Gyre Therapeutics (GYRE) AI Stock Analysis

• Market Cap: $698.95M
• Dividend Yield: N/A
• Average Volume (3M): 102.52K
• Price to Earnings (P/E): 201.8
• Beta (1Y): 1.81
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 579
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.03
• Shares Outstanding: 90,890,380
• 10 Day Avg. Volume: 112,833
• 30 Day Avg. Volume: 102,519
• PEG Ratio: -0.78
• Price to Book (P/B): 16.26
• Price to Sales (P/S): 9.74
• P/FCF Ratio: -172.88
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 6.89
• Enterprise Value/Gross Profit: 7.22
• Enterprise Value/Ebitda: 49.18
• 1Y Price Target: $19.00
• Price Target Upside: 179.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $7.00 ▲(2.79% Upside)

The score is primarily driven by mixed financial performance—strong margins and a low-leverage balance sheet but material cash flow weakness. Technicals are bearish with price below key moving averages and negative MACD, and valuation is stretched due to a very high P/E. These are partially offset by a positive corporate catalyst from progress toward potential China approval for Hydronidone.

Positive Factors

High gross and net margins

Extremely high gross and healthy net margins indicate durable cost advantage and pricing power versus peers. This margin profile supports long-term reinvestment in R&D and commercialization, providing a cushion against clinical setbacks and enabling sustainable profitability if cash conversion improves.

Low leverage and strong ROE

Minimal leverage and a high ROE reflect strong capital efficiency and low financial risk, preserving strategic optionality. This balance sheet strength supports funding clinical programs, partnering flexibility, and resilience to industry cyclicality without immediate need for dilutive financing.

Regulatory progress in China for Hydronidone

CDE alignment enabling conditional approval and priority review is a structural catalyst that could accelerate market entry into a large underserved Chinese patient pool (~2.6M). Successful pathway would diversify revenue sources, de-risk commercialization timing, and strengthen long-term strategic positioning in hepatology.

Negative Factors

Weak operating cash conversion

Very low conversion of accrual earnings into operating cash undermines the quality of reported profits and raises sustainability concerns. Over the medium term this forces reliance on external financing or partner milestones to fund trials and launches, increasing execution and dilution risk for a biotech scale-up.

Severely negative free cash flow growth

A dramatic decline in free cash flow growth signals acute cash burn or one-off outflows that can deplete runway. For a development-stage biotech, persistent negative FCF constrains reinvestment, heightens fundraising needs, and can delay programs or commercial launches absent durable improvement in cash generation.

Revenue growth volatility/weakness

Material negative recent revenue growth indicates volatile or declining top-line momentum, increasing reliance on milestone payments or future approvals to drive sustainable sales. Over a multi-quarter horizon, inconsistent revenue trends complicate planning and increase the probability of additional financing or partnership dependence.

Gyre Therapeutics Business Overview & Revenue Model

Company Description

Gyre Therapeutics, Inc., a pharmaceutical company, engages in the development and commercialization of small-molecule, anti-inflammatory, and anti-fibrotic drugs targeting organ fibrosis. It offers ETUARY (Pirfenidone), an anti-fibrotic drug approved for the treatment of idiopathic pulmonary fibrosis; and under phase 3 studies for dermatomyositis and systemic sclerosis-associated interstitial lung disease, pneumoconiosis, and diabetic kidney disease. The company is also involved the development of F351 (Hydronidone), a structural derivative of ETUARY (Pirfenidone), under Phase 3 studies for the treatment of chronic hepatitis B liver fibrosis; and under Phase 1 studies for liver fibrosis associated with nonalcoholic associated steatohepatitis. In addition, its development pipeline includes F573, under Phase 2 studies for the treatment of acute/acute-on-chronic liver failure; F528, under preclinical stage for the treatment of chronic obstructive pulmonary disease; and F230, under preclinical stage for the treatment of pulmonary arterial hypertension. The company was founded in 2002 and is headquartered in San Diego, California. Gyre Therapeutics, Inc. operates as a subsidiary of GNI USA, Inc.

How the Company Makes Money

Gyre Therapeutics generates revenue primarily through the development and commercialization of its therapeutic products. The company may secure funding through partnerships with larger pharmaceutical firms, which can include milestone payments as products progress through clinical trials. Additionally, GYRE may receive royalties from product sales once therapies are successfully commercialized. Grant funding from government and non-profit organizations aimed at supporting innovative healthcare solutions also contributes to the company's revenue streams. Collaborations with academic institutions for research initiatives further enhance GYRE's financial stability.

