Finch Therapeutics Group (FNCH) AI Stock Analysis

• Market Cap: $19.57M
• Dividend Yield: N/A
• Average Volume (3M): 1.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -8.82
• Shares Outstanding: 1,605,763
• 10 Day Avg. Volume: 651
• 30 Day Avg. Volume: 1,975
• 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: 0.66
• Enterprise Value/Revenue: 4.56
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: -0.67
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: ―

The overall score reflects significant financial challenges, including persistent losses, high leverage, and negative cash flows. Technical analysis provides mixed signals, with some upward trends but weak momentum. Valuation indicators highlight risk due to negative earnings and lack of dividends.

Positive Factors

Unique Platform

The company's unique platform for microbiome therapy development provides a competitive advantage, potentially leading to innovative treatments and long-term growth opportunities.

Partnerships and Collaborations

Strategic partnerships and collaborations provide Finch Therapeutics with diverse revenue streams and access to additional resources, enhancing its ability to innovate and expand its market presence.

Improved Stockholder Equity

The improvement in stockholder equity indicates a strengthening financial position, which can enhance investor confidence and provide a foundation for future growth.

Negative Factors

Persistent Losses

Ongoing financial losses and high leverage pose significant risks to Finch Therapeutics' sustainability, potentially limiting its ability to invest in growth and innovation.

Negative Cash Flows

Negative cash flows highlight inefficiencies in operations and raise concerns about the company's ability to sustain its activities without external financing.

Declining Revenues

Declining revenues reflect challenges in market demand or competitive positioning, which could hinder Finch Therapeutics' ability to achieve profitability and long-term growth.

Finch Therapeutics Group Business Overview & Revenue Model

Company Description

Finch Therapeutics Group, Inc., a clinical-stage microbiome therapeutics company, develops a novel class of orally administered biological drugs in the United States. The company's lead candidate is CP101, an orally administered microbiome capsule that is in Phase 3 clinical trial for the treatment of patients with recurrent Clostridioides difficile infection, as well as for the treatment of chronic hepatitis B virus. It is also developing FIN-211, an orally administered enriched consortia product candidate for use in the treatment of autism spectrum disorder; and TAK-524 and FIN-525, which are orally administered targeted consortia product candidates for the treatment of ulcerative colitis and Crohn's disease. The company has collaboration and license agreements with Takeda Pharmaceutical Company Limited; Skysong Innovations LLC; and University of Minnesota. Finch Therapeutics Group, Inc. was incorporated in 2014 and is based in Somerville, Massachusetts.

How the Company Makes Money

Finch Therapeutics Group makes money primarily through the development and commercialization of microbiome therapies. The company's revenue streams include research and development collaborations, partnerships, and grants. These partnerships often involve milestone payments and royalties related to the development and commercialization of microbiome therapeutics. Additionally, Finch Therapeutics may generate revenue through licensing agreements, where it licenses its proprietary technologies or therapeutic candidates to other companies in exchange for upfront payments, milestone payments, and royalties on sales. The company may also receive funding from institutional investors or government grants to support its research and development activities.

Finch Therapeutics Group Financial Statement Overview

Summary

Overall, Finch Therapeutics Group is facing financial difficulties, with persistent losses reflected in income statements, high leverage on the balance sheet, and negative cash flows. The company needs to address cost structures, improve revenue streams, and manage debt levels to enhance financial stability.

Income Statement

The income statement indicates significant challenges, with consistently negative net income and declining revenues. Gross profit margins are substantially negative, indicating cost issues relative to revenue generation. There is no evident revenue growth, and profitability metrics like EBIT and EBITDA margins are significantly negative.

Balance Sheet

The balance sheet shows a concerning financial position, with high total liabilities relative to equity, resulting in a negative equity in past years. The debt-to-equity ratio is high, indicating leveraged risk. However, stockholder equity has improved to a positive figure in recent years, suggesting some stabilization.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, indicating cash burn. Free cash flow growth is negative, reflecting declining cash generation ability. The operating cash flow to net income ratio is not favorable, underscoring inefficiencies in converting income into cash flow.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	2.85M	107.00K	861.00K	18.53M	7.72M	10.15M
Gross Profit	2.71M	-7.09M	-4.65M	-38.75M	-25.43M	9.84M
EBITDA	-19.51M	-32.48M	-82.69M	-57.68M	-38.65M	-20.66M
Net Income	-14.17M	-74.75M	-113.70M	-55.86M	-39.25M	-20.41M
Balance Sheet
Total Assets	45.58M	55.37M	162.94M	225.37M	165.34M	103.57M
Cash, Cash Equivalents and Short-Term Investments	16.04M	25.12M	71.04M	133.48M	99.71M	42.19M
Total Debt	28.99M	30.13M	52.34M	6.01M	1.81M	143.15M
Total Liabilities	31.36M	32.49M	67.23M	23.14M	261.06M	163.10M
Stockholders Equity	14.22M	22.89M	95.71M	202.22M	-95.72M	-59.53M
Cash Flow
Free Cash Flow	-18.04M	-31.50M	-77.03M	-83.12M	-33.96M	-18.32M
Operating Cash Flow	-18.05M	-31.50M	-74.85M	-67.13M	-31.33M	-17.32M
Investing Cash Flow	71.00K	1.33M	-2.18M	-15.92M	-2.63M	-973.00K
Financing Cash Flow	0.00	-16.16M	14.87M	119.11M	91.47M	53.30M

Finch Therapeutics Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.19
• 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 FNCH, the sentiment is Negative. The current price of 12.19 is below the 20-day moving average (MA) of 12.53, below the 50-day MA of 12.50, and below the 200-day MA of 12.80, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 46.31 is Neutral, neither overbought nor oversold. The STOCH value of 43.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FNCH.

Finch Therapeutics Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PULM	53 Neutral	$18.26M	―	-83.85%	―	-96.76%	26.87%
Sector *	51 Neutral	$8.02B	-0.39	-43.38%	2.20%	22.34%	-2.13%
MBRX	44 Neutral	$11.55M	―	-503.80%	―	―	60.64%
FNCH	42 Neutral	$19.57M	―	-326.64%	―	―	―
GOVX	34 Underperform	$17.47M	―	-9690.24%	―	1943.07%	80.97%
CMMB	33 Underperform	$15.47M	―	-120.76%	―	―	47.86%
NCNA	28 Underperform	$7.00M	―	-563.25%	―	―	80.34%