Protagonist Therapeutics (PTGX) AI Stock Analysis

• Market Cap: $3.11B
• Dividend Yield: N/A
• Average Volume (3M): 939.83K
• Price to Earnings (P/E): 66.6
• Beta (1Y): 0.84
• Revenue Growth: -34.02%
• EPS Growth: -65.83%
• Country: US
• Employees: 124
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): -0.18
• Shares Outstanding: 61,981,956
• 10 Day Avg. Volume: 1,132,301
• 30 Day Avg. Volume: 939,826
• PEG Ratio: 0.88
• Price to Book (P/B): -1.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.91
• Enterprise Value/Market Cap: 0.13
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 2.00
• Enterprise Value/Ebitda: 0.70
• 1Y Price Target: $70.78
• Price Target Upside: 39.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 60 Neutral
• Price Target: $54.00 ▲(6.53%Upside)

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

Financial Benefits

PTGX remains eligible for significant financial benefits, including an opt-out payment and milestone payments, after the NDA filing for rusfertide.

Product Differentiation

PTGX nominated PN-477, a GLP1/GIP/GCG agonist, for obesity treatment, potentially offering improved GI tolerability and weight loss quality compared to competitors.

Product Potency

PN-477 displays higher potency for GGG compared to semaglutide, tirzepatide, and retatrutide in human in vitro assays.

Negative Factors

Clinical Trial Risks

Key downside risks include rusfertide’s durability of response in the pivotal VERIFY and unexpected safety signals in clinical trials.

Development Stage Risk

Protagonist is unlikely to get any meaningful credit for the asset given the stage of development, but successful development progress or an announced partnership could drive upside to the current valuation.

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 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

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	207.80M	434.43M	60.00M	26.58M	27.36M	28.63M
Gross Profit	206.31M	431.47M	60.00M	25.55M	24.58M	28.63M
EBITDA	28.65M	252.84M	-90.34M	-131.37M	-123.07M	-63.66M
Net Income	56.19M	275.19M	-78.95M	-123.41M	-122.63M	-66.15M
Balance Sheet
Total Assets	742.13M	744.73M	357.95M	247.93M	347.69M	324.47M
Cash, Cash Equivalents and Short-Term Investments	574.36M	418.91M	341.62M	237.35M	326.90M	307.81M
Total Debt	11.36M	10.87M	1.14M	3.66M	5.86M	5.96M
Total Liabilities	53.08M	69.43M	21.27M	784.68M	47.67M	44.86M
Stockholders Equity	689.05M	675.29M	336.68M	-536.75M	-409.36M	-283.81M
Cash Flow
Free Cash Flow	335.29M	182.80M	-70.84M	-108.93M	-108.97M	-72.95M
Operating Cash Flow	336.94M	184.15M	-70.24M	-108.14M	-107.86M	-72.48M
Investing Cash Flow	-399.96M	-299.48M	-39.26M	91.47M	-15.86M	-90.97M
Financing Cash Flow	30.10M	25.85M	170.48M	18.84M	129.92M	247.63M

Protagonist Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 50.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTGX, the sentiment is Neutral. The current price of 50.69 is below the 20-day moving average (MA) of 54.27, above the 50-day MA of 48.99, and above the 200-day MA of 44.65, indicating a neutral trend. The MACD of 0.98 indicates Positive momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 25.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PTGX.

Protagonist Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	78 Outperform	$3.57B	15.46	37.24%	―	22.42%	―
MRUS	65 Neutral	$3.92B	―	-58.66%	―	42.77%	-51.27%
Sector *	64 Neutral	€7.37B	21.02	0.61%	1.92%	1.18%	-29.88%
CRSP	64 Neutral	$4.19B	―	-19.71%	―	-86.13%	-67.29%
PTGX	60 Neutral	$3.11B	66.64	8.99%	―	-34.02%	-65.83%
VKTX	53 Neutral	$3.00B	―	-14.40%	―	―	-23.84%
SRRK	50 Neutral	$3.21B	―	-106.71%	―	―	-22.34%

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.

The most recent analyst rating on (PTGX) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Protagonist Therapeutics stock, see the PTGX Stock Forecast page.