Forte Biosciences (FBRX) AI Stock Analysis

• Market Cap: $55.89M
• Dividend Yield: N/A
• Average Volume (3M): 25.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: N/A
• EPS Growth: 43.64%
• Country: US
• Employees: 14
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -1.37
• Shares Outstanding: 6,583,382
• 10 Day Avg. Volume: 20,948
• 30 Day Avg. Volume: 25,200
• PEG Ratio: -0.14
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.50
• Enterprise Value/Market Cap: 0.10
• Enterprise Value/Revenue: 485.29
• Enterprise Value/Gross Profit: -582.35
• Enterprise Value/Ebitda: -0.04
• 1Y Price Target: $61.00
• Price Target Upside: 618.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 36 Underperform
• Price Target: ―

Forte Biosciences faces significant challenges with no revenue and increasing operational losses, leading to a weak financial performance. Technical analysis indicates a mixed outlook with bearish long-term trends. The negative P/E ratio and lack of dividend yield highlight valuation concerns. Without positive developments in these areas, the stock remains highly speculative and risky.

Positive Factors

Clinical Trials

The company continues to advance lead asset FB102 towards topline data in celiac disease, and management notes that there have still been no discontinuations to date, suggesting good tolerability.

Competitive Advantage

FB102 shows greater potency than observed with competing IL-15 mAbs like AMGN's ordesekimab (AMG-714) and NVS's CALY-002.

Mechanism of Action

FB102 is designed to reduce pathogenic NK and T cells by preferentially inhibiting signaling via the low-affinity IL-2/IL-15 receptor complex while sparing immunomodulatory regulatory T cells (Tregs).

Negative Factors

Financial Management

Cash reserves are at $46M, which could pose a challenge in sustaining long-term research and development activities without additional funding.

Operational Expenses

Forte Biosciences reported Q1 OpEx of ($16M), above the estimated ($10M), indicating higher than expected operational costs.

Forte Biosciences Business Overview & Revenue Model

Company Description

Forte Biosciences, Inc. (FBRX) is a clinical-stage biopharmaceutical company dedicated to developing innovative therapies for the treatment of inflammatory skin diseases. The company's primary focus is on atopic dermatitis, a chronic skin condition characterized by inflammation and itching. Forte Biosciences leverages its proprietary FB-401 platform, which is a live biotherapeutic product designed to modulate the immune system and address the underlying causes of such skin conditions.

How the Company Makes Money

Forte Biosciences generates revenue through the development and commercialization of its therapeutic candidates. As a clinical-stage company, its primary source of potential revenue is from licensing agreements, collaborations, and partnerships with larger pharmaceutical companies. These partnerships can provide upfront payments, milestone payments, and royalties on future sales of successfully developed and commercialized products. However, as of the latest available information, Forte Biosciences does not yet have any approved products on the market and thus relies heavily on investor funding and strategic partnerships to finance its operations and continue its research and development efforts.

Forte Biosciences Financial Statement Overview

Summary

Forte Biosciences is in a challenging position with no revenue and increasing losses. While the balance sheet shows no debt, the reliance on equity and external financing raises concerns about sustainability if revenue generation does not commence. The cash flow situation underscores the need for significant operational improvements or strategic partnerships to ensure long-term viability.

Income Statement

Forte Biosciences has reported zero revenue consistently over the years, indicating an early-stage or struggling biotechnology firm. With net income persistently negative and worsening, the company demonstrates a lack of profitability. The EBIT and EBITDA margins are also negative, emphasizing operational inefficiencies. Overall, the company is in a critical financial situation with no revenue to offset its operational costs.

Balance Sheet

The company has no debt, indicating low financial risk from leverage, but this is offset by declining stockholders' equity over recent years. The equity ratio remains strong, signifying that a large portion of the company's assets is financed by equity. However, given the lack of revenue, reliance on equity could be unsustainable long-term without a clear growth trajectory or strategic funding.

Cash Flow

Operating cash flow is consistently negative, indicating that the firm is not generating sufficient cash from its core operations. Free cash flow is similarly negative, although the company has managed to sustain operations through financing activities. The high financing cash flow suggests dependence on external funding, which could pose a risk if such funding becomes unavailable.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-10.00K	0.00	-9.00K	0.00	-36.00K	-54.00K
	EBIT
-44.92M	-36.60M	-32.49M	-13.90M	-21.49M	17.83M
	EBITDA
-44.89M	-35.44M	-32.48M	-13.90M	-21.45M	-46.43M
	Net Income Common Stockholders
-43.71M	-35.48M	-31.48M	-13.86M	-21.71M	-78.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.86M	58.37M	37.13M	41.10M	42.04M	58.77M
	Total Assets
47.46M	61.56M	38.98M	42.00M	43.31M	61.24M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-45.86M	-22.24M	-11.96M	-41.10M	-42.04M	-58.77M
	Total Liabilities
9.03M	9.08M	3.67M	3.18M	1.76M	2.26M
	Stockholders Equity
38.43M	52.48M	35.31M	38.82M	41.55M	58.98M
Cash Flow		Free Cash Flow
-34.52M	-30.78M	-28.79M	-8.19M	-16.68M	-18.42M
	Operating Cash Flow
-34.43M	-30.75M	-28.71M	-8.19M	-16.68M	-18.42M
	Investing Cash Flow
302.00K	-35.99M	47.00K	0.00	0.00	3.58M
	Financing Cash Flow
49.54M	51.86M	24.68M	7.24M	-44.00K	66.67M

Forte Biosciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.49
• 50DMA: Positive
• 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 FBRX, the sentiment is Positive. The current price of 8.49 is above the 20-day moving average (MA) of 7.11, above the 50-day MA of 6.87, and below the 200-day MA of 10.13, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 63.08 is Neutral, neither overbought nor oversold. The STOCH value of 58.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBRX.

Forte Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.14B	3.18	-44.88%	2.84%	16.89%	-0.22%
CNTB	49 Neutral	$41.79M	―	-58.89%	―	―	―
SPRO	48 Neutral	$38.93M	10.83	-107.28%	―	-71.68%	-397.61%
NRXP	45 Neutral	$45.30M	―	108.28%	―	―	41.01%
ARMP	44 Neutral	$68.41M	―	81.15%	―	―	99.47%
KPTI	38 Underperform	$39.66M	―	41.08%	―	1.19%	61.65%
FBRX	36 Underperform	$55.89M	―	-130.27%	―	―	43.64%

Forte Biosciences Corporate Events

Forte Biosciences Secures $53M for FB102 Advancements

Forte Biosciences, Inc. has announced a successful $53 million private placement with key institutional investors to advance its lead candidate, FB102, in autoimmune indications. The oversubscribed financing demonstrates strong investor confidence, enabling Forte to further clinical trials and explore additional applications for FB102. With a celiac disease trial underway and other studies planned, Forte anticipates significant clinical milestones in 2025.