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Purple Biotech (PPBT)
NASDAQ:PPBT

Purple Biotech (PPBT) AI Stock Analysis

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Purple Biotech

(NASDAQ:PPBT)

Rating:35Underperform
Price Target:
Purple Biotech's overall stock score reflects significant financial challenges and unattractive valuation metrics. The absence of revenue and ongoing losses weigh heavily on financial performance. Technical indicators are mixed, with some potential downside risks. The lack of profitability and dividends further contribute to a low valuation score.
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 (PPBT) vs. SPDR S&P 500 ETF (SPY)

Purple Biotech Business Overview & Revenue Model

Company DescriptionPurple Biotech Ltd., a clinical-stage company, focuses on developing therapies to overcome tumor immune evasion and drug for cancer patients in the United States. Its oncology pipeline includes CM24, a monoclonal antibody that blocks carcinoembryonic antigen related cell adhesion molecule 1 as a combination therapy with anti-PD-1 checkpoint inhibitors, which is in Phase 1b/2 clinical trials for the treatment of non-small cell lung cancer and pancreatic cancer; and NT219, a small molecule that targets insulin receptor substrate 1 and 2, and signal transducer and activator of transcription, which is in Phase 1/2 clinical trials for the treatment of recurrent and/or metastatic solid tumors and squamous cell carcinoma of the head and neck cancer. The company was formerly known as Kitov Pharma Ltd and changed its name to Purple Biotech Ltd. in December 2020. The company is headquartered in Rehovot, Israel.
How the Company Makes MoneyPurple 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
20
Very Negative
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
40
Negative
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
25
Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.00195.80K0.000.001.00M
Gross Profit
0.00-196.00-120.00-55.00999.94K
EBIT
-11.01M22.27M-22.60M-17.93M12.61M
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 SheetCash, Cash Equivalents and Short-Term Investments
8.52M15.41M32.11M47.20M57.80M
Total Assets
37.04M44.30M54.62M70.20M83.80M
Total Debt
183.00K351.00K515.00K749.00K895.00K
Net Debt
-7.22M-14.14M-14.52M-10.14M-10.35M
Total Liabilities
4.13M10.01M7.52M5.09M4.05M
Stockholders Equity
32.86M34.21M46.91M64.83M79.39M
Cash FlowFree 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
509.00K13.88M19.91M13.41M-49.59M
Financing Cash Flow
6.77M5.45M1.11M1.51M68.49M

Purple Biotech Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.34
Price Trends
50DMA
2.52
Negative
100DMA
2.93
Negative
200DMA
3.04
Negative
Market Momentum
MACD
-0.05
Negative
RSI
45.98
Neutral
STOCH
74.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPBT, the sentiment is Negative. The current price of 2.34 is above the 20-day moving average (MA) of 2.32, below the 50-day MA of 2.52, and below the 200-day MA of 3.04, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 45.98 is Neutral, neither overbought nor oversold. The STOCH value of 74.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPBT.

Purple Biotech Risk Analysis

Purple Biotech disclosed 74 risk factors in its most recent earnings report. Purple Biotech reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may be subject to claims that our employees, consultants, or independent contractors have wrongfully used or disclosed confidential information of third parties, such as trade secrets of their former employers. Q4, 2024
2.
Obtaining and maintaining our patent protection depends on compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements. Q4, 2024
3.
Regulations are constantly changing, and in the future our business may be subject to additional regulations that could increase our compliance costs or delay our ability to market our product candidates, if at all. Q4, 2024

Purple Biotech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
53
Neutral
$5.14B3.23-45.01%2.85%17.55%-0.69%
47
Neutral
$10.50M-31.48%86.52%
39
Underperform
$5.91M-437.73%57.83%
35
Underperform
$6.45M-12.35%71.57%
27
Underperform
$5.20M-259.00%11.97%
$1.63M
34
Underperform
$7.68M-126.03%-100.00%-27.44%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PPBT
Purple Biotech
2.34
1.56
200.00%
SNGX
Soligenix
1.91
-3.69
-65.89%
INDP
Indaptus Therapeutics
0.32
-2.44
-88.41%
CYCN
Cyclerion Therapeutics
2.92
0.17
6.18%
OCEA
Ocean Biomedical
0.01
-1.37
-99.28%
TSBX
Turnstone Biologics Corp.
0.33
-2.30
-87.45%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.