Omega Therapeutics (OMGAQ) AI Stock Analysis

• Market Cap: $1.78M
• Dividend Yield: N/A
• Average Volume (3M): 175.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 184.93%
• EPS Growth: 36.45%
• Country: US
• Employees: 94
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -1.32
• Shares Outstanding: 55,366,215
• 10 Day Avg. Volume: 204,040
• 30 Day Avg. Volume: 175,506
• PEG Ratio: <0.01
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.15
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: ―

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 Business Overview & Revenue Model

Company Description

Omega Therapeutics Inc is a development-stage biotechnology company leveraging its proprietary epigenomic programming platform to biologically engineer a new class of programmable epigenetic medicines, known as Omega Epigenomic Controllers. Using the epigenomic controllers, Omega is seeking to transform the practice of human medicine through highly selective and direct control of the human genome to treat and cure disease.

How the Company Makes Money

Omega 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

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

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

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
8.10M	3.09M	2.07M	144.00K	0.00	0.00
	Gross Profit
-4.84M	-62.77M	-3.12M	-1.24M	-1.15M	-794.00K
	EBIT
-74.15M	-100.26M	-102.77M	-66.03M	-28.64M	-17.34M
	EBITDA
-69.13M	-93.49M	-97.58M	-64.64M	-27.50M	-16.55M
	Net Income Common Stockholders
-73.09M	-97.43M	-102.64M	-69.16M	-30.20M	-18.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.27M	73.43M	70.61M	225.33M	22.95M	2.27M
	Total Assets
0.00	204.37M	146.00M	233.33M	28.08M	6.12M
	Total Debt
0.00	128.43M	22.58M	19.87M	11.73M	11.89M
	Net Debt
2.27M	59.98M	-48.03M	-166.61M	-11.22M	9.62M
	Total Liabilities
0.00	146.35M	40.03M	32.70M	92.71M	42.04M
	Stockholders Equity
-9.21M	58.02M	105.97M	200.63M	-64.63M	-35.92M
Cash Flow		Free Cash Flow
-57.64M	-94.38M	-99.89M	-59.08M	-27.94M	-16.56M
	Operating Cash Flow
-55.58M	-91.51M	-98.52M	-57.61M	-26.13M	-15.68M
	Investing Cash Flow
6.19M	47.52M	-18.06M	-40.40M	-1.81M	-885.00K
	Financing Cash Flow
-2.00M	41.82M	708.00K	261.54M	48.62M	11.98M

Omega Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMGAQ, the sentiment is Neutral. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and below the 200-day MA of 0.67, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.68 is Neutral, neither overbought nor oversold. The STOCH value of 45.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OMGAQ.

Omega Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%
SCNI	52 Neutral	$2.47M	1.06	138.38%	―	―	―
EVAX	46 Neutral	$11.88M	―	-205.75%	―	4455.07%	77.31%
OMGAQ	41 Neutral	$1.78M	―	-166.90%	―	184.93%	36.45%
ENTO		$1.88M	―	-33.24%	―	―	―
EYEN	38 Underperform	$5.10M	―	-388.03%	―	1414.02%	-14.78%
CERO		$4.02M	―		―	―	―

Omega Therapeutics Corporate Events

Omega Therapeutics Announces Board Restructuring and Appointments

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.

Omega Therapeutics Faces Leadership Change and Takeover Proposal

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.

Omega Therapeutics Appoints New Director Ravi Mehrotra

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.

Omega Therapeutics Restructures Leadership and Strategic Focus

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.