Fate Therapeutics (FATE) AI Stock Analysis

• Market Cap: $142.14M
• Dividend Yield: N/A
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.86
• Revenue Growth: 105.85%
• EPS Growth: 22.13%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -0.32
• Shares Outstanding: 114,633,020
• 10 Day Avg. Volume: 2,598,225
• 30 Day Avg. Volume: 2,012,192
• 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: 7.21
• Enterprise Value/Revenue: 19.44
• Enterprise Value/Gross Profit: -48.19
• Enterprise Value/Ebitda: -1.47
• 1Y Price Target: $4.87
• Price Target Upside: 292.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 45 Neutral
• Price Target: $1.00 ▼(-19.35%Downside)

Fate Therapeutics scores low overall due to significant financial challenges and poor valuation metrics. While technical analysis indicates some potential for short-term recovery, the persistent negative earnings and cash flow issues remain critical concerns. Recent corporate governance improvements are noted but have limited immediate impact on financial health.

Positive Factors

Clinical Results

All 3 patients achieved primary efficacy renal response (PERR), indicating a positive outcome for the treatment.

Efficacy and Safety

FT819 has demonstrated a clean safety profile thus far, aside from a single case of grade 2 CRS in a patient.

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.

Negative Factors

Regulatory Uncertainty

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

Safety Concerns

Additional clarity needed on low-grade CRS event.

Sample Size and Follow-up

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.

Fate Therapeutics Business Overview & Revenue Model

Company Description

Fate Therapeutics, Inc. (FATE) is a clinical-stage biopharmaceutical company based in the United States that specializes in the development of programmed cellular immunotherapies for cancer and immune disorders. The company leverages its proprietary iPSC (induced pluripotent stem cell) platform to create off-the-shelf cell products that are designed to target and eliminate cancer cells and restore immune function. Fate Therapeutics' core focus is on advancing its pipeline of cellular immunotherapy candidates, which include natural killer (NK) cell and T-cell product candidates.

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
	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
240.43M	279.07M	315.18M	436.23M	615.91M	482.92M
	Total Assets
398.67M	440.69M	506.22M	705.56M	921.46M	622.46M
	Total Debt
83.33M	85.27M	103.54M	109.34M	114.82M	97.30M
	Net Debt
38.41M	49.21M	61.67M	48.01M	-18.77M	-70.05M
	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: Negative
• Last Price: 1.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FATE, the sentiment is Negative. The current price of 1.24 is below the 20-day moving average (MA) of 1.33, above the 50-day MA of 1.19, and below the 200-day MA of 1.90, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 47.39 is Neutral, neither overbought nor oversold. The STOCH value of 13.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FATE.

Fate Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADCT	58 Neutral	$335.22M	―	123.38%	―	10.49%	47.31%
SLN	56 Neutral	$251.74M	―	-99.23%	―	-40.10%	-16.60%
SEER	54 Neutral	$121.81M	―	-24.73%	―	-1.02%	-8.59%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
FDMT	48 Neutral	$202.44M	―	-32.97%	―	―	―
FATE	45 Neutral	$142.14M	―	-49.23%	―	105.85%	22.13%
KRRO	45 Neutral	$127.15M	―	-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.