Fortress Biotech (FBIO) AI Stock Analysis

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Fortress Biotech

(NASDAQ:FBIO)

42Neutral

Fortress Biotech faces significant financial and operational challenges, reflected in its low financial performance score. While the earnings call highlighted key achievements like the launch of Emrosi and a decent cash position, these were offset by declining revenues and increased losses. Technical analysis shows bearish trends, and the valuation is unattractive due to negative earnings. Strategic improvements and successful commercialization of Emrosi are crucial for future growth.

Fortress Biotech (FBIO) vs. S&P 500 (SPY)

Market Cap

$43.12M

Dividend YieldN/A

Average Volume (3M)329.83K

Price to Earnings (P/E)―

Beta (1Y)1.70

Revenue Growth-31.76%

EPS Growth86.19%

CountryUS

Employees186

SectorHealthcare

Sector Strength71

IndustryBiotechnology

Share Statistics

EPS (TTM)-2.99

Shares Outstanding29,533,840

10 Day Avg. Volume228,611

30 Day Avg. Volume329,828

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.58

Price to Cash Flow (P/CF)-0.60

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$16.00

Price Target Upside919.11% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Fortress Biotech Business Overview & Revenue Model

Company DescriptionFortress Biotech (FBIO) is a biopharmaceutical company engaged in the development, acquisition, and commercialization of innovative pharmaceutical and biotechnology products. The company operates in the healthcare sector and is focused on advancing a diverse pipeline of promising therapeutic candidates across various stages of development. These candidates span multiple areas, including oncology, rare diseases, and gene therapy, aimed at addressing unmet medical needs.

How the Company Makes MoneyFortress Biotech generates revenue through a combination of product sales, royalties, and milestone payments. The company collaborates with a number of subsidiary and partner companies to advance its drug candidates. Revenue is primarily derived from the commercialization of approved products, which are marketed and sold either directly by Fortress or through its subsidiaries and partners. Additionally, Fortress earns milestone payments and royalties from its strategic partnerships and licensing agreements with other biopharmaceutical companies. These partnerships often involve co-development and commercialization arrangements where Fortress leverages its expertise and resources to bring innovative therapies to market.

Fortress Biotech Financial Statement Overview

Summary

Fortress Biotech faces significant financial challenges, with consistent losses and high leverage. Despite some revenue growth, the company's profitability and cash flow generation remain weak, posing risks to its financial health. Continued focus on improving operational efficiency and managing debt is crucial for future stability.

Income Statement

Neutral

Fortress Biotech has shown some revenue growth over the years, but continues to struggle with profitability. The TTM (Trailing-Twelve-Months) data reveals negative EBIT and net income margins, indicating ongoing challenges in achieving operational efficiency and profitability. The revenue growth rate from 2022 to 2023 was negative, suggesting a downturn in sales performance.

Balance Sheet

Negative

The company's balance sheet shows high leverage with a debt-to-equity ratio indicating significant reliance on debt financing. The declining equity ratio over the years reflects a weakening financial position. Return on equity is negative, pointing to profitability issues. Despite maintaining some cash reserves, the reduction in total assets and stockholders' equity suggests financial instability.

Cash Flow

Neutral

Cash flow analysis shows consistent negative operating and free cash flows, indicating substantial cash outflows from operations. However, there has been some improvement in free cash flow growth rate, supported by financing activities. The operating cash flow to net income ratio is unfavorable, reflecting the company's struggle to convert income into cash.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
62.50M	84.51M	75.74M	68.79M	45.60M	36.63M
	Gross Profit
37.47M	57.85M	44.97M	36.71M	31.00M	26.10M
	EBIT
-106.11M	-142.34M	-202.26M	-179.00M	-94.27M	-110.82M
	EBITDA
-107.42M	-133.64M	-190.47M	-142.25M	-87.82M	-85.16M
	Net Income Common Stockholders
-50.83M	-60.64M	-213.91M	-164.83M	-102.98M	-51.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.73M	80.93M	178.27M	305.74M	233.35M	136.86M
	Total Assets
18.04M	167.53M	294.30M	396.50M	328.83M	226.42M
	Total Debt
750.00K	88.59M	127.34M	74.98M	89.08M	115.14M
	Net Debt
-16.98M	7.67M	-50.92M	-230.77M	-144.28M	-21.72M
	Total Liabilities
4.59M	165.94M	244.28M	170.63M	131.84M	153.89M
	Stockholders Equity
13.45M	22.54M	41.72M	108.67M	100.34M	26.21M
Cash Flow		Free Cash Flow
-102.28M	-136.32M	-182.46M	-132.89M	-90.85M	-104.36M
	Operating Cash Flow
-102.22M	-128.22M	-179.40M	-116.54M	-83.68M	-94.96M
	Investing Cash Flow
-63.00K	-2.10M	-22.93M	40.51M	-7.16M	20.10M
	Financing Cash Flow
88.45M	32.74M	75.32M	148.99M	172.41M	146.71M

Fortress Biotech Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price1.57

Price Trends

50DMA

1.64

Negative

100DMA

1.78

Negative

200DMA

1.81

Negative

Market Momentum

MACD

-0.06

Positive

RSI

49.05

Neutral

STOCH

50.82

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBIO, the sentiment is Neutral. The current price of 1.57 is below the 20-day moving average (MA) of 1.59, below the 50-day MA of 1.64, and below the 200-day MA of 1.81, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 49.05 is Neutral, neither overbought nor oversold. The STOCH value of 50.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FBIO.

