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Purple Biotech Ltd. (IL:PPBT)
:PPBT
Israel Market
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Purple Biotech (PPBT) AI Stock Analysis

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IL:PPBT

Purple Biotech

(PPBT)

Rating:32Underperform
Price Target:
Purple Biotech struggles with significant financial challenges, including negative profitability and cash flow issues, heavily impacting its stock score. The technical analysis indicates a bearish trend, with some potential for a rebound given oversold conditions. Valuation remains unattractive due to negative earnings, further contributing to a low overall score.

Purple Biotech (PPBT) vs. iShares MSCI Israel ETF (EIS)

Purple Biotech Business Overview & Revenue Model

Company DescriptionPurple Biotech Ltd. (NASDAQ: PPBT) is a clinical-stage pharmaceutical company focused on developing innovative therapies that target cancer and other chronic diseases. The company specializes in oncology and immunology, leveraging its proprietary drug discovery platforms to advance a pipeline of novel drug candidates. Purple Biotech aims to address unmet medical needs through its research and development efforts, with a commitment to improving patient outcomes and enhancing the quality of life for individuals battling severe illnesses.
How the Company Makes MoneyPurple Biotech generates revenue primarily through partnerships, licensing agreements, and collaborations with other pharmaceutical companies. These agreements often involve upfront payments, milestone payments based on the achievement of specific development or regulatory milestones, and royalties on sales if the partnered products reach the market. Additionally, the company may receive research grants and funding from governmental and non-governmental organizations to support its R&D activities. Revenue streams are also bolstered by strategic alliances that facilitate the advancement and commercialization of its drug candidates, thereby expanding its market reach and enhancing potential returns on investment.

Purple Biotech Financial Statement Overview

Summary
Purple Biotech faces significant challenges with revenue generation and profitability, as seen in its income statement. The balance sheet reflects a strong equity position but lacks leverage, potentially limiting growth opportunities. Cash flow issues persist, with negative operating and free cash flow impacting financial flexibility. Overall, the company needs to address its revenue generation and operational efficiency to improve its financial health.
Income Statement
20
Very Negative
Purple Biotech has consistently struggled with generating revenue, with total revenues dropping to zero in most recent years. The company experiences significant net losses, and profit margins are negative, indicating poor profitability. EBIT and EBITDA margins are also negative, showing operational challenges. Historical revenue growth is nonexistent, and the company has not demonstrated an ability to turn around its revenue trajectory.
Balance Sheet
30
Negative
Despite negative net income, Purple Biotech maintains a relatively strong stockholders' equity position due to low total liabilities. The equity ratio remains high, reflecting a strong equity base. However, the debt-to-equity ratio is low, signifying limited leverage, which may constrain growth. The return on equity is negative, indicating inefficiency in generating returns from the equity base.
Cash Flow
25
Negative
The company reports persistent negative operating and free cash flow, indicating poor cash generation from operations. Despite this, Purple Biotech has managed its cash reserves reasonably well, maintaining positive cash balances. The free cash flow to net income ratio is negative, indicating that operations are not supporting profitability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.00195.80K0.000.001.00M
Gross Profit0.00-196.00-120.00-55.00999.94K
EBITDA-7.05M-22.23M-21.49M-17.52M-28.41M
Net Income-7.24M-19.88K-21.67M-18.38M-28.00M
Balance Sheet
Total Assets37.04M44.30M54.62M70.20M83.80M
Cash, Cash Equivalents and Short-Term Investments8.52M15.41M32.11M47.20M57.80M
Total Debt183.00K351.00K515.00K749.00K895.00K
Total Liabilities4.13M10.01M7.52M5.09M4.05M
Stockholders Equity32.86M34.21M46.91M64.83M79.39M
Cash Flow
Free Cash Flow-14.37M-19.93M-16.96M-15.19M-12.25M
Operating Cash Flow-14.37M-19.93M-16.73M-15.07M-12.09M
Investing Cash Flow509.00K13.88M19.91M13.41M-49.59M
Financing Cash Flow6.77M5.45M1.11M1.51M68.49M

Purple Biotech Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4.70
Price Trends
50DMA
4.24
Positive
100DMA
4.57
Negative
200DMA
5.65
Negative
Market Momentum
MACD
0.07
Negative
RSI
54.53
Neutral
STOCH
54.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:PPBT, the sentiment is Neutral. The current price of 4.7 is above the 20-day moving average (MA) of 4.19, above the 50-day MA of 4.24, and below the 200-day MA of 5.65, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 54.53 is Neutral, neither overbought nor oversold. The STOCH value of 54.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:PPBT.

Purple Biotech Risk Analysis

Purple Biotech disclosed 74 risk factors in its most recent earnings report. Purple Biotech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Purple Biotech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
755.52M50.107.41%25.65%
56
Neutral
63.08B
2.44%-197.12%
54
Neutral
7.49B5.95-28.19%527.79%26.41%6.62%
42
Neutral
47.86M
32
Underperform
24.99M
71.51%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:PPBT
Purple Biotech
4.70
-10.70
-69.48%
IL:BWAY
Brainsway
1,999.00
596.00
42.48%
IL:TEVA
Teva
5,500.00
-686.00
-11.09%
IL:CANF
Can Fite Bio
1.20
-3.20
-72.73%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 29, 2025