Flow	-123.33M	-122.87M	-132.26M	-248.21M	-162.87M	-39.23M
Investing Cash Flow	37.58M	12.22M	112.67M	166.75M	-324.02M	-161.08M
Financing Cash Flow	4.40M	99.89M	85.00K	9.21M	453.13M	282.84M

Fate Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FATE, the sentiment is Neutral. The current price of 1.15 is below the 20-day moving average (MA) of 1.16, below the 50-day MA of 1.20, and below the 200-day MA of 1.68, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 64.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FATE.

Fate Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEER	55 Neutral	$127.70M	―	-24.73%	―	-1.02%	-8.59%
SLN	52 Neutral	$306.05M	―	-99.23%	―	-40.10%	-16.60%
Sector *	52 Neutral	$7.59B	0.30	-61.86%	2.27%	16.72%	1.10%
ADCT	51 Neutral	$312.41M	―	123.38%	―	10.49%	47.31%
FATE	50 Neutral	$132.97M	―	-49.23%	―	105.85%	22.13%
FDMT	46 Neutral	$201.51M	―	-32.97%	―	―	―
KRRO	45 Neutral	$138.23M	―	-60.22%	―	―	85.19%

Fate Therapeutics Corporate Events

Fate Therapeutics Approves Key Proposals at Annual Meeting

On May 29, 2025, Fate Therapeutics held its Annual Meeting of Stockholders, where several key proposals were approved, including the appointment of Matthew Abernethy as a Class III director and member of the Audit Committee. The stockholders also approved an amendment to increase the authorized shares of Common Stock from 250,000,000 to 350,000,000, among other proposals. These decisions are expected to strengthen the company’s governance and support its strategic growth initiatives in the biopharmaceutical sector.

The most recent analyst rating on (FATE) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Fate Therapeutics stock, see the FATE Stock Forecast page.