Fortress Biotech Risk Analysis

Fortress Biotech disclosed 64 risk factors in its most recent earnings report. Fortress Biotech reported the most risks in the “Finance & Corporate” category.

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

Latest Risks Added 0 New Risks

Fortress Biotech Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANIP	65 Neutral	$1.48B	―	-4.86%	―	26.20%	-219.22%
ARDX	60 Neutral	$1.06B	―	-23.01%	―	168.06%	44.66%
BCRX	52 Neutral	$1.43B	―	18.68%	―	36.00%	63.50%
Sector *	48 Neutral	$6.46B	1.17	-48.25%	2.67%	19.50%	0.61%
FBIO	42 Neutral	$43.12M	―	-203.16%	―	-31.76%	86.19%
XOMA	39 Underperform	$238.70M	―	-16.20%	―	498.72%	49.92%
KPTI	36 Underperform	$36.10M	―	41.08%	―	-0.55%	49.85%

* Healthcare Sector Average

Performance Comparison

FBIO

Fortress Biotech

1.57

-0.25

-13.74%

BCRX

BioCryst

7.04

2.37

50.75%

XOMA

Xoma

20.28

-4.06

-16.68%

KPTI

Karyopharm Therapeutics

4.21

-13.11

-75.69%

ANIP

ANI Pharmaceuticals

68.72

2.42

3.65%

ARDX

Ardelyx

4.57

-2.23

-32.79%

Fortress Biotech Earnings Call Summary

Earnings Call Date: Mar 31, 2025 | % Change Since: 0.64% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook with significant achievements like the successful launch of Emrosi, strong cash position, and positive clinical data publications. However, these were offset by challenges such as decreased net product revenue, increased net loss, and initial payer coverage hurdles for Emrosi.

Highlights

Successful Launch of Emrosi

Journey Medical launched Emrosi, an oral treatment for Rosacea, after receiving FDA approval in November 2024. The product is expected to be transformational, entering a $1 billion treatment category.

Revenue Achievements

Annual revenue for 2024 was reported at $56 million, with the company achieving positive non-GAAP adjusted EBITDA for the sixth consecutive quarter.

Regulatory Milestones Completed

Journey Medical completed all financial obligations related to Emrosi's regulatory fees and development milestones in the U.S., clearing the way for its commercial debut.

Strong Cash Position

Despite significant payments, Journey Medical maintained a strong balance sheet with $20.3 million in cash as of December 31, 2024.

Significant Interest at AAD Conference

The company reported high interest and engagement at the 2025 AAD Conference, supporting a strong launch for Emrosi.

Positive Peer-Reviewed Publications

Phase 3 results of Emrosi were published in JAMA Dermatology, highlighting its clinical superiority and favorable safety profile.

Lowlights

Decrease in Net Product Revenue

2024 net product revenue decreased to $55.1 million from $59.7 million in 2023, primarily due to higher rebate costs and lower unit volumes of legacy products.

Increase in Net Loss

Net loss to common shareholders increased to $14.7 million in 2024 compared to $3.9 million in 2023, influenced by the absence of significant licensing payments received in the previous year.

Limited Initial Payer Coverage

As of the call, Emrosi had 20% commercial payer coverage and 4% Medicare coverage, indicating initial challenges in gaining insurance adoption.

R&D Expenses Increased

Research and development expenses increased by $2.3 million to $9.9 million due to non-recurring payments related to Emrosi's NDA filing and milestone payments.

Company Guidance

During the Journey Medical's 2024 Financial Results and Corporate Update Conference Call, the management highlighted several key metrics and developments. The company reported an annual revenue of $56 million, with the fourth quarter marking the sixth consecutive quarter of positive non-GAAP adjusted EBITDA. Journey Medical successfully launched Emrosi, an oral treatment for Rosacea, after receiving first cycle FDA approval in November 2024. They also completed $22 million in FDA filing fees and milestone payments to Dr. Reddy Labs. As of December 31, 2024, the company maintained a strong balance sheet with $20.3 million in cash. Despite a net loss of $14.7 million, or $0.72 per share, Journey Medical achieved a positive non-GAAP adjusted EBITDA of $800,000, or $0.04 per share basic. The company anticipates significant growth opportunities with Emrosi entering a $1 billion treatment category, aiming for peak annual sales of $200 million in the U.S. and $100 million internationally.

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.