Transgene (TNG) AI Stock Analysis

• Market Cap: €195.31M
• Dividend Yield: N/A
• Average Volume (3M): 129.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 111.76%
• EPS Growth: -22.45%
• Country: FR
• Employees: 144
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 132,753,360
• 10 Day Avg. Volume: 204,663
• 30 Day Avg. Volume: 129,863
• PEG Ratio: -0.07
• Price to Book (P/B): 5.22
• Price to Sales (P/S): 12.49
• P/FCF Ratio: -2.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: €1.50 ▲(15.38% Upside)

Transgene's overall stock score is primarily impacted by its challenging financial performance, characterized by significant revenue decline and high operational losses. However, the stock benefits from positive technical indicators and a promising outlook from the latest earnings call, which highlights strong clinical trial results and financial stability until 2026. The valuation remains a concern due to negative earnings and lack of dividends.

Transgene Business Overview & Revenue Model

Company Description

Transgene SA, a biotechnology company, focuses on designing and developing therapeutic vaccines and oncolytic viruses for the treatment of cancer and infectious diseases. It is involved in developing TG4050, a therapeutic vaccine that is in phase I clinical trial for the treatment of ovarian cancer, and human papilloma virus (HPV)-negative head and neck cancers; TG4001, a therapeutic vaccine, which is in phase II clinical trial for the treatment of HPV-positive cancers; TG6002, an oncolytic virus that is in phase I/IIa clinical trial for the treatment of various solid tumors, such as gastrointestinal adenocarcinoma comprising stomach, pancreas, and colon; and BT-001, an oncolytic virus, which is in phase I/II clinical trial for the treatment of solid tumors. The company also develops TG1050, a therapeutic vaccine for the treatment of chronic hepatitis B; and Pexa-Vec, an oncolytic virus for the treatment of solid tumors. It has strategic collaboration agreements with AstraZeneca, Merck KGaA, Pfizer, PersonGen BioTherapeutics, and NEC Corporation; licensing agreements with SillaJen, Ascend BioPharmaceutical, and Valneva; and agreements with Sanofi, BioInvent, and Randox. The company was incorporated in 1979 and is headquartered in Illkirch-Graffenstaden, France. Transgene SA is a subsidiary of TSGH SAS.

How the Company Makes Money

Transgene generates revenue through various channels, including partnerships and collaborations with larger pharmaceutical companies that seek to leverage Transgene's innovative technologies for their own drug development. Additionally, the company may receive milestone payments and royalties from these collaborations upon the successful development and commercialization of therapeutic candidates. Another potential revenue stream includes the sale of its own therapeutic products, once they receive regulatory approval and are brought to market. Furthermore, Transgene may also engage in grants and funding from public and private entities to support its research and development initiatives, contributing to its overall financial health.

Transgene Financial Statement Overview

Summary

Transgene is facing financial difficulties with significant revenue decline and high operational losses, as seen in the income statement. The company's balance sheet is stable due to zero debt, but the erosion of equity is concerning. Cash flow remains negative, highlighting ongoing liquidity challenges. Despite some positive aspects like zero debt, the overall financial health of Transgene is strained, requiring strategic adjustments to improve revenue streams and reduce losses.

Income Statement

Transgene has shown a significant deterioration in revenue over the past year, with total revenue dropping from €7.9 million in 2023 to €307,000 in 2024. This represents a revenue decline of approximately 96%. The company is also experiencing negative profit margins, with a net profit margin of -11067% and an EBIT margin of -11616% for 2024, indicating substantial losses relative to its revenue. However, the gross profit margin is technically 100% due to a very small revenue base and the absence of cost of goods sold, which reflects poor revenue diversification and high operational losses.

Balance Sheet

The balance sheet indicates a relatively stable financial position with zero debt, resulting in a debt-to-equity ratio of 0. The equity ratio stands at 36%, which suggests a moderate level of equity financing. Return on equity (ROE) is deeply negative at -223% due to significant net losses. The absence of debt is a strength, reducing financial risk, but the persistent erosion of equity through losses poses a substantial concern.

Cash Flow

Transgene's cash flow situation is challenging, with a free cash flow of -€26.6 million in 2024 compared to -€37.4 million in 2023, indicating some improvement but still deeply negative. The operating cash flow to net income ratio is 0.69, reflecting a shortfall in cash generation relative to accounting losses. The free cash flow to net income ratio is negative, indicating continued cash burn despite some capital discipline.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.09M	6.35M	7.90M	3.13M	9.99M	2.98M
Gross Profit	-15.86M	-27.93M	-21.69M	-29.04M	-22.89M	-24.36M
EBITDA	-40.48M	-26.65M	-28.44M	-30.33M	-23.55M	-14.13M
Net Income	-36.78M	-33.97M	-22.33M	-32.81M	-20.00M	-18.45M
Balance Sheet
Total Assets	40.99M	42.17M	45.22M	66.44M	101.84M	85.45M
Cash, Cash Equivalents and Short-Term Investments	16.77M	16.67M	15.67M	26.83M	49.57M	26.35M
Total Debt	30.57M	10.40M	1.35M	2.45M	3.84M	5.28M
Total Liabilities	44.59M	26.97M	29.61M	28.59M	34.63M	35.20M
Stockholders Equity	-3.60M	15.20M	15.61M	37.84M	67.21M	50.25M
Cash Flow
Free Cash Flow	-25.23M	-26.62M	-37.42M	-21.84M	-32.63M	-29.59M
Operating Cash Flow	-23.89M	-23.55M	-34.67M	-20.30M	-31.94M	-28.74M
Investing Cash Flow	-2.35M	-3.21M	34.57M	20.27M	16.79M	17.74M
Financing Cash Flow	28.70M	26.96M	11.37M	-1.48M	15.77M	14.94M

Transgene Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.30
• 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 FR:TNG, the sentiment is Positive. The current price of 1.3 is below the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.23, and above the 200-day MA of 0.90, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.02 is Neutral, neither overbought nor oversold. The STOCH value of 37.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:TNG.

Transgene Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFT	60 Neutral	$179.33M	-4.62	-51.06%	―	-45.41%	-273.69%
TNG	58 Neutral	€195.31M	-5.30	―	―	111.76%	-22.45%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DBV	50 Neutral	€470.02M	-2.76	-241.12%	―	―	3.09%
NANO	49 Neutral	€832.03M	-23.55	―	―	―	―
OSE	49 Neutral	€128.53M	-3.62	-52.76%	―	-96.92%	-175.84%
IPH	47 Neutral	$148.02M	-2.92	-271.32%	―	-75.86%	-30.54%

Transgene Corporate Events

Transgene SA’s Earnings Call Highlights Strong TG4050 Results

Transgene SA’s recent earnings call conveyed a generally positive sentiment, buoyed by strong Phase I results for TG4050 and a secure financial outlook extending to the end of 2026. However, the company faces challenges in the broader financing environment and uncertainty surrounding the regulatory pathway for TG4050.