PureTech Health (PRTC) AI Stock Analysis

• Market Cap: $403.97M
• Dividend Yield: N/A
• Average Volume (3M): 4.02K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.49
• Revenue Growth: 1268.81%
• EPS Growth: N/A
• Country: US
• Employees: 80
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.90
• Shares Outstanding: 24,168,404
• 10 Day Avg. Volume: 1,390
• 30 Day Avg. Volume: 4,023
• PEG Ratio: -0.05
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 103.10
• P/FCF Ratio: -3.70
• Enterprise Value/Market Cap: 0.26
• Enterprise Value/Revenue: 18.12
• Enterprise Value/Gross Profit: 5.35
• Enterprise Value/Ebitda: 1.91
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $18.50 ▲(7.31% Upside)

PureTech Health's overall score is driven by a solid valuation and a promising earnings call, offset by mixed financial performance and neutral technical indicators. The company's strong cash position and strategic initiatives are positive, but operational inefficiencies and leadership transitions pose risks.

Positive Factors

Strong Cash Position

A robust cash position enhances financial stability, allowing for strategic investments and operational resilience, supporting long-term growth.

Progress in Core Founded Entities

Advancements in core entities indicate strong R&D capabilities and potential for future revenue streams, reinforcing competitive positioning.

Successful Financing of Seaport Therapeutics

Successful financing rounds reflect investor confidence and provide capital to advance key projects, supporting long-term strategic goals.

Negative Factors

Dependence on External Financing

Reliance on external funding can lead to financial uncertainty and potential dilution, impacting long-term financial health and shareholder value.

Leadership Transition

Leadership changes can disrupt strategic direction and execution, potentially affecting company performance and investor confidence over time.

Operational Inefficiencies

Operational inefficiencies can hinder profitability and growth, requiring strategic adjustments to improve long-term operational performance.

PureTech Health Business Overview & Revenue Model

Company Description

PureTech Health plc, a clinical-stage biotherapeutics company, discovers, develops, and commercializes medicines for inflammatory, fibrotic and immunological, intractable cancers, lymphatic and gastrointestinal, neurological and neuropsychological, and other diseases in the United States. The company offers KarXT targeting muscarinic acetylcholine receptors to treat schizophrenia and psychosis in Alzheimer's disease; a regenerative biology platform for androgenetic alopecia, epithelial ageing, and other medical conditions; an immunomodulation platform to treat chronic and acute inflammatory disorders; oral therapies based on defined consortia of bacteria is isolated from the human microbiome; and therapies to treat cognitive dysfunction associated with depression, multiple sclerosis, post COVID and ICU, and cancer related conditions. It also provides hematopoietic stem cell based therapies for patients with blood cancer; a voice-based technology platform to detect voice changes linked to health conditions; and a technology platform for the oral delivery of biologics, vaccines, and other drugs. In addition, the company is developing LYT-100 to treat lymphedema, and other lymphatic flow disorders; LYT-200, a IgG4 monoclonal antibody to target galectin-9; LYT-210 to treat solid tumors; Glyph, a synthetic lymphatic targeting chemistry platform; Orasome technology to enable the oral administration of macromolecule therapeutic payloads; meningeal lymphatics platform to treat Alzheimer's and Parkinson's diseases; and Alivio technology platform for inflammation-targeted disease immunomodulation. PureTech Health plc has collaboration and license agreements with Boehringer Ingelheim International GMBH; Eli Lilly and Company; Imbrium Therapeutics L.P.; and Shionogi & Co., Ltd. The company was incorporated in 2015 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

PureTech Health generates revenue through a combination of product sales, licensing agreements, and strategic partnerships. The company develops and commercializes its own pharmaceutical products, which contribute to its revenue through direct sales. Additionally, PureTech Health enters into licensing agreements with other biotechnology and pharmaceutical companies, allowing them to utilize PureTech's proprietary technologies or product candidates, in exchange for upfront payments, milestones, and royalties. The company also engages in collaborations and partnerships with leading academic institutions and industry players, which can provide funding, shared resources, and additional revenue streams. These partnerships often focus on advancing the development of PureTech's pipeline and expanding its reach in the market.

