Oculis Holding (OCS) AI Stock Analysis

• Market Cap: $920.64M
• Dividend Yield: N/A
• Average Volume (3M): 45.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 49
• Sector: Healthcare
• Sector Strength: 71
• Industry: Biotechnology
• EPS (TTM): -2.39
• Shares Outstanding: 48,000,000
• 10 Day Avg. Volume: 36,179
• 30 Day Avg. Volume: 45,457
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 854.93
• Price to Cash Flow (P/CF): N/A
• 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: $31.80
• Price Target Upside: 65.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Oculis Holding's overall stock score is significantly impacted by its poor financial performance, characterized by deep negative margins and declining equity. The technical analysis adds to the cautionary outlook with bearish indicators. Valuation metrics are unfavorable due to negative earnings and the lack of a dividend yield, making the stock less appealing to investors.

Positive Factors

Clinical Trials

OCS-05 demonstrated both anatomical and functional improvement in an optic condition for the first time, indicating potential for neuroprotection in various neuro-ophthalmic indications.

Financial Position

The recently completed $100m equity financing extends cash runway into early 2028.

Product Development

FDA has granted IND clearance for OCS-05, enabling the initiation of registrational development in acute optic neuritis, while exploring additional formulations for other chronic conditions.

Negative Factors

Clinical Trials Timing

Oculis fine-tuned its timing for phase 3 DIAMOND trial readout in diabetic macular edema to 1H26 vs. prior estimate of 2H25.

Regulatory Risks

Risks include possible failure of OCS-01 or OCS-02 in clinical trials or to secure regulatory approval, as well as potential dilution risk.

Oculis Holding Business Overview & Revenue Model

Company Description

Oculis Holding AG, a clinical-stage biopharmaceutical company, develops novel topical treatments for ophthalmic diseases for both back- and front-of-the-eye. The company's lead candidate is OCS-01, a topical dexamethasone formulation, which is in Phase 3 clinical trials for the treatment of diabetic macular edema; OCS-02, a topical biologic candidate that is in Phase 2b clinical trials for the treatment for keratoconjunctivitis sicca, or dry eye disease; and OCS-05, a novel neuroprotective agent for acute optic neuritis and other neuro-ophtha disorders, such as glaucoma, diabetic retinopathy, geographic atrophy, and neurotrophic keratitis. The company is based in Zug, Switzerland.

How the Company Makes Money

Oculis Holding generates revenue primarily through the development and commercialization of its proprietary ophthalmic therapies. The company's revenue model includes income from the sale of approved drug products, licensing agreements, and strategic partnerships. Oculis collaborates with other pharmaceutical companies to co-develop and market its treatments, often involving upfront payments, milestone payments, and royalties on sales. Additionally, the company may receive funding from research grants and government programs aimed at supporting innovative healthcare solutions.

Oculis Holding Financial Statement Overview

Summary

Oculis Holding faces substantial financial challenges, particularly in profitability and revenue growth, with negative margins across the board. While the company maintains a low debt-to-equity ratio, its equity has been declining. Cash flows are under pressure, with negative free cash flow and limited conversion of losses into operational cash flow. Strategic adjustments are necessary to improve financial health.

Income Statement

Oculis Holding's TTM (Trailing-Twelve-Months) income statement shows a gross profit margin of -5747.54% and a net profit margin of -18363.60%, indicating significant operational losses. The revenue growth rate is negative, showing a decrease of 47.11% from the previous year, and both EBIT and EBITDA margins are negative, further emphasizing ongoing financial struggles.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 0.02, indicating low leverage, but stockholders' equity has decreased significantly over recent years. The equity ratio is 60.96%, showing a strong equity position relative to total assets, yet the company has faced equity erosion over time.

Cash Flow

Cash flow analysis shows a negative free cash flow growth rate of -11.43%. The operating cash flow to net income ratio is 0.55, reflecting operational inefficiencies. The free cash flow to net income ratio is 0.56, suggesting limited cash flow generation relative to net losses.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
467.00K	883.00K	912.00K	960.00K	993.00K
	Gross Profit
-26.85M	-28.36M	-21.31M	-8.61M	-8.34M
	EBIT
-73.20M	-80.71M	-32.38M	-13.23M	-12.34M
	EBITDA
-86.00M	-45.73M	-31.95M	-12.98M	-12.10M
	Net Income Common Stockholders
-85.78M	-88.80M	-38.70M	-18.55M	-14.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
98.66M	91.65M	19.79M	46.28M	4.95M
	Total Assets
120.35M	114.35M	37.06M	58.04M	16.38M
	Total Debt
1.18M	605.00K	123.08M	114.27M	54.81M
	Net Debt
-26.53M	-37.72M	103.30M	68.00M	49.86M
	Total Liabilities
46.97M	20.63M	135.05M	119.00M	60.04M
	Stockholders Equity
73.38M	93.73M	-97.99M	-60.95M	-43.65M
Cash Flow		Free Cash Flow
-47.73M	-53.89M	-28.62M	-13.85M	-12.05M
	Operating Cash Flow
-47.50M	-53.84M	-25.07M	-13.82M	-12.03M
	Investing Cash Flow
-17.56M	-54.21M	-3.55M	-28.00K	-19.00K
	Financing Cash Flow
54.03M	129.67M	1.71M	55.19M	4.86M

Oculis Holding Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.18
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCS, the sentiment is Neutral. The current price of 19.18 is above the 20-day moving average (MA) of 19.02, below the 50-day MA of 20.67, and above the 200-day MA of 15.63, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 65.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OCS.

Oculis Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPMC	52 Neutral	$5.67B	―	-31.26%	―	104.04%	87.80%
Sector *	49 Neutral	$6.85B	0.81	-52.91%	2.50%	19.94%	1.20%
CRSP	46 Neutral	$3.17B	―	-19.20%	―	-89.95%	-123.71%
ARVN	44 Neutral	$521.98M	―	-35.41%	―	-39.92%	7.38%
EDIT	39 Underperform	$103.72M	―	-98.10%	―	-58.64%	-40.05%
NTLA	39 Underperform	$835.39M	―	-54.00%	―	59.55%	3.09%
OCS	34 Underperform	$920.64M	―	-101.29%	―	―	―