Fate Therapeutics (FATE) AI Stock Analysis

• Market Cap: $124.58M
• Dividend Yield: N/A
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.14
• Revenue Growth: -46.92%
• EPS Growth: 20.26%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.27
• Shares Outstanding: 115,352,290
• 10 Day Avg. Volume: 1,752,374
• 30 Day Avg. Volume: 2,275,470
• PEG Ratio: 0.00
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 13.76
• P/FCF Ratio: -1.52
• Enterprise Value/Market Cap: 0.11
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 1.93
• Enterprise Value/Ebitda: -0.10
• 1Y Price Target: $5.29
• Price Target Upside: 451.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): -1.15
• Revenue Forecast (FY): $6.52M

• Rating: 41 Neutral
• Price Target: $1.00 ▲(4.17% Upside)

Fate Therapeutics' overall stock score is primarily impacted by its weak financial performance and technical analysis. The company's persistent financial losses and negative cash flow are significant concerns, while the bearish technical indicators suggest continued downward pressure on the stock price. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score, making the stock less attractive to investors.

Positive Factors

Innovative Technology

Fate Therapeutics' use of iPSC technology positions it at the forefront of cellular immunotherapy, offering potential breakthroughs in cancer treatment.

Strategic Partnerships

Strategic alliances provide financial support and enhance development capabilities, crucial for advancing therapeutic candidates to market.

Low Debt Levels

Maintaining low debt levels ensures financial flexibility, allowing the company to invest in R&D without significant financial strain.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates ongoing operational challenges, potentially limiting the company's ability to fund future growth independently.

Declining Revenue

Significant revenue decline reflects challenges in product commercialization and market penetration, impacting long-term growth prospects.

Persistent Losses

Ongoing losses highlight the struggle to achieve profitability, which is crucial for sustaining operations and attracting future investment.

Fate Therapeutics Business Overview & Revenue Model

Company Description

Fate Therapeutics, Inc. is a biotechnology company focused on developing innovative cell-based therapies for cancer and immune disorders. The company operates primarily in the regenerative medicine sector, leveraging its proprietary induced pluripotent stem cell (iPSC) platform to create off-the-shelf cellular therapies that are designed to enhance the immune system's ability to combat diseases. Key products in their pipeline include various engineered cell therapies intended for the treatment of hematologic malignancies and solid tumors, as well as applications in hematopoietic cell transplantation and autoimmune diseases.

How the Company Makes Money

Fate Therapeutics generates revenue through a combination of product development collaborations, licensing agreements, and the advancement of its clinical programs. Significant revenue streams include milestone payments from partnerships with pharmaceutical companies, royalties on future sales of licensed products, and potential product sales once therapies receive regulatory approval. The company collaborates with leading organizations in the biopharmaceutical industry to develop and commercialize its therapies, which can provide substantial financial backing and resources while also offering avenues for revenue generation through successful clinical trials and market entry.

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	7.14M	13.63M	63.53M	96.30M	55.85M	31.43M
Gross Profit	7.14M	13.63M	-93.65M	82.54M	50.00M	-94.19M
EBITDA	-139.96M	-176.58M	-172.23M	-294.63M	-211.14M	-125.00M
Net Income	-156.09M	-186.26M	-160.93M	-281.72M	-212.15M	-173.39M
Balance Sheet
Total Assets	343.67M	440.69M	506.22M	705.56M	921.46M	622.46M
Cash, Cash Equivalents and Short-Term Investments	215.42M	279.07M	315.18M	436.23M	615.91M	482.92M
Total Debt	79.25M	85.27M	103.54M	109.34M	114.82M	97.30M
Total Liabilities	109.61M	121.97M	137.80M	221.62M	242.62M	238.01M
Stockholders Equity	234.07M	318.73M	368.42M	483.94M	678.84M	384.44M
Cash Flow
Free Cash Flow	-115.43M	-123.60M	-138.42M	-283.77M	-213.57M	-44.16M
Operating Cash Flow	-110.57M	-122.87M	-132.26M	-248.21M	-162.87M	-39.23M
Investing Cash Flow	106.35M	12.22M	112.67M	166.75M	-324.02M	-161.08M
Financing Cash Flow	6.93M	99.89M	85.00K	9.21M	453.13M	282.84M

Fate Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.96
• 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 FATE, the sentiment is Neutral. The current price of 0.96 is below the 20-day moving average (MA) of 1.05, below the 50-day MA of 1.25, and below the 200-day MA of 1.14, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.18 is Neutral, neither overbought nor oversold. The STOCH value of 61.86 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
STTK	53 Neutral	$121.88M	-1.60	-57.84%	―	-84.46%	33.32%
CGEN	52 Neutral	$150.59M	―	-52.95%	―	-88.47%	-1658.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CRDF	47 Neutral	$142.13M	-2.66	-102.71%	―	-27.29%	16.40%
ONC	43 Neutral	―	―	―	―	―	―
FATE	41 Neutral	$124.58M	-0.82	-52.35%	―	-46.92%	20.26%
NKTX	39 Underperform	$127.85M	―	-26.69%	―	―	25.84%