PureTech Health Financial Statement Overview

Summary

PureTech Health shows a mixed financial outlook with a solid balance sheet and low leverage. However, operational inefficiencies and cash management issues are evident in the income and cash flow statements. The transition to positive net income in 2024 is promising, but sustained profitability is uncertain.

Income Statement

PureTech Health has shown inconsistent revenue growth with a significant increase from 2023 to 2024. However, the company is operating at a loss, with negative EBIT and EBITDA margins indicating operational challenges. Although net profit margin turned positive in 2024, this has been volatile over the years.

Balance Sheet

The company's balance sheet shows a strong equity ratio and low debt-to-equity ratio, suggesting good financial stability. However, the decrease in stockholders' equity over recent years could be a concern for long-term sustainability. Return on Equity turned positive in 2024, but this metric has been inconsistent historically.

Cash Flow

Cash flow analysis reveals negative free cash flow, although the company has managed a positive investing cash flow, likely from asset sales or investments. The operating cash flow to net income ratio is negative, suggesting that core operations are not generating sufficient cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.88M	4.83M	3.33M	2.09M	9.98M	8.34M
Gross Profit	19.91M	1.26M	-1.60M	-136.81M	-100.49M	8.34M
EBITDA	55.73M	37.38M	-11.63M	-52.19M	26.70M	62.69M
Net Income	50.68M	53.51M	-65.70M	-50.35M	-60.56M	5.99M
Balance Sheet
Total Assets	553.24M	602.63M	693.97M	702.65M	946.01M	989.99M
Cash, Cash Equivalents and Short-Term Investments	321.55M	367.31M	327.14M	350.10M	465.71M	403.88M
Total Debt	20.92M	22.36M	25.34M	46.87M	52.75M	76.62M
Total Liabilities	184.22M	194.70M	235.74M	155.06M	361.86M	336.45M
Stockholders Equity	375.98M	414.71M	464.07M	542.22M	593.51M	669.75M
Cash Flow
Free Cash Flow	-100.31M	-134.38M	-106.16M	-180.97M	-163.94M	-137.25M
Operating Cash Flow	-100.30M	-134.37M	-105.92M	-178.79M	-158.27M	-131.83M
Investing Cash Flow	31.89M	240.89M	68.99M	-107.22M	197.38M	364.48M
Financing Cash Flow	18.51M	-16.96M	78.14M	-29.83M	22.73M	38.87M

PureTech Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.24
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRTC, the sentiment is Negative. The current price of 17.24 is below the 20-day moving average (MA) of 17.64, above the 50-day MA of 17.23, and below the 200-day MA of 17.81, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 23.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRTC.

PureTech Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRTC	58 Neutral	$403.97M	9.39	14.55%	―	1268.81%	―
FDMT	58 Neutral	$490.84M	―	-38.87%	―	―	―
ADCT	56 Neutral	$453.37M	―	―	―	15.73%	38.73%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AUTL	48 Neutral	$368.61M	―	-52.18%	―	187.52%	26.32%
ABSI	48 Neutral	$569.68M	―	-57.39%	―	27.32%	-1.34%
ATXS	44 Neutral	$691.33M	―	-38.49%	―	―	11.81%

PureTech Health Corporate Events

PureTech Health Reports Strong Progress and Financial Stability

PureTech Health plc is a biotherapeutics company operating in the healthcare sector, known for its innovative hub-and-spoke R&D model that transforms scientific innovation into value by advancing therapeutic candidates through its Founded Entities. In its latest half-yearly report, PureTech Health highlighted significant progress in advancing its diversified portfolio, particularly with the launch of Celea Therapeutics and the continued development of Gallop Oncology. The company reported a strong financial position with cash reserves of $319.6 million, providing an operational runway into 2028, and emphasized its commitment to capital-efficient innovation and shareholder value creation. Key financial metrics include reduced operating expenses of $49.8 million compared to the previous year, and strategic moves such as the divestment of equity holdings in Vor Biopharma. Looking forward, PureTech aims to maintain its disciplined capital allocation strategy, focusing on advancing promising programs and strengthening its engagement with UK capital markets, while anticipating a reduction in operational expenses as responsibilities transition to Founded Entities.