Genelux Corp. (GNLX) AI Stock Analysis

• Market Cap: $128.01M
• Dividend Yield: N/A
• Average Volume (3M): 140.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -100.00%
• EPS Growth: 9.16%
• Country: US
• Employees: 24
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): -0.21
• Shares Outstanding: 37,760,840
• 10 Day Avg. Volume: 169,637
• 30 Day Avg. Volume: 140,613
• PEG Ratio: -0.44
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.15
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 26.40
• Enterprise Value/Gross Profit: -499.04
• Enterprise Value/Ebitda: -0.92
• 1Y Price Target: $16.40
• Price Target Upside: 361.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 54 Neutral
• Price Target: $3.50 ▼(-1.41%Downside)

Genelux Corp.'s overall stock score is primarily impacted by its weak financial performance, characterized by negative profitability and cash flow issues. The technical analysis provides some positive signals, indicating potential short-term price momentum. However, the valuation remains concerning due to a negative P/E ratio and lack of dividend yield. Strategic improvements in financial stability are necessary to enhance the stock's attractiveness.

Positive Factors

Clinical Trials

Olvi-Vec has shown highly differentiating efficacy in ovarian cancer, demonstrating positive monotherapy activity and the potential to re-sensitize patients to platinum chemotherapy.

Financial Stability

The company secured $10.5 million in equity financing, extending its financial runway into 2026, supporting further development efforts.

Safety Profile

The positive safety profile of Olvi-Vec with mostly mild to moderate adverse events and no maximum tolerated dose reached is encouraging for future trials.

Negative Factors

Financial Performance

Genelux reported a net loss, but maintains sufficient cash and short-term investments to support operations into 2026.

Regulatory Challenges

Replimune's oncolytic virus received a CRL from the FDA, highlighting challenges in obtaining approval for similar treatments, although this is not seen as impacting Olvi-Vec.

Regulatory Recommendations

FDA recommended adding an interim overall survival analysis to the ovarian cancer trial, indicating confidence in the progression-free survival outcomes.

Genelux Corp. Business Overview & Revenue Model

Company Description

Genelux Corporation, a clinical-stage biopharmaceutical company, focuses on developing next-generation oncolytic viral immunotherapies for patients suffering from aggressive and/or difficult-to-treat solid tumor types. Its lead product candidate is Olvi-Vec, a proprietary, modified strain of the vaccinia virus for the treatment of ovarian cancer and non-small-cell lung cancer. The company is also developing V2ACT Immunotherapy for the treatment of pancreatic cancer; and V-VET1 to treat hematologic and solid cancer. The company was incorporated in 2001 and is headquartered in Westlake Village, California.

How the Company Makes Money

Genelux Corp. generates revenue primarily through the development and commercialization of its proprietary oncolytic viral therapies. The company may earn income through licensing agreements, collaborations, and partnerships with other pharmaceutical and biotechnology firms that seek to leverage Genelux's technology for the development of new cancer therapies. Additionally, as Genelux progresses in clinical trials and receives regulatory approval for its products, it can generate revenue through the direct sale of its therapeutic solutions to healthcare providers and patients. The company may also benefit from government grants or research funding aimed at advancing cancer treatment technologies.

Genelux Corp. Financial Statement Overview

Summary

Genelux Corp. is facing significant financial challenges with persistent negative profitability and cash flow issues. Despite improvements in equity, the company remains highly leveraged, relying on financing activities for cash flow sustainability, which is risky.

Income Statement

Genelux Corp. shows weak profitability with consistently negative net incomes over the years. The 2024 revenue growth is misleading due to the low base effect from previous years. Gross profit margin is positive due to costs being reported as negative, but net profit margin remains negative, indicating ongoing operational challenges. Both EBIT and EBITDA margins are negative, underscoring significant profitability issues.

Balance Sheet

The company has improved its equity position, transitioning from negative to positive stockholders' equity in recent years, which is a positive sign. However, the debt-to-equity ratio improved but remains concerning, reflecting high leverage. The equity ratio indicates a low percentage of assets financed by equity, limiting financial flexibility.

Cash Flow

Operating cash flows remain negative, indicating ongoing operational losses. Free cash flow is also negative, with no clear growth trajectory. The operating cash flow to net income ratio is not favorable, reflecting inefficiencies in converting income into cash. Financing activities are primarily sustaining the cash position, which poses risks if external financing becomes unavailable.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.00K	170.00K	11.07M	0.00	0.00
Gross Profit	8.00K	-848.00K	10.10M	-895.00K	-658.00K
EBITDA	-28.97M	-26.46M	-1.73M	-14.12M	-11.76M
Net Income	-29.87M	-28.30M	-5.21M	-17.80M	-14.86M
Balance Sheet
Total Assets	34.72M	27.89M	5.53M	8.13M	14.01M
Cash, Cash Equivalents and Short-Term Investments	30.89M	23.19M	397.00K	4.50M	11.35M
Total Debt	1.87M	2.52M	26.35M	25.31M	26.06M
Total Liabilities	8.44M	8.42M	41.31M	41.24M	36.66M
Stockholders Equity	26.27M	19.47M	-35.78M	-33.11M	-22.66M
Cash Flow
Free Cash Flow	-21.61M	-21.30M	-3.62M	-6.58M	-7.22M
Operating Cash Flow	-21.23M	-20.27M	-3.57M	-6.58M	-7.21M
Investing Cash Flow	-8.13M	-14.72M	-49.00K	0.00	-20.00K
Financing Cash Flow	28.51M	44.02M	-478.00K	-270.00K	18.15M

Genelux Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNLX, the sentiment is Positive. The current price of 3.55 is above the 20-day moving average (MA) of 3.29, above the 50-day MA of 2.94, and above the 200-day MA of 3.05, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 59.00 is Neutral, neither overbought nor oversold. The STOCH value of 60.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GNLX.

Genelux Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	£4.92B	8.32	-62.36%	2.24%	34.00%	6.32%
GNLX	54 Neutral	$128.01M	―	-131.36%	―	-100.00%	9.16%
ORMP	47 Neutral	$90.27M	21.10	-18.37%	―	-100.00%	―
ZNTL	46 Neutral	$103.61M	―	-59.45%	―	―	48.92%
IMUX	37 Underperform	$103.48M	―	-246.26%	―	―	51.02%
XBIT	―	$85.98M	―	-20.53%	―	―	―
TLSA	―	$217.35M	―	-250.49%	―	―	―

Genelux Corp. Corporate Events

Genelux Corp. Appoints New CFO Amid Leadership Change

Genelux Corporation announced the resignation of Lourie Zak as Chief Financial Officer on January 29, 2025. As part of her departure, Zak will serve as a non-employee advisor until August 29, 2025, and receive severance benefits including a cash payment, health insurance continuation, and eligibility for an annual bonus. Concurrently, Matt Pulisic was appointed as the new CFO, effective January 30, 2025. Pulisic, previously with Arrowhead Pharmaceuticals, will receive a base salary with a discretionary bonus, stock options, and severance benefits under certain conditions, strengthening the company’s financial leadership.