Meiragtx Holdings (MGTX) AI Stock Analysis

• Market Cap: $690.24M
• Dividend Yield: N/A
• Average Volume (3M): 392.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: 366.84%
• EPS Growth: -35.87%
• Country: US
• Employees: 375
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 80,447,480
• 10 Day Avg. Volume: 316,470
• 30 Day Avg. Volume: 392,905
• PEG Ratio: -0.07
• Price to Book (P/B): 6.27
• Price to Sales (P/S): 12.78
• P/FCF Ratio: -3.89
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $23.50
• Price Target Upside: 179.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $9.50 ▲(12.96% Upside)

Meiragtx Holdings' stock score is primarily impacted by its weak financial performance, characterized by high leverage and negative profitability. While technical indicators show a bullish trend, the poor valuation due to negative earnings limits the stock's attractiveness.

Meiragtx Holdings Business Overview & Revenue Model

Company Description

MeiraGTx Holdings plc, a clinical stage gene therapy company, focusing on developing treatments for patients with serious diseases. The company develops various therapies for ocular diseases, including inherited blindness, as well as Xerostomia following radiation treatment for head and neck cancers; degenerative diseases; neurodegenerative diseases, such as amyotrophic lateral sclerosis; and Parkinson's diseases. Its programs in clinical development include Phase 1/2 clinical stage programs in Achromatopsia, X-Linked Retinitis Pigmentosa, RPE65-deficiency, and radiation-induced Xerostomia, as well as Parkinson's program. The company also focuses on initiating a clinical program in xerostomia related to Sjogren's syndrome and have preclinical programs in neurodegenerative diseases. It has a research collaboration agreement with Janssen Pharmaceuticals, Inc. to develop regulatable gene therapy treatment using the company's proprietary riboswitch technology. MeiraGTx Holdings plc was incorporated in 2015 and is based in New York, New York.

How the Company Makes Money

MeiraGTx Holdings generates revenue primarily through collaborations and partnerships with pharmaceutical companies and research institutions. The company may receive milestone payments and royalties based on the commercial success of its gene therapy products developed in conjunction with these partners. Additionally, MeiraGTx is involved in the licensing of its proprietary technology and processes, which can also contribute to its revenue streams. As the company progresses its product candidates through clinical trials and toward commercialization, it anticipates that successful outcomes will lead to increased revenue from product sales and ongoing collaborations.

Meiragtx Holdings Financial Statement Overview

Summary

Meiragtx Holdings faces significant financial challenges with persistent losses and high leverage. While there are some positive signs in revenue growth and free cash flow improvement, the overall financial health is concerning due to negative profitability metrics and high debt levels.

Income Statement

Meiragtx Holdings shows a modest revenue growth rate of 9.88% TTM, but the company struggles with profitability as evidenced by negative net profit margins and EBIT margins. The gross profit margin has improved to 36.55% TTM, indicating some efficiency in cost management. However, the persistent negative EBIT and net profit margins highlight ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 2.44 TTM, indicating a high level of leverage which could pose financial risks. Return on equity remains negative, reflecting continued losses. The equity ratio is low, suggesting limited shareholder equity relative to total assets. These factors point to financial instability and potential risk.

Cash Flow

Free cash flow has shown growth of 22.27% TTM, which is a positive sign. However, operating cash flow remains negative, and the operating cash flow to net income ratio is unfavorable, indicating cash flow challenges. The free cash flow to net income ratio is slightly above 1, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.92M	33.28M	14.02M	15.92M	37.70M	15.56M
Gross Profit	10.07M	9.49M	14.02M	7.20M	29.83M	15.56M
EBITDA	-132.21M	-121.69M	-57.05M	-115.95M	-71.40M	-53.68M
Net Income	-157.50M	-147.79M	-84.03M	-142.88M	-71.98M	-53.96M
Balance Sheet
Total Assets	198.72M	269.75M	326.74M	318.24M	320.16M	363.70M
Cash, Cash Equivalents and Short-Term Investments	32.17M	103.66M	129.57M	115.52M	137.70M	209.52M
Total Debt	80.47M	84.80M	89.26M	92.25M	23.73M	22.25M
Total Liabilities	195.76M	201.92M	188.57M	200.50M	134.76M	125.14M
Stockholders Equity	2.96M	67.83M	138.18M	117.74M	185.40M	238.56M
Cash Flow
Free Cash Flow	-133.97M	-109.45M	-125.54M	-118.06M	-65.75M	-100.99M
Operating Cash Flow	-129.07M	-104.50M	-105.36M	-73.10M	-10.53M	-63.97M
Investing Cash Flow	-5.00M	23.48M	34.03M	-44.96M	-61.72M	-37.02M
Financing Cash Flow	61.36M	54.53M	84.02M	95.20M	1.71M	82.73M

Meiragtx Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGTX, the sentiment is Neutral. The current price of 8.41 is below the 20-day moving average (MA) of 8.56, above the 50-day MA of 8.16, and above the 200-day MA of 7.14, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 49.53 is Neutral, neither overbought nor oversold. The STOCH value of 26.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MGTX.

Meiragtx Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDMT	58 Neutral	$490.84M	―	-38.87%	―	―	―
TSHA	52 Neutral	$1.10B	―	-64.93%	―	-36.36%	-945.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MGTX	50 Neutral	$690.24M	―	-379.53%	―	366.84%	-35.87%
TERN	45 Neutral	$1.60B	―	-35.02%	―	―	20.37%
OPT	39 Underperform	$477.76M	-3.01	―	―	-80.09%	60.14%
ERAS	34 Underperform	$624.07M	―	-31.16%	―	―	50.77%

Meiragtx Holdings Corporate Events

MeiraGTx Reports Progress in Genetic Medicines Development

MeiraGTx Holdings plc is a clinical-stage genetic medicines company focused on developing innovative therapies for inherited and common diseases, with a strong emphasis on end-to-end in-house manufacturing capabilities. In its latest earnings report, MeiraGTx highlighted significant regulatory progress and strategic collaborations, notably gaining FDA alignment for its Phase 2 study in radiation-induced xerostomia and receiving RMAT designation for its Parkinson’s disease treatment. Key financial metrics showed a net loss reduction compared to the previous year, with service revenue increasing due to enhanced collaboration with Johnson & Johnson. The company also announced a strategic partnership with Hologen to advance its Parkinson’s disease program and other CNS therapies, supported by a $200 million investment. Looking ahead, MeiraGTx remains focused on advancing its late-stage clinical programs and leveraging its proprietary technologies to address unmet medical needs, with a robust financial position to support its strategic initiatives into 2027.

Navigating AI Challenges: Meiragtx Holdings’ Battle with Operational Risks and Compliance

Meiragtx Holdings faces significant operational risks with the integration of new technologies like AI, which, while promising increased efficiencies, also present challenges such as flawed algorithms, biased data, and potential legal liabilities. The evolving regulatory landscape around AI, coupled with the risk of competitors adopting these technologies more effectively, adds to the complexity. Additionally, the misuse of AI could lead to the release of confidential information, impacting intellectual property benefits. The company must allocate substantial resources to ensure AI compliance and mitigate any unintended harmful impacts, while also safeguarding against sophisticated illegal activities by bad actors.