Fate Therapeutics (FATE) AI Stock Analysis

• Market Cap: $117.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.69
• Revenue Growth: -31.23%
• EPS Growth: 14.92%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -0.29
• Shares Outstanding: 115,329,700
• 10 Day Avg. Volume: 1,280,357
• 30 Day Avg. Volume: 1,433,020
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.07
• Enterprise Value/Revenue: -1.03
• Enterprise Value/Gross Profit: -1.68
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: $4.21
• Price Target Upside: 338.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 44 Neutral
• Price Target: $1.00 ▲(4.17% Upside)

Fate Therapeutics' overall stock score is primarily impacted by its weak financial performance, characterized by persistent losses and negative cash flow. The technical analysis indicates a bearish trend, while valuation metrics are unfavorable due to a negative P/E ratio. Despite positive corporate events, the lack of earnings call data limits the assessment of future prospects.

Positive Factors

Corporate Restructuring

The restructuring plan aims to optimize operations and extend the cash runway, which can improve financial stability and support long-term growth.

Clinical Program Progress

Advancements in clinical programs indicate potential for future revenue growth and strengthen the company's position in the biopharmaceutical market.

Governance Strengthening

Strengthened governance and increased share authorization support strategic growth initiatives, enhancing long-term operational and financial prospects.

Negative Factors

Negative Revenue Growth

Significant revenue decline highlights challenges in achieving sustainable growth and may impact future profitability and market competitiveness.

Persistent Losses

Ongoing losses indicate difficulty in achieving profitability, which can strain financial resources and hinder long-term business viability.

Negative Cash Flow

Negative cash flow underscores the challenge of generating sufficient cash to cover expenditures, potentially limiting operational flexibility and growth.

Fate Therapeutics Business Overview & Revenue Model

Company Description

Fate Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing innovative cellular immunotherapies for cancer and immune disorders. The company specializes in the advancement of programmed cellular therapies, utilizing its proprietary induced pluripotent stem cell (iPSC) technology to produce off-the-shelf immune cells designed to target and destroy cancer cells. Fate Therapeutics operates in the biotechnology sector and is dedicated to creating transformative treatments that harness the power of the immune system.

How the Company Makes Money

Fate Therapeutics generates revenue primarily through the development of its therapeutic candidates, which are funded by collaborations and partnerships with larger pharmaceutical companies. The company engages in strategic alliances that provide upfront payments, milestone payments tied to clinical progress, and royalties on future sales of products developed using its technology. Additionally, Fate Therapeutics may receive funding through government grants and research contracts. Its revenue model is heavily reliant on successful research and development outcomes, regulatory approvals for its therapies, and the commercialization of its products in collaboration with partners.

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. The company has a negative gross profit margin and deeply negative net profit margins. The balance sheet shows a manageable debt-to-equity ratio but a declining equity base, raising sustainability concerns.

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	8.47M	13.63M	63.53M	96.30M	55.85M	31.43M
Gross Profit	5.19M	13.63M	-93.65M	82.54M	50.00M	-94.19M
EBITDA	-164.88M	-176.58M	-172.23M	-294.63M	-211.14M	-125.00M
Net Income	-171.52M	-186.26M	-160.93M	-281.72M	-212.15M	-173.39M
Balance Sheet
Total Assets	371.63M	440.69M	506.22M	705.56M	921.46M	622.46M
Cash, Cash Equivalents and Short-Term Investments	222.83M	279.07M	315.18M	436.23M	615.91M	482.92M
Total Debt	81.33M	85.27M	103.54M	109.34M	114.82M	97.30M
Total Liabilities	110.27M	121.97M	137.80M	221.62M	242.62M	238.01M
Stockholders Equity	261.36M	318.73M	368.42M	483.94M	678.84M	384.44M
Cash Flow
Free Cash Flow	-118.77M	-123.60M	-138.42M	-283.77M	-213.57M	-44.16M
Operating Cash Flow	-115.61M	-122.87M	-132.26M	-248.21M	-162.87M	-39.23M
Investing Cash Flow	110.54M	12.22M	112.67M	166.75M	-324.02M	-161.08M
Financing Cash Flow	4.46M	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: 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 0.96 is below the 20-day moving average (MA) of 1.07, below the 50-day MA of 1.10, and below the 200-day MA of 1.30, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 34.19 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
ADCT	54 Neutral	$374.62M	―	123.38%	―	15.73%	38.73%
FDMT	52 Neutral	$330.19M	―	-38.87%	―	―	―
Sector *	51 Neutral	$8.02B	-0.31	-43.38%	2.24%	22.31%	-2.14%
SEER	50 Neutral	$116.06M	―	-25.25%	―	12.13%	-8.23%
SLN	49 Neutral	$230.50M	―	-99.23%	―	-40.10%	-16.60%
KRRO	45 Neutral	$322.95M	―	-58.34%	―	―	61.73%
FATE	44 Neutral	$117.64M	―	-52.11%	―	-31.23%	14.92%

Fate Therapeutics Corporate Events

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.