Metagenomi, Inc. (MGX) AI Stock Analysis

• Market Cap: $51.59M
• Dividend Yield: N/A
• Average Volume (3M): 413.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 16.84%
• EPS Growth: 57.38%
• Country: US
• Employees: 202
• Sector: General
• Sector Strength: N/A
• Industry: Biotechnology
• EPS (TTM): -2.61
• Shares Outstanding: 37,383,472
• 10 Day Avg. Volume: 456,478
• 30 Day Avg. Volume: 413,913
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.17
• Price to Cash Flow (P/CF): -0.60
• P/FCF Ratio: 0.00
• 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: $13.50
• Price Target Upside: 812.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Metagenomi, Inc. shows promise with strong revenue growth and strategic corporate developments, yet faces critical challenges in profitability and cash flow, reflected in negative valuation metrics. The bearish technical indicators further highlight market skepticism, resulting in a cautious overall stock score.

Positive Factors

Collaborations and Funding

Metagenomi leverages several collaborations with Ionis and Affini-T, which could be a good source of continued non-dilutive funds as development advances.

Gene Editing Innovations

MGX has modified the transgene in MGX-001 to a bioengineered FVIII that has higher FVIII activity and could allow for lower AAV dosing.

Market Valuation

The company could be a leader in the gene editing space and the current valuation of MGX is viewed as attractive for its disruptive potential.

Negative Factors

Data Variability

There is variability from subject to subject in the dataset, with the three NHP subjects experiencing greatly variable levels of FVIII expression outcome.

Preclinical Data Challenges

Metagenomi's candidate shows variability in FVIII expression in NHPs, with some subjects experiencing different outcomes.

Regulatory Timeline

MGX plans to engage with regulators in 2025, and an IND/CTA for MGX-001 remains on track for 2026.

Metagenomi, Inc. Business Overview & Revenue Model

Company Description

Metagenomi, Inc., a gene editing biotechnology company, develops therapeutics for patients using metagenomics-derived genome editing toolbox in the United States. The company's genome editing toolbox includes programmable nucleases, base editors, and RNA and DNA-mediated integration systems, such as prime editing systems and clustered regularly interspaced short palindromic repeat-associated transposases. It has a strategic collaboration and license agreement with ModernaTX, Inc. focusing on new genome editing system for in vivo human therapeutic applications; a development, option, and license agreement with Affini-T Therapeutics, Inc. to develop and commercialize gene edited T-cell receptor-based therapeutic products in the field of treatment, prevention, or diagnosis of human cancer; and a collaboration and license agreement with Ionis Pharmaceuticals, Inc. to research, develop, and commercialize investigational medicines using genome editing technologies. The company was incorporated in 2016 and is based in Emeryville, California.

How the Company Makes Money

Metagenomi, Inc. generates revenue primarily through collaborations and partnerships with pharmaceutical and biotechnology companies. By licensing its proprietary gene editing technologies, Metagenomi earns milestone payments and royalties from the successful development and commercialization of therapeutics based on its innovations. Additionally, the company may engage in research and development agreements, providing expertise and access to its advanced CRISPR systems to partners, contributing further to its revenue streams. Strategic alliances and partnerships play a crucial role in enhancing Metagenomi's financial performance and market reach.

Metagenomi, Inc. Financial Statement Overview

Summary

Metagenomi, Inc. exhibits strong revenue growth but faces significant challenges in profitability and cash flow management. The balance sheet shows improving equity, yet ongoing cash burn and negative profitability pose risks to financial stability.

Income Statement

Metagenomi, Inc. has shown substantial revenue growth over the past years, with a remarkable increase from $243K in 2021 to $52.3M in 2024. However, the company is facing significant profitability challenges, as indicated by negative EBIT and net income margins, suggesting high operational costs or investments outpacing revenue growth. The gross profit margin improved significantly, but the net profit margin remains negative, indicating ongoing losses.