Gyre Therapeutics Financial Statement Overview

Summary

Gyre Therapeutics shows strong profitability with a high gross profit margin and improved net profit margin. The balance sheet is robust with low leverage and high return on equity. However, cash flow management is a concern with significant declines in free cash flow growth and low cash flow coverage ratios.

Income Statement

Gyre Therapeutics shows a strong gross profit margin of 95.58% TTM, indicating efficient cost management. The net profit margin improved significantly to 28.79% TTM, reflecting enhanced profitability. Revenue growth is modest at 4.97% TTM, but the company has shown resilience with a positive trajectory from previous periods of decline. However, EBIT and EBITDA margins are relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.015 TTM, indicating minimal leverage and financial stability. Return on equity is impressive at 62.70% TTM, showcasing effective use of equity to generate profits. The equity ratio is healthy, reflecting a solid capital structure. However, past periods showed negative equity, which could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -3765.82% TTM. The operating cash flow to net income ratio is low at 0.05 TTM, indicating potential cash flow issues. The negative free cash flow to net income ratio suggests the company is not generating sufficient cash from operations to cover its net income, highlighting a need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	107.27M	105.76M	113.45M	102.29M	7.34M	20.95M
Gross Profit	102.42M	101.87M	108.81M	97.50M	-332.00K	11.79M
EBITDA	15.03M	17.82M	20.33M	10.33M	-87.64M	-56.10M
Net Income	6.65M	12.09M	-92.93M	2.30M	-87.93M	-55.54M
Balance Sheet
Total Assets	159.38M	125.41M	116.54M	84.75M	55.66M	94.85M
Cash, Cash Equivalents and Short-Term Investments	40.40M	26.67M	33.51M	25.18M	46.85M	79.35M
Total Debt	1.17M	1.60M	409.00K	613.00K	2.38M	1.64M
Total Liabilities	21.97M	27.00M	102.59M	12.54M	14.57M	18.78M
Stockholders Equity	101.92M	63.32M	-15.83M	42.52M	41.09M	76.07M
Cash Flow
Free Cash Flow	1.35M	-6.77M	17.31M	5.68M	-84.59M	-55.31M
Operating Cash Flow	3.88M	-3.64M	25.89M	10.68M	-83.75M	-55.05M
Investing Cash Flow	-4.33M	-19.88M	-19.76M	-13.81M	48.19M	9.66M
Financing Cash Flow	25.02M	2.10M	2.50M	0.00	49.55M	60.38M

Gyre Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.81
• 50DMA: Positive
• 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 GYRE, the sentiment is Positive. The current price of 6.81 is below the 20-day moving average (MA) of 7.33, below the 50-day MA of 7.59, and below the 200-day MA of 7.98, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 73.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GYRE.

Gyre Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAWN	65 Neutral	$1.20B	―	-30.16%	―	31.11%	-46.75%
TERN	61 Neutral	$3.95B	-36.03	-29.12%	―	―	12.45%
MBX	58 Neutral	$1.93B	-17.96	-24.43%	―	―	-44.79%
KALV	57 Neutral	$770.33M	-3.81	―	―	―	-13.14%
TYRA	57 Neutral	$1.56B	-15.53	-34.75%	―	―	-17.01%
GYRE	56 Neutral	$698.95M	201.84	8.06%	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Gyre Therapeutics Corporate Events

Gyre Therapeutics Advances Hydronidone Toward China Approval

On January 5, 2026, Gyre Therapeutics announced that its majority-owned Chinese subsidiary, Gyre Pharmaceuticals, had completed a Pre-New Drug Application communication meeting with China’s Center for Drug Evaluation, which agreed that existing Phase 3 data on Hydronidone support filing for conditional approval and eligibility for priority review in chronic hepatitis B–associated liver fibrosis, including early cirrhosis. The Phase 3 trial, whose topline results were disclosed on May 22, 2025, showed Hydronidone met its primary endpoint with significantly higher rates of fibrosis regression versus placebo and a favorable safety profile, and the company now plans an additional confirmatory Phase 3c outcomes study in China as part of a regulatory pathway that could accelerate Hydronidone’s entry into a large, underserved Chinese market of an estimated 2.6 million patients with clinically significant CHB-related liver fibrosis, potentially strengthening Gyre’s position in the liver fibrosis segment and broadening its commercial footprint in China.

The most recent analyst rating on (GYRE) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Gyre Therapeutics stock, see the GYRE Stock Forecast page.