Sangamo Biosciences (SGMO) AI Stock Analysis

• Market Cap: $122.33M
• Dividend Yield: N/A
• Average Volume (3M): 6.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 239.92%
• EPS Growth: 79.41%
• Country: US
• Employees: 183
• Sector: Healthcare
• Sector Strength: 43
• Industry: Biotechnology
• EPS (TTM): -0.14
• Shares Outstanding: 245,401,980
• 10 Day Avg. Volume: 6,824,011
• 30 Day Avg. Volume: 6,176,870
• PEG Ratio: -0.05
• Price to Book (P/B): 6.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.38
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: -0.24
• 1Y Price Target: $4.10
• Price Target Upside: 720.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Sangamo Biosciences presents a challenging financial outlook with declining revenues and persistent negative cash flows, significantly impacting its overall score. The technical analysis indicates a bearish trend, and valuation metrics are concerning, with a negative P/E ratio and no dividend yield. Although there are positive developments in strategic partnerships and neurology pipeline advancements, these are overshadowed by the need for additional financing and partnerships, as well as the risk of delisting from Nasdaq.

Positive Factors

Clinical development

Sangamo's lead neurology program ST-503 for chronic neuropathic pain is advancing to clinical development, targeting a condition that lacks effective long-term treatments.

Partnerships and licensing

Sangamo's STAC-BBB delivery platform has generated high-value licensing agreements with Genentech, Astellas, and Eli Lilly, providing external validation and non-dilutive funding.

Regulatory advancement

FDA alignment on a regulatory pathway allows for an accelerated filing for SGMO's GTx '920 for Fabry disease without requiring a separate confirmatory trial.

Negative Factors

Cash runway concerns

SGMO's current cash runway is predicted to extend until 2Q25.

Equity raise

SGMO indicated the offering of a $23M equity raise is expected to close.

Financial performance

SGMO reported a 4Q24 net loss of ~$23.4M and LPS of ($0.11), indicating financial challenges.

Sangamo Biosciences Business Overview & Revenue Model

Company Description

Sangamo Therapeutics, Inc., a clinical-stage biotechnology company, focuses on translating science into genomic medicines that transform patients' lives using platform technologies in gene therapy, cell therapy, genome editing, and genome regulation. The company offers zinc finger protein (ZFP), a technology platform for making zinc finger nucleases, which are proteins used in modifying DNA sequences by adding or knocking out specific genes; and ZFP transcription factors proteins used in increasing or decreasing gene expression. It develops SB-525, which is in Phase III AFFINE clinical trial for the treatment of hemophilia A; ST-920, a gene therapy, which is in Phase I/II STAAR clinical trials for the treatment of Fabry disease; and SAR445136, a cell therapy, which is in Phase I/II PRECIZN-1 clinical trials for the treatment of sickle cell disease. The company also develops TX200, chimeric antigen receptor for the treatment of HLA-A2 mismatched kidney transplant rejection; KITE-037, a cell therapy for the treatment of cancer; ST-501 for the treatment of tauopathies; and ST-502 for the treatment of synucleinopathies, including Parkinson's disease and neuromuscular disease. It has collaborative and strategic partnerships with Biogen MA, Inc.; Kite Pharma, Inc.; Pfizer Inc.; Sanofi S.A.; Novartis Institutes for BioMedical Research, Inc.; Shire International GmbH; Dow AgroSciences LLC; Sigma-Aldrich Corporation; Genentech, Inc.; Open Monoclonal Technology, Inc.; F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc.; and California Institute for Regenerative Medicine. The company was formerly known as Sangamo BioSciences, Inc. and changed its name to Sangamo Therapeutics, Inc. in January 2017. Sangamo Therapeutics, Inc. was incorporated in 1995 and is headquartered in Brisbane, California.

How the Company Makes Money

Sangamo Biosciences makes money through a combination of product development partnerships, licensing agreements, and collaboration revenues. The company partners with larger pharmaceutical and biotech firms to develop and commercialize its genomic therapies, receiving upfront payments, research funding, and milestone payments as these partnerships progress. Additionally, Sangamo licenses its proprietary ZFN technology to other companies, generating revenue through licensing fees and royalties on any resulting products. The company's earnings are significantly influenced by the success of its clinical trials, regulatory approvals, and the expansion of its strategic alliances with industry leaders.

Sangamo Biosciences Financial Statement Overview

Summary

Sangamo Biosciences is facing significant financial challenges with declining revenue, a weakening balance sheet, and persistent negative cash flows. These factors indicate financial instability and increased operational risks.

Income Statement

Sangamo Biosciences has shown significant volatility in its revenue and profitability metrics. There has been a substantial decline in total revenue from $176.23M in 2023 to $57.8M in 2024, representing a negative revenue growth trend. Gross profit margins have been inconsistent, and the company consistently reports negative EBIT and net income margins, indicating ongoing operational and profitability challenges.

