Protagonist Therapeutics (PTGX) AI Stock Analysis

• Market Cap: $2.76B
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 58.5
• Beta (1Y): 0.81
• Revenue Growth: -34.02%
• EPS Growth: -65.83%
• Country: US
• Employees: 124
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.18
• Shares Outstanding: 61,981,956
• 10 Day Avg. Volume: 884,075
• 30 Day Avg. Volume: 1,101,470
• PEG Ratio: 0.16
• Price to Book (P/B): 3.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.57
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 5.96
• Enterprise Value/Ebitda: 3.63
• 1Y Price Target: $67.80
• Price Target Upside: 48.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Protagonist Therapeutics' overall score reflects its financial performance and technical analysis. While the company has shown signs of improved cost management and cash flow, the lack of revenue growth and high valuation are significant concerns. Technical indicators suggest moderate market sentiment without strong momentum. Investors should be cautious of the high P/E ratio and assess the company's ability to stabilize revenue.

Positive Factors

Financial Outlook

Opting out from the profit share partnership with Takeda would result in Protagonist receiving $400M upfront and meaningful royalties on global sales.

Partnerships and Milestones

Protagonist Therapeutics has achieved a series of successes in its partnered programs, driving meaningful shareholder value.

Product Potential

Icotrokinra's application in inflammatory bowel diseases could be revolutionary given its unique characteristics, making it a potential top-tier blockbuster drug.

Negative Factors

Clinical Data Timing

For PTGX, there will be no important clinical data readouts for the rest of 2025.

Market Volatility

The 30% decline in share price since early March was likely due to profit taking, biotech sector weakness, and significant broad market volatility.

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 strategic collaborations and licensing agreements with larger pharmaceutical companies. These partnerships often involve milestone payments, upfront licensing fees, and potential royalty streams based on the successful development and commercialization of their pipeline products. Protagonist's collaboration with companies like Janssen Biotech, a subsidiary of Johnson & Johnson, exemplifies such partnerships. Additionally, the company may receive funding through government grants and research funding, which supports their ongoing research and development activities.

Protagonist Therapeutics Financial Statement Overview

Summary

Protagonist Therapeutics shows a mixed financial picture with positive strides in profitability and cash flow management. The balance sheet is strong, but past financial instability and current lack of revenue growth are concerning. The company should focus on stabilizing revenue streams and maintaining financial discipline in managing liabilities to ensure long-term sustainability.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
434.43M	60.00M	26.58M	27.36M	28.63M
	Gross Profit
431.47M	60.00M	25.55M	24.58M	28.63M
	EBIT
252.84M	-93.65M	-131.37M	-125.84M	-64.52M
	EBITDA
252.84M	-90.34M	-131.37M	-123.07M	-63.66M
	Net Income Common Stockholders
275.19M	-78.95M	-123.41M	-122.63M	-66.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
418.91M	341.62M	237.35M	326.90M	307.81M
	Total Assets
744.73M	357.95M	247.93M	347.69M	324.47M
	Total Debt
10.87M	1.14M	3.66M	5.86M	5.96M
	Net Debt
-86.38M	-185.59M	-122.09M	-117.81M	-111.40M
	Total Liabilities
69.43M	21.27M	784.68M	47.67M	44.86M
	Stockholders Equity
675.29M	336.68M	-536.75M	-409.36M	-283.81M
Cash Flow		Free Cash Flow
182.80M	-70.84M	-108.93M	-108.97M	-72.95M
	Operating Cash Flow
184.15M	-70.24M	-108.14M	-107.86M	-72.48M
	Investing Cash Flow
-299.48M	-39.26M	91.47M	-15.86M	-90.97M
	Financing Cash Flow
25.85M	170.48M	18.84M	129.92M	247.63M

Protagonist Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.57
• 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 45.57 is above the 20-day moving average (MA) of 44.59, below the 50-day MA of 47.38, and above the 200-day MA of 43.01, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 53.03 is Neutral, neither overbought nor oversold. The STOCH value of 77.85 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
ACAD	79 Outperform	$3.73B	16.21	37.24%	―	22.42%	―
VKTX	53 Neutral	$3.19B	―	-14.40%	―	―	-23.84%
Sector *	52 Neutral	$5.15B	3.02	-44.64%	2.83%	16.44%	-0.47%
SRRK	50 Neutral	$2.90B	―	-106.71%	―	―	-22.34%
PTGX	48 Neutral	$2.76B	58.49	8.99%	―	-34.02%	-65.83%
CRSP	48 Neutral	$3.35B	―	-19.71%	―	-86.13%	-67.29%
MRUS	41 Neutral	$2.88B	―	-58.66%	―	42.77%	-51.27%