Pliant Therapeutics (PLRX) AI Stock Analysis

• Market Cap: $89.63M
• Dividend Yield: N/A
• Average Volume (3M): 798.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: N/A
• EPS Growth: -9.87%
• Country: US
• Employees: 171
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.71
• Shares Outstanding: 61,388,153
• 10 Day Avg. Volume: 417,301
• 30 Day Avg. Volume: 798,584
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -1.46
• Enterprise Value/Revenue: -57.84
• Enterprise Value/Gross Profit: -547.04
• Enterprise Value/Ebitda: 0.65
• 1Y Price Target: $2.68
• Price Target Upside: 86.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 37 Underperform
• Price Target: ―

Pliant Therapeutics is currently facing substantial financial difficulties, with zero revenue in 2024 and ongoing net losses. These challenges are reflected in the low financial performance score. Technical analysis shows bearish trends but hints at a potential short-term rebound. Valuation remains poor due to a negative P/E ratio and lack of dividends. Additionally, a significant workforce reduction indicates further strategic challenges. Overall, these factors contribute to a low stock score, indicating high risk and limited appeal for potential investors.

Positive Factors

Strategic Partnerships

Strategic partnerships provide Pliant Therapeutics with upfront payments, milestones, and potential royalties, supporting long-term revenue generation and risk-sharing in drug development.

Stockholder Rights Agreement

The stockholder rights agreement safeguards against hostile takeovers, ensuring management can focus on long-term strategic goals without disruption from unsolicited acquisition attempts.

Low Leverage

Low leverage indicates financial stability, reducing the risk of financial distress and providing flexibility for future investments or strategic initiatives.

Negative Factors

Negative Cash Flow

Persistent negative cash flow suggests reliance on external funding, which can strain financial resources and limit the company's ability to invest in growth opportunities.

Workforce Reduction

The workforce reduction reflects operational and financial pressures, potentially affecting morale and productivity, and indicating strategic challenges in maintaining growth.

Zero Revenue

Zero revenue in 2024 highlights significant challenges in commercializing products, impacting the company's ability to generate sustainable cash flows and achieve profitability.

Pliant Therapeutics Business Overview & Revenue Model

Company Description

Pliant Therapeutics, Inc., a clinical stage biopharmaceutical company, discovers, develops, and commercializes novel therapies for the treatment of fibrosis and related diseases in the United States. Its lead product candidate is PLN-74809, an oral small-molecule dual selective inhibitor of avß6 and avß1 integrins, which is in three Phase 2a trials. The company also develops PLN-1474, a small-molecule selective inhibitor of avß1, which completed Phase 1 clinical trial for the treatment of liver fibrosis associated with nonalcoholic steatohepatitis. In addition, it is developing two additional preclinical integrin-based programs, which include an oncology program, as well as a program for an allosteric agonistic monoclonal antibody against an undisclosed integrin receptor for treatment of muscular dystrophies, including duchenne muscular dystrophy. Pliant Therapeutics, Inc. was incorporated in 2015 and is based in South San Francisco, California.

How the Company Makes Money

Pliant Therapeutics makes money primarily through the development and potential commercialization of its drug candidates. The company generates revenue through strategic partnerships and collaborations with larger pharmaceutical companies. These partnerships may involve upfront payments, milestone payments based on the achievement of specific development goals, and royalties on future product sales. As a clinical-stage company, Pliant's revenue is also influenced by research grants or subsidies, but the majority of its future earnings potential lies in the successful approval and market introduction of its drug candidates.

Pliant Therapeutics Financial Statement Overview

Summary

Pliant Therapeutics is facing significant financial challenges with declining revenues and persistent losses. The balance sheet remains relatively stable with low leverage, but cash flows are under pressure, necessitating external funding to support operations. The company needs to improve revenue generation and cost management to achieve financial stability.

Income Statement

Pliant Therapeutics has shown a declining revenue trend from 2019 to 2024 with revenue dropping to zero in 2024. The company is experiencing persistent net losses, evident from the negative net profit margins, indicating challenges in achieving profitability. EBIT and EBITDA margins are also negative, reflecting high operating expenses relative to revenue.

