Purple Biotech (PPBT) AI Stock Analysis

• Market Cap: $7.04M
• Dividend Yield: N/A
• Average Volume (3M): 15.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: N/A
• EPS Growth: 71.57%
• Country: US
• Employees: 9
• Sector: Healthcare
• Sector Strength: 66
• Industry: Biotechnology
• EPS (TTM): -5.18
• Shares Outstanding: 2,650,685
• 10 Day Avg. Volume: 24,647
• 30 Day Avg. Volume: 15,253
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -0.40
• P/FCF Ratio: 0.00
• 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: $33.00
• Price Target Upside: 1061.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Purple Biotech faces significant hurdles with persistent revenue and profitability challenges reflected in its financials. Despite a strong balance sheet, negative cash flow and valuation metrics underscore the financial distress. Technical analysis offers mixed signals, with some short-term momentum but overall weakness. Such factors contribute to a below-average stock score, highlighting the risks and need for strategic improvement.

Positive Factors

Biomarker Analysis

Various biomarker analysis on the Phase 2 CM24 trial demonstrates improved overall survival.

Efficacy of CM24

The CM24 experimental arm had consistently greater efficacy for every evaluated endpoint.

Negative Factors

Imbalance in Clinical Trial

The CM24 + nivolumab + gem/nab-paclitaxel cohort was impacted by informative censoring of the control arm which led to an imbalance in the number of patients in the active and control arms.

Purple Biotech Business Overview & Revenue Model

Company Description

Purple Biotech (PPBT) is a clinical-stage biopharmaceutical company focused on developing first-in-class, effective, and safe therapies that harness the immune system to overcome tumor immune evasion and drug resistance. The company operates primarily in the biotechnology sector, with a focus on oncology. Its core products include investigational drug candidates that target multiple oncological pathways, aiming to improve the efficacy of current cancer treatments and address significant unmet medical needs.

How the Company Makes Money

Purple Biotech generates revenue primarily through partnerships and collaborations with other pharmaceutical and biotechnology companies, as well as through licensing agreements. These partnerships may involve co-development and commercialization of their drug candidates, which can provide upfront payments, milestone payments, and potential royalties on sales. Additionally, the company may receive government grants or funding from research institutions to support its clinical trials and drug development initiatives. As Purple Biotech advances through clinical stages, successful trials can lead to increased valuation and potential acquisition offers, further contributing to its financial growth.

Purple Biotech Financial Statement Overview

Summary

Purple Biotech is facing significant financial challenges with zero revenue and persistent net losses. The balance sheet shows low leverage, which is positive, but the negative cash flow indicates operational struggles. Overall, the company must improve revenue generation and operational efficiencies for long-term viability.

Income Statement

The income statement for Purple Biotech shows consistent revenue challenges with total revenues recording as zero for the latest periods. Gross profit margins are non-existent due to the absence of revenue, and the company has been operating at a net loss for several years, highlighted by a negative EBIT and EBITDA. Despite a slight reduction in net loss from the previous year, the absence of revenue growth and persistent operating losses suggest significant financial distress.

Balance Sheet

Purple Biotech's balance sheet reflects a relatively stable equity base, with stockholders' equity significantly surpassing total liabilities. The equity ratio remains strong, indicating low leverage, which is a positive aspect. However, the debt-to-equity ratio is minimal due to low debt levels. Despite these strengths, the continuous net losses and shrinking total assets are concerns for long-term sustainability.

Cash Flow

The cash flow situation for Purple Biotech is concerning, with consistent negative operating cash flow and free cash flow, indicating ongoing cash burn. Although there is a slight improvement in operating cash flow from the previous year, the free cash flow remains negative, and the company relies heavily on financing activities. The ratio of operating cash flow to net income is unfavorable, highlighting inefficiencies in cash generation relative to reported losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	195.80K	0.00	0.00	1.00M
	Gross Profit
0.00	-196.00	-120.00	-55.00	999.94K
	EBIT
-11.01M	22.27M	-22.60M	-17.93M	12.61M
	EBITDA
-7.05M	-22.23M	-21.43M	-17.38M	-28.41M
	Net Income Common Stockholders
-7.24M	-19.88K	-21.67M	-18.38M	-28.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.52M	15.41M	32.11M	47.20M	57.80M
	Total Assets
37.04M	44.30M	54.62M	70.20M	83.80M
	Total Debt
183.00K	351.00K	515.00K	749.00K	895.00K
	Net Debt
-7.22M	-14.14M	-14.52M	-10.14M	-10.35M
	Total Liabilities
4.13M	10.01M	7.52M	5.09M	4.05M
	Stockholders Equity
32.86M	34.21M	46.91M	64.83M	79.39M
Cash Flow		Free Cash Flow
-14.37M	-19.93M	-16.96M	-15.19M	-12.25M
	Operating Cash Flow
-14.37M	-19.93M	-16.73M	-15.07M	-12.09M
	Investing Cash Flow
509.00K	13.88M	19.91M	13.41M	-49.59M
	Financing Cash Flow
6.77M	5.45M	1.11M	1.51M	68.49M

Purple Biotech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.84
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPBT, the sentiment is Positive. The current price of 2.84 is above the 20-day moving average (MA) of 2.61, above the 50-day MA of 2.81, and above the 200-day MA of 2.77, indicating a bullish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 50.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPBT.

Purple Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.19B	3.13	-40.94%	2.95%	17.94%	2.00%
CYCN	47 Neutral	$7.45M	―	-30.36%	―	―	86.52%
SNGX	39 Underperform	$6.63M	―	-248.97%	―	―	57.83%
PPBT	35 Underperform	$7.04M	―	-21.59%	―	―	71.57%
INDP	27 Underperform	$6.93M	―	-187.52%	―	―	11.97%
TSBX	23 Underperform	$7.64M	―	-108.87%	―	-100.00%	-27.44%