Shield Therapeutics (STX) AI Stock Analysis

• Market Cap: £26.30M
• Dividend Yield: N/A
• Average Volume (3M): 774.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 139.31%
• EPS Growth: 26.49%
• Country: UK
• Employees: 63
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.01
• Shares Outstanding: 1,041,690,400
• 10 Day Avg. Volume: 516,707
• 30 Day Avg. Volume: 774,482
• PEG Ratio: N/A
• Price to Book (P/B): -18.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.43
• 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: £3.80
• Price Target Upside: 47.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: 2.50p ▼(-3.10%Downside)

Shield Therapeutics' score is primarily driven by strong corporate strategic initiatives and global expansion efforts. However, significant financial performance concerns and challenging valuation metrics weigh heavily on the overall score.

Positive Factors

Financial Position

$6.5m of cash plus successful $10m raise with AOP Health does provide some much-needed breathing room for Shield in 2025.

Revenue Growth

The significant increase in NSP to $237 supported Shield delivering $32.2m in revenues for 2024, slightly ahead of expectations.

Sales Performance

Shield's 2024 trading update sees the company expect to deliver $32.2m of revenues for 2024, driven primarily by US Accrufer sales which grew 153%.

Negative Factors

Cashflow Concerns

The timing at which Shield becomes cash flow positive may be delayed beyond 2025, with negative script growth being a concern.

Growth Challenges

Accrufer growth needs to continue to accelerate to meet its cashflow breakeven target of 2025YE, and there continues to be little room for error.

Prescription Volume

The increase in NSP offsets a 6% decrease in prescription volumes QoQ, a significant slowdown vs Q2 and Q3 which delivered more than 20% prescription growth.

Shield Therapeutics Business Overview & Revenue Model

Company Description

Shield Therapeutics plc, a specialty pharmaceutical company, engages in the development and commercialization of clinical stage pharmaceuticals to treat unmet medical needs. The company's lead product is Accrufer/Feraccru, a non-salt based oral therapy for the treatment of iron deficiency with or without anemia in adults. It also develops PT20, a novel iron-based phosphate binder that has completed its Phase II pivotal study for the treatment of hyperphosphatemia in patients with chronic kidney disease. The company was founded in 2008 and is based in Gateshead, the United Kingdom.

How the Company Makes Money

Shield Therapeutics generates revenue through the sales of its core product, Feraccru®, which is marketed for the treatment of iron deficiency in various markets. The company earns income from direct sales, as well as through licensing agreements and partnerships with other pharmaceutical companies that distribute and promote Feraccru® in different regions. Additionally, Shield Therapeutics may receive milestone payments and royalties from these partnerships, contributing to its overall financial performance.

Shield Therapeutics Financial Statement Overview

Summary

Shield Therapeutics is experiencing robust revenue growth, yet persistent negative profitability and cash flow issues persist. The balance sheet is strained by negative equity and high leverage, posing significant risks. While there are slight improvements in cash flow management, the overall financial health remains weak and requires strategic interventions to stabilize and improve profitability and cash position.

Income Statement

The company has shown significant revenue growth, with total revenue increasing from 1.5 million in 2021 to 25.2 million in 2024, representing a strong growth trajectory. However, the net profit margin remains deeply negative due to substantial net losses, and both EBIT and EBITDA margins are negative, indicating ongoing operational challenges and profitability issues.

Balance Sheet

The balance sheet reflects a negative stockholders' equity as of 2024, indicating financial distress and a potential risk of insolvency. The debt-to-equity ratio is high due to negative equity, and the equity ratio is also negative, highlighting a critical situation in terms of financial stability and leverage.

Cash Flow

Free cash flow remains negative, although there is a small improvement in operating cash flow. The free cash flow to net income ratio is negative, indicating cash flow problems. However, the company has managed to reduce the magnitude of negative operating cash flow compared to previous years, showing a slight improvement in cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.18M	13.09M	4.47M	1.52M	10.39M
	Gross Profit
10.57M	4.03M	2.00M	539.00K	9.03M
	EBIT
-17.98M	-31.33M	-25.71M	-19.95M	-1.89M
	EBITDA
-16.58M	-30.29M	-37.39M	-17.35M	820.00K
	Net Income Common Stockholders
-21.27M	-33.29M	-40.44M	-19.34M	-2.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.61M	13.95M	2.82M	12.12M	2.94M
	Total Assets
45.90M	48.80M	22.07M	44.41M	32.53M
	Total Debt
21.06M	20.25M	6.10M	156.00K	28.00K
	Net Debt
15.45M	6.30M	3.28M	-11.96M	-2.91M
	Total Liabilities
46.95M	33.77M	16.65M	3.38M	2.25M
	Stockholders Equity
-1.05M	11.79M	5.43M	41.03M	30.28M
Cash Flow		Free Cash Flow
-7.03M	-40.07M	-20.14M	-18.80M	-1.42M
	Operating Cash Flow
-7.01M	-37.13M	-18.25M	-16.74M	-1.40M
	Investing Cash Flow
-1.89M	-2.43M	-1.70M	-2.05M	-20.00K
	Financing Cash Flow
4.21M	49.66M	7.71M	27.58M	-47.00K