Balance Sheet

The company's balance sheet shows a stable equity base despite consistent losses. The debt-to-equity ratio remains low due to minimal debt, signaling low leverage which reduces financial risk. However, the company's stockholders' equity has decreased over time, indicating financial pressure.

Cash Flow

Pliant Therapeutics has negative operating and free cash flows, indicating cash outflows from operations. The free cash flow has worsened over time, showing increasing capital strain. The cash flow from financing activities has been positive, suggesting reliance on external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.27M	0.00	1.58M	9.69M	7.57M	41.82M
Gross Profit	240.00K	-2.13M	1.58M	9.69M	7.57M	41.82M
EBITDA	-201.76M	-228.37M	-158.23M	-118.85M	-95.73M	-40.34M
Net Income	-206.96M	-210.30M	-161.34M	-123.32M	-97.26M	-41.53M
Balance Sheet
Total Assets	299.82M	396.95M	512.15M	350.61M	221.22M	295.53M
Cash, Cash Equivalents and Short-Term Investments	262.87M	355.72M	494.25M	331.19M	200.60M	276.89M
Total Debt	30.02M	60.19M	11.37M	15.81M	7.19M	283.00K
Total Liabilities	79.74M	92.87M	38.58M	37.27M	22.16M	12.46M
Stockholders Equity	220.08M	304.08M	473.58M	313.34M	199.06M	283.06M
Cash Flow
Free Cash Flow	-170.88M	-159.35M	-117.28M	-96.39M	-77.40M	-38.80M
Operating Cash Flow	-169.40M	-155.50M	-116.36M	-94.63M	-75.44M	-37.27M
Investing Cash Flow	174.69M	140.34M	-127.01M	-150.20M	73.70M	-210.87M
Financing Cash Flow	1.14M	23.12M	274.40M	226.85M	2.53M	213.21M

Pliant Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLRX, the sentiment is Negative. The current price of 1.44 is below the 20-day moving average (MA) of 1.59, below the 50-day MA of 1.58, and below the 200-day MA of 3.90, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 17.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLRX.

Pliant Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGNX	48 Neutral	108.71M	-2.87	-78.08%	―	303.47%	73.70%
VERU	47 Neutral	50.57M	-1.84	-116.97%	―	-52.76%	43.40%
SRZN	43 Neutral	100.70M	-0.86	―	―	―	35.81%
CLYM	41 Neutral	148.40M	-3.03	―	―	―	67.69%
PLRX	37 Underperform	$89.63M	―	-67.55%	―	―	-9.87%
ATOS	36 Underperform	106.63M	-3.63	―	―	―	-8.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Pliant Therapeutics Corporate Events

Pliant Therapeutics Announces Major Workforce Reduction

On May 1, 2025, Pliant Therapeutics announced a significant workforce reduction, impacting approximately 45% of its employees, expected to be completed by the end of the second quarter of 2025. This move includes the termination of Chief Legal and Compliance Officer Mike Ouimette’s employment and is anticipated to result in $3.6 million in severance and related benefits, reflecting a strategic shift that may affect the company’s operational dynamics and stakeholder interests.

Spark’s Take on PLRX Stock

According to Spark, TipRanks’ AI Analyst, PLRX is a Underperform.

Pliant Therapeutics faces major financial difficulties with zero revenue in 2024 and persistent net losses, impacting its overall stability. Technical indicators suggest a bearish trend, but the stock is nearing oversold levels, which might offer potential for a short-term rebound. Despite a stable balance sheet, the negative P/E ratio and lack of dividends make the stock less appealing from a valuation standpoint.

To see Spark’s full report on PLRX stock, click here.

Pliant Therapeutics Adopts Stockholder Rights Agreement

On March 12, 2025, Pliant Therapeutics’ board of directors adopted a stockholder rights agreement to protect against hostile takeovers by issuing a dividend of one preferred share purchase right for each outstanding share of common stock. This move aims to prevent any entity from gaining control of the company without paying a control premium, ensuring that the board has the opportunity to act in the best interests of all stockholders. The rights become exercisable if a person or group acquires 10% or more of the company’s common stock without board approval, allowing existing stockholders to purchase additional shares at a discount, thus diluting the acquiring party’s stake.