Protagonist Therapeutics (PTGX) AI Stock Analysis

• Market Cap: $5.20B
• Dividend Yield: N/A
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 135.1
• Beta (1Y): 0.27
• 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: 959,977
• 30 Day Avg. Volume: 1,359,713
• 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: 0.71
• Enterprise Value/Revenue: 17.55
• Enterprise Value/Gross Profit: 17.55
• Enterprise Value/Ebitda: 133.35
• 1Y Price Target: $87.31
• Price Target Upside: 2.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): -1.71
• Revenue Forecast (FY): $63.29M

• Rating: 70 Neutral
• Price Target: $91.00 ▲(7.25% Upside)

Protagonist Therapeutics shows strong technical momentum, which is a significant positive factor. However, the high P/E ratio suggests potential overvaluation, and declining profit margins raise concerns about future profitability. The solid financial health, characterized by strong cash flow and low leverage, provides a stable foundation, but operational efficiency improvements are needed to enhance investor confidence.

Positive Factors

Strategic Partnerships

The potential acquisition by J&J highlights the strategic value of Protagonist's pipeline and could enhance its market position and resources for drug development.

Innovative Drug Pipeline

Successful clinical trial results for icotrokinra demonstrate the potential for significant therapeutic advancements, enhancing long-term growth prospects in autoimmune treatments.

Financial Stability

A strong balance sheet with low debt enhances financial stability, providing flexibility for strategic investments and resilience against market fluctuations.

Negative Factors

Revenue Instability

The lack of consistent revenue growth indicates potential instability in operations, which could hinder long-term financial sustainability and strategic planning.

Cash Flow Volatility

Inconsistent cash flow growth can limit the company's ability to fund operations and invest in new opportunities, posing a risk to long-term financial health.

Lack of Revenue Growth

The absence of revenue growth challenges the company's ability to achieve sustainable profitability and may impact its competitive position in the biotech industry.

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 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 demonstrates solid financial health with strong cash flow and a robust balance sheet characterized by low leverage. While revenue growth is positive, declining profit margins and return on equity may pose challenges. Continued focus on operational efficiency and profitability will be crucial for sustaining growth and investor confidence.

Income Statement

Protagonist Therapeutics shows a positive revenue growth trend with a TTM revenue growth rate of 1.8%. The gross profit margin is exceptionally high at nearly 100%, indicating effective cost management. However, the net profit margin has decreased significantly from 63.34% in 2024 to 22.45% in TTM, reflecting potential challenges in maintaining profitability. EBIT and EBITDA margins have also decreased, suggesting increased operational costs or reduced efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.0167, indicating minimal leverage and financial risk. The return on equity has decreased from 40.75% in 2024 to 6.86% in TTM, which may concern investors looking for high returns. The equity ratio remains stable, reflecting a solid capital structure.

Cash Flow

Protagonist Therapeutics exhibits strong cash flow management with a significant free cash flow growth rate of 71.74% in TTM. The operating cash flow to net income ratio is healthy at 1.46, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.97, suggesting effective cash utilization.

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: 84.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 84.85 is above the 20-day moving average (MA) of 77.87, above the 50-day MA of 70.09, and above the 200-day MA of 54.10, indicating a bullish trend. The MACD of 3.60 indicates Negative momentum. The RSI at 67.94 is Neutral, neither overbought nor oversold. The STOCH value of 86.94 is Negative, 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	79 Outperform	$3.49B	18.10	63.17%	―	27.62%	202.89%
PTGX	70 Neutral	$5.20B	135.08	7.80%	―	-35.39%	-72.97%
AKRO	60 Neutral	$4.46B	―	-34.53%	―	―	-0.06%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MIRM	51 Neutral	$3.58B	―	-15.81%	―	53.66%	58.63%
ZLAB	45 Neutral	$2.48B	―	-28.96%	―	23.73%	30.16%
AAPG	39 Underperform	$3.14B	-16.52	-161.90%	―	-56.78%	-191.46%

Protagonist Therapeutics Corporate Events

Protagonist Therapeutics Advances Pipeline Amid Financial Loss

Protagonist Therapeutics Inc. is a biopharmaceutical company focused on the discovery and development of peptide-based therapeutics, primarily targeting inflammatory and hematological disorders.

Protagonist Therapeutics’ PN-881 Study: A Closer Look at Market Implications

Protagonist Therapeutics Inc. is conducting a study titled ‘A Randomized, Double-Blind, Placebo-Controlled Study of Single and Multiple Ascending Doses of PN-881 in Healthy Subjects.’ The study aims to evaluate the safety, tolerability, pharmacokinetics, and pharmacodynamics of PN-881 in healthy adults, which is crucial for understanding its potential as a therapeutic agent.