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Protagonist Therapeutics (PTGX)
NASDAQ:PTGX

Protagonist Therapeutics (PTGX) AI Stock Analysis

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Protagonist Therapeutics

(NASDAQ:PTGX)

Rating:60Neutral
Price Target:
$54.00
▼(-2.42%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
Clinical Advances
Highly-positive Phase 3 data for rusfertide in polycythemia vera (PV) provides key validation for Protagonist's investment thesis.
Financial Prospects
Opting out from the profit share partnership with Takeda would result in Protagonist receiving $400M upfront and meaningful royalties on global sales.
Treatment Efficacy
Rusfertide is expected to emerge as a blockbuster in the PV market following the VERIFY data.
Negative Factors
Market Challenges
The company faces competition as icotrokinra sets a high bar for oral psoriasis therapy, aiming for completely clear skin and is preferred by patients due to its oral administration.
Treatment Alternatives
Rusfertide reduced phlebotomy treatment by nearly three-fold, which the KOLs in PV believed was a failure and a dangerous therapy.

Protagonist Therapeutics (PTGX) vs. SPDR S&P 500 ETF (SPY)

Protagonist Therapeutics Business Overview & Revenue Model

Company DescriptionProtagonist 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 MoneyProtagonist Therapeutics primarily makes money through the development and commercialization of its peptide-based therapeutics. The company generates revenue through partnerships and collaborations with larger pharmaceutical companies, which may involve licensing agreements, milestone payments, and royalties from the sales of successfully developed products. Additionally, Protagonist Therapeutics may receive funding from research grants and government initiatives aimed at supporting innovative drug development. The company's revenue model is heavily reliant on the successful progression of its drug candidates through clinical trials and their eventual approval and commercialization in the market.

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
35
Negative
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
60
Neutral
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
50
Neutral
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
207.80M434.43M60.00M26.58M27.36M28.63M
Gross Profit
206.31M431.47M60.00M25.55M24.58M28.63M
EBIT
27.22M252.84M-93.65M-131.37M-125.84M-64.52M
EBITDA
28.65M252.84M-90.34M-131.37M-123.07M-63.66M
Net Income Common Stockholders
56.19M275.19M-78.95M-123.41M-122.63M-66.15M
Balance SheetCash, Cash Equivalents and Short-Term Investments
112.55M418.91M341.62M237.35M326.90M307.81M
Total Assets
132.25M744.73M357.95M247.93M347.69M324.47M
Total Debt
8.04M10.87M1.14M3.66M5.86M5.96M
Net Debt
-62.03M-86.38M-185.59M-122.09M-117.81M-111.40M
Total Liabilities
31.42M69.43M21.27M784.68M47.67M44.86M
Stockholders Equity
100.83M675.29M336.68M-536.75M-409.36M-283.81M
Cash FlowFree Cash Flow
335.29M182.80M-70.84M-108.93M-108.97M-72.95M
Operating Cash Flow
336.94M184.15M-70.24M-108.14M-107.86M-72.48M
Investing Cash Flow
-399.96M-299.48M-39.26M91.47M-15.86M-90.97M
Financing Cash Flow
30.10M25.85M170.48M18.84M129.92M247.63M

Protagonist Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price55.34
Price Trends
50DMA
46.36
Positive
100DMA
44.55
Positive
200DMA
43.86
Positive
Market Momentum
MACD
2.72
Negative
RSI
73.14
Negative
STOCH
89.34
Negative
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 55.34 is above the 20-day moving average (MA) of 48.89, above the 50-day MA of 46.36, and above the 200-day MA of 43.86, indicating a bullish trend. The MACD of 2.72 indicates Negative momentum. The RSI at 73.14 is Negative, neither overbought nor oversold. The STOCH value of 89.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PTGX.

Protagonist Therapeutics Risk Analysis

Protagonist Therapeutics disclosed 53 risk factors in its most recent earnings report. Protagonist Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Protagonist Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$3.72B16.1637.24%22.42%
65
Neutral
$4.20B-58.66%42.77%-51.27%
60
Neutral
$3.71B-19.71%-86.13%-67.29%
60
Neutral
$3.49B72.758.99%-34.02%-65.83%
54
Neutral
$5.37B3.35-45.10%2.79%16.77%-0.01%
53
Neutral
$3.27B-14.40%-23.84%
50
Neutral
$3.27B-106.71%-22.34%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PTGX
Protagonist Therapeutics
55.34
21.37
62.91%
ACAD
ACADIA Pharmaceuticals
22.20
6.83
44.44%
VKTX
Viking Therapeutics
28.95
-23.51
-44.82%
MRUS
Merus
55.05
-1.61
-2.84%
CRSP
Crispr Therapeutics AG
41.52
-23.31
-35.96%
SRRK
Scholar Rock Holding
34.42
25.03
266.56%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.