Protagonist Therapeutics (PTGX) AI Stock Analysis

• Market Cap: $4.82B
• Dividend Yield: N/A
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 108.8
• Beta (1Y): 0.52
• Revenue Growth: -34.45%
• EPS Growth: -69.75%
• Country: US
• Employees: 124
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.55
• Shares Outstanding: 62,211,320
• 10 Day Avg. Volume: 2,255,187
• 30 Day Avg. Volume: 1,483,780
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 14.49
• Enterprise Value/Gross Profit: 14.54
• Enterprise Value/Ebitda: 116.19
• 1Y Price Target: $78.89
• Price Target Upside: 2.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 60 Neutral
• Price Target: $54.00 ▼(-29.61% Downside)

Protagonist Therapeutics' overall score is driven by a mix of financial performance and technical analysis. The positive trend in stock price is offset by financial instability, high valuation metrics, and the absence of consistent revenue growth.

Positive Factors

Regulatory Approval

The Breakthrough Therapy Designation for rusfertide can expedite its development and review, potentially leading to faster market entry and extended exclusivity, which could significantly enhance Protagonist Therapeutics' competitive position and revenue potential in the treatment of polycythemia vera.

Pipeline Strength

A strong and promising drug pipeline, as highlighted by recent advancements, indicates Protagonist Therapeutics' potential for future growth and market leadership in its therapeutic areas, enhancing long-term business prospects.

Management Stability

The re-election of directors and approval of executive compensation reflect shareholder confidence in the current management team, providing stability and continuity in strategic direction, which is crucial for long-term success in the biotechnology sector.

Negative Factors

Revenue Instability

The lack of consistent revenue growth and recent decline to zero highlight potential instability in Protagonist Therapeutics' business operations, which could challenge its ability to sustain long-term financial health and fund ongoing R&D activities.

Cash Flow Volatility

Volatile free cash flow growth indicates potential cash management challenges, which could impact Protagonist Therapeutics' ability to finance its operations and strategic initiatives, posing a risk to its long-term financial stability.

Financial Instability

A history of financial instability and high liabilities suggests potential risks in Protagonist Therapeutics' financial management, which could affect its ability to secure funding and invest in future growth opportunities, impacting long-term viability.

Protagonist Therapeutics Business Overview & Revenue Model

Company Description

Protagonist Therapeutics (PTGX) is a clinical-stage biopharmaceutical company focused on developing and commercializing novel peptide-based therapeutics for the treatment of various diseases, particularly hematologic malignancies and autoimmune disorders. The company leverages its proprietary technology platform to design and optimize peptide drugs that aim to address unmet medical needs in these therapeutic areas.

How the Company Makes Money

Protagonist Therapeutics generates revenue primarily through partnerships and collaborations with larger pharmaceutical companies, which may include upfront payments, milestone payments tied to the achievement of development or regulatory milestones, and royalties on future sales of products developed through these collaborations. Additionally, the company may receive funding from government grants and research institutions to support its clinical trials and drug development programs. As the company advances its drug candidates through clinical trials and toward commercialization, it may also seek to enter into licensing agreements that provide additional revenue streams.

Protagonist Therapeutics Financial Statement Overview

Summary

Protagonist Therapeutics shows a mixed financial picture with improved profitability and cash flow management. However, the lack of consistent revenue growth and past financial instability are concerns. The company has a strong equity position but needs to stabilize revenue streams.

Income Statement

Protagonist Therapeutics has experienced significant fluctuations in its revenue, with a notable decline to zero in the most recent year, indicating potential instability in its business operations. The net profit margin is currently positive due to a reversal in earnings, but the lack of consistent revenue growth is a concern. EBIT and EBITDA margins have improved significantly, suggesting better cost management.

Balance Sheet

The company has a strong equity position with a positive stockholders' equity and a low debt-to-equity ratio, indicating financial stability. The equity ratio suggests a healthy proportion of assets funded by equity rather than debt. However, the industry-standard high liabilities in previous years suggest a history of financial risk.

Cash Flow

Protagonist Therapeutics shows positive free cash flow and an improved operating cash flow, indicating better cash management. However, the volatility in free cash flow growth suggests potential cash flow instability. The operating cash flow to net income ratio is favorable, indicating effective conversion of earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	203.63M	434.43M	60.00M	26.58M	27.36M	28.63M
Gross Profit	203.03M	431.47M	60.00M	25.55M	24.58M	28.63M
EBITDA	25.40M	252.84M	-90.34M	-131.37M	-123.07M	-63.66M
Net Income	52.04M	275.19M	-78.95M	-123.41M	-122.63M	-66.15M
Balance Sheet
Total Assets	718.01M	744.73M	357.95M	247.93M	347.69M	324.47M
Cash, Cash Equivalents and Short-Term Investments	570.47M	418.91M	341.62M	237.35M	326.90M	307.81M
Total Debt	11.28M	10.87M	1.14M	3.66M	5.86M	5.96M
Total Liabilities	49.99M	69.43M	21.27M	784.68M	47.67M	44.86M
Stockholders Equity	668.02M	675.29M	336.68M	-536.75M	-409.36M	-283.81M
Cash Flow
Free Cash Flow	37.10M	182.80M	-70.84M	-108.93M	-108.97M	-72.95M
Operating Cash Flow	39.54M	184.15M	-70.24M	-108.14M	-107.86M	-72.48M
Investing Cash Flow	-257.03M	-299.48M	-39.26M	91.47M	-15.86M	-90.97M
Financing Cash Flow	30.45M	25.85M	170.48M	18.84M	129.92M	247.63M

Protagonist Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.72
• 50DMA: Positive
• 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 76.72 is above the 20-day moving average (MA) of 70.06, above the 50-day MA of 62.90, and above the 200-day MA of 50.67, indicating a bullish trend. The MACD of 4.53 indicates Negative momentum. The RSI at 61.73 is Neutral, neither overbought nor oversold. The STOCH value of 45.07 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	74 Outperform	$3.51B	17.30	71.23%	―	43.58%	491.01%
AKRO	60 Neutral	$4.32B	―	-31.14%	―	―	-11.39%
PTGX	60 Neutral	$4.82B	108.76	8.61%	―	-34.45%	-69.75%
MIRM	58 Neutral	$3.69B	―	-24.19%	―	62.33%	48.34%
ZLAB	53 Neutral	$3.16B	―	-28.39%	―	32.38%	33.47%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AAPG	43 Neutral	$3.25B	―	-161.90%	―	-56.78%	-191.46%

Protagonist Therapeutics Corporate Events

Protagonist Therapeutics Stockholders Approve Key Proposals

At the Annual Meeting, Protagonist Therapeutics‘ stockholders voted on three key proposals. The first proposal involved electing two Class III directors, Harold E. Selick, Ph.D., and Bryan Giraudo, to serve until the 2028 Annual Meeting, both of whom were elected. The second proposal, regarding the approval of executive compensation, was passed. The third proposal, ratifying Ernst & Young LLP as the company’s independent auditor for the fiscal year ending December 31, 2025, was also approved.