Protagonist Therapeutics (PTGX) AI Stock Analysis

• Market Cap: $5.21B
• Dividend Yield: N/A
• Average Volume (3M): 715.55K
• Price to Earnings (P/E): 131.5
• Beta (1Y): 0.18
• Revenue Growth: -35.39%
• EPS Growth: -72.97%
• Country: US
• Employees: 124
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.62
• Shares Outstanding: 62,515,667
• 10 Day Avg. Volume: 838,951
• 30 Day Avg. Volume: 715,553
• PEG Ratio: -0.02
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 5.47
• P/FCF Ratio: 13.00
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 23.61
• Enterprise Value/Gross Profit: 23.61
• Enterprise Value/Ebitda: 179.45
• 1Y Price Target: $96.20
• Price Target Upside: 15.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $85.00 ▲(2.04% Upside)

The score is primarily supported by improving financial performance—especially strong cash flow and a turn to positive profitability—along with a constructive pipeline/partnership update. Offsetting these positives are weak technical momentum (below key moving averages with negative MACD) and a demanding valuation (very high P/E with no dividend yield support).

Positive Factors

Free Cash Flow Generation

Sustained, high free cash flow growth and efficient conversion of income into cash provide durable funding for clinical programs and reduce need for frequent equity raises. This strengthens the company’s ability to finance trials, support partnerships, and pursue milestones over the next 2–6 months.

Low Financial Leverage

Extremely low leverage and a solid balance-sheet position lower refinancing and solvency risk, giving management flexibility to fund development or absorb setbacks. This balance-sheet strength supports strategic optionality across regulatory and clinical catalysts ahead.

Diversified Pipeline & Partnered NDAs

Multiple late-stage assets with submitted NDAs and long-standing partnerships (Takeda, J&J) diversify binary risk and create potential non-dilutive milestone and royalty revenue. This multi-indication pipeline materially improves strategic resilience over the medium term.

Negative Factors

Revenue Volatility

Large negative headline revenue growth indicates lumpy, volatile top-line performance likely driven by milestone timing or product-stage transitions. Such variability reduces predictability of cash receipts and complicates budgeting and long-term commercial planning.

Operating Margin Pressure

Despite net margin improvement, deteriorating EBIT/EBITDA margins point to rising operating costs or scaling inefficiencies. Persistent margin pressure could erode cash flow convertibility and limit reinvestment capacity as the company advances multiple late-stage programs.

Dependence on Partner-Driven Revenue

A business model reliant on partner milestones and royalties concentrates revenue on third-party clinical and commercial execution. This creates binary timing and recognition risks and limits direct control over sustainable, recurring revenue generation as products move toward commercialization.

Protagonist Therapeutics Business Overview & Revenue Model

Company Description

Protagonist Therapeutics, Inc., a biopharmaceutical company, discovers and develops peptide-based therapeutic drugs to address hematology and blood disorders, and inflammatory and immunomodulatory diseases. It is developing rusfertide (PTG-300), an injectable hepcidin mimetic that is in Phase II clinical trials for the treatment of patients with polycythemia vera and hereditary hemochromatosis, as well as for the treatment of other blood disorders; PN-943, an oral, alpha-4-beta-7 integrin- specific antagonist peptide that is in Phase II clinical trials for treating inflammatory bowel disease (IBD); and PN-235, an orally delivered interleukin-23 receptor specific antagonist for the treatment of IBD and non-IBD indications. The company has a license and collaboration agreement with Janssen Biotech, Inc. Protagonist Therapeutics, Inc. was incorporated in 2006 and is headquartered in Newark, California.

How the Company Makes Money

Protagonist Therapeutics primarily generates revenue through the development and commercialization of its drug candidates, which include licensing agreements, milestone payments, and royalties from partnered products. The company enters into collaborations with larger pharmaceutical firms, which provide upfront payments and funding for clinical trials in exchange for future royalties and profit-sharing rights on sales of successful products. Additionally, PTGX may receive milestone payments as drug candidates progress through various stages of clinical development. These revenue streams are bolstered by the company's focus on innovative therapies that address unmet medical needs, which attract interest from potential partners and investors.

Protagonist Therapeutics Financial Statement Overview

Summary

Overall financials are improving, led by strong cash-flow execution (Cash Flow Score 78; strong free cash flow growth and healthy cash conversion). Profitability has turned positive (Income Statement Score 72; net margin improved to 22.45% TTM), though EBIT/EBITDA margin deterioration signals some operating pressure. Balance sheet risk is moderate-to-low (Balance Sheet Score 65) with very low leverage.

