Purple Biotech (PPBT) AI Stock Analysis

• Market Cap: 22.30M
• Dividend Yield: N/A
• Average Volume (3M): 8.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: N/A
• EPS Growth: 89.32%
• Country: IL
• Employees: 9
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.50
• Shares Outstanding: 1,858,479,500
• 10 Day Avg. Volume: 1,387,469
• 30 Day Avg. Volume: 8,902,795
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.73
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: 1.00 ▼(-16.67% Downside)

The score is primarily held down by weak financial performance (pre-revenue, ongoing losses, and negative free cash flow) despite very low leverage. Technicals add further pressure given the stock is below long-term moving averages with negative MACD, while valuation offers limited support due to a negative P/E and no dividend yield data.

Positive Factors

Innovative Drug Platform

The CAPTN-3 platform's promising preclinical results indicate potential for effective cancer treatments, enhancing long-term growth prospects.

Cash Runway

A strong cash position provides financial stability, allowing continued R&D investment and strategic flexibility in the medium term.

Manufacturing Milestone

Reaching manufacturing milestones enhances the company's ability to scale production, supporting future commercialization efforts.

Negative Factors

Pre-Revenue Status

Operating without revenue limits financial self-sufficiency, increasing reliance on external funding and partnerships for sustainability.

Ongoing Cash Burn

Continued cash burn indicates operational inefficiencies and could strain resources, necessitating further capital raising efforts.

Nasdaq Compliance Issue

Non-compliance with Nasdaq listing rules poses a risk of delisting, potentially affecting investor confidence and access to capital markets.

Purple Biotech Business Overview & Revenue Model

Company Description

Purple Biotech Ltd., a clinical-stage company, focuses on developing therapies to overcome tumor immune evasion and drug resistance for cancer patients in the United States. Its oncology pipeline includes CM24, a humanized monoclonal antibody that blocks carcinoembryonic antigen related cell adhesion molecule 1 as a combination therapy with anti-PD-1 checkpoint inhibitors, which is in Phase 2 clinical trial for the treatment of pancreatic ductal adenocarcinoma; NT219, a small molecule that targets and inhibits insulin receptor substrate 1 and 2, and signal transducer and activator of transcription, which is in Phase 1/2 clinical trials for the treatment recurrent and/or metastatic squamous cell carcinoma of the head and neck cancer or colorectal adenocarcinoma; and IM1240, a multi-valent antibody designed to activate anti-tumoral immune response against 5T4-positive tumors, which is in preclinical stage. The company has collaboration agreement with Bristol Myers Squibb Company for the Phase 2 clinical trials to evaluate the combination of CM24 with the PD-1 inhibitor nivolumab in addition to chemotherapy; and Mor Research Applications. The company was formerly known as Kitov Pharma Ltd and changed its name to Purple Biotech Ltd. in December 2020. The company is headquartered in Rehovot, Israel.

How the Company Makes Money

Purple 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	195.80K	0.00	0.00	1.00M
Gross Profit	-120.27K	-62.00K	-196.00	-120.00	-55.00	999.94K
EBITDA	-3.55M	-7.05M	-19.88M	-21.49M	-17.52M	-28.41M
Net Income	-3.26M	-7.24M	-19.88K	-21.67M	-18.38M	-28.00M
Balance Sheet
Total Assets	39.06M	37.04M	44.30M	54.62M	70.20M	83.80M
Cash, Cash Equivalents and Short-Term Investments	10.45M	8.52M	15.41M	32.11M	47.20M	57.80M
Total Debt	256.00K	183.00K	351.00K	515.00K	749.00K	895.00K
Total Liabilities	6.25M	4.13M	10.01M	7.52M	5.09M	4.05M
Stockholders Equity	32.77M	32.86M	34.21M	46.91M	64.83M	79.39M
Cash Flow
Free Cash Flow	-5.54M	-14.37M	-19.93M	-16.96M	-15.19M	-12.25M
Operating Cash Flow	-6.54M	-14.37M	-19.93M	-16.73M	-15.07M	-12.09M
Investing Cash Flow	727.13K	509.00K	13.88M	19.91M	13.41M	-49.59M
Financing Cash Flow	10.00M	6.77M	5.45M	1.11M	1.51M	68.49M

Purple Biotech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:PPBT, the sentiment is Negative. The current price of 1.2 is below the 20-day moving average (MA) of 1.21, below the 50-day MA of 1.23, and below the 200-day MA of 3.02, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:PPBT.

Purple Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANF	54 Neutral	17.88M	―	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BLRX	46 Neutral	41.77M	-1.98	―	―	-42.69%	88.04%
PPBT	45 Neutral	22.30M	-0.67	―	―	―	89.32%
BOLT	42 Neutral	33.60M	-1.23	―	―	-46.97%	-127.67%