Protagonist Therapeutics (PTGX) AI Stock Analysis

• Market Cap: $3.49B
• Dividend Yield: N/A
• Average Volume (3M): 841.05K
• Price to Earnings (P/E): 72.7
• Beta (1Y): 0.80
• 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: 998,893
• 30 Day Avg. Volume: 841,055
• PEG Ratio: 0.37
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.37
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 11.10
• Enterprise Value/Ebitda: 3.89
• 1Y Price Target: $70.43
• Price Target Upside: 27.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 60 Neutral
• 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 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
	EBIT
27.22M	252.84M	-93.65M	-131.37M	-125.84M	-64.52M
	EBITDA
28.65M	252.84M	-90.34M	-131.37M	-123.07M	-63.66M
	Net Income Common Stockholders
56.19M	275.19M	-78.95M	-123.41M	-122.63M	-66.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
112.55M	418.91M	341.62M	237.35M	326.90M	307.81M
	Total Assets
132.25M	744.73M	357.95M	247.93M	347.69M	324.47M
	Total Debt
8.04M	10.87M	1.14M	3.66M	5.86M	5.96M
	Net Debt
-62.03M	-86.38M	-185.59M	-122.09M	-117.81M	-111.40M
	Total Liabilities
31.42M	69.43M	21.27M	784.68M	47.67M	44.86M
	Stockholders Equity
100.83M	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: Positive
• Last Price: 55.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	78 Outperform	$3.72B	16.16	37.24%	―	22.42%	―
MRUS	65 Neutral	$4.20B	―	-58.66%	―	42.77%	-51.27%
CRSP	60 Neutral	$3.71B	―	-19.71%	―	-86.13%	-67.29%
PTGX	60 Neutral	$3.49B	72.75	8.99%	―	-34.02%	-65.83%
Sector *	54 Neutral	$5.37B	3.35	-45.10%	2.79%	16.77%	-0.01%
VKTX	53 Neutral	$3.27B	―	-14.40%	―	―	-23.84%
SRRK	50 Neutral	$3.27B	―	-106.71%	―	―	-22.34%