Fate Therapeutics (FATE) AI Stock Analysis

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Fate Therapeutics

(NASDAQ:FATE)

Rating:57Neutral

Price Target:

$1.50

▲(11.94%Upside)

The overall stock score is primarily influenced by the company's challenging financial performance and valuation, which are significant concerns. However, technical analysis and recent corporate events provide some positive outlook, indicating potential strategic growth and short-term bullish momentum.

Positive Factors

Clinical Advancements

FATE announced the first administration of FT819 to a patient with SLE without conditioning chemotherapy, which is a differentiated approach to allogeneic cell therapies.

Financial Performance

FATE reported a net loss per share that was better than the consensus expectation.

Regulatory Support

CBER’s recent RMAT designation for FT819 provides Fate access to regulators to refine their development strategy.

Negative Factors

Program Prioritization

Signs of FT522’s de-prioritization indicate a decided preference for CAR-T over CAR-NK cell therapies.

Regulatory Uncertainty

Sentiment will be pressured by uncertainty regarding new CBER leadership’s commitment to accelerated approval pathways for novel cell therapies.

Fate Therapeutics (FATE) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$155.90M

Dividend YieldN/A

Average Volume (3M)1.66M

Price to Earnings (P/E)―

Beta (1Y)2.76

Revenue Growth105.85%

EPS Growth22.13%

CountryUS

Employees181

SectorHealthcare

Sector Strength41

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.32

Shares Outstanding114,633,020

10 Day Avg. Volume1,316,884

30 Day Avg. Volume1,657,747

Financial Highlights & Ratios

PEG Ratio-0.09

Price to Book (P/B)0.52

Price to Sales (P/S)0.00

P/FCF Ratio-1.16

Enterprise Value/Market Cap1.18

Enterprise Value/Revenue3.49

Enterprise Value/Gross Profit-8.65

Enterprise Value/Ebitda-0.27

Forecast

1Y Price Target

$4.92

Price Target Upside267.16% Upside

Rating ConsensusHold

Number of Analyst Covering9

Fate Therapeutics Business Overview & Revenue Model

Company DescriptionFate 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 MoneyFate Therapeutics generates revenue primarily through collaborations and partnerships with other pharmaceutical companies and research institutions. These partnerships often involve upfront payments, milestone payments based on the achievement of specific development goals, and potential royalties on sales of successfully commercialized products. Additionally, the company might receive grants and research funding to support its development programs. Fate Therapeutics' revenue model is largely dependent on the successful advancement of its clinical pipeline and the establishment of strategic alliances to support the commercialization of its therapies.

Fate Therapeutics Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q1-2024)

% Change Since: 34.00%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant progress in clinical trials, particularly with FT819 and FT522, alongside a strong financial position. However, revenue growth remains limited and operating expenses are high, suggesting a balanced outlook with promising clinical achievements countered by financial challenges.

Q1-2024 Updates

Positive Updates

FT819 and FT522 Data Presentation

Presented promising data from FT819 and FT522 programs at the ASGCT Annual Meeting, showing potential disease-modifying effects and immune reset in B-cell-mediated autoimmune diseases.

First Lupus Patient Treated

The first lupus patient was treated with FT819, showing no notable adverse events post-treatment.

Strong Financial Position and Fundraising

Raised $100 million through an underwritten offering and a private placement, ending the quarter with $391 million in cash, cash equivalents, and investments.

FT522 Safety Assessment

First 3 patients in FT522 study completed safety assessment without dose-limiting toxicities.

Negative Updates

Limited Revenue Growth

Reported revenue of $1.9 million, consistent with prior quarters, reflecting limited growth.

High Operating Expenses

Total operating expenses for the quarter increased by 7% relative to the fourth quarter of 2023 to $53 million.