Balance Sheet

The company's balance sheet shows a strong equity position with positive stockholders' equity in 2024, recovering from negative equity in previous years. The debt-to-equity ratio is relatively low, reflecting manageable leverage levels. However, the consistent negative equity in earlier years and the volatility in asset management could pose risks to financial stability.

Cash Flow

Metagenomi's cash flow statement highlights significant cash outflows, particularly in operating cash flow, which has been negative and worsening. The free cash flow is also negative, indicating potential liquidity challenges. Despite these concerns, the company has maintained substantial cash balances, possibly from financing activities, but sustainability may be an issue if cash burn continues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
52.30M	44.76M	17.20M	243.00K
	Gross Profit
52.30M	-49.65M	15.47M	-144.00K
	EBIT
-88.90M	-78.49M	-44.64M	-23.95M
	EBITDA
-83.49M	-74.28M	-39.19M	-20.75M
	Net Income Common Stockholders
-78.06M	-68.25M	-43.59M	-21.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
248.31M	271.18M	362.13M	108.15M
	Total Assets
324.60M	364.84M	414.49M	141.99M
	Total Debt
45.78M	48.23M	18.57M	48.93M
	Net Debt
18.39M	-92.37M	-165.87M	9.63M
	Total Liabilities
89.74M	500.43M	488.91M	174.54M
	Stockholders Equity
234.86M	-135.58M	-74.43M	-32.54M
Cash Flow		Free Cash Flow
-112.19M	-101.22M	15.75M	21.35M
	Operating Cash Flow
-109.07M	-91.41M	29.72M	24.26M
	Investing Cash Flow
-88.16M	45.73M	-122.20M	-74.32M
	Financing Cash Flow
84.01M	1.01M	239.59M	39.92M

Metagenomi, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.48
• 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 MGX, the sentiment is Negative. The current price of 1.48 is below the 20-day moving average (MA) of 1.52, below the 50-day MA of 1.97, and below the 200-day MA of 2.72, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 21.22 is Positive, neither overbought nor oversold. The STOCH value of 3.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MGX.

Metagenomi, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$3.84B	-18.02	-14.99%	6.50%	25.52%	-80.16%
CRSP	46 Neutral	$2.95B	―	-19.20%	―	-89.95%	-123.71%
MGX	45 Neutral	$51.59M	―	-34.69%	―	16.84%	57.38%
NTLA	41 Neutral	$700.81M	―	-54.00%	―	59.55%	3.09%
EDIT	39 Underperform	$92.92M	―	-98.10%	―	-58.64%	-40.05%
BEAM	39 Underperform	$1.46B	―	-43.94%	―	-83.18%	-144.95%
SGMO	35 Underperform	$162.65M	―	-187.83%	―	-67.20%	64.66%

Metagenomi, Inc. Corporate Events

Metagenomi Reports 2024 Financial Results and Updates

Metagenomi, Inc. reported its full-year 2024 financial results and business updates, highlighting significant progress in its genetic medicine programs. The company declared a development candidate for hemophilia A, demonstrated sustained Factor VIII activity in nonhuman primates, and advanced its Ionis collaboration in cardiometabolic indications. With a strong cash position of $248.3 million, Metagenomi is well-capitalized to support its operations into 2027, aiming to file IND submissions in 2026 for its hemophilia A program and continue advancing its pipeline.

Metagenomi Expands Leadership and Showcases Innovations

On January 13, 2025, Metagenomi, Inc. announced the expansion of its board of directors by appointing Eric Bjerkholt as a new director, effective January 27, 2025. This move is part of Metagenomi’s strategic efforts to strengthen its leadership team as it continues to advance its genetic medicine programs. Bjerkholt’s extensive experience in the biopharmaceutical sector is expected to significantly contribute to the company’s growth and operational strategies. Alongside, Metagenomi updated its presentation for the 43rd Annual J.P. Morgan Healthcare Conference, showcasing its developments in gene editing technologies, which may enhance its competitive standing in the biotechnology market.