Shield Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.58
• 50DMA: Negative
• 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 GB:STX, the sentiment is Negative. The current price of 2.58 is above the 20-day moving average (MA) of 2.46, above the 50-day MA of 2.55, and below the 200-day MA of 3.18, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.21 is Neutral, neither overbought nor oversold. The STOCH value of 68.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:STX.

Shield Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANCR	78 Outperform	£205.59M	5.65	33.70%	1.68%	-0.17%	2591.96%
HIK	71 Outperform	£4.69B	16.77	15.79%	2.93%	5.83%	83.35%
APH	59 Neutral	$355.92M	―	-5.04%	―	-1.02%	67.70%
AGY	54 Neutral	£324.12M	―	-369.20%	―	4.50%	74.32%
Sector *	54 Neutral	$5.37B	3.35	-45.10%	2.79%	16.77%	-0.01%
STX	51 Neutral	£26.30M	―	-396.71%	―	139.31%	26.49%
BXP		$38.99B	4.00	13.12%	5.55%	―	―

Shield Therapeutics Corporate Events

Shield Therapeutics Secures Shareholder Support at 2025 AGM

Shield Therapeutics announced the successful passing of all resolutions at its 2025 Annual General Meeting, indicating strong shareholder support. This development underscores the company’s stable governance and may positively impact its strategic initiatives in the competitive pharmaceutical market, particularly in expanding the reach of its flagship product, ACCRUFeR®/FeRACCRU®.

The most recent analyst rating on (GB:STX) stock is a Hold with a £2.00 price target. To see the full list of analyst forecasts on Shield Therapeutics stock, see the GB:STX Stock Forecast page.

Shield Therapeutics Reports Strong 2024 Financial Growth and Global Expansion of ACCRUFeR®

Shield Therapeutics reported significant financial growth in 2024, with net revenues reaching $32.3 million, driven by a 153% increase in ACCRUFeR® revenues. The company also strengthened its balance sheet with a $10 million equity funding, aiming to achieve cash flow positivity by the end of 2025. Operationally, Shield expanded its global reach with ACCRUFeR®, securing approvals and launching in new markets such as Canada, and progressing regulatory filings in Korea and China. The company also completed a Phase 3 pediatric study, confirming the efficacy and safety of its pediatric formulation.

Shield Therapeutics Partners with VITAL-NET for ACCRUFeR® Launch in Japan

Shield Therapeutics has entered into an exclusive license agreement with VITAL-NET, Inc. for the commercialization of ACCRUFeR® in Japan, a significant market due to its high prevalence of iron deficiency. This agreement includes an initial payment to Shield and potential milestone payments, with VITAL-NET covering all development and regulatory costs. The partnership is expected to enhance Shield’s global footprint and provide a new treatment option for iron deficiency in Japan, particularly benefiting women, children, and the elderly.

Shield Therapeutics Reports Q1 2025 Revenue Growth and Strategic Progress

Shield Therapeutics reported a Q1 2025 trading update with net revenues of $6.4 million from ACCRUFeR® prescriptions, despite early challenges such as weather disruptions and sales force vacancies. The company remains optimistic about becoming cash flow positive by the end of 2025, with March showing significant recovery in sales. Shield is focused on expanding its global market presence and has secured an amendment to its existing $20 million debt financing agreement to improve revenue covenants.

Shield Therapeutics Launches ACCRUFeR® in Canada to Address Iron Deficiency Anemia

Shield Therapeutics plc has launched ACCRUFeR® in Canada, marking it as the only prescription-only oral treatment for iron deficiency anemia in the country. This launch is in partnership with Kye Pharmaceuticals and follows Health Canada’s approval in August 2024. The collaboration allows Shield to receive milestone payments and royalties based on sales. The introduction of ACCRUFeR® provides a new treatment option for Canadians, addressing a public health concern affecting a significant portion of the population. This expansion strengthens Shield’s global market presence and offers a valuable alternative to existing iron therapies, potentially impacting patient care positively.