Purple Biotech (PPBT) AI Stock Analysis

• Market Cap: $7.36M
• Dividend Yield: N/A
• Average Volume (3M): 415.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: N/A
• EPS Growth: 88.60%
• Country: US
• Employees: 9
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.29
• Shares Outstanding: 9,292,398
• 10 Day Avg. Volume: 296,099
• 30 Day Avg. Volume: 415,608
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.84
• Enterprise Value/Market Cap: 0.09
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -4.41
• Enterprise Value/Ebitda: -0.18
• 1Y Price Target: $34.00
• Price Target Upside: 4150.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 35 Underperform
• 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

Strong Partnerships

Partnerships and collaborations provide a sustainable revenue stream through upfront payments, milestone payments, and potential royalties, enhancing financial stability and growth prospects.

Low Leverage

Low leverage reduces financial risk and enhances the company's ability to navigate economic downturns, providing a stable foundation for future growth.

Clinical Progress

Advancements in clinical milestones and pipeline progress indicate potential for future product launches, which can drive long-term revenue growth and market expansion.

Negative Factors

Consistent Net Losses

Ongoing net losses highlight financial instability, limiting the company's ability to invest in growth opportunities and potentially affecting long-term viability.

Negative Cash Flow

Negative cash flow reflects inefficiencies in cash generation, necessitating reliance on external financing, which could constrain future operational flexibility and growth.

Revenue Challenges

The absence of revenue growth underscores significant operational challenges, limiting the company's ability to achieve profitability and sustain long-term operations.

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 faces severe financial struggles, marked by consistent net losses, zero revenue generation, and negative cash flows. Although the balance sheet indicates low leverage, the ongoing financial distress and lack of revenue generation highlight significant challenges.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	195.80K	0.00	0.00	1.00M
Gross Profit	-146.25K	-186.00K	-196.00	-120.00	-55.00	999.94K
EBITDA	-3.55M	-7.05M	-19.88M	-21.49M	-17.52M	-28.41M
Net Income	-3.26M	-7.24M	-19.88K	-21.67M	-18.38M	-28.00M
Balance Sheet
Total Assets	39.06M	37.04M	44.30M	54.62M	70.20M	83.80M
Cash, Cash Equivalents and Short-Term Investments	10.45M	8.52M	15.41M	32.11M	47.20M	57.80M
Total Debt	256.00K	183.00K	351.00K	515.00K	749.00K	895.00K
Total Liabilities	6.25M	4.13M	10.01M	7.52M	5.09M	4.05M
Stockholders Equity	32.77M	32.86M	34.21M	46.91M	64.83M	79.39M
Cash Flow
Free Cash Flow	-5.54M	-14.37M	-19.93M	-16.96M	-15.19M	-12.25M
Operating Cash Flow	-6.54M	-14.37M	-19.93M	-16.73M	-15.07M	-12.09M
Investing Cash Flow	727.13K	509.00K	13.88M	19.91M	13.41M	-49.59M
Financing Cash Flow	10.00M	6.77M	5.45M	1.11M	1.51M	68.49M

Purple Biotech Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.80
• 50DMA: Positive
• 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 PPBT, the sentiment is Neutral. The current price of 0.8 is below the 20-day moving average (MA) of 0.81, above the 50-day MA of 0.68, and below the 200-day MA of 1.97, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 52.77 is Neutral, neither overbought nor oversold. The STOCH value of 54.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TCRT	45 Neutral	$5.85M	-1.02	-145.65%	―	―	68.59%
PPBT	35 Underperform	$7.36M	-0.77	-10.55%	―	―	88.60%
QLGN	31 Underperform	―	―	-39.69%	―	―	84.34%
KALA	31 Underperform	$5.28M	-0.11	―	―	―	52.39%
OGEN	29 Underperform	$4.66M	-0.04	-168.95%	―	―	90.27%