Protagonist Therapeutics (PTGX) AI Stock Analysis

• Market Cap: $5.29B
• Dividend Yield: N/A
• Average Volume (3M): 871.06K
• Price to Earnings (P/E): 133.6
• Beta (1Y): 0.28
• 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: 779,084
• 30 Day Avg. Volume: 871,062
• 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: 0.69
• Enterprise Value/Revenue: 17.55
• Enterprise Value/Gross Profit: 17.55
• Enterprise Value/Ebitda: 133.35
• 1Y Price Target: $88.23
• Price Target Upside: 3.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): -1.71
• Revenue Forecast (FY): $62.93M

• Rating: 68 Neutral
• Price Target: $93.00 ▲(8.59% Upside)

Protagonist Therapeutics shows strong financial performance and positive technical indicators, suggesting a solid investment potential. However, the high P/E ratio indicates that the stock may be overvalued, warranting caution. The absence of earnings call data and corporate events limits the analysis to financial and technical aspects.

Positive Factors

Strategic Partnerships

The expansion of the ICONIC program by Johnson & Johnson into new indications strengthens Protagonist Therapeutics' market position and enhances its pipeline, potentially leading to increased revenue through royalties and milestone payments.

Product Development

The regulatory submissions for icotrokinra indicate significant progress in product development, which could lead to new market opportunities and revenue streams if approved, enhancing the company's competitive advantage in the biopharmaceutical industry.

Cash Generation

Strong free cash flow growth reflects Protagonist Therapeutics' ability to efficiently convert income into cash, providing financial flexibility to invest in R&D and strategic initiatives, supporting long-term business sustainability.

Negative Factors

Revenue Growth Challenges

Modest revenue growth indicates potential challenges in expanding market share or product adoption, which could impact long-term financial performance and necessitate strategic adjustments to enhance growth.

Operational Challenges

Decreasing EBIT and EBITDA margins suggest operational inefficiencies that could erode profitability if not addressed, potentially impacting the company's ability to sustain long-term financial health.

Earnings Volatility

While profitability has improved, the previous negative margins highlight potential volatility in earnings, which could pose risks to financial stability if not managed effectively.

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 the development and commercialization of its drug candidates, which include licensing agreements, milestone payments, and royalties from partnered products. The company enters into collaborations with larger pharmaceutical firms, which provide upfront payments and funding for clinical trials in exchange for future royalties and profit-sharing rights on sales of successful products. Additionally, PTGX may receive milestone payments as drug candidates progress through various stages of clinical development. These revenue streams are bolstered by the company's focus on innovative therapies that address unmet medical needs, which attract interest from potential partners and investors.

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: 85.64
• 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 Positive. The current price of 85.64 is above the 20-day moving average (MA) of 84.35, above the 50-day MA of 76.97, and above the 200-day MA of 57.23, indicating a bullish trend. The MACD of 3.15 indicates Positive momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 44.22 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
ADMA	78 Outperform	$3.49B	18.10	63.17%	―	27.62%	202.89%
PTGX	68 Neutral	$5.29B	133.64	7.80%	―	-35.39%	-72.97%
AKRO	60 Neutral	$4.48B	―	-34.53%	―	―	-0.06%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MIRM	51 Neutral	$3.60B	―	-15.81%	―	53.66%	58.63%
ZLAB	48 Neutral	$2.25B	―	-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.