Company Guidance

During the Fate Therapeutics Q1 2024 earnings call, the company provided guidance on its clinical and financial outlook. Key program initiatives were discussed, including the FT819 CAR T-cell and FT522 CAR NK cell programs, with notable translational data presented at the American Society of Gene and Cell Therapy Annual Meeting. The company highlighted its plans to achieve several clinical milestones across its iPSC product pipeline, targeting both cancer and autoimmune diseases. Financially, Fate Therapeutics raised $100 million through an underwritten offering and private placement, ending the first quarter with approximately $391 million in cash. Operating expenses for the full year are projected between $215 million and $230 million, with a year-end cash balance exceeding $270 million. The company's strategic focus is on demonstrating the disease-modifying potential of its therapies while maintaining a strong financial position to support ongoing and future clinical development.

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

Negative

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

Neutral

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

Neutral

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
-200.49M	-210.28M	-190.51M	-308.39M	-216.99M	-128.09M
	EBITDA
-168.28M	-176.58M	-172.23M	-294.63M	-211.14M	-125.00M
	Net Income Common Stockholders
-175.88M	-186.26M	-160.93M	-255.06M	-206.30M	-170.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
383.54M	279.07M	315.18M	436.23M	615.91M	482.92M
	Total Assets
569.89M	440.69M	506.22M	705.56M	921.46M	622.46M
	Total Debt
102.07M	85.27M	103.54M	109.34M	114.82M	97.30M
	Net Debt
-19.25M	49.21M	61.67M	48.01M	-18.77M	-70.05M
	Total Liabilities
143.78M	121.97M	137.80M	221.62M	242.62M	238.01M
	Stockholders Equity
426.12M	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

Positive

Last Price1.34

Price Trends

50DMA

1.10

Positive

100DMA

1.15

Positive

200DMA

1.98

Negative

Market Momentum

MACD

0.07

Negative

RSI

57.75

Neutral

STOCH

78.80

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FATE, the sentiment is Positive. The current price of 1.34 is above the 20-day moving average (MA) of 1.18, above the 50-day MA of 1.10, and below the 200-day MA of 1.98, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.75 is Neutral, neither overbought nor oversold. The STOCH value of 78.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FATE.

Fate Therapeutics Risk Analysis

Fate Therapeutics disclosed 84 risk factors in its most recent earnings report. Fate Therapeutics reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 3 New Risks

Our stock price has been and may continue to be volatile or may decline regardless of our operating performance. Q4, 2024

A sustained decline in our stock price may result in an impairment indication which could have an adverse impact on our results of operations. Q4, 2024

We currently qualify as a "smaller reporting company" and a "non-accelerated filer," and any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to such companies could make our common shares less attractive to investors. Q4, 2024

Fate Therapeutics Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADCT	58 Neutral	$331.26M	―	123.38%	―	10.49%	47.31%
SEER	57 Neutral	$128.87M	―	-24.73%	―	-1.02%	-8.59%
FATE	57 Neutral	$155.90M	―	-49.23%	―	105.85%	22.13%
Sector *	54 Neutral	$5.28B	3.29	-45.38%	2.80%	16.77%	-0.08%
SLN	52 Neutral	$259.77M	―	-99.23%	―	-40.10%	-16.60%
FDMT	51 Neutral	$177.42M	―	-32.97%	―	―	―
KRRO	45 Neutral	$112.03M	―	-60.22%	―	―	85.19%

* Healthcare Sector Average

Performance Comparison

FATE

Fate Therapeutics

1.34

-2.34

-63.59%

KRRO

Korro Bio

12.35

-34.05

-73.38%

ADCT

ADC Therapeutics

3.44

0.02

0.58%

SLN

Silence Therapeutics

5.41

-15.07

-73.58%

SEER

Seer

2.18

0.45

26.01%

FDMT

4D Molecular Therapeutics

3.91

-18.81

-82.79%

Fate Therapeutics Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy

Fate Therapeutics Approves Key Proposals at Annual Meeting

Positive

May 30, 2025

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.