SAB Biotherapeutics (SABS) AI Stock Analysis

• Market Cap: $15.79M
• Dividend Yield: N/A
• Average Volume (3M): 23.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -40.94%
• EPS Growth: 51.90%
• Country: US
• Employees: 63
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -3.68
• Shares Outstanding: 9,288,868
• 10 Day Avg. Volume: 24,913
• 30 Day Avg. Volume: 23,718
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -12.70
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.00
• Price Target Upside: 547.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

SAB Biotherapeutics is facing significant financial challenges, with declining revenues and persistent losses impacting its overall performance. Technical indicators reveal mixed signals, but there's a lack of strong upward momentum. Valuation is difficult due to negative earnings, and without a dividend, the stock lacks appeal for income-focused investors. Strategic improvements are necessary for financial stability and growth.

Positive Factors

Clinical Trial Results

Positive Phase 1 results for SAB-142 in healthy volunteers were announced, demonstrating a clinically validated multi-target mechanism of action with sustained immunomodulation and no sustained lymphodepletion.

Market Opportunity

The company's plans to potentially pursue other indications for SAB-142 in different stages of type 1 diabetes suggest a broader market opportunity.

Regulatory Approval

The company announced that it received FDA clearance of the IND application for SAB-142, allowing T1D patients to enroll in the ongoing trial.

Negative Factors

Regulatory and Clinical Risks

Risks identified include commercial, regulatory, clinical, manufacturing, financial, liability, and intellectual property concerns.

Study Timeline

The Phase 2b SAFEGUARD study in adult and pediatric patients with new-onset stage 3 T1D is anticipated to initiate in mid-2025, indicating progress in clinical development.

SAB Biotherapeutics Business Overview & Revenue Model

Company Description

SAB Biotherapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the development of immunotherapies based on human antibodies. It has applied advanced genetic engineering and antibody science to develop transchromosomic bovine herds that produce fully human antibodies targeted at specific diseases, including infectious diseases comprising COVID-19 and influenza, immune and autoimmune disorders, such as type 1 diabetes, organ transplantation, and cancer. The company uses its DiversitAb immunotherapy platform to produce fully-human polyclonal antibodies without the need for human donors. Its lead product candidates include SAB-185, a fully-human polyclonal antibody therapeutic candidate that is in Phase III clinical trial for the treatment of COVID-19; and SAB-176, a fully-human polyclonal antibody therapeutic candidate that is in development to treat or prevent severe influenza. The company's pre-clinical product candidates in development for autoimmune diseases include SAB-142 for type 1 diabetes and organ transplant induction/rejection. The company was founded in 2014 and is based in Sioux Falls, South Dakota.

How the Company Makes Money

SAB Biotherapeutics makes money primarily through the development and commercialization of its immunotherapy products. The company generates revenue by engaging in strategic partnerships and collaborations with pharmaceutical companies, government agencies, and other organizations to advance its therapeutic candidates. These partnerships often involve milestone payments, licensing fees, and royalties based on product sales. Additionally, SAB Biotherapeutics may receive funding from grants and government contracts to support the research and development of its antibody therapies. The company's revenue streams are significantly influenced by its ability to successfully bring its products to market and establish lucrative partnerships within the biotechnology sector.

SAB Biotherapeutics Financial Statement Overview

Summary

SAB Biotherapeutics faces considerable financial challenges, including declining revenues, negative profitability, and operational inefficiencies. While debt levels are manageable, persistent losses and cash flow issues highlight significant financial distress.

Income Statement

The income statement of SAB Biotherapeutics shows significant challenges. There is a negative trend in revenue growth, and the company experienced a sharp decline in total revenue from 2020 to 2024, with TTM revenue at a low $1.5 million. Gross profit margin has been negative, indicating cost issues, while the net profit margin is also deeply negative, reflecting substantial losses. EBIT and EBITDA margins are both negative, which underscores operational inefficiencies and financial distress in the current TTM period.

Balance Sheet

The balance sheet reveals a mixed financial position. The debt-to-equity ratio is relatively low, which is positive, but the consistent decrease in total assets and stockholders' equity over time suggests declining financial stability. The equity ratio is moderate, indicating some reliance on equity financing. However, the return on equity (ROE) is negative, reflecting the company's inability to generate profits for shareholders.

Cash Flow

Cash flow analysis reveals several concerns. The operating cash flow to net income ratio is poor, indicating weak cash generation relative to earnings. The free cash flow is consistently negative, showing an inability to generate positive cash after capital expenditures. Additionally, there is a significant reliance on financing activities to support cash flow needs, which may not be sustainable long-term.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.24M	23.90M	60.88M	55.24M	3.44M
	Gross Profit
-1.51M	20.61M	59.22M	55.24M	3.44M
	EBIT
-38.08M	-28.92M	-13.39M	20.56M	-8.67M
	EBITDA
-38.13M	-15.12M	-15.20M	21.14M	-8.23M
	Net Income Common Stockholders
-42.19M	-18.74M	-17.44M	20.12M	-9.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
56.57M	15.05M	33.21M	12.61M	6.35M
	Total Assets
83.94M	50.90M	79.37M	56.54M	18.00M
	Total Debt
5.91M	5.93M	6.74M	8.13M	7.64M
	Net Debt
-50.66M	-9.12M	-26.46M	-4.48M	1.29M
	Total Liabilities
26.64M	19.85M	40.82M	17.53M	20.31M
	Stockholders Equity
57.30M	31.06M	38.55M	39.01M	-2.31M
Cash Flow		Free Cash Flow
-25.32M	-7.19M	-7.19M	-2.73M	-9.82M
	Operating Cash Flow
-25.12M	3.76M	3.76M	10.00M	-9.21M
	Investing Cash Flow
-152.70K	-10.94M	-10.94M	-12.72M	-608.75K
	Financing Cash Flow
66.77M	34.12M	34.12M	8.98M	3.68M

SAB Biotherapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SABS, the sentiment is Neutral. The current price of 1.7 is above the 20-day moving average (MA) of 1.38, above the 50-day MA of 1.53, and below the 200-day MA of 2.64, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.04 is Neutral, neither overbought nor oversold. The STOCH value of 81.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SABS.

SAB Biotherapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.38B	3.59	-41.63%	2.87%	17.72%	1.87%
SABS	44 Neutral	$15.79M	―	-81.92%	―	-40.94%	51.90%
MRKR	44 Neutral	$13.46M	―	-65.81%	―	-3.23%	38.05%
BOLT	44 Neutral	$13.62M	―	-74.28%	―	-2.36%	9.68%
IMNN	41 Neutral	$12.28M	―	-211.21%	―	―	24.16%
INAB	34 Underperform	$13.73M	―	-154.44%	―	―	38.53%