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

• Market Cap: $219.49M
• Dividend Yield: N/A
• Average Volume (3M): 560.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.34
• Revenue Growth: N/A
• EPS Growth: -38.23%
• Country: US
• Employees: 14
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.40
• Shares Outstanding: 31,001,108
• 10 Day Avg. Volume: 530,894
• 30 Day Avg. Volume: 560,484
• PEG Ratio: 0.59
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.32
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -1.74
• 1Y Price Target: $28.57
• Price Target Upside: 303.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ―

Sagimet Biosciences' overall score reflects substantial financial difficulties marked by persistent losses and reliance on external funding. While technical indicators show short-term bullish momentum, the lack of profitability and negative equity pose significant long-term risks. Valuation metrics further highlight the challenges in viewing this stock as an attractive investment.

Positive Factors

Innovative Drug Pipeline

Sagimet's focus on innovative drug development for liver diseases and cancer positions it well in the biotech industry, potentially leading to breakthrough treatments and partnerships.

Strategic Partnerships

Strategic partnerships could provide financial support and expand market reach, enhancing Sagimet's ability to progress its drug pipeline and achieve regulatory approvals.

Cash Position

A stable cash position provides Sagimet with the necessary resources to continue R&D activities and support its operations, crucial for a clinical-stage biotech company.

Negative Factors

Negative Equity

Negative equity indicates high liabilities relative to assets, suggesting financial instability and potential challenges in securing future funding or investments.

Reliance on External Financing

Dependence on external funding rather than generating cash from operations raises concerns about Sagimet's long-term financial health and sustainability.

Lack of Profitability

Ongoing operational challenges and lack of profitability hinder Sagimet's ability to generate sustainable income, crucial for future growth and stability in the competitive biotech sector.

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 faces significant financial challenges with persistent losses, negative equity, and high leverage. The reliance on external financing over sustainable free cash flow raises concerns about its long-term viability.

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	0.00	0.00	0.00
EBITDA	-60.90M	-45.57M	-30.74M	-31.05M	-23.72M	-11.40M
Net Income	-57.67M	-45.57M	-27.88M	-30.50M	-24.44M	-11.37M
Balance Sheet
Total Assets	128.40M	160.26M	96.72M	33.03M	59.03M	68.96M
Cash, Cash Equivalents and Short-Term Investments	116.69M	151.25M	94.90M	32.34M	56.73M	68.70M
Total Debt	115.00K	78.00K	65.00K	211.00K	348.00K	210.00K
Total Liabilities	9.15M	4.45M	5.65M	219.98M	217.29M	204.87M
Stockholders Equity	119.25M	155.81M	91.06M	-186.95M	-158.26M	-135.91M
Cash Flow
Free Cash Flow	-44.84M	-42.44M	-23.77M	-24.49M	-21.71M	-10.42M
Operating Cash Flow	-44.84M	-42.44M	-23.77M	-24.49M	-21.71M	-10.42M
Investing Cash Flow	48.00K	-61.68M	12.58M	-32.01M	0.00	20.00K
Financing Cash Flow	275.00K	104.82M	86.17M	-73.00K	9.74M	68.89M

Sagimet Biosciences, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 7.08 is below the 20-day moving average (MA) of 7.73, below the 50-day MA of 7.58, and above the 200-day MA of 6.12, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 29.00 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
TRDA	54 Neutral	$385.25M	―	-27.11%	―	-71.42%	-248.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVIR	47 Neutral	$238.29M	―	-37.98%	―	―	14.33%
SGMT	44 Neutral	$219.49M	―	-39.78%	―	―	-38.23%
CDXS	42 Neutral	$143.62M	―	-114.26%	―	-17.87%	14.42%
CABA	39 Underperform	$228.15M	―	-101.06%	―	―	-17.21%
BDTX	33 Underperform	$215.37M	10.42	19.23%	―	―	―