Income Statement

Protagonist Therapeutics has shown a strong improvement in its income statement metrics over the years. The TTM data indicates a gross profit margin of nearly 100%, reflecting efficient cost management. The net profit margin has improved significantly to 22.45% in the TTM, up from negative margins in previous years, indicating a turnaround in profitability. Revenue growth is modest at 1.8% in the TTM, but the company has demonstrated substantial revenue growth in prior years. However, the EBIT and EBITDA margins have decreased compared to the previous year, suggesting some operational challenges.

Balance Sheet

The balance sheet of Protagonist Therapeutics is relatively stable with a low debt-to-equity ratio of 0.0167 in the TTM, indicating low financial leverage and risk. The return on equity has improved to 6.86% in the TTM, showing better utilization of equity. However, the equity ratio has slightly decreased, suggesting a minor increase in leverage. Overall, the balance sheet reflects a solid financial position with manageable debt levels.

Cash Flow

The cash flow statement shows a robust improvement in free cash flow, with a growth rate of 71.74% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.46, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is also strong at 0.97, reflecting good cash flow management. These metrics highlight the company's ability to generate and manage cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	209.22M	434.43M	60.00M	26.58M	27.36M	28.63M
Gross Profit	209.22M	434.43M	60.00M	26.58M	27.36M	28.63M
EBITDA	27.53M	253.67M	-90.34M	-128.00M	-123.07M	-63.57M
Net Income	45.91M	275.19M	-78.95M	-127.39M	-125.55M	-66.15M
Balance Sheet
Total Assets	701.69M	744.73M	357.95M	247.93M	347.69M	324.47M
Cash, Cash Equivalents and Short-Term Investments	576.12M	418.91M	341.62M	237.35M	326.90M	305.81M
Total Debt	10.75M	10.87M	1.14M	3.66M	5.86M	5.96M
Total Liabilities	56.25M	69.43M	21.27M	32.32M	47.67M	44.86M
Stockholders Equity	645.44M	675.29M	336.68M	215.61M	300.02M	279.61M
Cash Flow
Free Cash Flow	63.71M	182.80M	-70.84M	-108.93M	-108.97M	-72.95M
Operating Cash Flow	65.47M	184.15M	-70.24M	-108.14M	-107.86M	-72.48M
Investing Cash Flow	-106.87M	-299.48M	-39.26M	91.47M	-15.86M	-90.97M
Financing Cash Flow	24.06M	25.85M	170.48M	18.84M	129.92M	247.63M

Protagonist Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTGX, the sentiment is Positive. The current price of 83.3 is above the 20-day moving average (MA) of 82.61, below the 50-day MA of 86.07, and above the 200-day MA of 65.88, indicating a neutral trend. The MACD of -0.60 indicates Negative momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 76.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PTGX.

Protagonist Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADMA	78 Outperform	$3.92B	19.37	63.17%	―	27.62%	202.89%
PTGX	61 Neutral	$5.21B	131.51	7.80%	―	-35.39%	-72.97%
MIRM	58 Neutral	$5.37B	-120.63	-15.81%	―	53.66%	58.63%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZLAB	48 Neutral	$1.90B	-8.72	-28.97%	―	23.73%	30.16%
AAPG	42 Neutral	$2.27B	-12.00	-161.90%	―	-56.78%	-191.46%

Protagonist Therapeutics Corporate Events

Protagonist Therapeutics Highlights Diversified Pipeline and Partnerships

On January 12, 2026, Protagonist Therapeutics released an updated corporate presentation outlining an advanced and diversified clinical pipeline anchored by two potential blockbuster assets, icotrokinra and rusfertide, both of which have New Drug Applications submitted between July and December 2025 for plaque psoriasis and polycythemia vera, respectively. The materials highlight multiple Phase 2 and Phase 3 readouts across immunology, hematology and obesity indications, significant milestone and royalty economics from long-standing partnerships with Johnson & Johnson and Takeda, and the prospect of up to $1.2 billion in future sales milestones, positioning the company for substantial non-dilutive revenue streams and reinforcing its financial and strategic footing ahead of key regulatory and clinical catalysts through 2028.

The most recent analyst rating on (PTGX) stock is a Buy with a $86.00 price target. To see the full list of analyst forecasts on Protagonist Therapeutics stock, see the PTGX Stock Forecast page.