Pliant Therapeutics (PLRX) AI Stock Analysis

• Market Cap: $96.99M
• Dividend Yield: N/A
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: -100.00%
• EPS Growth: -26.44%
• Country: US
• Employees: 171
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -0.92
• Shares Outstanding: 61,386,276
• 10 Day Avg. Volume: 1,366,087
• 30 Day Avg. Volume: 1,434,452
• PEG Ratio: 0.17
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.49
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 5.53
• Enterprise Value/Gross Profit: -86.12
• Enterprise Value/Ebitda: -0.07
• 1Y Price Target: $8.00
• Price Target Upside: 406.33% 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

Financial Position

PLRX reported a cash position of $307M, which provides a foundation to support ongoing and future development programs.

Oncology Research Progress

PLRX's Phase I study for PLN-101095 in solid tumors is progressing, with the fourth cohort of patients enrolling and showing confirmed partial responses in resistant solid tumors.

Strategic Realignment

The company's strategic realignment is expected to meaningfully extend their financial runway while they assess future plans.

Negative Factors

Clinical Trial Setbacks

The discontinuation of the Phase IIb/III BEACON-IPF study for bexotegrast was due to a higher rate of IPF-related adverse events observed in the bexo-treated groups compared to placebo.

Drug Development Challenges

PLRX announced they are discontinuing development of bexotegrast in idiopathic pulmonary fibrosis due to increased risk of adverse events and waning efficacy.

Financial Strategy

The company recently announced a restructuring and workforce reduction of approximately 45% to reduce cash burn following the discontinuation of the BEACON-IPF trial.

Pliant Therapeutics Business Overview & Revenue Model

Company Description

Pliant Therapeutics (PLRX) is a clinical-stage biopharmaceutical company focused on discovering and developing novel therapies for the treatment of fibrotic diseases. The company operates in the biotechnology and pharmaceuticals sector, leveraging its proprietary platform to identify and advance small molecule therapeutics targeting key pathways in fibrosis, a process implicated in a wide array of serious diseases. Pliant's core products are centered on treating diseases like idiopathic pulmonary fibrosis and primary sclerosing cholangitis.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	1.58M	9.69M	7.57M	41.82M
Gross Profit	0.00	1.58M	6.00M	4.37M	41.82M
EBITDA	-228.37M	-158.23M	-118.85M	-95.73M	-40.34M
Net Income	-210.30M	-161.34M	-121.50M	-17.91M	-39.74M
Balance Sheet
Total Assets	396.95M	512.15M	350.61M	221.22M	295.53M
Cash, Cash Equivalents and Short-Term Investments	355.72M	494.25M	331.19M	200.60M	276.89M
Total Debt	60.19M	11.37M	15.81M	7.19M	283.00K
Total Liabilities	92.87M	38.58M	37.27M	22.16M	12.46M
Stockholders Equity	304.08M	473.58M	313.34M	199.06M	283.06M
Cash Flow
Free Cash Flow	-159.35M	-117.28M	-96.39M	-77.40M	-38.80M
Operating Cash Flow	-155.50M	-116.36M	-94.63M	-75.44M	-37.27M
Investing Cash Flow	140.34M	-127.01M	-150.20M	73.70M	-210.87M
Financing Cash Flow	23.12M	274.40M	226.85M	2.53M	213.21M

Pliant Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLRX, the sentiment is Positive. The current price of 1.58 is above the 20-day moving average (MA) of 1.35, above the 50-day MA of 1.38, and below the 200-day MA of 6.58, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 64.60 is Neutral, neither overbought nor oversold. The STOCH value of 87.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLRX.

Pliant Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$7.62B	0.05	-63.03%	2.44%	16.33%	0.31%
MGNX	51 Neutral	$114.19M	―	-60.25%	―	255.31%	-141.39%
VERU	48 Neutral	$85.68M	―	-88.03%	―	-21.28%	36.26%
SRZN	43 Neutral	$74.30M	―	-456.32%	―	―	0.13%
CLYM	41 Neutral	$100.01M	―	-62.04%	―	―	-61.95%
PLRX	37 Underperform	$96.99M	―	-63.22%	―	-100.00%	-26.44%
ATOS	36 Underperform	$114.50M	―	-34.87%	―	―	15.09%

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.