Fate Therapeutics Corporate Events

Fate Therapeutics Advances CAR T-Cell Therapy with New Clinical Study

Fate Therapeutics Inc. is conducting a Phase 1 clinical study titled ‘A Phase 1, Open-Label Study of FT836, an Off-the-Shelf CAR T-Cell Therapy, With or Without Chemotherapy and/or Monoclonal Antibodies, in Participants With Advanced Solid Tumors.’ The study aims to evaluate the safety and tolerability of FT836, a novel CAR T-cell therapy, in treating various advanced solid tumors, including lung, colorectal, breast, ovarian, endometrial, and head and neck cancers. The primary goal is to establish the recommended phase 2 dose of FT836 in combination with trastuzumab or cetuximab, with or without paclitaxel chemotherapy.

Fate Therapeutics’ Phase 1 Study: A Potential Game-Changer in Autoimmune Disease Treatment

Study Overview: Fate Therapeutics Inc. is conducting a Phase 1 study titled A Phase 1 Study of FT819 in B-cell Mediated Autoimmune Disease. The study aims to evaluate the safety, pharmacokinetics, and anti-B-cell activity of FT819 in participants with moderate to severe autoimmune conditions such as systemic lupus erythematosus, ANCA-associated vasculitis, idiopathic inflammatory myositis, and systemic sclerosis. This study is significant as it explores a novel treatment approach for these challenging conditions.

Fate Therapeutics’ Innovative CAR T-Cell Therapy Study: A Potential Game-Changer in Cancer Treatment

Fate Therapeutics Inc. is conducting a Phase 1 study titled A Phase 1 Study of FT825/ONO-8250, an Off-the-Shelf CAR T-Cell Therapy, With or Without Monoclonal Antibodies, in HER2-Positive or Other Advanced Solid Tumors. The study aims to assess the safety, tolerability, and antitumor activity of FT825, a CAR T-cell therapy, with or without monoclonal antibodies in patients with advanced HER2-positive or other solid tumors. This study is significant as it explores innovative treatment options for challenging cancer types.

Fate Therapeutics Reports Promising Phase 1 Trial Results

On October 26, 2025, Fate Therapeutics announced promising results from a Phase 1 clinical trial of its FT819 CAR T-cell therapy for systemic lupus erythematosus (SLE), presented at the ACR Convergence 2025. The trial, involving 10 patients, demonstrated significant reductions in disease activity scores and favorable safety profiles, suggesting potential for outpatient treatment and same-day discharge. The company is also advancing its clinical programs with plans for a pivotal study in 2026, aiming to enhance its market position in autoimmune disease treatment.

The most recent analyst rating on (FATE) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Fate Therapeutics stock, see the FATE Stock Forecast page.

Fate Therapeutics Appoints New CFO Kamal Adawi

On October 10, 2025, John D. Mendlein and Neelufar Mozaffarian resigned from Fate Therapeutics‘ Board, leading to a reduction in the Board’s size from ten to eight members. Subsequently, on October 13, 2025, Kamal Adawi was appointed as the new Chief Financial Officer, effective October 20, 2025. Adawi, with over 20 years of financial leadership experience in the life sciences industry, is expected to play a crucial role in advancing the company’s financial strategy and supporting its clinical programs, particularly the development of FT819 in systemic lupus erythematosus (SLE).

The most recent analyst rating on (FATE) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Fate Therapeutics stock, see the FATE Stock Forecast page.

Fate Therapeutics Faces Nasdaq Delisting Risk: Implications for Investors

Fate Therapeutics Inc. faces a significant risk if its common stock is delisted from the Nasdaq Global Market, as this would negatively impact the liquidity and market price of its shares. The company must adhere to Nasdaq’s minimum requirements, such as maintaining a closing bid price of at least $1.00 per share, to avoid delisting. Failure to meet these criteria could hinder Fate Therapeutics’ ability to raise funds and materially affect the value of investments in the company. This potential delisting poses a substantial threat to the company’s financial stability and investor confidence.

Fate Therapeutics Reports Q2 2025 Financial Results

Fate Therapeutics Inc. is a clinical-stage biopharmaceutical company specializing in the development of off-the-shelf, multiplexed-engineered, induced pluripotent stem cell (iPSC)-derived cellular immunotherapies, primarily focusing on innovative treatments in the biotechnology sector.

Fate Therapeutics Announces Corporate Restructuring Plan

On August 7, 2025, Fate Therapeutics‘ Board of Directors approved a corporate restructuring to streamline operations, reduce expenses, and extend its cash runway, which includes a 12% reduction in workforce. The restructuring is expected to incur charges of $0.9 million to $1.2 million for severance and related costs in the third quarter of 2025. Additionally, the company reported significant progress in its clinical programs, particularly with its FT819 CAR T-cell product for autoimmune diseases, and plans to expand its trials to include other B cell-mediated autoimmune diseases. Fate Therapeutics is also advancing its pipeline with collaborations and new technologies, aiming to optimize resource allocation and extend its cash runway through the end of 2027.

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.