Sagimet Biosciences, Inc. Class A (SGMT) AI Stock Analysis

• Market Cap: $113.80M
• Dividend Yield: N/A
• Average Volume (3M): 389.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.27
• Revenue Growth: -100.00%
• EPS Growth: -12.66%
• Country: US
• Employees: 14
• Sector: Healthcare
• Sector Strength: 71
• Industry: Biotechnology
• EPS (TTM): -1.44
• Shares Outstanding: 30,674,854
• 10 Day Avg. Volume: 277,269
• 30 Day Avg. Volume: 389,139
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 64.23
• Price to Cash Flow (P/CF): -2.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $32.50
• Price Target Upside: 776.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Sagimet Biosciences is currently struggling with significant financial instability, marked by persistent losses and high leverage. The technical analysis reflects a lack of positive momentum, and the valuation remains unattractive due to a negative P/E ratio and no dividend yield. Without earnings call data or significant corporate events to provide potential upside, the stock's overall outlook is concerning.

Positive Factors

Clinical Trials

The FASCINATE-3 Ph3 program for denifanstat in F2/F3 MASH patients has started, indicating progress in clinical trials.

Financial Position

SGMT has a cash reserve of $158.7M, expected to provide operational expense runway through 2025.

Market Opportunity

The opportunity in acne is seen as upside to the valuation, with a large potential market of ~50M U.S. individuals affected and a paucity of new agents in development.

Negative Factors

Financial Performance

SGMT reported a 4Q24 net loss of $16.2M, which could be a concern for financial stability.

Research and Development Costs

SGMT's 4Q24 research and development expenses increased by 12% quarter over quarter, which may impact profitability.

Sagimet Biosciences, Inc. Class A Business Overview & Revenue Model

Company Description

Sagimet Biosciences Inc., a clinical-stage biopharmaceutical company, develops therapeutics called fatty acid synthase (FASN) inhibitors for the treatment of diseases that result from dysfunctional lipid metabolism pathways. Its lead drug candidate is Denifanstat, a FASN inhibitor for the treatment of nonalcoholic steatohepatitis and acne. The company is also developing TVB-3567, a FASN inhibitor for the treatment of various types of cancers. The company was formerly known as 3-V Biosciences, Inc. and changed its name to Sagimet Biosciences Inc. in August 2019. Sagimet Biosciences Inc. was incorporated in 2006 and is headquartered in San Mateo, California.

How the Company Makes Money

Sagimet Biosciences generates revenue through the development and potential commercialization of its proprietary drug candidates. The company's revenue model is primarily based on progressing its drug pipeline through phases of clinical trials, with the aim of achieving successful regulatory approvals. Additionally, Sagimet may engage in strategic partnerships and licensing agreements with larger pharmaceutical companies, which can provide milestone payments, upfront fees, and royalties on sales. These collaborations can significantly contribute to the company's earnings by providing financial support for research and development activities, as well as expanding market reach. However, as a clinical-stage company, it may currently rely on external funding sources such as venture capital, public offerings, and grants to support its operations.

Sagimet Biosciences, Inc. Class A Financial Statement Overview

Summary

Sagimet Biosciences is facing significant financial challenges with persistent losses, negative equity, and reliance on external financing. Despite a strong cash position in 2024, the overall financial health remains precarious due to ongoing losses and high leverage.

Income Statement

Sagimet Biosciences has shown an erratic revenue pattern with occasional small revenues and significant losses. Despite a brief revenue appearance in 2023, there is a consistent negative EBIT and net income trend, indicating ongoing operational challenges and a lack of profitability. The company is struggling to generate sustainable income, which is critical for future growth and stability.

Balance Sheet

The balance sheet reflects a somewhat stable cash position with a substantial increase in cash and short-term investments in 2024. However, the company has a negative stockholders' equity, indicating high liabilities relative to assets. The debt-to-equity structure is highly unfavorable, suggesting potential financial instability and high leverage risk.

Cash Flow

The cash flow statement reveals negative operating cash flow, indicating the company is not generating sufficient cash from operations. Although there was positive financing cash flow in 2024, it primarily stemmed from external financing rather than operational success. The reliance on external financing over sustainable free cash flow growth poses a risk to long-term financial health.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	2.00M	0.00	0.00	0.00
	Gross Profit
0.00	0.00	2.00M	-130.00K	-134.00K	-124.00K
	EBIT
-45.73M	-54.45M	-30.74M	-31.05M	-23.72M	-11.40M
	EBITDA
-34.27M	-54.45M	-30.74M	-30.37M	-24.31M	-11.25M
	Net Income Common Stockholders
-37.52M	-45.57M	-27.88M	-30.50M	-24.44M	-11.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
74.94M	151.25M	94.90M	32.34M	56.73M	68.70M
	Total Assets
77.20M	160.26M	96.72M	33.03M	59.03M	68.96M
	Total Debt
176.00K	78.00K	65.00K	211.00K	348.00K	210.00K
	Net Debt
-74.77M	-75.76M	-75.07M	53.00K	-56.38M	-68.49M
	Total Liabilities
217.78M	4.45M	5.65M	219.98M	217.29M	204.87M
	Stockholders Equity
-140.58M	155.81M	91.06M	-186.95M	-158.26M	-135.91M
Cash Flow		Free Cash Flow
-38.49M	-42.44M	-23.77M	-24.49M	-21.71M	-10.42M
	Operating Cash Flow
-38.49M	-42.44M	-23.77M	-24.49M	-21.71M	-10.42M
	Investing Cash Flow
-91.15M	-61.68M	12.58M	-32.01M	0.00	20.00K
	Financing Cash Flow
108.34M	104.82M	86.17M	-73.00K	9.74M	68.89M

Sagimet Biosciences, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGMT, the sentiment is Negative. The current price of 3.71 is below the 20-day moving average (MA) of 3.74, below the 50-day MA of 4.06, and below the 200-day MA of 4.12, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 44.14 is Neutral, neither overbought nor oversold. The STOCH value of 32.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGMT.

Sagimet Biosciences, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKRO	60 Neutral	$3.40B	―	-39.22%	―	―	-31.37%
MDGL	54 Neutral	$7.24B	―	-80.35%	―	―	-10.89%
Sector *	49 Neutral	$6.85B	0.81	-52.91%	2.50%	19.94%	1.20%
ETNB	48 Neutral	$1.18B	―	-78.34%	―	―	-70.45%
RPTX	46 Neutral	$44.64M	―	-46.63%	―	4.58%	10.59%
VKTX	42 Neutral	$2.88B	―	-17.90%	―	―	-10.27%
SGMT	32 Underperform	$113.80M	―	-36.92%	―	-100.00%	-12.66%