MacroGenics (MGNX) AI Stock Analysis

• Market Cap: $81.39M
• Dividend Yield: N/A
• Average Volume (3M): 854.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: 155.26%
• EPS Growth: -640.36%
• Country: US
• Employees: 341
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -1.07
• Shares Outstanding: 63,090,324
• 10 Day Avg. Volume: 1,180,001
• 30 Day Avg. Volume: 854,119
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.90
• Price to Cash Flow (P/CF): 0.50
• P/FCF Ratio: 0.50
• 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: $6.00
• Price Target Upside: 365.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

MacroGenics is experiencing solid revenue growth and maintains a stable cash position, providing some stability. However, significant challenges in profitability, bearish technical indicators, and an unattractive valuation weigh heavily on the stock. The earnings call reveals both progress and risks, with increased expenses and asset development setbacks. The overall score reflects these mixed signals and emphasizes the need for improved financial performance.

Positive Factors

Financial Strategy

The sale of global rights to Margenza to TerSera Therapeutics for $40M upfront is viewed positively as it provides non-dilutive financing and allows the company to focus on its pipeline efforts.

Pipeline Potential

Optimism remains about the potential of B7-H3 as a promising oncology target, focusing on the company's second B7-H3 ADC program, MGC026, which is expected to have initial clinical data disclosed in 2025.

Strategic Focus

The decision to discontinue vobra duo is seen as positive for the company as it allows MGNX to reallocate resources to programs with a higher probability of success.

Negative Factors

Clinical Development Challenges

MacroGenics announced that it will not continue development of vobra duo after disclosing the mature median radiographic progression-free survival results from the Phase 2 TAMARACK trial.

Financial Performance

MacroGenics reported a full-year 2024 net loss of $1.07 per share, slightly wider than the previous forecast of a net loss of $0.95 per share.

Valuation Concerns

The 12-month price target has been lowered to $2 per share from the prior $4 per share.

MacroGenics Business Overview & Revenue Model

Company Description

MacroGenics, Inc. is a clinical-stage biopharmaceutical company focused on discovering and developing innovative monoclonal antibody-based therapeutics for the treatment of cancer. The company operates primarily in the biotechnology sector and specializes in the creation of novel therapies designed to improve the lives of patients with severe medical conditions. Its core products include a pipeline of proprietary investigational monoclonal antibodies, including bispecific DART and TRIDENT molecules, aimed at addressing various types of tumors.

How the Company Makes Money

MacroGenics makes money primarily through the development and commercialization of its proprietary monoclonal antibody-based therapies. The company generates revenue through strategic collaborations and licensing agreements with major pharmaceutical companies, which provide upfront payments, milestone payments, and royalties on product sales. These partnerships are integral to its revenue model as they provide funding and resources necessary for the advancement of its clinical pipeline. Additionally, MacroGenics may secure government grants or funding to support specific research initiatives, contributing to its financial resources. The company's revenue streams are heavily dependent on the success of its clinical trials and the eventual approval and commercialization of its therapies.

MacroGenics Financial Statement Overview

Summary

MacroGenics has shown revenue growth, but continues to face profitability challenges, as reflected in negative margins and cash flow issues. The balance sheet is stable, but ongoing losses impact financial health. Improving profitability and cash flow is crucial.

Income Statement

MacroGenics has experienced volatile revenue growth, with a significant increase in 2024 compared to 2023. However, the company continues to face substantial losses, as indicated by negative net income and EBIT margins. The negative EBITDA margin further highlights profitability challenges. While revenue has grown, profitability metrics indicate ongoing financial distress.

Balance Sheet

The balance sheet shows moderate financial health with a low debt-to-equity ratio, indicating manageable leverage levels. However, the negative return on equity suggests the company is struggling to generate profits for shareholders. The equity ratio is relatively stable, but the overall financial position is weakened by consistent losses.

Cash Flow

Operating cash flow remains negative, indicating ongoing cash burn. Free cash flow has improved slightly but remains negative, suggesting the company is not yet self-sustaining. The operating cash flow to net income ratio is unfavorable, reflecting cash flow challenges despite revenue growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
149.96M	58.75M	151.94M	75.64M	97.76M
	Gross Profit
149.12M	50.53M	144.56M	72.99M	-95.44M
	EBIT
-110.58M	-168.24M	-121.42M	-202.79M	-131.06M
	EBITDA
-57.37M	2.02M	-107.89M	-190.86M	-117.78M
	Net Income Common Stockholders
-66.97M	-9.06M	-120.02M	-190.86M	-117.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
201.67M	229.81M	154.35M	243.62M	272.53M
	Total Assets
261.65M	298.42M	280.47M	335.25M	378.74M
	Total Debt
37.46M	33.97M	34.83M	25.47M	29.25M
	Net Debt
-145.38M	-66.98M	-74.05M	-98.00M	-151.88M
	Total Liabilities
145.60M	145.81M	138.46M	95.63M	82.86M
	Stockholders Equity
116.06M	152.61M	142.01M	239.62M	295.88M
Cash Flow		Free Cash Flow
-72.08M	-79.97M	-90.58M	-150.03M	-117.80M
	Operating Cash Flow
-68.37M	-78.20M	-86.96M	-143.83M	-111.90M
	Investing Cash Flow
149.30M	-80.08M	70.72M	-36.61M	-7.79M
	Financing Cash Flow
960.00K	150.36M	1.66M	122.78M	174.34M

MacroGenics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGNX, the sentiment is Negative. The current price of 1.29 is below the 20-day moving average (MA) of 1.52, below the 50-day MA of 2.14, and below the 200-day MA of 3.30, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 18.89 is Positive, neither overbought nor oversold. The STOCH value of 4.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MGNX.

MacroGenics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGIO	56 Neutral	$1.53B	2.34	57.29%	―	36.07%	―
Sector *	48 Neutral	$6.35B	1.19	-46.26%	2.67%	19.24%	1.75%
MGNX	46 Neutral	$81.39M	―	-49.85%	―	155.26%	-640.36%
ADAP	46 Neutral	$56.90M	―	-273.36%	―	194.23%	45.50%
KURA	45 Neutral	$465.96M	―	-42.91%	―	―	2.90%
FATE	42 Neutral	$121.48M	―	-54.21%	―	-78.55%	-0.92%
AFMD	42 Neutral	$9.47M	―	-151.46%	―	-95.23%	-325.89%

MacroGenics Corporate Events

MacroGenics Extends CEO’s Separation Agreement

On February 25, 2025, MacroGenics announced an amendment to the separation and consulting agreement with its CEO, Dr. Scott Koenig, originally dated October 25, 2024. The amendment extends Dr. Koenig’s separation date and advisory services termination date, while also providing him with a prorated annual bonus. This adjustment allows the company more time to finalize the search for a new CEO, potentially impacting its leadership transition and operational continuity.