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Omega Therapeutics (OMGAQ)
OTHER OTC:OMGAQ
US Market

Omega Therapeutics (OMGAQ) AI Stock Analysis

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Omega Therapeutics

(OTC:OMGAQ)

41Neutral
Omega Therapeutics faces significant financial challenges with high leverage and negative cash flow, typical for developmental biotech companies. While technical analysis shows bearish momentum, recent corporate restructuring and strategic initiatives offer potential growth opportunities, balancing some of the financial risks.

Omega Therapeutics (OMGAQ) vs. S&P 500 (SPY)

Omega Therapeutics Business Overview & Revenue Model

Company DescriptionOmega Therapeutics (OMGA) is a biotechnology company focused on the development of programmable epigenetic medicines. The company leverages its proprietary platform to develop therapies that regulate gene expression without altering the underlying DNA sequence. Omega Therapeutics aims to address a broad range of diseases, including cancer, autoimmune conditions, and rare genetic disorders, by precisely controlling the epigenome to achieve therapeutic outcomes.
How the Company Makes MoneyOmega Therapeutics makes money through the development and potential commercialization of its proprietary epigenetic medicines. The company's primary revenue streams are expected to include licensing agreements, collaborations with pharmaceutical companies, and eventual product sales upon receiving regulatory approval for its therapies. Omega may also generate revenue through research and development partnerships with other biotechnology firms or academic institutions that are interested in utilizing its platform for epigenetic drug discovery. Additionally, the company might seek funding through grants or government contracts related to its innovative research efforts.

Omega Therapeutics Financial Statement Overview

Summary
Omega Therapeutics reflects a typical developmental biotech company's financials, showing revenue growth potential but also high leverage, ongoing losses, and negative cash flow, posing significant financial challenges.
Income Statement
30
Negative
Omega Therapeutics shows increasing revenue growth, albeit from a low base, with an improving trend in gross profit margin. However, the company remains unprofitable with negative net profit and EBIT margins. The financials indicate a challenging path to profitability, common in the biotechnology industry.
Balance Sheet
40
Negative
The company's balance sheet reveals high leverage with a debt-to-equity ratio above industry norms, suggesting financial risk. The equity ratio has declined significantly, impacting stability. However, Omega maintains a reasonable level of cash and short-term investments, providing some liquidity cushion.
Cash Flow
35
Negative
Omega Therapeutics exhibits substantial negative operating cash flow, typical of early-stage biotech firms. Free cash flow remains negative, with no substantial growth, posing liquidity risks. The company relies heavily on financing activities to sustain operations.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
3.09M2.07M144.00K0.000.00
Gross Profit
-62.77M-3.12M-1.24M-1.15M-794.00K
EBIT
-100.26M-102.77M-66.03M-28.64M-17.34M
EBITDA
-93.49M-97.58M-64.64M-27.50M-16.55M
Net Income Common Stockholders
-97.43M-102.64M-69.16M-30.20M-18.53M
Balance SheetCash, Cash Equivalents and Short-Term Investments
73.43M70.61M225.33M22.95M2.27M
Total Assets
204.37M146.00M233.33M28.08M6.12M
Total Debt
128.43M22.58M19.87M11.73M11.89M
Net Debt
59.98M-48.03M-166.61M-11.22M9.62M
Total Liabilities
146.35M40.03M32.70M92.71M42.04M
Stockholders Equity
58.02M105.97M200.63M-64.63M-35.92M
Cash FlowFree Cash Flow
-94.38M-99.89M-59.08M-27.94M-16.56M
Operating Cash Flow
-91.51M-98.52M-57.61M-26.13M-15.68M
Investing Cash Flow
47.52M-18.06M-40.40M-1.81M-885.00K
Financing Cash Flow
41.82M708.00K261.54M48.62M11.98M

Omega Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.04
Price Trends
50DMA
0.04
Negative
100DMA
0.32
Negative
200DMA
0.81
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
46.03
Neutral
STOCH
68.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMGAQ, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.04, and below the 200-day MA of 0.81, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 68.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OMGAQ.

Omega Therapeutics Risk Analysis

Omega Therapeutics disclosed 90 risk factors in its most recent earnings report. Omega Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Omega Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$5.35B3.96-42.60%2.86%17.58%1.27%
50
Neutral
$3.30B-19.20%-89.95%-123.71%
48
Neutral
$462.65M-36.36%174.98%25.06%
45
Neutral
$2.04B-43.94%-83.18%-144.95%
41
Neutral
$2.11M-166.90%184.93%36.45%
39
Underperform
$915.09M-54.00%59.55%3.09%
33
Underperform
$137.28M-98.10%-58.64%-40.05%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OMGAQ
Omega Therapeutics
0.04
-2.24
-98.25%
EDIT
Editas Medicine
1.64
-4.02
-71.02%
NTLA
Intellia Therapeutics
8.84
-14.88
-62.73%
CRSP
Crispr Therapeutics AG
38.25
-18.81
-32.97%
BEAM
Beam Therapeutics
20.24
-2.54
-11.15%
VERV
Verve Therapeutics
5.19
-1.22
-19.03%

Omega Therapeutics Corporate Events

Executive/Board Changes
Omega Therapeutics Announces Board Restructuring and Appointments
Neutral
Jan 28, 2025

On January 22, 2025, Ravi Mehrotra, Ph.D. and Robert L. Rosiello resigned from the Board of Directors of Omega Therapeutics. Subsequently, on January 24, 2025, Jeffrey T. Varsalone was appointed as a Class I director, receiving a monthly cash fee and indemnification as part of his agreement with the company. Additionally, Richard Kender was moved from Class III to Class II in order to rebalance the board’s classes, with his service deemed uninterrupted for all purposes.

Executive/Board ChangesM&A TransactionsBusiness Operations and Strategy
Omega Therapeutics Faces Leadership Change and Takeover Proposal
Neutral
Dec 31, 2024

Michelle C. Werner has resigned from Omega Therapeutics’ Board of Directors and the Nominating and Corporate Governance Committee, effective immediately. The company has also received a non-binding proposal from Mirai Bio, Inc. to take over Omega’s rights and obligations under a collaboration agreement with Novo Nordisk and related entities. This proposal involves Mirai assuming $8 million of Omega’s debt, and the company’s Board has formed a special committee to evaluate the offer and explore strategic alternatives.

Executive/Board Changes
Omega Therapeutics Appoints New Director Ravi Mehrotra
Neutral
Dec 6, 2024

Omega Therapeutics, Inc. has appointed Ravi Mehrotra, Ph.D., as a Class II director, replacing John Mendlein, Ph.D. and Richard A. Young, Ph.D. Mehrotra will receive an annual retainer and stock options as part of the Non-Employee Director Compensation Program. His stock options will vest over three years, ensuring alignment with the company’s long-term growth strategy. This leadership change reflects Omega’s strategic focus on innovation and development without any underlying personal or financial conflicts.

Executive/Board ChangesBusiness Operations and Strategy
Omega Therapeutics Restructures Leadership and Strategic Focus
Positive
Nov 14, 2024

Omega Therapeutics has revamped its shared space arrangements with several affiliates, and announced leadership changes with Kaan Certel stepping in as CEO following Mahesh Karande’s resignation. These moves come alongside ambitious plans to advance their pioneering epigenomic medicines platform, aiming to address a wide range of diseases. Omega is actively pursuing strategic partnerships to bolster their pipeline, positioning themselves as leaders in the development of programmable epigenomic therapies, signaling to investors a potential for significant growth and innovation in the biopharmaceutical market.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.