Onconetix (ONCO) AI Stock Analysis

• Market Cap: $4.76M
• Dividend Yield: N/A
• Average Volume (3M): 207.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.28
• Revenue Growth: -34.58%
• EPS Growth: 96.41%
• Country: US
• Employees: 12
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -88.84
• Shares Outstanding: 1,555,010
• 10 Day Avg. Volume: 109,373
• 30 Day Avg. Volume: 207,813
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.69
• P/FCF Ratio: -0.16
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 33 Underperform
• Price Target: ―

Onconetix's overall score reflects substantial financial difficulties with significant operating losses and negative profitability metrics. The technical analysis suggests a bearish trend, and the valuation metrics are unfavorable due to negative earnings. These factors combine to give the stock a low attractiveness score.

Positive Factors

Innovative Product Portfolio

Onconetix's focus on advanced cancer diagnostics and personalized therapeutics positions it well in the biotech industry, leveraging technology for improved patient outcomes.

Strategic Partnerships

Collaborations with larger firms can enhance product development and market reach, providing shared revenue opportunities and access to broader resources.

Revenue Growth Potential

Licensing proprietary technologies to other firms offers a scalable revenue stream, potentially increasing market penetration and financial stability over time.

Negative Factors

Negative Profit Margins

Persistent negative profit margins indicate ongoing financial challenges, potentially limiting reinvestment capabilities and affecting long-term viability.

Strained Cash Flows

Negative operating cash flow suggests difficulties in covering operational expenses, which can hinder growth initiatives and necessitate external financing.

High Operating Losses

Significant operating losses reflect inefficiencies and financial strain, challenging the company's ability to achieve profitability and necessitating cost management.

Onconetix Business Overview & Revenue Model

Company Description

Onconetix (ONCO) is a biotechnology company specializing in the development and commercialization of innovative cancer diagnostics and therapeutics. The company operates in the healthcare and life sciences sectors, focusing on leveraging advanced technologies to improve cancer detection, treatment, and patient outcomes. Onconetix's core products include a range of diagnostic assays and personalized treatment solutions designed to target specific cancer biomarkers, thereby enabling more effective and tailored treatment regimens.

How the Company Makes Money

Onconetix makes money primarily through the sale of its diagnostic assays and therapeutic solutions to healthcare providers, research institutions, and pharmaceutical companies. The company generates revenue by licensing its proprietary technologies and intellectual property to other firms in the oncology space. Additionally, Onconetix may engage in strategic partnerships and collaborations with larger biotech and pharmaceutical companies to co-develop and commercialize its products, sharing in the profits generated from these joint ventures. Revenues may also be supplemented by grants and funding from government and non-profit organizations dedicated to cancer research and innovation.

Onconetix Financial Statement Overview

Summary

Onconetix is facing significant financial challenges, characterized by substantial operating losses, negative profit margins, and strained cash flows. While there is some revenue growth, the overall financial health is weakened by high costs, negative equity returns, and operational cash deficits. The company's leverage is moderate but requires careful management to avoid liquidity issues.

Income Statement

Onconetix's income statement shows significant challenges with negative profitability metrics. The TTM gross profit margin is negative due to higher costs than revenues, and net income is deeply negative, resulting in a net profit margin of -2758.4%. The company has shown some revenue growth, as seen from a significant increase in TTM revenue compared to previous years, but this is outweighed by the high operating losses.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 0.29, indicating moderate leverage. The return on equity (ROE) is negative due to persistent net losses, and the equity ratio stands at 54.8%, suggesting a fair proportion of equity in the capital structure. However, the decline in stockholders' equity and total assets over the period indicates potential financial strain.

Cash Flow

Cash flow metrics highlight operational difficulties, with negative free cash flow and a free cash flow to net income ratio of 0.15, indicating limited cash generation relative to net losses. Despite some financing cash inflows, the operating cash flow remains negative, which is concerning for sustainable operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.22M	2.52M	58.47K	0.00	0.00	0.00
Gross Profit	1.05M	1.06M	-1.13M	-6.75K	-4.89K	-3.06K
EBITDA	-48.93M	-57.60M	-36.71M	-13.41M	-3.41M	-1.60M
Net Income	-49.14M	-58.69M	-37.41M	-13.42M	-3.42M	-1.60M
Balance Sheet
Total Assets	19.68M	28.18M	87.52M	26.31M	3.08M	4.81M
Cash, Cash Equivalents and Short-Term Investments	836.56K	646.50K	4.55M	25.75M	1.93M	4.31M
Total Debt	166.42K	9.45M	9.89M	0.00	0.00	0.00
Total Liabilities	16.30M	18.57M	86.11M	3.92M	1.64M	78.31K
Stockholders Equity	3.37M	9.61M	-5.60M	22.39M	1.45M	4.73M
Cash Flow
Free Cash Flow	-7.51M	-10.52M	-13.64M	-8.68M	-2.05M	-1.74M
Operating Cash Flow	-7.51M	-10.50M	-13.58M	-8.68M	-2.04M	-1.73M
Investing Cash Flow	-3.87K	-28.47K	-8.65M	-32.66K	-1.92K	-11.79K
Financing Cash Flow	9.21M	6.74M	1.04M	32.53M	-334.19K	0.00

Onconetix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.64
• 50DMA: Negative
• 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 ONCO, the sentiment is Neutral. The current price of 2.64 is above the 20-day moving average (MA) of 2.59, below the 50-day MA of 3.08, and below the 200-day MA of 6.59, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 47.64 is Neutral, neither overbought nor oversold. The STOCH value of 77.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ONCO.

Onconetix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GRI	45 Neutral	$6.44M	―	-397.84%	―	―	98.22%
ONCO	33 Underperform	$4.76M	>-0.01	-263.57%	―	-34.58%	96.41%
KALA	31 Underperform	$5.28M	-0.11	―	―	―	52.39%
OGEN	29 Underperform	$4.66M	-0.04	-168.95%	―	―	90.27%