Balance Sheet

The balance sheet reflects a strained financial position with a declining equity base, from $82.89M in 2023 to $22.77M in 2024. The debt-to-equity ratio has worsened due to reduced equity, suggesting increased leverage. The equity ratio declined significantly, indicating reduced shareholder equity relative to total assets, potentially increasing financial risk.

Cash Flow

The cash flow statements highlight persistent negative free cash flow, with a slight improvement from -$246M in 2023 to -$67.4M in 2024. Operating cash flow has remained negative, raising concerns about the company's ability to generate cash from operations. The free cash flow to net income ratio remains unfavorable, reflecting poor cash conversion.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
57.80M	176.23M	111.30M	110.70M	118.19M
	Gross Profit
48.44M	-45.33M	99.19M	101.26M	-62.45M
	EBIT
-103.97M	-274.00M	-201.28M	-183.34M	-129.55M
	EBITDA
-88.75M	-87.43M	-189.17M	-173.90M	-123.87M
	Net Income Common Stockholders
-97.94M	-257.83M	-192.28M	-178.30M	-121.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.92M	81.00M	277.63M	464.72M	691.95M
	Total Assets
101.64M	165.32M	562.51M	721.92M	938.55M
	Total Debt
30.57M	38.10M	43.11M	48.08M	42.09M
	Net Debt
-11.35M	-7.10M	-57.34M	-130.79M	-89.24M
	Total Liabilities
78.86M	82.43M	267.55M	346.58M	441.18M
	Stockholders Equity
22.77M	82.89M	294.96M	375.34M	497.37M
Cash Flow		Free Cash Flow
-67.41M	-246.00M	-243.80M	-256.53M	155.16M
	Operating Cash Flow
-67.14M	-224.84M	-223.63M	-233.25M	169.88M
	Investing Cash Flow
37.52M	153.53M	59.28M	248.20M	-271.63M
	Financing Cash Flow
28.38M	14.59M	84.66M	32.86M	153.10M

Sangamo Biosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGMO, the sentiment is Negative. The current price of 0.5 is below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.73, and below the 200-day MA of 1.20, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 37.98 is Neutral, neither overbought nor oversold. The STOCH value of 22.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGMO.

Sangamo Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.19B	3.04	-44.20%	2.82%	16.59%	-0.39%
IKT	46 Neutral	$139.02M	―	-79.02%	―	-100.00%	38.72%
TERN	45 Neutral	$275.11M	―	-32.12%	―	―	10.98%
FDMT	40 Underperform	$176.03M	―	-32.97%	―	―	―
SGMO	38 Underperform	$122.33M	―	-262.12%	―	239.92%	79.41%
ANNX	38 Underperform	$229.30M	―	-66.13%	―	―	43.21%
ELTX	30 Underperform	$93.42M	―	-744.59%	―	―	27.65%

Sangamo Biosciences Corporate Events

Sangamo Biosciences Announces $23 Million Share Offering

On May 12, 2025, Sangamo Therapeutics announced an underwriting agreement with Cantor Fitzgerald & Co. for the issuance and sale of shares and warrants, aiming to raise approximately $23 million. This offering, expected to close on May 14, 2025, is part of Sangamo’s strategy to bolster its financial position, potentially impacting its market presence and stakeholder interests.

The most recent analyst rating on (SGMO) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Sangamo Biosciences stock, see the SGMO Stock Forecast page.

Spark’s Take on SGMO Stock

According to Spark, TipRanks’ AI Analyst, SGMO is a Neutral.

Sangamo Biosciences presents a challenging outlook with significant financial instability and operational risks. Declining revenues, negative cash flows, and a bearish technical trend weigh heavily on its score. While strategic partnerships and pipeline advancements offer some hope, the company’s immediate financial challenges, including the risk of delisting, necessitate urgent strategic actions to improve its financial health and market standing.

To see Spark’s full report on SGMO stock, click here.

Sangamo Biosciences Receives Nasdaq Deficiency Notice

On April 30, 2025, Sangamo Therapeutics, Inc. received a deficiency notice from Nasdaq due to its common stock’s bid price closing below $1.00 per share for 30 consecutive business days, which is below the required minimum for continued listing. The company has until October 27, 2025, to regain compliance by maintaining a minimum bid price of $1.00 per share for at least 10 consecutive business days. If compliance is not achieved by then, Sangamo may qualify for an additional 180-day compliance period, provided it meets other listing requirements and notifies Nasdaq of its intention to resolve the issue, potentially through a reverse stock split. Failure to comply could result in delisting, though the company can appeal such a decision.

Spark’s Take on SGMO Stock

According to Spark, TipRanks’ AI Analyst, SGMO is a Neutral.

Sangamo Biosciences presents a mixed picture. Significant financial challenges, including declining revenues and persistent negative cash flows, weigh heavily on its overall score. Technical indicators suggest a bearish trend, and valuation metrics pose concerns with a negative P/E ratio and no dividend yield. However, positive developments in strategic partnerships and neurology pipeline advancements provide some optimism, though offset by the need to secure additional financing and a partner for the Fabry program.

To see Spark’s full report on SGMO stock, click here.