Forte Biosciences (FBRX) AI Stock Analysis

• Market Cap: $329.46M
• Dividend Yield: N/A
• Average Volume (3M): 97.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: N/A
• EPS Growth: 77.08%
• Country: US
• Employees: 14
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.99
• Shares Outstanding: 12,526,935
• 10 Day Avg. Volume: 83,173
• 30 Day Avg. Volume: 97,456
• PEG Ratio: 0.04
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.15
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -831.05
• Enterprise Value/Ebitda: -0.87
• 1Y Price Target: $65.00
• Price Target Upside: 168.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $27.00 ▲(11.66% Upside)

The score is constrained primarily by weak financial performance (no revenue, widening losses, and substantial cash burn), partially offset by a debt-free balance sheet. Technicals are a major positive, showing strong upward trend and supportive momentum, while valuation is less favorable/less interpretable due to negative earnings and no dividend.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility and reduces risk, allowing the company to focus on strategic growth initiatives without the burden of interest payments.

Proprietary Platform

The proprietary FB-401 platform could offer a competitive edge in developing innovative therapies, potentially leading to successful partnerships and future revenue streams.

Strategic Partnerships

Strategic partnerships can provide essential funding and resources, enabling the company to advance its R&D efforts and potentially bring products to market faster.

Negative Factors

No Revenue Generation

The lack of revenue generation highlights the company's early-stage status and reliance on external funding, posing a risk to long-term sustainability if product commercialization is delayed.

Negative Cash Flow

Negative cash flow from operations indicates the company is not self-sustaining, increasing dependence on external funding and raising concerns about financial viability.

Operational Inefficiencies

Persistent operational inefficiencies suggest challenges in cost management and profitability, which could hinder the company's ability to scale and achieve financial stability.

Forte Biosciences Business Overview & Revenue Model

Company Description

Forte Biosciences, Inc. operates as a clinical-stage biopharmaceutical company in the United States. It is developing FB-102 program that addresses various autoimmune diseases, such as vitiligo and alopecia areata. The company is headquartered in Dallas, Texas.

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	-55.00K	-39.00K	-9.00K	0.00	-36.00K	-54.00K
EBITDA	-52.48M	-35.44M	-32.48M	-13.86M	-21.45M	-46.43M
Net Income	-51.74M	-35.48M	-31.48M	-13.86M	-21.71M	-46.49M
Balance Sheet
Total Assets	97.09M	61.56M	38.98M	42.00M	43.31M	61.24M
Cash, Cash Equivalents and Short-Term Investments	93.41M	58.37M	37.13M	41.10M	42.04M	58.77M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	12.99M	9.08M	3.67M	3.18M	1.76M	2.26M
Stockholders Equity	84.10M	52.48M	35.31M	38.82M	41.55M	58.98M
Cash Flow
Free Cash Flow	-44.57M	-30.78M	-28.79M	-8.19M	-16.68M	-18.42M
Operating Cash Flow	-44.42M	-30.75M	-28.71M	-8.19M	-16.68M	-18.42M
Investing Cash Flow	247.00K	-35.99M	47.00K	0.00	0.00	3.58M
Financing Cash Flow	121.23M	51.86M	24.68M	7.24M	-44.00K	66.67M

Forte Biosciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 24.18 is below the 20-day moving average (MA) of 24.98, above the 50-day MA of 19.52, and above the 200-day MA of 12.68, indicating a bullish trend. The MACD of 1.54 indicates Positive momentum. The RSI at 58.03 is Neutral, neither overbought nor oversold. The STOCH value of 29.16 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
FBRX	56 Neutral	$329.46M	-5.44	-110.72%	―	―	77.08%
PLX	56 Neutral	$143.15M	28.78	12.64%	―	35.42%	―
SLS	52 Neutral	$575.47M	-13.45	-84.33%	―	―	59.04%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IPHA	49 Neutral	$170.08M	-2.91	-271.32%	―	-75.77%	-31.24%
TARA	48 Neutral	$293.78M	―	-49.42%	―	―	48.84%
CHRS	47 Neutral	$172.85M	-0.96	―	―	-72.54%	-19972.15%