Shield Therapeutics (STX) AI Stock Analysis

• Market Cap: £84.94M
• Dividend Yield: N/A
• Average Volume (3M): 5.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: 93.48%
• EPS Growth: 51.18%
• Country: UK
• Employees: 63
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): >-0.01
• Shares Outstanding: 1,061,690,400
• 10 Day Avg. Volume: 4,446,463
• 30 Day Avg. Volume: 5,878,766
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £10.75
• Price Target Upside: 34.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: 6.50p ▼(-18.75% Downside)

The overall stock score is primarily influenced by the company's robust technical performance, indicating strong market momentum. However, significant financial weaknesses, including negative profitability and cash flow issues, weigh heavily on the score. Valuation concerns due to a negative P/E ratio and lack of dividend yield further impact the stock's attractiveness.

Positive Factors

Revenue Growth

Strong revenue growth demonstrates the company's ability to expand its market presence and increase product adoption, which is crucial for long-term sustainability and competitiveness in the pharmaceutical industry.

Product Focus

A clear focus on iron deficiency treatments positions Shield Therapeutics as a specialist in a niche market, potentially leading to a strong competitive advantage and brand recognition in this therapeutic area.

Cash Flow Management

Improved cash flow management indicates better operational efficiency and financial discipline, which are essential for sustaining business operations and funding future growth initiatives.

Negative Factors

Negative Profitability

Persistent negative profitability poses a significant challenge, as it can hinder the company's ability to reinvest in growth opportunities and may require external financing to sustain operations.

Balance Sheet Weakness

Negative equity indicates financial distress and potential insolvency risk, limiting the company's ability to secure favorable financing terms and invest in strategic initiatives.

High Leverage

High leverage can strain financial resources and increase vulnerability to economic downturns, potentially impacting long-term financial stability and operational flexibility.

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 primarily through the sale of its lead product, Accrufer, which is marketed to healthcare providers and patients in various markets. The company may also explore licensing agreements and partnerships with other pharmaceutical firms to expand its market reach and enhance distribution channels. Additionally, Shield Therapeutics could benefit from collaborations in clinical trials or research initiatives that lead to new product developments or indications, thereby creating further revenue opportunities. The effectiveness of its marketing strategies and the demand for its products play crucial roles in driving its earnings.

Shield Therapeutics Financial Statement Overview

Summary

Despite strong revenue growth, Shield Therapeutics faces severe financial challenges with negative profitability, cash flow issues, and a strained balance sheet characterized by negative equity and high leverage.

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
EBITDA	-16.58M	-30.29M	-37.39M	-17.35M	820.00K
Net Income	-21.27M	-33.29M	-40.44M	-19.34M	-2.63M
Balance Sheet
Total Assets	45.90M	48.80M	22.07M	44.41M	32.53M
Cash, Cash Equivalents and Short-Term Investments	5.61M	13.95M	2.82M	12.12M	2.94M
Total Debt	21.06M	20.25M	6.10M	156.00K	28.00K
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: Positive
• Last Price: 8.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STX, the sentiment is Positive. The current price of 8 is above the 20-day moving average (MA) of 7.76, above the 50-day MA of 5.93, and above the 200-day MA of 3.58, indicating a bullish trend. The MACD of 0.63 indicates Positive momentum. The RSI at 57.99 is Neutral, neither overbought nor oversold. The STOCH value of 19.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:STX.

Shield Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIK	70 Outperform	3.56B	12.46	15.54%	3.94%	3.73%	27.13%
ANCR	65 Neutral	172.47M	32.01	28.43%	2.00%	-0.17%	592.46%
STX	57 Neutral	£84.94M	―	-396.71%	―	93.48%	51.18%
AGY	56 Neutral	395.61M	-11.07	0.00%	―	4.50%	74.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Shield Therapeutics Corporate Events

Shield Therapeutics Doubles ACCRUFeR® Revenues in Q2 2025

Shield Therapeutics reported a significant increase in Q2 2025 net revenues for its product ACCRUFeR®, doubling from Q1 to $12.8 million, with a notable rise in prescriptions and average net selling price. The company’s cash reserves were bolstered by milestone payments from international partners, supporting its trajectory towards cash flow positivity by the end of 2025. This robust performance underscores the growing market adoption of ACCRUFeR® and its potential to become the preferred oral iron therapy for patients with iron deficiency, reinforcing Shield’s strategic market positioning.

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 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.